The Broadway Café
Broadway Café is a business entity that has based its operations on teas, coffees, sandwiches that are homemade, a full service bakery, salads and soups. Due to employment of outdated approaches in running the business, such as manual placing of orders, undocumented customers and business records, poorly maintained inventories, wicked marketing coupons and limited communication networks, Broadway Café is faced with operations challenges. Though it was well performing in the 1950s, owing to its strategic location, in this 21st century, it seems to be realizing very low profit (Broadway Café, 2007). In efforts to bring its operations back to life, heighten the profit margins and make it conform to the standards of the current century’s café, various operational and infrastructural transformations have to be institute. These principal areas of concern include reviewing Broadway Café’s competitive advantage, instituting E-business in its operation, upgrading the café’s networks and telecommunications infrastructure. Moreover, campaigns for marketing and promising sales strategies can be instituted through proper management of the customer relations and implementing systems developments.
The above business term refers to that product that a business entity’s customers make a preferably higher value order on as compared to another competing entity offering an equivalent. In assuring operations continuity, businesses have to undertake various enhancements. In this review, methods such as Michael Porter’s Five Forces Model can be called upon. Although Broadway Café happens to be the only shop trading in coffee, Starbucks have a plan to invade the same locality. With the past years’ declining of the operations of the café’s operations, buyer power ought to be considered highly. In addition, the fact that the Starbucks will come with it more competition implies a proportionate increase in the customer’s buyer power. Therefore, in order to contain the buyer’s power to manageable levels, Broadway café is obligated to paint its image more attractively so as to pull more customers and outdo her competitor. Some of the approaches to use in achieving customers’’ loyalty include offering of incentives and rewards to its customers. In so doing, Broadway Café will be tearing up its competitor’s efforts of presenting customers that revisit the latter’s enterprise of coupons and free sample offers.
Due to the higher customer demands, Broadway Café’s supplies would have also increased proportionately thus the Café will be having a chain of suppliers for its products. Due to the varied suppliers, low supplier’s power will be realized. Furthermore, the Café will be in a safer position of choosing the best quality supplies and at the least possible purchase cost. The business-to-business (B2B) market place service will be greatly utilized in acquiring these supplies. The B2B strategy will facilitate the success of private exchanges and reverse auctions between the Café and the sellers (Lowson, 2002). There are various available substitutes for coffee. As a result, Broadway Café is faced with a high threat of substitute for this product and also for the service. However, implementation of cost switching can aid curb this eminent threat. Switching the cost coffee will lead to the customers becoming very unenthusiastic to change to another beverage. In orders to realize this implementation, the Café can avail savings card that has the ability to compute points geared towards anytime redeemable free purchase.
With the ability of ease trading in coffee business by anybody, threats of new entrants are relatively towering. Surprisingly, coffee is even present in most restaurants’ and fast food chain’s breakfast menus. Broadway Café faces difficulties in meeting its customers’ demands since entering businesses like the Starbucks are aimed at first boosting its sales. Moreover, rivalry among these two entities that are competing tends to be high since each is devoted to attain customer loyalty through reward programs thus not only maintaining the already existing ones but also attracting new customers. In pursuit of rebuilding the Café to be conformant to the 21st century standards, integration of the aspects highlighted on the buyer’s power, supplier’s power and consideration of the threat of substitute product or service has to be implemented.
E-business facilitates a business’ penetration to new geographical locations and its global reach expanse thus making more sales. This internet-based strategy can be put in place to attract more customers since they can make their orders online from a kiosk and wireless hotspot especially during the rush hours. These kiosks will aid in providing the competitive advantage over other cafes and shops. Additionally, more youths who are fond of using the internet, their internet-activated iphones and blackberries will be drawn to Broadway café. In the Café, e-business will aid it in the launching of new products coupons and deals thus customers will have access to the coffee prices and other products. In ensuring privacy of information, relevant protocols, privacy policies, SPAM emails and other security measure will be incorporated (Kontzer, 2004). Moreover, to ease the process of finding products by customers, installation of search engines will be ensured. Customer satisfaction is vital for every business. As a result, provisions for discussion boards, feedbacks and responses will be made on the Café’s website to ensure customer’s can enquire from , place orders, make suggestions and access the café ‘s product and menus at any time.
