This document provides a business plan for establishing an affordable coffee shop chain in Shanghai, China. It begins with an overview of the booming Chinese coffee market and current consumption trends. Most coffee houses currently follow a differentiation strategy focused on luxury, while there is demand for reasonably priced fresh coffee available more regularly. The business plan proposes developing a coffee shop chain utilizing a low-cost strategy to offer affordable fresh coffee as a daily drink in China's largest city, Shanghai.
NUR SYAHIRA ISBN-paper proceeding UNITENSyahira Abd
This document discusses market orientation and its relationship to commercializing university research products in Malaysia. It begins with an introduction to the topic and importance of commercializing university research. It then reviews literature on market orientation, including its dimensions of customer orientation, competitor orientation, and inter-functional coordination. It proposes that higher levels of market orientation will lead to higher rates of commercializing university research products. The document presents a conceptual framework and hypotheses relating market orientation and its dimensions to commercialization. It describes the methodology as a quantitative study that will survey 354 researchers from 5 research universities in Malaysia.
This document summarizes a study that investigated the dominant types of strategic orientation among telecommunication firms in Nigeria. The study identified technological orientation and market orientation as the two main strategic orientations. A survey was conducted of 123 employees across the major telecommunication firms in Nigeria, with 98 responses analyzed. The results indicated that while both orientations are moderately demonstrated, the firms exhibit a stronger market orientation compared to a technological orientation. The study suggested future research should use a longitudinal design and compare the extent of implementing strategic orientations among companies.
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
Increasing the competition between organizations in the field of productions and services leads them to use the samples and patterns to assess their activities and performance. Appearing this kind of needs and inefficiency of measuring systems with traditional activities assessment causes to create new models of activities assessment in organizations. These models could be divided in two groups. The first group is based on self assessment and the second group is based on measurement and improvement of business trade process. Among mentioned models, Balanced score Card (BSC) and European Foundation for Quality Management (EFQM) have had more chance to be used by many companies. Regarding the high acceptance of these two models in the world and existence many similarities between them; this study is going to present exact glance of these two models and present a comparison between them. Moreover, after recognizing the weaknesses and powers of them, the possibility of using them at the same time will be evaluated. In order to gain this goal, an automobile company’s performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
A framework for the analysis of interview data from multiple field research s...Afzaal Ali
Anne Lillis is a Professor of Management Accounting and Head Department of Accounting and Finance, University of Melbourne, Melbourne, Victoria, Australia.
Improvement of Business Performance through Entrepreneurial Orientationijtsrd
Entrepreneurial orientation is important factors needed by small and medium enterprises SMEs to face environmental challenges in a dynamic and competitive business world achieve business performance. This study aims to examine the effect of entrepreneurial orientation on business performance. The research sample of 117 culinary SMEs. Data was collected through a survey by distributing questionnaires and documentation. Data analysis techniques using structural equation modeling with the Partial Least Square PLS approach. The results showed that of entrepreneurial orientation had a significant positive effect on business. Asmawiyah | Afiah Mukhtar | Andi Rifqah Purnama Alam "Improvement of Business Performance through Entrepreneurial Orientation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd35740.pdf Paper Url: https://www.ijtsrd.com/management/randd-management/35740/improvement-of-business-performance-through-entrepreneurial-orientation/asmawiyah
1. This document provides an overview of the AL Business Studies 9707 unit on strategic management. It discusses key concepts such as strategic analysis, choice, and implementation.
2. Suggested teaching activities are provided for each learning outcome, including using case studies, models like SWOT and Porter's Five Forces, and exercises analyzing companies' strategies. Local businesses could provide real-world examples.
3. Numerous online resources are referenced that define strategies, analyze examples, and provide templates for tools like SWOT, PESTLE, mission statements, and more. These can help explain concepts and techniques for strategic analysis, choice, and leading strategic change.
The document discusses strategic planning and marketing plans. It covers developing marketing strategies at different organizational levels, from corporate strategic planning down to business unit and product planning. Key aspects of strategic planning discussed include defining the corporate mission and strategic business units, assessing growth opportunities, and developing goals and strategies. The document also addresses the components and levels of a formal marketing plan.
NUR SYAHIRA ISBN-paper proceeding UNITENSyahira Abd
This document discusses market orientation and its relationship to commercializing university research products in Malaysia. It begins with an introduction to the topic and importance of commercializing university research. It then reviews literature on market orientation, including its dimensions of customer orientation, competitor orientation, and inter-functional coordination. It proposes that higher levels of market orientation will lead to higher rates of commercializing university research products. The document presents a conceptual framework and hypotheses relating market orientation and its dimensions to commercialization. It describes the methodology as a quantitative study that will survey 354 researchers from 5 research universities in Malaysia.
This document summarizes a study that investigated the dominant types of strategic orientation among telecommunication firms in Nigeria. The study identified technological orientation and market orientation as the two main strategic orientations. A survey was conducted of 123 employees across the major telecommunication firms in Nigeria, with 98 responses analyzed. The results indicated that while both orientations are moderately demonstrated, the firms exhibit a stronger market orientation compared to a technological orientation. The study suggested future research should use a longitudinal design and compare the extent of implementing strategic orientations among companies.
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
Increasing the competition between organizations in the field of productions and services leads them to use the samples and patterns to assess their activities and performance. Appearing this kind of needs and inefficiency of measuring systems with traditional activities assessment causes to create new models of activities assessment in organizations. These models could be divided in two groups. The first group is based on self assessment and the second group is based on measurement and improvement of business trade process. Among mentioned models, Balanced score Card (BSC) and European Foundation for Quality Management (EFQM) have had more chance to be used by many companies. Regarding the high acceptance of these two models in the world and existence many similarities between them; this study is going to present exact glance of these two models and present a comparison between them. Moreover, after recognizing the weaknesses and powers of them, the possibility of using them at the same time will be evaluated. In order to gain this goal, an automobile company’s performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
A framework for the analysis of interview data from multiple field research s...Afzaal Ali
Anne Lillis is a Professor of Management Accounting and Head Department of Accounting and Finance, University of Melbourne, Melbourne, Victoria, Australia.
Improvement of Business Performance through Entrepreneurial Orientationijtsrd
Entrepreneurial orientation is important factors needed by small and medium enterprises SMEs to face environmental challenges in a dynamic and competitive business world achieve business performance. This study aims to examine the effect of entrepreneurial orientation on business performance. The research sample of 117 culinary SMEs. Data was collected through a survey by distributing questionnaires and documentation. Data analysis techniques using structural equation modeling with the Partial Least Square PLS approach. The results showed that of entrepreneurial orientation had a significant positive effect on business. Asmawiyah | Afiah Mukhtar | Andi Rifqah Purnama Alam "Improvement of Business Performance through Entrepreneurial Orientation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd35740.pdf Paper Url: https://www.ijtsrd.com/management/randd-management/35740/improvement-of-business-performance-through-entrepreneurial-orientation/asmawiyah
1. This document provides an overview of the AL Business Studies 9707 unit on strategic management. It discusses key concepts such as strategic analysis, choice, and implementation.
2. Suggested teaching activities are provided for each learning outcome, including using case studies, models like SWOT and Porter's Five Forces, and exercises analyzing companies' strategies. Local businesses could provide real-world examples.
3. Numerous online resources are referenced that define strategies, analyze examples, and provide templates for tools like SWOT, PESTLE, mission statements, and more. These can help explain concepts and techniques for strategic analysis, choice, and leading strategic change.
The document discusses strategic planning and marketing plans. It covers developing marketing strategies at different organizational levels, from corporate strategic planning down to business unit and product planning. Key aspects of strategic planning discussed include defining the corporate mission and strategic business units, assessing growth opportunities, and developing goals and strategies. The document also addresses the components and levels of a formal marketing plan.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
The document proposes a framework called customer process management (CPM) for using customer-related data to create value for customers. CPM was developed through action research projects with industry and government and analysis of case studies. It suggests steps a service provider can take to help customers improve processes and create more value by using data related to their own processes, similar to how business process management uses company data. The framework views individual customer processes as targets that can be measured and improved using relevant customer data, taking a perspective like studies on manufacturing and business processes.
This document discusses mystery shopping conducted at HSBC Bangladesh retail branches. It provides background on HSBC and outlines the vision, mission, goals and objectives of HSBC Bangladesh and its retail banking division. It then describes the mystery shopping process, including developing a questionnaire, selecting vendors, executing surveys, and reporting results. The outcomes of mystery shopping included improved customer service, increased sales and deposits, higher customer satisfaction, and quality control. Coordination with other strategies such as training, policies, and fraud prevention contributed to the success. Recommendations include providing resources and training to mystery shoppers.
This document provides an overview of a strategic planning and policy analysis course. The 3 main points are:
1) The course aims to teach students how to analyze an organization's strengths, weaknesses, opportunities, and threats in order to formulate strategic plans and goals.
2) Students will learn how to think strategically about a company and its business position to gain a competitive advantage.
3) Strategic planning involves analyzing where a company currently stands, where it wants to be in the future, and how it will get there.
Create Value In Projects Through Information Ecology1guest7471d9a
Information ecology is an information management method and model which focuses on environmental approaches that integrates diverse types of information to handle and recognize evolutionary changes; to emphasize on observation and description; and to focus on people and information behavior. There are three main information ecology environments of which this approach utilizes:
1) The information Environment
2) The Organization Environment
3)The External Environment
If one fully understands information ecology then project management in terms of its complexity becomes less complicated in its methods and understanding.
