Essay PreviewMore ↓
As strategy consultants of McCormick & Associates, we use Porters Five Forces Model as a framework when making a qualitative evaluation of a firm's strategic position (Appendix 1.2). These five forces determine the competitive intensity and therefore attractiveness of a market. These forces affect the ability of a company to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the market place.
Bargaining Power of Customers
Is high when buyers have many choices of whom to buy from and low when the choices are few. By offering your customers high quality fresh food, they will come to your café instead of your competitors. One way to reduce buyer power is to implement Loyalty Programs. A Loyalty Program that can be implemented in the Broadway Café is to have a customer purchase card. Every time a customer makes a purchase, this card gets "stamped" and after 7 purchases of a sandwich, their 8th one is free or 50% off.
Bargaining Power of Suppliers
The Broadway Café will want its supplier power to be low. The Café should seek out and search suppliers that will offer the lowest price. Since there are many suppliers of basic commodities (e.g., flour, sugar, bread) they all will be vying for your business. A private exchange or a reverse auction could be done in order for you to get the best possible price from your suppliers.
Threat of Substitute Products
Ideally, you would like to be in a market where there are few substitutes for the product or service you offer. It is true that a potential customer can ultimately make their own sandwich or cup of coffee. Yet do these customers have the time and resources to do it? Most likely this will not be the case. The Café can reduce the threat of substitute products by lowering its switching costs. Customers may be more reluctant to switch to a different product if the competitors sandwiches are not as fresh or homemade. Customers place a higher value on fresh, homemade breads and ingredients.
Threat of New Entrants
In your industry, an entry barrier is to provide customers with high quality, fresh, homemade products. With the surge of the health craze, more people are likely to go to a Café type establishment, than go to a fast food restaurant. Health-conscious customers have come to know and expect this from any café/restaurant trying to enter this market.
How to Cite this Page
"Broadway Café Case Study." 123HelpMe.com. 25 May 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Case Study: Effective Managerial Leadership The successful implementation of a public policy to solve a social problem will greatly depend on the abilities of a public administrator. Furthermore, numerous case studies can show examples of how a successful public agency administrator can achieve goals through dedication and commitment. The following discussion will present a thorough analysis of main political, social, and economic forces that affected Dr. Gayle in establishing legislation to fight the AIDS epidemic as is presented in the case study Managing Across Boundaries: A Case Study of Dr.... [tags: Case Study]
1201 words (3.4 pages)
- Case Study: A thirty six year old male has developed severe muscle weakness throughout the body. The condition began fifteen months ago with a left foot drop and within a year, he described difficulty with speech and swallowing, muscle twitching and cramping, and muscular atrophy throughout the upper and lower limbs. Within the last two months, his breathing has become more difficult, and there has been a noticeable difference in his voice. Prior to the fifteen months, he presented little to no symptoms.... [tags: Case Study]
1519 words (4.3 pages)
- Foxconn: Impact of globalization on labor conditions. Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. Foxconn is a major equipment manufacturer supplier to electronics giants like Blackberry, Apple, Microsoft Xbox, Sony PlayStation and the Nintendo Wii. The internet has several articles and controversies regarding the deplorable worker conditions and cases of suicides by the workers.... [tags: Foxconn Case Study]
2511 words (7.2 pages)
- Leaders in the school have hard decisions to help make on a daily basis. They need to evaluate their decisions to make sure they are ethical and effective. Administrators need to listen to all sides of a situation and evaluate all options before they make a decision. This process is difficult because administrators need to make sure that all parties involved are satisfied with the decision that was formed. The Requested Change case study In the case study with Principal Miller, he had to make a decision to change the instruction program or to keep it.... [tags: Decision Making Case Study]
1523 words (4.4 pages)
- The case study that I will be looking at in this assignment is case study 2. This relates to Niamh and her partner who are pregnant with their second child. Their daughter from the previous pregnancy is now four years old, but the memories of the birth have caused anxiety to linger with them as they found it to be very traumatic. They are both very excited and happy to be pregnant again and are looking forward to the arrival of their second child. However, they both have very differing views on the delivery.... [tags: Psychology Case Study]
1457 words (4.2 pages)
- Course: International Business Management Activity: Case Study Company: PUMA |1924: |Rudolf and Adolf Dassler incorporate their first shoe company. | |1948: |Rudolf Dassler sets up his own company Puma Schuhfabrik Rudolf Dassler. | |1950: |Puma had established export ties to the United States, | |1959: |Rudolf Dassler's wife and two sons become part owners of the Puma Sportschuhfabriken Rudolf Dassler KG.... [tags: Business Case Study]
