Assignment 2 Build or Buy

Build or Buy: Starbucks Food Shop

REGINA S RUDOLPH

Strayer University

July 31, 2017

Small business Startup Strategy

The business is the Starbucks that will be offering high quality coffee diversities with specialized customer care services. The business will offer whole bean, Enriched Verismos and Verismos pod coffee. The development and provision of the high quality kinds of coffee with customized customer care services, will be the best competitive strategy which will help navigate the barriers in the beverage industry (Lechner & Gudmundsson, 2014; Drucker, 2017).

Menu and customer services

The initial coffee shop offer the same kind of the products but does not have customized customer care services that can deliver doorstep delivery of coffee at offices and does not offer enriched lemon coffee drink. It also offers other foods like pastries, tea and soft drinks only. To compete favorably, my new business will introduce other food menus for lunch and supper servings that are rich and of high quality. This will ensure it is serving a larger customer market niche. The lunch foods will be salads, sea food, soups, beef, corn meal, potato dishes and wheat fires. The supper will include dishes like the corn dishes, chicken, beef dishes, rice stews, and green grams and beans stews.

Building and Floor layout

The business floor plan will include the food rail leading customer cares tool to help the customers in identifying their preferred setting place as they identify their menu. Small sample menu will be on the table in wonderful colored and sealed plates. A large colored menu will also be put on the four corner walls of the hall in a strategic position with simple guidance on the inclusive food kinds in the menu (Hatten, 2015). The big menu will make it possible for customers to read easily and identify their menu in real time. It will have picturesque of the food described in the background and the bound of a natural environment which will add the serene feeling of comfort to the customers while they make their orders and enjoy them. The building will have many windows for proper ventilation and large doors to ease congestion with fluorescent light installed for adequate lighting. Neon light for business advertisement will at the boor. The walls and flour will be kept clean throughout with standby cleaner. Sources of clean water (hot and cold) will be provided in a water dispenser strategically placed for ease access of the customers. Ordering and payment counter will be placed closer to the entrance far from customers enjoying their meals so that interference is minimized. A low music system will be installed in the corners of the hall so that customers may enjoy news flow and other music entertainment as they enjoy their meals (Drucker, 2017).

Location

The business will be cited in the city center some distance from the existing coffee shops. It will be on a busy highway with high density of the residents and shopping malls. This will provide high population that will form the market of the beverage shop. The place will be well light with public floodlight so that 24/7 services can be offered. The business will also have a spacious park for parking with clean customer sidewalks.

Staff and other services

The business will employ highly qualified flexible and presentable staff with experience in busy restaurants, to ensure the quality of the meals prepared are of high quality. The staff will also be in a mild colored uniform that will enable the customers to easily identify them. All currencies will be acceptable are the daily exchange rates and the balances from their pay offered accurately. Take home services will also be offered to customers on request and sell of ingredients. The customers will be receipted with official stamped receipts that have contacts and postal address. The business will also offer outside catering services so that its reputation is lifted up in the region.

Buy or Build

It will be appropriate to build the business rather buy the already existing one. This is because, shopping for a business with the building and floor layout of desire and the location of the building in the place of desire will not be easy. It may be little bit inconveniencing to buy a business and state to renovate it in the form of the layout desired choice. It will need property own permission and other legal requirements from the planning department of the city. It will be ease to construct from scratch because it will give room for the structures desired without repair and modifications.

Entrepreneurship type

The business will be a partnership form of business with in which the three partners will be my school mates Dave and Holwer and I. the business will start initially with them on board already. Other may join later but this kind will not allow more than 5 partners. The partners will contribute equal share of capital and additional capital added after one year depending on the partners’ goal of shareholding. The benefits and liabilities will be shared equally as at the beginning but after one year, sharing will be to the ratio of capital contribution.

Business Ethics

The business will run 24/7 hours and the staff serve on shifts. It will maintain a good and positive relationship with the customers and the environment. It will also take part in charity services to the society and conserve environment by proper disposal of its wastes. It will also be appropriate to build a new business so that the partners can control their finances fully and achieve their desired design with the finances they have. Buying a business may also come with the previous reputation in which case may down play the new management. This will require extensive advertisement and creation of the new image in the market which may take long than thought. The impact may be felt only if the reputation was mendable and that new markets were accessed. A new business do not have this challenges because they will be dealing with a totally new market and so it is easy to convince a new market than to do the existing damaged market. Buying the existing business will also pose the challenge of expansion for paving way the parking and construction of the sidewalks.