I am sharing this profound question and my answer with my colleagues within my network. Your comments would be very welcomed.
I am currently editing my manuscript and research on Information Ecology into a book called "Create Value in Project Management through Information Ecology"
If one fully understands information ecology then project management in terms of its complexity becomes less complicated in its methods and understanding
Sonia Usih, PMP, MCPM, BSc. Eng.
Phone: (905) 428-2615
Link: http://www.linkedin.com/in/soniausihonlineprofile
E-Mail: usihsc@idirect.com
This document discusses whether the Covid-19 pandemic has increased the importance of green business strategies. It begins with an abstract that outlines the paper's argument that the pandemic has brought environmental protection to the forefront for both individuals and businesses. It then provides context on the pandemic's economic impacts and reviews literature on green business strategies and practices. Specifically, it discusses lean production, production management systems, energy management, and environmental management as important green practices. The document argues that adopting a green business strategy can help companies survive the pandemic crisis and facilitate decisions that improve the environment.
Solutions for Creating Sustainable Competitive Advantage in Small Businessesijtsrd
In the globalization stage, all bussinesses exist for some purpose or goal, and managers have the responsibility for combining and using organizational resources to ensure that the organizations achieve their purpose. Strategic Management is a complex concept which has to do with an organization's scope and direction of activities, matching the activities with the environment and resource capability, as well as the values, expectations and goals of those influencing strategy. This research focused on small businesses, their features and dynamics in the course of making use of the tools and techniques in strategic management. It investigates how small businesses, in their course of building competitive advantage, make strategic decisions, and the factors related to the mere smallness of such businesses as affecting strategic choice are discussed. Dr. Le Nguyen Doan Khoi "Solutions for Creating Sustainable Competitive Advantage in Small Businesses" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47499.pdf Paper URL : https://www.ijtsrd.com/management/business-economics/47499/solutions-for-creating-sustainable-competitive-advantage-in-small-businesses/dr-le-nguyen-doan-khoi
This document summarizes a multi-phase change management model. It describes 5 typical phases of an organizational transformation process: 1) letting go of the past, 2) emerging vision of the future, 3) making the future vision more concrete through practical steps, 4) broad implementation and anchoring changes, 5) stabilizing new processes and culture. It notes that phases 4 and 5, which focus on integration and consistency, typically last longer than earlier phases but are often neglected. The document also includes a "system curve" that tracks an organization's perceived ability to perform through the change process across three dimensions: orientation to the past, present business indicators, and future sustainability.
Firm Characteristics and Financial Performance Evidence from Quoted Manufactu...ijtsrd
This study ascertained the relationship between Firm Characteristics and Financial Performance with a focus on quoted manufacturing firms in Nigeria. The specific objectives are to ascertain the relationship between Leverage, Board Size, and Tobin's Q of quoted manufacturing firms in Nigeria from 2010 2019. This study employed the use of Panel Data and Ex post facto research design. Secondary data were sourced from the publications of Nigeria Stock Exchange NSE and annual reports and accounts of the sampled firms. The data analyses were done through descriptive and inferential statistics. Descriptive statistics was done using trend analysis and multiple comparison of mean standard deviation of variables. Multivariate linear regression analysis via E Views 9.0 statistical software was used to test the hypotheses. The findings of this study are inter alia leverage and board size has significant negative relationship with Tobin's Q at 5 level of significance. It was recommended amongst others that firms need to use proportionate debt financing in relation to total capital financing in order to reverse the inverse relationship between leverage and Tobin's Q. Therefore, firms need to use debt financing up to a point where any extra debt financing reduces net cost to the firm. Okafor, Tochukwu G. | Ossai, Eke Celestine "Firm Characteristics and Financial Performance: Evidence from Quoted Manufacturing Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47517.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/47517/firm-characteristics-and-financial-performance-evidence-from-quoted-manufacturing-firms-in-nigeria/okafor-tochukwu-g
OPERATION MANAGEMENT REPORT: A CASE-STUDY ON THE KEY STRATEGIC AND OPERATIONA...Maxie Tran
This report focuses on analyzing the key strategic and business operation issues of a Starbucks coffee shop on 91 Clarence high street in Kingston town (Kingston Upon Thames, London, UK). The report identifies the business context and main operational aspects of this Starbucks shop which will be shown briefly in the Introduction part.
Methods of analysis include the secondary-data, primary-data (qualitative and quantitative research), relevant theories and relative information from books, online databases, as also student’s works and so on.
The report figures out the problems of this Starbucks shop, such as the atmosphere and layout inside the store, as also some customer services. However, those issues depend on many different cases which cannot meet a specific solution to improve themselves. In addition, the general feedback of customers indicates that although the problems exist, these issues are not big impacts.
Recommendation for the business of this Starbucks shop is to keep managing their current operating system and extend their competitive advantage, based on the ideal location (order-winner), to target the potential segment customers as non-coffee drinkers.
This report might not avoid the shortcomings and limitations itself. For instance, a lack of experience in doing the actual surveys which led to incomplete data and information; some results are based on past performance or general context which can be subjective.
This document discusses a study that investigates how absorptive capacity and marketing capabilities influence innovation commercialization in manufacturing and service firms in Nigeria.
The study uses data from the 2012 Nigeria Innovation Survey to test the hypotheses that absorptive capacity measures like openness and formal training, as well as marketing capabilities like new product marketing and marketing innovation, are positively associated with innovation performance.
The findings show that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. Marketing capabilities indicated by new product marketing and marketing innovation are also positively associated with innovation performance.
The document discusses Herman Miller's case study analysis assignment. Students must analyze the "Engstrom Auto Mirror Plant" case study to identify and analyze the root causes of organizational issues from a human behavior perspective. They must address the root causes, analyze them using research evidence, and explain the impact of misaligned human behavior theories. The submission should be a 3-4 page paper following APA format.
Ijaems apr-2016-28 Studying the effect of manager’s Strategic Thinking on Cor...INFOGAIN PUBLICATION
The purpose of this research is to explore the effect of managers' strategic thinking on corporate entrepreneurship. To this end, one main hypothesis and five secondary hypotheses were proposed. This study is descriptive-applicable and Lidka studies (1998) were employed to measure managers' strategic thinking and Robins and Kutler's questionnaire (1996) was used to measure corporate entrepreneurship. The statistical population included 118 managers and employees of a manufacturing company in Kermanshah industrial estate. The research sample was equal to 90 using Cochran formula. The results disclosed that managers' strategic thinking has a positive and significant effect on corporate entrepreneurship and all hypotheses were confirmed
Delivering high performance business transformation using a bio-enabled transformation technology coupled with a collaborative small world network. A bespoke approach to creating new customers, new markets and new products & services. A focus on outcomes and making a difference.
Information Technology (IT) Development Strategy of STIE INABA in the Perspec...AJHSSR Journal
Strategic planning is a relatively new concept for non-profit organizations (Bryson (1995) and
Nawawi (2000)). Strategic planning is needed in order that organizations can offer better service quality for their
customers and for the sustainability of their organizations. Nonprofit organizations have people who are focused
on achieving specific goals of their organizations (Ireland: 1999: 96-99). Their activities are indeed limited to
the budget and a constant need to raise funds through donations and assistance. When discussing about quality,
the first thing to consider is to get rid of the notions1) that nonprofit organizations cannot work like business
organizations, 2) that non-profit organizations cannot measure their performance, and 3) that quality
improvement techniques cannot be applied to non-profit organizations.
This research was in the form of a case study with Sekolah Tinggi Indonesia Membangun (STIE INABA) as the
research subject. The research method used was research and development. Research and development can be
defined as a process or steps to develop a new product or improve existing products that are accountable.
Based on the results of the analysis of the data collected, it can be concluded that the performance measurements
that had been applied produced less information and less effective strategic planning. IT Balance Scorecard was
used to analyze the relevance of the performance measurement indicators that had been established with the
Vision, Mission, and strategic objectives of STIE INABA. STIE INABA needs to build an information system
in the form of E-learning to support teaching and learning activities
The document discusses innovation and its importance for entrepreneurship. It defines innovation as creating new combinations of nature, labor, and capital to exploit opportunities through new or improved products, services, processes, techniques, or ideas. Successful innovation requires purposefully searching for sources of change and applying principles to develop, produce, and promote innovations to customers. Entrepreneurs can innovate in many ways within an organization or through new ventures.
Impact of education on innovation performance: evidence from Azerbaijan const...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
The document summarizes recent developments in strategic management research over the past 25 years. Some of the key areas that have seen significant research include the resource-based view of the firm, competitive strategy, international strategy, strategic leadership, and corporate governance. Emerging areas of research include strategic entrepreneurship, strategy processes, and network strategies. The document also discusses specific topics within these areas that have been a focus of recent research, such as international mergers and acquisitions, emerging markets, innovation, and strategic decision-making processes.
The document outlines a hierarchy of strategic intent for organizations, beginning with vision which describes the desired future state, followed by mission which defines the organization's purpose and business. Goals and objectives then provide the framework for achieving the vision and mission, with objectives specifically defining how goals will be met and providing standards for performance measurement. The document discusses the importance of vision, examples of effective vision and mission statements, and key considerations for setting goals and objectives that are specific, measurable, and help guide strategic decision making.
