Complete 2 page APA formatted essay: Weekly Business Review #2.Though this strategy means additional costs, the sales made will cover this cost. Nevertheless, according to the customer survey our serv

Complete 2 page APA formatted essay: Weekly Business Review #2.

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