1746 words (5 pages)
- Critical Thinking Case Study Chris had just been promoted as an Executive Assistant for Pat the CEO, Chief Executive Officer, of Faith Community Hospital. Pat had given Chris her very first assignment on her first day of work as an executive assistant and that was to gather information so that Pat can present the issues to the board of directors.... [tags: Business, Case Study, solution]
1794 words (5.1 pages)
- Symptoms of Problems at Texaco Identification of Root Problems and Unresolved Issues Highly qualified African-American employees filed a class action suit against Texaco in 1994, stating that the company failed to promote African-American employees to a higher position and it failed to compensate them in relation to Caucasian employees in similar positions. Throughout the investigation of Texaco if was found that documents would potentially damage Texaco were being withheld. When secret tape recordings from Texaco executives revealed not only vilely insensitive racial attitudes but it also demonstrated the eagerness of the executives to withhold any and all sensitive internal documents per... [tags: Business Case Study]
995 words (2.8 pages)
- Introduction Since its' 1992 IPO, Starbucks has continually focused on growth. Initially, the growth was targeted to enable Starbucks to achieve their goal of becoming the leading North American retailer of specialty coffee. The early success they achieved resulted in Starbucks expanding their original goal to that of becoming the most recognized and respected coffee brand in the world. By way of example, this case study focuses on a request by McDonalds to serve Starbucks coffee at its' restaurants in order to discuss the marketing strategy and the underlying competitive premise that Starbucks has adopted to achieve both of their goals.... [tags: Business Case Study]
1449 words (4.1 pages)
- WAL-MART CASE STUDY WAL-MART CASE ANALYSIS Impressions Wal-Mart is a company that leads its industry in numerous areas. The areas which impress are the accomplishments the company has made. “About 140 million people in 11 countries shopped at Wal-Mart …every week. More than half of American shoppers visited Wal-Mart at least once a month…an estimated 82 percent at American households have made at least one purchase at Wal-Mart” (Bianco, Zellner, 2003). Less impressive is the company being involved in over 6000 active lawsuits and what seems to be a proven track record of forcing out smaller business in the areas it locates to, putting many people out of work.... [tags: Business Case Study]
865 words (2.5 pages)
Rivalry among Existing Competitors
In most industries, competition is fierce. It's always important to look at your competitors. We have established that your biggest competitors in this industry are: Starbucks, Atlanta Bread Co., Panera Bread, Subway and Dunkin Donuts. All of these competitors offer the same type of products that your Café does. Since these are well-known establishments, it is always best to analyze their trends and movements in the market. Companies that do well are always the one to model your business after.
A competitive advantage is a position that a firm occupies in its competitive environment. A company is said to have a competitive advantage over its rivals when its profitability is greater than the average profitability of all other companies competing for the same set of customers. It also means when customers place a greater value on your product or service than your competitors. A company must not only have a competitive advantage (CA), but a sustainable competitive advantage. Firm posses a sustainable competitive advantage (SCA) when it has value-creating processes (products & services) that cannot be duplicated or imitated by other firms which lead to above normal profits. A SCA is more than a CA, because it provides a long-term advantage that is not easily replicated. This is also known as a core competency. To be sustainable the advantage must be 1) Distinctive and 2) Proprietary. Competitive advantages vary from situation to situation. They can be divided into 4 main areas:
1. Cost: Low Cost Operations
2. Quality: High Quality, Consistent Quality
3. Time: Delivery Speed, On-Time delivery, Development Speed
4. Flexibility: Customization, Volume Flexibility, Variety
Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantages (Appendix 1.1). The four strategies relate to the extent to which the scope of business activities are narrow versus broad and the extent to which a business seeks to differentiate its products. The differentiation and cost leadership strategies seek competitive advantage in a broad range of market industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. The Broadway Café would fall into the strategy of Cost Leadership. With this strategy the objective is to become the lowest-cost producer in the industry, with the emphasis being placed on minimizing costs. If the achieved selling price can at least equal (or near) the average for the market, then the lowest cost producer will (in theory) enjoy the best profits. The Broadway Café will benefit from identifying and implementing a competitive advantage over its competitors. This will lead to increased sales and customer retention.
Since there has been no analysis of your business and where it stands in the market today, we need to take a look at the environment to keep your business afloat and profitable at the same time. As discussed earlier, in order to gain a CA, the four main areas to focus on are Cost, Quality, Time and Flexibility.