Sweet Coffee Shop is a proposed coffee shop business to be located on the campus of Cochin University of Science and Technology. The business plan projects that the coffee shop, which will offer coffee, tea, snacks and stationery items, will earn sales revenue of 175,000 INR in its first year of operation. Market research found that students, faculty, office workers and lab staff on campus would be the primary customers. The coffee shop aims to distinguish itself through high quality products and cleanliness. It projects sales and profits to increase significantly over the first three years.
This document provides a summary of a business plan package being offered for sale to develop a coffee shop. The package includes a fully customizable business plan template in Microsoft Word with sample financials, an Excel cash flow model to input specific numbers, and a PowerPoint pitch deck template. The templates cover all essential areas needed for a business plan like operations, management, marketing, financial projections, and more. Customers can purchase this package on Fiverr.com and then customize the templates by filling in their own company details to develop a complete business plan and pitch deck for a new coffee shop.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
The document proposes a framework called customer process management (CPM) for using customer-related data to create value for customers. CPM was developed through action research projects with industry and government and analysis of case studies. It suggests steps a service provider can take to help customers improve processes and create more value by using data related to their own processes, similar to how business process management uses company data. The framework views individual customer processes as targets that can be measured and improved using relevant customer data, taking a perspective like studies on manufacturing and business processes.
This document discusses mystery shopping conducted at HSBC Bangladesh retail branches. It provides background on HSBC and outlines the vision, mission, goals and objectives of HSBC Bangladesh and its retail banking division. It then describes the mystery shopping process, including developing a questionnaire, selecting vendors, executing surveys, and reporting results. The outcomes of mystery shopping included improved customer service, increased sales and deposits, higher customer satisfaction, and quality control. Coordination with other strategies such as training, policies, and fraud prevention contributed to the success. Recommendations include providing resources and training to mystery shoppers.
This document provides an overview of a strategic planning and policy analysis course. The 3 main points are:
1) The course aims to teach students how to analyze an organization's strengths, weaknesses, opportunities, and threats in order to formulate strategic plans and goals.
2) Students will learn how to think strategically about a company and its business position to gain a competitive advantage.
3) Strategic planning involves analyzing where a company currently stands, where it wants to be in the future, and how it will get there.
Create Value In Projects Through Information Ecology1guest7471d9a
Information ecology is an information management method and model which focuses on environmental approaches that integrates diverse types of information to handle and recognize evolutionary changes; to emphasize on observation and description; and to focus on people and information behavior. There are three main information ecology environments of which this approach utilizes:
1) The information Environment
2) The Organization Environment
3)The External Environment
If one fully understands information ecology then project management in terms of its complexity becomes less complicated in its methods and understanding.
I am sharing this profound question and my answer with my colleagues within my network. Your comments would be very welcomed.
I am currently editing my manuscript and research on Information Ecology into a book called "Create Value in Project Management through Information Ecology"
If one fully understands information ecology then project management in terms of its complexity becomes less complicated in its methods and understanding
Sonia Usih, PMP, MCPM, BSc. Eng.
Phone: (905) 428-2615
Link: http://www.linkedin.com/in/soniausihonlineprofile
E-Mail: usihsc@idirect.com
This document discusses whether the Covid-19 pandemic has increased the importance of green business strategies. It begins with an abstract that outlines the paper's argument that the pandemic has brought environmental protection to the forefront for both individuals and businesses. It then provides context on the pandemic's economic impacts and reviews literature on green business strategies and practices. Specifically, it discusses lean production, production management systems, energy management, and environmental management as important green practices. The document argues that adopting a green business strategy can help companies survive the pandemic crisis and facilitate decisions that improve the environment.
Solutions for Creating Sustainable Competitive Advantage in Small Businessesijtsrd
In the globalization stage, all bussinesses exist for some purpose or goal, and managers have the responsibility for combining and using organizational resources to ensure that the organizations achieve their purpose. Strategic Management is a complex concept which has to do with an organization's scope and direction of activities, matching the activities with the environment and resource capability, as well as the values, expectations and goals of those influencing strategy. This research focused on small businesses, their features and dynamics in the course of making use of the tools and techniques in strategic management. It investigates how small businesses, in their course of building competitive advantage, make strategic decisions, and the factors related to the mere smallness of such businesses as affecting strategic choice are discussed. Dr. Le Nguyen Doan Khoi "Solutions for Creating Sustainable Competitive Advantage in Small Businesses" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47499.pdf Paper URL : https://www.ijtsrd.com/management/business-economics/47499/solutions-for-creating-sustainable-competitive-advantage-in-small-businesses/dr-le-nguyen-doan-khoi
This document summarizes a multi-phase change management model. It describes 5 typical phases of an organizational transformation process: 1) letting go of the past, 2) emerging vision of the future, 3) making the future vision more concrete through practical steps, 4) broad implementation and anchoring changes, 5) stabilizing new processes and culture. It notes that phases 4 and 5, which focus on integration and consistency, typically last longer than earlier phases but are often neglected. The document also includes a "system curve" that tracks an organization's perceived ability to perform through the change process across three dimensions: orientation to the past, present business indicators, and future sustainability.
Firm Characteristics and Financial Performance Evidence from Quoted Manufactu...ijtsrd
This study ascertained the relationship between Firm Characteristics and Financial Performance with a focus on quoted manufacturing firms in Nigeria. The specific objectives are to ascertain the relationship between Leverage, Board Size, and Tobin's Q of quoted manufacturing firms in Nigeria from 2010 2019. This study employed the use of Panel Data and Ex post facto research design. Secondary data were sourced from the publications of Nigeria Stock Exchange NSE and annual reports and accounts of the sampled firms. The data analyses were done through descriptive and inferential statistics. Descriptive statistics was done using trend analysis and multiple comparison of mean standard deviation of variables. Multivariate linear regression analysis via E Views 9.0 statistical software was used to test the hypotheses. The findings of this study are inter alia leverage and board size has significant negative relationship with Tobin's Q at 5 level of significance. It was recommended amongst others that firms need to use proportionate debt financing in relation to total capital financing in order to reverse the inverse relationship between leverage and Tobin's Q. Therefore, firms need to use debt financing up to a point where any extra debt financing reduces net cost to the firm. Okafor, Tochukwu G. | Ossai, Eke Celestine "Firm Characteristics and Financial Performance: Evidence from Quoted Manufacturing Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47517.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/47517/firm-characteristics-and-financial-performance-evidence-from-quoted-manufacturing-firms-in-nigeria/okafor-tochukwu-g
OPERATION MANAGEMENT REPORT: A CASE-STUDY ON THE KEY STRATEGIC AND OPERATIONA...Maxie Tran
This report focuses on analyzing the key strategic and business operation issues of a Starbucks coffee shop on 91 Clarence high street in Kingston town (Kingston Upon Thames, London, UK). The report identifies the business context and main operational aspects of this Starbucks shop which will be shown briefly in the Introduction part.
Methods of analysis include the secondary-data, primary-data (qualitative and quantitative research), relevant theories and relative information from books, online databases, as also student’s works and so on.
The report figures out the problems of this Starbucks shop, such as the atmosphere and layout inside the store, as also some customer services. However, those issues depend on many different cases which cannot meet a specific solution to improve themselves. In addition, the general feedback of customers indicates that although the problems exist, these issues are not big impacts.
Recommendation for the business of this Starbucks shop is to keep managing their current operating system and extend their competitive advantage, based on the ideal location (order-winner), to target the potential segment customers as non-coffee drinkers.
This report might not avoid the shortcomings and limitations itself. For instance, a lack of experience in doing the actual surveys which led to incomplete data and information; some results are based on past performance or general context which can be subjective.
This document discusses a study that investigates how absorptive capacity and marketing capabilities influence innovation commercialization in manufacturing and service firms in Nigeria.
The study uses data from the 2012 Nigeria Innovation Survey to test the hypotheses that absorptive capacity measures like openness and formal training, as well as marketing capabilities like new product marketing and marketing innovation, are positively associated with innovation performance.
The findings show that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. Marketing capabilities indicated by new product marketing and marketing innovation are also positively associated with innovation performance.
The document discusses Herman Miller's case study analysis assignment. Students must analyze the "Engstrom Auto Mirror Plant" case study to identify and analyze the root causes of organizational issues from a human behavior perspective. They must address the root causes, analyze them using research evidence, and explain the impact of misaligned human behavior theories. The submission should be a 3-4 page paper following APA format.
Ijaems apr-2016-28 Studying the effect of manager’s Strategic Thinking on Cor...INFOGAIN PUBLICATION
The purpose of this research is to explore the effect of managers' strategic thinking on corporate entrepreneurship. To this end, one main hypothesis and five secondary hypotheses were proposed. This study is descriptive-applicable and Lidka studies (1998) were employed to measure managers' strategic thinking and Robins and Kutler's questionnaire (1996) was used to measure corporate entrepreneurship. The statistical population included 118 managers and employees of a manufacturing company in Kermanshah industrial estate. The research sample was equal to 90 using Cochran formula. The results disclosed that managers' strategic thinking has a positive and significant effect on corporate entrepreneurship and all hypotheses were confirmed
Delivering high performance business transformation using a bio-enabled transformation technology coupled with a collaborative small world network. A bespoke approach to creating new customers, new markets and new products & services. A focus on outcomes and making a difference.