Networks and Telecommunications
In the development of marketing strategies that are considered to be innovative, the internet is highly employed. For data transmissions to both private and public networks, telecommunication systems have to be well developed and activated. These modern networking infrastructures have proved to be beneficial to businesses since they facilitate varieties of wireless global connections of businesses with their clients and customers. In devoted efforts to reach to its mobile customers, the Café has also become mobile through the use of the Mobile coupons (m-coupons). This will assure the entity’s operations expanse. M-coupons refer to on-the- spot recovery vouchers received by customers for walking in the Café’. They are characterized by their ready availability for use by the customers since they are stored in their cell phones which they always carry with them, thus giving them an advantageous edge over traditional paper coupons (Knight, 2008). Additionally, mobile market using m-coupons foster the redemption rate and customer base more than the traditional ones. However, both mobile marketing and m-coupons poses some perils that can not go unnoticed. For instance, both are faced with the issues of privacy since they are internet-based. Besides, protocols, SPAM e-mails, privacy policies and disclosure have to be refurbished to make them usable with cell phones. Hardships are also present in the collecting of information that is personal and individualized, tracing wireless website visits and collecting customers’ information about their varied locations.
M-coupon response rates collection and tracking will be beneficial to the Café since it will be in a position to analyze not only its customers’ information, but also enable the evaluation of the business. For instance, m-coupon cluster analysis will help in the marketing regular- customer and one-time customer goods. Also, this obtained information will be used in association detection analysis; thus the relationship between nature and frequency of various variables will be shown. M-coupon information will additionally help carry out statistical analysis on the distribution, correlations and variance analyses of the Café’s products. Since it matters less who receives the m-coupons, forwarding them to other cell phones will be benefiting the Café since its customer base will be growing each moment the m-coupon is forwarded.
Customer Relationship Management (CRM)
Organizations get to achieve customer loyalty, retention and organizational profitability through proper managing of all aspects that are customer related. Therefore, the business has to meet its customer’s specific needs. By employing the Recency, Frequency and monetary (RFM) value model, businesses can comfortably identify its customers that are most valuable to it. CRM information plays a pivotal role in determining marketing patterns and campaigns and business sales promotionally services. Since the café deals in tangible perishable goods, it would be of no advantage to buy a real estate in Second Life for the same. Second Life is used for hangouts relaxations and social bonding while a café is specific for a selling culture. Moreover, unlike cafes, Second Life operates at night. Huge problems are also evident in Second Life staffing. Therefore, they ought to provide, music and free virtual coffee to visiting customers. To ensure that customer come to the real life sites, the café has to make advertisement s in the Second life localities since anybody can pay a visit to them (Krangel, 2008). In its effort to maintain the existing customers, attracting new ones and realizing perfect job execution, the Café has to observe acceptable business ethics, for instance, performance-based incentive programs. Organizations’ employees also need recognition and conducive work environment. The café’s management has a plan to boost its employees’ morale by rewarding them and reinstating them to aim at satisfying the customers. Moreover, devoted employees will earn some bonuses.
Due to the persistent technological growth, upgrading of the Broadway café’s manual systems to computer-based management systems is vital. This will also help in backing up the entity’s database. Fortunately, Nick Zele offered to aid the café develop a timesheet supply chain management system. This will aid in increasing the cafes profits since in-housing application building costs are low. However, it is risks to use Nick since his program may have bugs that may lead to the total los of the café’s database. Moreover, he might not be always available for help in cases of program complications. On the other hand, COTS product would be utilized since support is guaranteed (Munk, 2006). It has documentation and help options that are essential to the employees. Moreover, support from the software vendors is available all day long. The shortcoming of COTS, however, is that they are customized and as a result may not meet the café’s specific IT needs. This customization will lead to more complications of the software.
Concisely, although essential, time-keeping system will pose a challenge and be stressful to the older employees who are computer illiterate. Consequently, it will take long for them to learn how to enter information in the electronic database. Persuasions and highlighting to them the cost saving benefits associated with this technology will entice them to embracing it since they are in pursuit of the café’s success.
Knight, K. (2008). Timing is Everything with MCoupons. Retrieved on 7 August 2010 from http://www.bizreport.com/2008/11/timing_is_everything_with_mcoupons.html#
Kontzer, T. (2004). Pancake Chain Adopts E-Business. Retrieved on 7 August 2010 from http://www.informationweek.com/news/software/enterpriseapps/showArticle.jhtml?articleID=20900150
Krangel, E. (2008). Real Estate Crashes in Second Life, Too: Linden Lab’s Bailout Plan Retrieved on 7 August 2010 from http://www.alleyinsider.com/2008/10/linden-lab-s-survival-plan-spike-second-life-user-fees
Lowson, R. (2002). Strategic Operations Management: The New Competitive Advantage. London: Routledge
Munk, S. (2006). A Word about Rapid application Development Tools. Retrieved on 7 August 2010 from http://it.toolbox.com/blogs/smunk/a-word-about-rapid-application-development-tools-10351
The Broadway Café. (2007). Retrieved on 7 August 2010 from www.cohesioncase.com