The Broadway Café can gain a competitive advantage over its competitors by bringing down the cost of its operations. You will want to operate at a low-cost, so that your revenue will exceed your expenses. Some cost cutting techniques would be to buy in bulk for your ingredients to your sandwiches and breads. Buy in bulk for "basic" ingredients, such as sugar, flour, salt and soup mix (i.e. non-perishable items). This will definitely be a cost-saving mechanism. It is always cheaper to buy in bulk. Obtaining a Sams, BJ's, or Costco card would be beneficial to your Café. Another cost-cutting technique is when you have slow-days or non-busy hours, you can limit the amount of employees that you have to cut down on the salary expenses. This can be one person at the cash and another one in the back making the orders.
Customers appreciate good quality items. Once you display to your customers that you have a consistent high quality item, they will keep coming back and choose your product over your competitors. In offering specialized coffees, teas and a full service bakery, the Broadway Café should focus on premium ingredients. Product quality goes a long way in increasing profits, while having repeat and loyal customers.
Once you get into the swing of your business, you can start to eliminate inefficiencies and decrease the wait time for customers placing orders. Looking at the time it takes to make certain sandwiches and breads will decrease the customer wait times. Customers want their products & services quicker. They are always on the go. This is known as hyper competition. Most customers will be either on their way to work (in the morning) or on their lunch break (in the afternoon), so time is of the essence.
All organizations should always be open to change. Since McCormick & Associates has taken over the task of analyzing your company, you have taken the first step in changing the way your business has been done in the past. With the new systems in place, strategies to guide you to the next level, you've shown that being flexible will pay off in the end.
This last competitive advantage is in addition to the four that was previously discussed. In stating "people" as a CA, we mean employees. Without good, hard-working employees your business will not survive. Retaining good talent is key in this business. You should make your employees a priority. Rewarding good behavior, ex. Employee of The Month, paid day off or 50% discount on the food from the café. These are just some of the ways that employees can feel that they are appreciated. They will in turn produce to the best of their capabilities, which can only lead to increased sales and therefore profit.
Business Intelligence is a process for increasing the competitive advantage of a business by intelligent use of available data in decision making. This process is pictured below.
The five key stages of Business Intelligence:
1. Data Sourcing
2. Data Analysis
3. Situation Awareness
4. Risk Assessment
5. Decision Support
Extracting electronic information from text documents, databases, images, media files and web pages.
Synthesizing useful knowledge from collected data using data mining, text understanding and image analysis techniques.
Linking the useful facts and inferences and filtering out irrelevant information.
Identifying reasonable decisions or courses of action based on the expectation of risk and reward.
Employing semi-interactive software to identify good decisions and strategies.
Business Intelligence is about extracting information from multiple sources of data. The data might be: text documents - e.g. memos or reports or email messages; photographs and images; sounds; formatted tables; web pages and URL lists. The key to data sourcing is to obtain the information in electronic form. Typical sources of data might include: scanners; digital cameras; database queries; web searches; computer file access; etcetera.
Business Intelligence is about synthesizing useful knowledge from collections of data. It is about estimating current trends, integrating and summarizing disparate information, validating models of understanding, and predicting missing information or future trends. This process of data analysis is also called data mining or knowledge discovery. Typical analysis tools might use:
probability theory - e.g. classification, clustering and Bayesian networks;
statistical methods - e.g. regression;
operations research - e.g. queuing and scheduling;
Artificial intelligence - e.g. neural networks and fuzzy logic.
Business Intelligence is about filtering out irrelevant information, and setting the remaining information in the context of the business and its environment. The user needs the key items of information relevant to his or her needs, and summaries that are syntheses of all the relevant data (market forces, government policy etc.). Situation awareness is the grasp of the context in which to understand and make decisions. Algorithms for situation assessment provide such syntheses automatically.
Business Intelligence is about discovering what plausible actions might be taken, or decisions made, at different times. It is about helping you weigh up the current and future risk, cost or benefit of taking one action over another, or making one decision versus another. It is about inferring and summarizing your best options or choices.
Business Intelligence is about using information wisely. It aims to provide warning you of important events, such as takeovers, market changes, and poor staff performance, so that you can take preventative steps. It seeks to help you analyze and make better business decisions, to improve sales or customer satisfaction or staff morale. It presents the information you need, when you need it.
Business Intelligence in the Broadway Café
Although Business Intelligence is an expensive business tool and mostly used in bigger companies and in the corporate industry, the Broadway Café can also use it in the process of its business upgrade. When the goal of this upgrade is to bring the Café from past times to a modern business environment that can compete with other competitors who use all kinds of modern facilities to reach today's customer expectations. In fulfilling this goal of an upgraded system, it can use a part-time business expert who will aid in this process when deemed necessary. As explained above, according to this process, the expert will follow the five chronological task,