Information Technology (IT) Development Strategy of STIE INABA in the Perspec...AJHSSR Journal
Strategic planning is a relatively new concept for non-profit organizations (Bryson (1995) and
Nawawi (2000)). Strategic planning is needed in order that organizations can offer better service quality for their
customers and for the sustainability of their organizations. Nonprofit organizations have people who are focused
on achieving specific goals of their organizations (Ireland: 1999: 96-99). Their activities are indeed limited to
the budget and a constant need to raise funds through donations and assistance. When discussing about quality,
the first thing to consider is to get rid of the notions1) that nonprofit organizations cannot work like business
organizations, 2) that non-profit organizations cannot measure their performance, and 3) that quality
improvement techniques cannot be applied to non-profit organizations.
This research was in the form of a case study with Sekolah Tinggi Indonesia Membangun (STIE INABA) as the
research subject. The research method used was research and development. Research and development can be
defined as a process or steps to develop a new product or improve existing products that are accountable.
Based on the results of the analysis of the data collected, it can be concluded that the performance measurements
that had been applied produced less information and less effective strategic planning. IT Balance Scorecard was
used to analyze the relevance of the performance measurement indicators that had been established with the
Vision, Mission, and strategic objectives of STIE INABA. STIE INABA needs to build an information system
in the form of E-learning to support teaching and learning activities
The document discusses innovation and its importance for entrepreneurship. It defines innovation as creating new combinations of nature, labor, and capital to exploit opportunities through new or improved products, services, processes, techniques, or ideas. Successful innovation requires purposefully searching for sources of change and applying principles to develop, produce, and promote innovations to customers. Entrepreneurs can innovate in many ways within an organization or through new ventures.
Impact of education on innovation performance: evidence from Azerbaijan const...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
The document summarizes recent developments in strategic management research over the past 25 years. Some of the key areas that have seen significant research include the resource-based view of the firm, competitive strategy, international strategy, strategic leadership, and corporate governance. Emerging areas of research include strategic entrepreneurship, strategy processes, and network strategies. The document also discusses specific topics within these areas that have been a focus of recent research, such as international mergers and acquisitions, emerging markets, innovation, and strategic decision-making processes.
The document outlines a hierarchy of strategic intent for organizations, beginning with vision which describes the desired future state, followed by mission which defines the organization's purpose and business. Goals and objectives then provide the framework for achieving the vision and mission, with objectives specifically defining how goals will be met and providing standards for performance measurement. The document discusses the importance of vision, examples of effective vision and mission statements, and key considerations for setting goals and objectives that are specific, measurable, and help guide strategic decision making.
Sweet Coffee Shop is a proposed coffee shop business to be located on the campus of Cochin University of Science and Technology. The business plan projects that the coffee shop, which will offer coffee, tea, snacks and stationery items, will earn sales revenue of 175,000 INR in its first year of operation. Market research found that students, faculty, office workers and lab staff on campus would be the primary customers. The coffee shop aims to distinguish itself through high quality products and cleanliness. It projects sales and profits to increase significantly over the first three years.
This document provides a summary of a business plan package being offered for sale to develop a coffee shop. The package includes a fully customizable business plan template in Microsoft Word with sample financials, an Excel cash flow model to input specific numbers, and a PowerPoint pitch deck template. The templates cover all essential areas needed for a business plan like operations, management, marketing, financial projections, and more. Customers can purchase this package on Fiverr.com and then customize the templates by filling in their own company details to develop a complete business plan and pitch deck for a new coffee shop.
The document provides an executive summary for a proposed coffee shop called Coffee Spot Café to be opened in Connersville, Indiana. The café will offer a variety of coffee drinks, teas, baked goods and breakfast sandwiches. The goals are to become well-known locally and potentially expand to other locations or add catering. The SWOT analysis identifies strengths, weaknesses, opportunities and threats. Financial needs are estimated and the business will be run as a sole proprietorship. Market research identifies the target market and competition. A marketing strategy and break-even analysis are also included.
This document provides an eleven-step guide for creating a business plan for a coffee shop. It covers essential sections including an executive summary, company description, marketing plan, operational plan, management team, and financial projections. The introduction emphasizes that developing an accurate business plan requires thorough research and consideration of all aspects of opening and operating a coffee shop successfully.
The document summarizes research conducted on the coffee shop industry in India. Some key findings include:
1. Café Coffee Day is the largest player with 55.7% market share, followed by Barista at 30.9%.
2. Quality and ambience are the most important factors for customers when choosing a coffee shop.
3. Most customers order coffee but awareness could be increased about other beverages and snacks.
4. Recommendations include improving ambience and quality, offering snacks, targeted advertising, loyalty programs, and bulk deals.
This document presents a proposal for a new coffee shop. It discusses conducting market research through surveys to analyze demand. The surveys found that coffee is popular, especially among 18-30 year olds, and most people would pay Rs. 80-100 for a cup of coffee. The proposal recommends opening a coffee shop in the city center of Rahim Yar Khan near a popular hotel. It outlines developing coffee products like espresso and marketing the brand. The proposal concludes the coffee shop idea is viable and recommends further testing products and locations.
The document discusses branding for a coffee shop called Coffee Spot Cafe. It focuses on developing a logo and tagline that will represent the brand. The logo and tagline should convey the cafe's focus on high-quality coffee and a relaxed atmosphere.
This document provides a business plan for a Dosa restaurant. It outlines objectives to keep food costs below 35% of revenue and expand marketing. The plan details the restaurant's mission to provide excellent food and service. It will feature indoor and outdoor seating with a unique Indian design. The menu will focus on dosas and other South Indian cuisine. The plan analyzes the target market and identifies competitors. It proposes strategies for marketing, sales, management, hiring staff, and financial projections.
This document outlines protocols for managing student enrolments at state schools in Queensland. It establishes that students should generally enroll at their local state school based on the school's catchment area, which is determined by the student's residence and shortest route to the school by road. It allows for out-of-catchment enrollments if the school has capacity and outlines a process where schools with high utilization rates must implement an enrollment management plan to prioritize local catchment enrolments over out-of-catchment students. Responsibilities for implementing and approving these enrollment plans are distributed among school principals, regional directors, and state education departments.
Tie The Knot Fashion_under_£1000_highres_45Sarah Fishwick
This document showcases affordable wedding dress options that cost £1000 or less. It features 12 dresses from various designers priced between £750-£990. The dresses showcase a variety of styles, including lace bodices, ballgowns, A-lines and more. Accessories paired with the dresses include veils, jewelry and floral bouquets to complete each look. The document promotes finding wedding looks that appear expensive while staying under budget.
Session One Definition Purpose Function And Process Of Strategic Planning Not...Peterj1953
This document provides guidance on developing a strategic plan for schools. It outlines key components of strategic planning including defining the purpose and process. It discusses important stakeholders in the planning process such as the board, head, staff, donors, and parent/community groups. The document also covers assessing the school's starting point, both internally in terms of vision, mission, and operations, and externally in terms of associations and local government. It provides a framework and guidelines for establishing objectives and criteria to guide the strategic plan.
Disaster risk reduction management plan of dongon national high schoolJenita Guinoo
Students safety and security is one of the vision of our department, good management will be emphasized through an action plan as our guide for achieving our goal for this school year.
Ways of brewing your coffee shop marketingprintrunner
This document provides 5 ways for coffee shops to market themselves: 1) Offer free Wi-Fi access to customers; 2) Get listed on online directories like Google, Facebook, Foursquare; 3) Use print materials like business cards and flyers; 4) Provide books for customers to read; 5) Engage customers through rewards programs and newsletters. The overall goal is to turn casual customers into regulars through branding and perks.
This document summarizes Starbucks' focus on customer service through its history, value proposition, and strategies to improve customer satisfaction. It outlines Starbucks' growth since 1971, key factors in its early success like motivated employees and a niche customer experience. Data shows the relationship between customer satisfaction, profitability, and repeat visits. Recommendations include redefining marketing strategies, analyzing customer segments, and investing $40 million in some company-operated stores to reduce costs and wait times.
Discovery Montessori School Strategic PlanKim Bednarek
This document summarizes the strategic planning process of Discovery Montessori School from 2010-2011. An inclusive committee met over several months to analyze the school's strengths, weaknesses, opportunities and threats. They conducted research through parent surveys and visits to other schools. The committee's goals were to guide the school's development, improve programs, foster community involvement, and ensure a successful transition to middle schools. Their work resulted in new partnerships with the city and plans to strengthen the curriculum.
The Role of Customer Relationship Management (CRM) in Improving Customer serv...AJSSMTJournal
This study aimed at identifying Customer Relationship Management (CRM) in improving customer services (responding time,
customer experience and product diversity) in the Cairo Amman Bank (CAB). The authors employed a predictive-descriptive
approach to identify the level of CRM at CAB. Male and female employees at CAB (No.327) participated in the study. A
questionnaire prepared to measure the role of CRM in improving customer services was implemented. Means, standard
deviations, multiple linear regression and 1-Way ANOVA analyses were used to examine the data. CRM from the perspective
of CAB employees scored a high level at overall test. Customer services level from the perspective of the employees at CAB
and its dimensions scored high. The predictive model of CRM and customer services from employee’s perspective was
statistically significant. Based on these results, the authors recommend ACB to take more interest in improving its CRM to
obtain customers satisfaction by encouraging customers to provide the company with feedback that improves the services
provided to them.
Appendix CHR Balanced Score CardMetric(Name of Metric)Form.docxjustine1simpson78276
Appendix C
HR Balanced Score Card
Metric**
(Name of Metric)Formula
(Numerator/Denominator)% Met or Exceeded*
HR Routine Metrics
1.
2.
3.
AHROP
HR Strategy Metrics
1.
2.
3.
4.
HR Organizational
Oversight Metrics
1.
