Weekly Business Review #2 - Essay Example

Running head: BizCafe Business Review Insert Insert Insert 19 August BizCafe Business Review Weekly reviewNever Enough Café is performing fairly, according to the weekly business review. First, according to the local labor repots, it is clear that customer satisfaction has risen to 57%, which is a fair percentage considering the industry percentage is at 63%. However, customer suggestion boxes indicate that lines are longer, and this could be a disadvantage to a business, as some customers result to giving up on waiting thus preferring another café.

Therefore, the management has added one more server in order to reduce the long queues, thus keep all customers. Though this strategy means additional costs, the sales made will cover this cost. Nevertheless, according to the customer survey our services are good, so is our coffee, and our prices are rated as fair. Therefore, the management decision to adopt the cost leadership strategy is worth. According to Kazmi (2008, p.225), when a business adopts the cost leadership strategy, it automatically achieves differentiation in its services, in relation to price.

The management has decided not to add on any extra costs in advertising, thus sticking to the previous mode of advertising in order to reduce additional costs. The daily receipt indicates that 1500 cups are being served on a weekly basis resulting to $4,055 in cash. We would like to increase the amount of coffee being served, and the hiring of an additional server to assist in serving all the customers will increase our sales. The local labor reports states that the average turnover rate has risen to 14% as compared to the previous week, which was at 12%.

This could be due to workload and demotivation, thus, hiring an extra server is a great move. The management’s decision of not allowing any waste of coffee saves on costs incurred. In addition, the decision of not relying on fair trade advertising is a wise decision, as the newspapers have already advertised, hence saving on costs. Nevertheless, we have decided to replace light bulbs for $100 as a green initiative, other than replacing toilet, which would cost $600. The café business is faced by the challenge of long queues, which is viewed as an advantage in some businesses but which could also limit the number of customers due to the time factor.

In order to curb this problem, an additional server will be hired but time will tell. Nevertheless, the café needs to make more profits and as a result, there is need to increase on sales. Therefore, with time, the management may result to increasing the small cup of coffee by a dollar to amount to $3 while the medium cup price rises to $3.50. This will remain a fair price to our customers.A good business puts its customer’ interests first. To keep our customers entertained as the queue for the coffees, we have decided to introduce a comedy video on the television, which will keep their minds occupied hence not focusing on the time issue.

Indeed, the management aims at keeping the café’s strengths intact, in order to attract and retain its customers. A customer is the most valued asset in a business, as a business depends entirely on him. Therefore, it is important for our business to meet the needs of a customer; however, failure of this will lead to the option of our competitors (Allen, 2004 p116). Repeat buying from a customer shows satisfaction, and when a customer’s needs are met, he markets the business to his colleagues by encouraging them to make their purchase in a particular business.

ReferencesAllen, D. (2004). Customer satisfaction research management: a comprehensive guide to integrating customer loyalty and satisfaction metrics in the management of complex organizations. ASQ Quality Press Publishers. Retrieved from: http://books.google.co.uk/books?id=fgwITqECenoC&pg=PA115&dq=customer+satisfaction+in+business&hl=en&ei=dCZOTtnXKMbrOafKtYAH&sa=X&oi=book_result&ct=result&resnum=2&ved=0CD0Q6AEwAQ#v=onepage&q=customer%20satisfaction%20in%20business&f=true.Kazmi. (2008). Strategic Management and Business Policy.

Edition 3. Tata McGraw-Hill Education Publisher. Retrieved from: http://books.google.co.uk/books?id=J8YGhhK5keUC&pg=PA255&dq=cost+leadership+and+differentiation&hl=en&ei=2SdOTpO_MoHsOZ3UvNsG&sa=X&oi=book_result&ct=result&resnum=3&ved=0CDkQ6AEwAg#v=onepage&q=cost%20leadership%20and%20differentiation&f=true.