Social responsibility in managing a successful small business

The business will ensure that the relationship between the business staff and the customers is positive. This will ensure its public reputation and customer loyalty is positive and long lasting. The business will have to source for high quality and diverse products to fit all the customers’ needs. The pricing will be customer focused avoiding over-pricing (McKeever, 2016).

Business Plan

Business will be a coffee shop and other subsidiary lunch and supper meals. It shall be called the Starbucks shop that shall be situated in the city center along a busy highway with heavy population and business activities. It will offer high quality and affordable meals with extended services like home take-away and outside catering. The interior arrangements and the hospitality of the staff coupled with the high quality services at real time speed, convenience of the shop to the population with ample parking space makes the business unique from the competitors. The business environment is also cool with serene outside environment and interior cool colors appeal t the customers. The investment in cooking structures and equipment give it upper hand over the competitors since meals are availed at request from the reserve while still hot for service. The entertainment in the hall make it conducive for the customers’. Availability of the Wi-Fi hot sport to the customers’ also make it attract internet users who would be interacting with friends as they enjoy their meals (McKeever, 2016).

Business vision

The vision of the business will be to provide all the customers with high quality refresher meals at the fordable prices and conveniently at all time. It will be intended that the kinds of the populations seeking meals will find it at the roof (McKeever, 2016).

Reason for the business

Food business in the area is a high fetching business for the city business people and visitors with an urge to quench a hunger. It is ease to start and run requiring few legal documentation and running experience. It is also a service industry in the post essential needed services that are needed with everyone in the community especially towns where the populations depend on the food shops.

Customer of the business

The business will venture into the new markets of people visiting the town for various reason and the business community in town. The other catch of customers will be the employees and worker in the informal sectors and students in the school around.

Products and services

The business will offer kinds of enriched coffee beverages, drinking water, soft drinks, and soups from chicken and beef, milk food products, pastries, corn cakes and fired meet and chicken. The business will offer home take-away packed meals on request and outside catering services to the populations around during their events like birthdays, and other celebrations.

Growth projection

The business will start and run for six months offering coffee, soups and simple fresher meals. It will then expand its services to lunch and supper meals up to evening only. With the growth and expansion demands, the business will start offering night shift meals. This will demand extra staff and input. The stock will be increased and the marketing modes intensified.

Business goals

Personal goals: achieve a high reputable food shop and profit making food shop.

Short-term goal:

The business will aim at providing coffee and breakfast meals to the business and city employees.

Provide lunch and supper meals for the business workers and town visitors.

Long-term goal:

Provide supper and night refresher meals for the nightshift worker in the city.

Opens chains of profit making food shops in the city of the population.

The business should offer thousands of employment opportunities to the city dwellers.

Customer satisfaction level

The business will want to ensure the customers are satisfied to the level of creating a business customer loyalty. It will aim at satisfying the visitors with their traditional or customary meals and new designs of the current cookies in the market. Carry out market research to ensure that the business meets the desires of the customers as are done elsewhere but diversify the range of products. However, the major preferences of the customers will be focused on.

Customer perceptions

The business will aim at creating a prompt service delivery image that will aim at increasing the customer catch. The business will also diversify its market by using acceptable advertising modes that compete favorably in the market. The business intend to also make its payments to suppliers on time and pay the workers rewardingly and as per the terms without breach. This will also contribute to the positive customer image and positive interaction between the customers and the staff which will result to high sales thus high profits. The business will be contributing to the social responsibilities of the staff and also improve on the staff and management interaction (Kusumaningrum & Hidayat, 2016).

References

Drucker, P. F. (2017). The Theory of the Business (Harvard Business Review Classics). Harvard Business Press.

Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Nelson Education.

Kusumaningrum, I., & Hidayat, H. (2016). Learning Outcomes in Vocational Education: A Business Plan Development by Production-Based Learning Model Approach. International Journal of Environmental and Science Education, 11(18), 11917-11930.

Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36-60.

McKeever, M. (2016). How to write a business plan. Nolo.