2.
3.
*Leave this column blank for future calculations by staff using this form to report data
**You may add lines as need to each of the 3 categories
Journal of Management Development
The balanced scorecard: a new challenge
Meena Chavan,
Article information:
To cite this document:
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Vol. 28 Issue: 5, pp.393-406, https://doi.org/10.1108/02621710910955930
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https://doi.org/10.1108/02621710910955930
https://doi.org/10.1108/02621710910955930
The balanced scorecard:
a new challenge
Meena Chavan
Business Department, Division of Economic and Financial Studies,
Macquarie University, North Ryde, Australia
Abstract
Purpose – The purpose .
BUSI 650Integrative Learning Project – General Instructions.docxjasoninnes20
BUSI 650
Integrative Learning Project – General Instructions
For the Integrative Learning Project (ILP), you will research a particular, authentic company/industry or a fabricated company/industry. The ILP must be written in current APA format and must include the following major elements:
· Title Page
· Table of Contents
· Abstract
· Organizational Setting
· Integration of Chapter Concepts to the Organizational Setting
· Select 8 different key concepts from the textbook that seem to be most applicable to your organizational setting. Some examples of key concepts include supply chain management, Six Sigma, innovation, etc. Provide an in-depth discussion of each of your chosen key concepts and its application to your organizational setting.
· For each concept, provide a comprehensive description, what benefit it may offer to your organization, and what needs to be done in order to successfully implement this topic into your organization.
· For each concept, integrate appropriate biblical references. Explain how these concepts magnify God’s plan for you.
· This section of your project requires at least 14 pages of graduate-level content and analysis.
· References: You must include at least 15 scholarly sources formatted in current APA style. Each reference must be current, having been published within the last 3 years, or, if older, must contribute important information relevant to historical background.
· Appendices: Include at least 3 well-developed and professional documents. Appendices often include information that is somewhat confidential, detail-oriented, and/or tends to change often. Some examples include:
· Action Planning: This specifies objectives, responsibilities, and timelines for completion of objectives.
· Description of Strategic Planning Process Used: This describes the process used to develop the plan, who was involved, the number of meetings, any major lessons learned to improve planning, etc.
· Strategic Analysis Data: This includes information generated during the external analysis (e.g., environmental scan) and internal analysis (e.g., SWOT analysis). It also includes a list of strategic issues identified during these analyses.
· Goals for Board and Chief Executive Officer: Goals of the board and CEO must be directly aligned with goals identified during strategic planning. This appendix will list goals for the board and can also include recommendations for redesigning board committees associated with strategic goals. These can be used (along with the CEO job description) to form the basis for performance evaluations of the CEO.
· Budget Planning: This depicts both the resources as well as the required funding for obtaining and using the resources needed to achieve the strategic goals. Budgets are often depicted for each term of the year of the strategic plan.
· Operating Plan: This describes the major goals and activities to be accomplished over the coming fiscal year.
· Financial Reports: These include last year's ...
Creating shared value is a framework created for enhancing economic value for the organization while simultaneously meeting the needs of the society and its challenges. This paper aims in providing structural framework of shared values and also key measures taken by various organization. This articles emphasis on adoption of shared values and its impact on enhancing the environmental performance, Stakeholder’s health, nutrition, affordability in meeting the basic requirements of stake holders and also measures in improving societal wellbeing.
Creating shared value is a framework created for enhancing economic value for the organization while simultaneously meeting the needs of the society and its challenges. This paper aims in providing structural framework of shared values and also key measures taken by various organization. This articles emphasis on adoption of shared values and its impact on enhancing the environmental performance, Stakeholder’s health, nutrition, affordability in meeting the basic requirements of stake holders and also measures in improving societal wellbeing.
The document discusses the importance of business models in today's competitive environment. It defines a business model as representing the structures and mechanisms involved in creating, delivering, and capturing value for customers to earn profits and ensure sustainability. The key pillars of a business model are the value proposition, customer interface, infrastructure management, and financial aspects. Innovation is critical for business model sustainability as organizations must adapt, improve, and diversify over time. Examples are provided of companies like Apple, Intel, Google, and Amazon that have sustained success through business model innovation. The conclusion states that sustainability requires continuous business model innovation to develop strengthened models that derive the best outcomes.
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...IOSRJBM
This study is based on the pros and cons of the Blue Ocean Strategy (BOS) that offers users a framework for creating uncontested market space and diverts the views from the current competition to the creation of innovative value and demand. The main objective of the study is to show the overall scenario of BOS and its impact on organizational performance. The study includes the history of BOS, comparison with Red Ocean Strategy (ROS), relevance of applying BOS, Applications, Critics, Findings, Recommendations and Conclusion. The Findings of the study tries to show the ultimate results of applying the BOS and the recommendations urge some precautions to apply BOS. The result found that BOS positively affects the organization performance if applied in organizations. Overall, the study is effective to decide the adoption of BOS within the organization. The recommendation for the organization is to do an in-depth analysis on BOS before implementation to see the suitability considering the company size, industry condition, and adaptability.
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Samsul Alam
This study is based on the pros and cons of the Blue Ocean Strategy (BOS) that offers users a framework for creating uncontested market space and diverts the views from the current competition to the creation of innovative value and demand. The main objective of the study is to show the overall scenario of BOS and its impact on organizational performance. The study includes the history of BOS, comparison with Red Ocean Strategy (ROS), relevance of applying BOS, Applications, Critics, Findings, Recommendations and Conclusion. The Findings of the study tries to show the ultimate results of applying the BOS and the recommendations urge some precautions to apply BOS. The result found that BOS positively affects the organization performance if applied in organizations. Overall, the study is effective to decide the adoption of BOS within the organization. The recommendation for the organization is to do an in-depth analysis on BOS before implementation to see the suitability considering the company size, industry condition, and adaptability.
A New Model For Balanced Score Cards (BSC)Amber Ford
This document proposes a new 6-perspective balanced scorecard model that adds social/environmental, risk
management, and employee perspectives. It reviews literature on balanced scorecards including traditional
models with financial, customer, internal processes, and learning/innovation perspectives. Kaplan and Norton's
original balanced scorecard model is described. Benefits of balanced scorecards in communicating strategy and
aligning performance measures are outlined.
Integrated Strategy and Business Architecture Meta ModelGraham McLeod
This document describes a comprehensive and integrated meta model developed by the author and colleagues at Inspired to support strategy, business architecture, and transformation. The meta model bridges strategic planning, enterprise architecture, and business analysis by drawing from various frameworks and integrating concepts. It addresses shortcomings in existing meta models by incorporating additional business elements and contextual factors. The meta model has been applied successfully in real-world projects across multiple industries.
Discussion 1Post 1Top of FormToday, data quality and privac.docxcuddietheresa
Discussion 1
Post 1:
Top of Form
Today, data quality and privacy are important components in any organization around the world. Thus , project managers are required to come up with proper ways of ensuring better data quality and privacy to ensure there is availability and improve customer service that will go to the heart of enabling the organization have a proper and functioning system at the end of the day. The managers need to adopt the following recommendations for the business as follows. The first recommendation is the need to have a high level of accuracy and measurement when it comes to degree where the data values are obtained. Data accuracy is very important in the business as wrong values will produce wrong output and this will affect the quality of decision making process at the end of the day (Chiregi & Navimipour, 2016) Another important mechanism is to ensure that all the data is complete and contains all the required attributes that will ensure there is proper data that will used in the decision making process. Also, there is need for the data to be consistency and this means that all the attributes should be uniform and all the instances and references from the set of data (Pearson & Wegener,2013). Thus, all the data collected need to be accurate and all values be consistent form the source. Finally, there is need to have a unique demonstration of the records that will need to be represented within the data sets and this will remove the element of duplicates at the end of the day.
References
Chiregi, M., & Navimipour, N. J. (2016). A new method for trust and reputation evaluation in the cloud environments using the recommendations of opinion leaders' entities and removing the effect of troll entities. Computers in Human Behavior, 60, 280-292.
Pearson, T., & Wegener, R. (2013). Big data: the organizational challenge. Bain Co.
Response1:
Post 2:
Top of Form
Recommendations that IT managers group collectively provide
In the modern workplace, Information Technology Managers (IT Managers) plays a vital role. IT managers helps to implement and administrate technology within their organization. He gives proper direction to the organization, the communications system and the structure. He ensures that the long-term objectives are translated into concrete plans of actions and understood and supported by people working at various levels. Other responsibility of the manager is a system of communications which enables managers throughout the organization to be aware, and the manager responsible for the systems stay informed of the changes that are taking place (How do Managers (Leaders) Contribute to an Organizations?, 2012). Below are some recommendations that an IT Managers provide:
Planning and Assessments: The organization need to identify the strengths, weaknesses and outside threats to work against its success and name the problem or issue that they are concerned about. It should utilize their current network to identify ...
The document discusses research methodology and defines research. It provides examples of what constitutes research and what does not. Research is defined as a systematic, logical process that includes understanding the problem, reviewing literature, collecting and analyzing data, drawing conclusions, and generalizing findings. The document also discusses types of research questions, purposes of research, and common challenges in conducting research.
Reaction Paper 2 The Matrix Length 2 single spaced pages.docxmakdul
Reaction Paper 2: The Matrix
Length: 2 single spaced pages plus reference page / 100 points
For this paper, you will explore the process of communicative informatics, the social shaping of
communication technology, represented in the movie, The Matrix. You will analyze how the
characters using communication technology influence each other and their social worlds. You can
extend this to how the movie exemplifies our current society and its uses of communication
technology.
You may apply any technological and communication concepts, theories, and/or perspectives
from class material to develop your analysis. Have a central thesis that is a major theme or
concept from course materials. Overarching themes to help guide your analysis are
Communicative Informatics level/sphere (data-base analytics, algorithmic reasoning, post-mass
media feedback loop), third places, media naturalness, presence, flow, usability, and user
engagement.
To help facilitate your analysis here are some questions to consider.
1. New technology implies changing social interaction patterns and social norms. How do
the characters influences and mold technology to fit their needs? Are they active
audiences? How are they part of online communities, communities online, audiences,
and/or third places?
2. Discuss how the characters influences their social world(s) using Communicative
Informatics level/sphere 2, Network Systems & Human Computer Interaction/Interface,
and then at level/sphere 3, Communicative; Information & Communication
Technologies. The system learns about users through gathering data in databases; while, the user
can learn to use the tailored information to his or her advantage.
3. In what ways does technology foster information transfer, communication, and social
interaction? Is it natural? Is it mediated or face-to-face? How does media naturalness
explain social interaction though technology in the matrix? What role might proximity
play in increasing user engagement?
Be creative and have fun with it. Remember to integrate readings & concepts from class.
Support your claims with examples from the movie. Cite sources. Here is a list of detailed
concepts to consider.
- Information
- Communication
- Feedback
- Communicative Informatics
- Media type & symbolic cues
- Sender
- Receiver
- Channel/Medium
- Media
- Feedback
- Noise
- Levels/Spheres of Communication
- Interactivity and Push & Pull Media
- Paradigm
- Narrowcasting
- Media Uses and Gratifications
- Illusion of Audience control
- Burke Identification
- Active Audiences
- Universal Audience
- Elite or “Particular Audience”
- A single hearer: Appeal to
participation; Appeal to Proximity
- Social media
- Engagement
- Shared Locality
- Structural norms (social
- rules)
- Speech Community
- Online communities
- Communities online
- Social presence theory
- Technology Adoption Model
- Ages of: communities and pl ...
The document discusses contemporary concepts of innovation and organizational change. It describes innovation as the successful implementation of new ideas within an industry, while organizational change involves transitioning from the current state to a future state. Contemporary concepts refer to innovative technology, products, services, strategies, structures, and cultures. The document also discusses two frameworks for innovation - customer engagement, which uses customer insights to develop connections, and service innovations, which enhance offerings. For successful change and innovation, organizations need new ideas, an identified need for change, adoption of new ideas, and resources to implement changes. This allows organizations to adapt to new technologies and develop new products and services through strategic, structural, and cultural changes.
A. Annotated BibliographyGraham, J., & Harvey, C. (2002). How.docxdaniahendric
A. Annotated Bibliography
Graham, J., & Harvey, C. (2002). How do CFOs make capital budgeting and capital structure decisions?. Journal of applied corporate finance, 15(1), 8-23.
The chosen article highlights the ways by which Chief Financial Officers utilize the concept of capital budgeting to make major business-related decisions. The paper is credible as the authors are associate professors of finance from Duke University, Faqua School of Business. Anonymous scholars reviewed the article. The main theme presented here is the corporate practice and progress made in the areas of capital budgeting. The authors have conducted a survey consisting of 392 CFOs. The findings suggest that CFOs use the concept of discounted cash flow methods for evaluating a project (Graham & Harvey, 2002). This concept is also taught in business schools. The findings also suggest that capital budgeting provides financial flexibility. The need of corporate houses is to accept such useful concepts of financial theory. It is important to consider the author’s opinions because they have emphasized utilizing the various components of the financial theory.
Harris, M., & Raviv, A. (1996). The capital budgeting process: Incentives and information. The Journal of Finance, 51(4), 1139-1174.
The authors in this article studied the process of capital allocation in business firms. Emphasize has been given upon the process of capital budgeting in fund allocation. The paper is authentic because it is published on Online Wiley Library and the authors are professors of Finance and Business Economics from Graduate School of Business, University of Chicago. The purpose of the study is to identify problems associated with incentives as well as information within businesses (Harris & Raviv, 1996). The implications of imperfections are severe. It can affect capital productivity. The findings also suggest that the budgeting process varies among firms. The budgeting process usually varies because the managers have to consider various division characteristics. These are upcoming investment opportunities and technological advancements required for transferring information at this age. It is necessary to consider the author’s suggestions because information and incentives are vital parts of an organization. Growth depends upon these features.
Sheikhi, A., Ranjbar, A. M., & Oraee, H. (2012). Financial analysis and optimal size and operation for a multicarrier energy system. Energy and buildings, 48, 71-78.
The authors have conducted a study on the operations of the multicarrier energy system and emphasized the need for financial analysis. The paper is original and credible because it is published in the reputed site, ScienceDirect and the authors are faculties of Electrical Engineering from Islamic Azad University, Iran. The main highlights of the paper are the presentation of a comprehensive model for the concerned energy system. The authors have chosen their case study and found the be ...
How The Diverse Labor Force Management Improves Individual...Kimberly Thomas
This document discusses the impact of technology on hospitality management. It notes that technology allows hospitality businesses to improve customer care and operations, giving them a competitive advantage. While the pace of technological change has been rapid, hotels are still uncertain about what technologies to adopt and how to integrate systems globally. The internet is now seen as a strategic rather than tactical tool for general management. Technologies like wireless internet, smartphones and tablets have made it more convenient for customers to research and book hotels online. In the future, hotels and restaurants will be fully supported by technology, attracting more customers. As a hospitality student, the author found this research informative for understanding both the advantages and disadvantages of technology in the industry.
Organizational Change case analysis scenario, worth fifteen (1.docxalfred4lewis58146
Organizational Change case analysis scenario, worth fifteen (15)
points: 2 pages minimum, double-spaced, 12-pt. font. Due 3/9.
Ok, here's the sifuation.
A leader oversees a reception area as an integral part of his/her
operations. In reviewing the client satisfaction surveys during the last year, the
leader finds that earlier in the year the satisfaction levels were adequate, while
later in the year client satisfaction levels with the reception services plummeted
significantly, and continue to suffer.
Due to the retirement of a skong-willed'(a bit low on the Big 5-
agreeableness/tact, and openness to experience/inquiry), long-term receptionist
a new receptionist was hired. The newly hired receptionist received a very
thorough kaining that included some mentoring by the retiring receptionist.
The new person is viewed as having a very high EI (EQ) and possessing
excellent scores on the Big 5 (including being open to inquiry, exkaverted and
intuitive-MBTl :ENFP). The timing of the new hire coffesponded to the poor
satisfaction levels. The other long-term receptionists are viewed as big time I's,
S's, and f's, wlth too many single-loop tendencies,'and a tendency to be very
"closed to inquiry."
When the current team of receptionists reviewed the newly poor
satisfaction surveys, the old guard reieptionists immediately demanded more
baining for the new person, and blameh both her, and a peiceived increased
work-load and the resultant stress on the team as the "obvious causes" of the
diminished client satisfaction. In addition, they (the old-guard) believe they are
now short-staffed, because of their stress, and now want you to hire another
receptionist. Of course the new hire is devastated, confused, and is considering
resigning. To you, the old guard people are sounding like a bunch of victims.
Perspective:
Knowing that the service delivery environment needs to change, tlis
smart leader decided to first look at the sifuation using the four frames. Also, the
leader, from a team deoelopment perspectioe, should integrate the possible
impact of the introduction of the new receptionist into the team, as a part of the
analysis. You, being that leader, believe in "transformational leadership."
Grading rubric:
Using both the/our flames, and Kotter's steps for managing change as
your outline, please:
1. Describel analyze, vtathefour frames, what is probably going on relative
to the organization/followers (minimum one page-7 points).
2. What would you like to do (use Kotter's steps 1.-4), and how would you
do it? (minimum one page- 8 points)
Feel free to discuss any theory or combination of theories (Big 5,
Emotional lntelligence, power, politics, team development stages, victim theory,
etc.) as an augmentation to the four ftameslKotter.
Organisational Change & Development – Individual Presentation: Marking Criteria
Component
Ideas
Connections
Extensions
Presentation Summary
(5)
Accurately identifies the main concepts & ideas of readings
Descri.
Heineken uses a Product-Service System (PSS) business model that is product-oriented and focused on creating value. The company's sustainability program called "Brewing a Better World" integrates sustainability into its strategy. This includes making the supply chain more sustainable by helping suppliers, especially in Africa, become more efficient and adopt practices like new seed varieties. It also focuses on reducing resources used in brewing like water, CO2 emissions, and electricity through initiatives like its Total Productive Maintenance Program. While Heineken works to build sustainable supplier relationships, it could better communicate and market these efforts to increase visibility and trust with stakeholders.
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Mae Fah Luang University School of Management MBA Business Plan Thesis Format Guide 2013-2014
1. Business Plan Thesis
Guide 2013-2014
D R . S A N G C H A N K A N TA B U T R A A N D
D R . C . C . TA N
SCHOOL OF MANAGEMENT
M A E FA H L U A N G U N I V E R S I T Y
2013-2014
2. Systems Theory Approach to Master Degree Thesis Structure, MBAEM, School of Management, Mae Fah Luang
University (CC Tan, 2013-2014):
Suggests that individuals cannot be understood in isolation from one another, but rather as a part of their family.
The advantage of systems theory is its potential to provide a trans-disciplinary framework for a simultaneously
critical and normative explanation to the relationship between our perceptions and conceptions of the worlds
they purport to represent.
Source: Adapted and Extended from Checkland, P. (1981), Systems Thinking, Systems Practice, New York:
Wiley, cf. CC Tan and Arsirapongpisit (2002)
Real World Practices
Single-Loop Learning (Adaptive)
Decisions and Corrective Actions
(Business Plan)
Observation and Feedback
Double-Loop Learning (Generative)
Strategy, Structure, and Decision Rule
(Strategy and Business Models)
Examine Mental Models
(Research Theoretical Models)
3. Utilitarian Values
Hedonic Values
Mediating Factors:
Value-Delivering Activities, i.e. CRM and
Channels of Distribution, Revenue Streams
Service Attitude
(People)
Shop Design
(Place)
Food Variety
(Innovation)
Convenience
(Place)
Food Hygiene
(Product)
Fresh Coffee
(Product)
Substitutes
The current availability in the market
Our new
venture
Cheap Price
Supplier
Power
Mediating Factors:
Value creation activities i.e.
production, operations, partnership
s, Cost Structure
Intensity of
Competitive Rivalry
Level of Competition
Sustainable Innovative Business Model Framework (CC Tan 2013-2014) – Unifying Blue Ocean Strategies and
Michael Porter’s Five Forces Model – Bringing External and Internal Analysis into a Systems Approach Platform as
Innovation-driven Approach to Business Planning.
Value Curves (Customer Value Proposition):
Dr. C.C. Tan (2013-2014)
Barriers to Entry
Substitutes Power
Customer
Power
(Target
Customers)
4. Overall Thesis Structure:
Abstract
Introduction
Literature Review
Research Design and Methodology
Research Data Analysis
Conclusion:
Business Plan Introduction
External Analysis
Internal Analysis
Financial Analysis
Overall Business Model
Recommendation and Conclusion
References:
Note: These slides do not illustrate the details on the internal
analysis and financial analysis. However, the necessary
knowledge that aligned to the business model framework i.e. for
the internal analysis are presented for the students to adapt and
apply.
5. Plus Literature Review concepts that aligned to the business
model framework of C.C. Tan (2013a,b) and colleagues for
topics on brand equity, brand awareness, CRM, and
innovative vertical downstream integration, for eco-resort
start-up, cup cakes, geo-informatics knowledge products
services.
These business plan presentation slides adapt the research findings of Dr. C.C. Tan for sustainable and
innovative organizational learning-enabled business model framework and the relating literature review
studies (C.C. Tanc), while stimulating the new venture context using the MBA business plan format of
Simon Fraser University, Canada. Cf: Xu, C. (2006), Establishing a Coffee Shop Chain in China, Master
of Business Administration, Faculty of Business Administration, Simon Fraser University.
6. Table of Contents
1. INTRODUCTION
1.1 An Overview of the Coffee Industry in China
1.1.1 The Booming Chinese Coffee Market
1.1.2 Current Market Segments of Coffee Consumption
1.1.3 Current Status of Coffee Consumption
1.1.4 An Overview of Target City – Shanghai
1.2 Overview of the Proposed Company
1.2.1 Vision and Mission
1.2.2 Company’s Strategy
1.2.3 Product Mix Strategy
7. This report is a business plan for establishing a coffee shop chain in Shanghai.
Currently, most coffee houses in China follow a differentiation strategy, which means they spend an
abundance on store décor while creating an unique environment to build additional value for high-end
customers.
This strategy turns a typical coffee shop experience into a luxurious one because of its price.
8. However, after almost twenty years of market development, the coffee consumption market in China is
getting much more established and many customers want to drink coffee regularly.
There is a big market demand for fresh coffee to be a daily drink with reasonable prices.
This proposal is devoted to developing a coffee shop chain utilizing a low cost strategy to offer affordable
fresh coffee to people everyday.
It will also evaluate the viability of this new venture and analyze how the business will be created and
strategically developed.
Due to start-up funding constraints, this report will focus on the short-term strategies for successfully
establishing a flagship store with the consideration of expanding an additional ten shops within five years.
The investment will come from three project co-founders, some domestic angel investors (Note: an angle
investor is an affluent individual who provides capital for a business start-up, usually in exchange for
convertible debt or ownership equity), and other financial lending institutions in China.
9. This business planning format is following the basic Design School Model for
strategy development and management, similar to Andrews’ concept of
corporate strategy (Andrews, 1971). Design School Model is recommended
by Sandberg (1992) (one of the ten strategic management schools of thought
posited by Mintzberg et al. 1998), which mainly considers the process of
matching internal resources to external opportunities. This process-centric
facilitation is useful as the input to sustainable business model (CC
Tan, 2013-14) is resources and the output is targeted customers that reflect
the external opportunities. As such, the end result is that:
business strategies are analytically and creatively
conceptualized, which are fundamentally and factually supported
by the data from applied business research effort relating to certain
key success factor areas,
business model is innovatively designed and systematically
evaluated for systems-level alignment and synergy, and
aligned business plan and the embedded action plans then fill in
the details of the business model and thus competitively enact the
strategies conceived.
Schendel and Hofer (1979, p. 11) describe strategic management as “a
process that deals with the entrepreneurial work of organizations, with
organizational renewal and growth, and more particularly, with developing
and utilizing the strategy which is to guide the organization’s operations.”
The Basic Design School Model for Business Planning is given in the Figure
below:
10. Research-cum-Business Enabled
Business Plan, Adapted and
Modified from Mintzberg et al.
(1998), p. 26. and CC Tan (2013,14)
Structured Knowledge and Insight
on KSFs and/or Distinctive
Competences/Customer
Values/Business Model Innovation
External Analysis
Internal Analysis
Threats and Opportunities in
Environments
Strengths and Weaknesses
of Organization
Key Success Factors
Distinctive Competences
Creation of Strategy
Business-Market
Research
Social Responsibility
Evaluation and
Choice of Strategy
Implementation of Strategy
through Sustainable Innovative
Business Model
Managerial Values
Budgeting
11. Both social responsibility and managerial values are considered important factors of study in the social behavioral
research dimension of entrepreneurship and successful new venture (Deakins and Freed, 2006).
12. 1.1 An Overview of the Coffee Industry in China:
The Chinese coffee market started in the 1990s - 3-in-1 instant coffee mixes (coffee, milk powder, and sugar)
in the coffee consumption market. [normal to premium]
In the late 1990s, a small number of cafes were established in grand hotels. [normal to premium]
After 2000, with improvement of market acceptability, China’s coffee industry went through a rapid expansion
period.
13. An Overview of the Coffee Industry in China:
What follows we will outline China’s coffee industry development and current market segment, as well as the
coffee consumption status.
The target city, Shanghai, will also be introduced.
Also the world trend on coffee-tea consumption.
14.
15.
16.
17.
18.
19. 1.1.1. The Booming Chinese Coffee Market
After entering the 21st century with the economic boom in China, the quality of people’s lives has continuously
increased and their daily beverages have become much more diverse.
Coffee, combing vogue and Western lifestyle, is gaining popularity in China’s young generation, and presents
an enormous potential in the coffee consumption market.
From 1999 to 2005, coffee consumption in China tripled, with an 18.2 percent annual increase, well above the
2 percent growth in the world (He, 2008).
20. 1.1.1. The Booming Chinese Coffee Market
Additionally, China has seen double-digit growth in coffee sales within the past couple of years. In 2006, sales
hit $2.4 billion and are predicted to climb to $3.6 billion by 2011 according to market research firm, Euromonitor
International.
International Coffee Organization (ICO) also believes that China has 200 to 250 million potential customers
that will play a critical role in the global coffee consumption market (Chen, 2008).
21. 1.1.2 Current Market Segments of Coffee Consumption
Currently, there are three large customer groups for coffee in China, including local urban
citizens, returnees, and foreigners (Lee, 2004).
Local urban citizens: Coffee appeals to the main consumer group in China including the
young, fashionable, open-minded and well-educated local urban citizens. Although they grew up in
China, they are relatively more exposed to Western influences and tend to look up to Western
lifestyles. They see the consumption of coffee as a trend rather than a daily drink.
22. 1.1.2 Current Market Segments of Coffee Consumption
Currently, there are three large customer groups for coffee in China, including local urban
citizens, returnees, and foreigners (Lee, 2004).
Returnees: Over the last five years, there are up to 320,000 returnees in China, and a large
proportion of returnees are also coffee consumers. Specifically, one quarter of them settle down in
Shanghai (Lu, 2009). A majority of those returnees have lived in Western countries for many years
and have adopted the coffee culture, visiting cafes and drinking coffee has already become part of
their daily lives. Thus, upon their return to China, it is very likely that this lifestyle will continue.
23. 1.1.2 Current Market Segments of Coffee Consumption
Currently, there are three large customer groups for coffee in China, including local urban
citizens, returnees, and foreigners (Lee, 2004).
Foreigners: China’s high growth economy and improved investment environment has attracted
substantial foreigners to go abroad for education, work, and site-seeing. Shanghai’s official statistics
illustrates that in 2008, the number of foreign permanent residents living in Shanghai is 152,104
(excluding some 400, 000 Taiwanese) and this figure is expected to increase each year (Shanghai
Statistics Yearbook 2008, 2009).
24. 1.1.3 Current Status of Coffee Consumption
There are current two kinds of strategies that exist in China’s coffee consumption market.
Fresh coffee is only available from expensive coffee houses that utilize the differentiation
approach, because the low cost strategy focuses on using instant coffee, one that does not comprise
much quality.
In this tea-drinking country, individuals are strongly attracted by coffee in terms of its image and quality.
Therefore, there is a relatively unoccupied competitive niche for coffee using low cost strategy with drip coffee.
25. Olga Andrianova, Taisiya Yeletskikh, (2012) "Societal marketing: integration of European experiences
into business practices in Belarus", International Journal of Emerging Markets, 7(2), pp.107 – 131.
26. 1.1.3 Current Status of Coffee Consumption
Price:
High retail prices in coffee houses – In China, coffee
houses with expensive prices and luxurious
environment bear little resemblance to the traditional
coffee houses in Western counties. For example, in
China, Starbucks offers coffee at 25 to 35 RMB per
cup, and some local coffee houses offer coffee from
35 to 55 RMB per cup.
However, in Canada, most cafes offer fresh coffee at
1.4 to 4 Canadian dollars per cup, which roughly
equal to 9 to 24 RMB per cup. Due to the expensive
prices in China, consuming coffee is regarded as a
luxurious experience for the middle class and
students, one that cannot occur on a daily basis.
Product:
Instant coffee is widely viewed as an “afternoonworkplace-keep-everybody-awake” drink. In terms of
market composition, instant coffee dominates the
Chinese coffee market.
Although the drink comes with poor quality and cannot
meet people’s increasing requirement for the taste of
coffee, it is still popular among white-collar workers
due to its inexpensive price, convenient
preparation, and easy availability.
Place
Product
Price
Promotion
27. 1.1.3 Current Status of Coffee Consumption
Place and Promotion– Limited access to high quality coffee:
Instant coffee is almost the only choice available for
the majority of customers since many food chains and
local stores only carry instant and canned coffee
drinks.
In China’s coffee market, although most coffee
houses employ a differentiation strategy, only some of
them with high reputations can really offer high quality
coffee to customers.
Several local coffee houses will spend huge sums of
money in advertisement and luxurious items to label
themselves as offering high-quality coffee and
food, which in fact, is of poor quality with
unreasonable prices, deceiving their customers.
Therefore, in China’s coffee market, high quality
coffee is limited, and can be found only in selected
coffee stores, expensive foodservice
establishments, and hotels.
Place
Product
Price
Promotion
28. 1.1.3 Current Status of Coffee Consumption
Competitors, Competition and Company – Advantages of Coffee
in the Land of Tea and Soft Drinks.
Coffee is supposed to be intrinsically competitive
compared to tea and soft drinks in terms of its price
and image.
Unfortunately, both domestic and foreign retailers
have set unreasonably high coffee prices in China.
Tea is of equivalence with water in this nation, yet
coffee, a symbol of fashionable Western
culture, strongly appeals to Chinese customers.
Therefore, there are a small number of tea companies
to rival against coffee companies, provided that coffee
companies offer decent drinks at a decent price.
Place
Product
Competitors (including
Substitutes)
Customers
Company
Promotion
Price
29. 1.1.4 An Overview of Target City – Shanghai [for others: Mae
Fah Luang University, and Chiangrai Province]
The prospective company will open its coffee shop chain in
Shanghai.
Shanghai, located in southeast China, is the nation’s
commercial and financial center with the highest regional GDP
per capital in the country.
It owns more than fifty universities and hundreds of leading
research institutions.
As a world-class cosmopolitans, there are roughly 35,000
foreign-invested enterprises, 152,000 foreigners and 400,000
Taiwanese residing in Shanghai.
Over 4 million people from overseas enter Shanghai every
year, and over 2,000 international conferences and exhibitions
are held in Shanghai every year (Shanghai Statstics, 2009).
30.
31. 1.1.4 An Overview of Target City – Shanghai [for others: Mae
Fah Luang University, and Chiangrai Province]
Influenced by the geographic location and historical
culture, Shanghai residents have stronger initiatives to accept
Western culture and the fancy Western lifestyle than other cities’
residents do.
In a survey, Shanghai people have highest acceptance of coffee
in China (Hao, 2009).
White-collar workers and college students in Shanghai like to
drink coffee, and middle-agers and youngers have become the
main coffee consumer group.
One study has estimated that from 3005 to 2020, the coffee
industry will go through a rapid development and expansion
period.
Coffee companies will be doubled from 1,000 to
2,000, expanding to central business districts, industry
districts, office buildings, schools and communities.
As estimated, the consumption of coffee per person will be 100
cups annually from 2020 onwards (Hao, 2009).
32. 1.2 An Overview of the Proposed Company
1.2.1 Vision and Mission
The proposed company’s vision is to provide affordable
fresh coffee to people everyday.
The company’s major target customers are the young welleducated professionals, returnees, and foreigners.
The coffee shops will be of convenience to consumers and
be able to refresh an individual’s day by a strong and
aromatic cup of coffee.
The company’s coffee shop chain will build a reputation for
good quality coffee with reasonable prices. To fulfil this, the
company will use fresh and high-quality raw
material, keeping strict food hygiene, and cultivating
employees while building on customer loyalty.
The company’s mission is to become a leading low cost
strategy coffee shop chain in China owning more than one
hundred outlets, known for its fresh and convenient food
and drink products.
33. The company’s mission is to become
a leading low cost strategy coffee
shop chain in China owning more
than one hundred outlets, known for
its fresh and convenient food and
drink products.
Utilitarian Values
Service Attitude
(People)
Shop Design
(Place)
Food Variety
(Innovation)
Convenience
(Place)
Food Hygiene
(Product)
Fresh Coffee
(Product)
Cheap Price
Level of Competition
The proposed
company’s vision
is to provide
affordable fresh
coffee to people
everyday.
Hedonic Values
34.
35.
36. Utilitarian Values
Hedonic Values
The current availability in the market
Service Attitude
(People)
Shop Design
(Place)
Food Variety
(Innovation)
Convenience
(Place)
Food Hygiene
(Product)
As mentioned above, the coffee house
industry is a high-end industry in China.
Most of the coffee shops employ a
differentiation strategy and the average
price for a cup of coffee is more than 30
RMB. The prospective coffee shop will
control the price range for major coffee
products between 10 RMB to 15
RMB, which equates to prices of fresh
coffee sold in Canada by Tim Horton’s, a
famous coffee shop chain in North
America.
Our new
venture
Fresh Coffee
(Product)
The company intends to offer low priced
products using a low cost strategy while
focusing on customer loyalty.
Cheap Price
1.2 An Overview of the Proposed
Company
1.2.1 Company’s Strategy
Level of Competition
To focus on customer loyalty
37.
38.
39. Utilitarian Values
Hedonic Values
The current availability in the market
Service Attitude
(People)
Shop Design
(Place)
Food Variety
(Innovation)
Convenience
(Place)
Food Hygiene
(Product)
Our new
venture
Fresh Coffee
(Product)
To achieve this goal, the company will
focus on offering good quality coffee with
competitive prices to attract and maintain
a high volume of customers that
consume coffee everyday.
Since the store will only be 70 square
meters with the capacity of 30 seats, it
will also be able to save expenditure on
luxurious store decorations in contrast to
larger coffee shops adopting a
differentiation strategy.
Additionally, the company will adopt a
fast expansion strategy to capture a
large portion of market share in the next
five years.
Cheap Price
1.2 An Overview of the Proposed
Company
1.2.1 Company’s Strategy
Level of Competition
To focus on customer loyalty
40. Leminen, S. and Westerlund, M. (2012), “Categorizing the Growth Strategies of Small Firms,” Technology Innovation
Management Review, pp. 5-9.
41. Leminen, S. and Westerlund, M. (2012), “Categorizing the Growth Strategies of Small
Firms,” Technology Innovation Management Review, pp. 5-9.
Innovation-oriented strategy matures in a counterclockwise cycle, starting
from exploration and shifting towards exploitation as the offering or business
matures.
However, the firm can skip phases or opt for any specific cluster at any time
regardless of the cycle.
Nonetheless, companies need to start the cycle again to avoid the survival
trap.
42. Table of Contents for 2. External Analysis:
2 External Analysis
2.1 Unifying Blue Ocean Strategies and Michael Porter’s Five Forces Model
2.2 Barriers to Entry (Weak to Medium)
2.3 Supplier Power (Weak)
2.4 Customer Power (Weak)
2.5 Substitutes Power (Medium to Strong)
2.6 Intensity of Competitive Rivalry (Medium)
2.7 Overall Assessment and Key Success Factors
2.8 Competitive Analysis based on Key Success Factors:
2.8.1 Opportunities
2.8.2. Threats
2.9 Strategy Proposals
2.9.1 Vision and Mission
2.9.2 Strategic Goals
2.9.3 Product Market Focus
2.9.4 Value Proposition
2.9.5 Core Activities
3 Internal Analysis
----
43.
44.
45.
46.
47. 2. External Analysis
Note that in our business model concept, “blue ocean
strategies” and “the red ocean strategies” are fundamentally
no difference.
In market economies, businesses must compete for survival
and prosperity by adopting proper strategies consistent with
the market forces. They succeed if their strategies addresses
well to customer needs, creating competitive advantages.
External analysis, as critical step to evaluate business
strategies, comprehensively analyzes the industry’s
environment. It has two significant implications. The first is to
assess industry attractiveness and the second is to determine
industry economics, drivers of profitability and the key success
factors (KSFs) (Crossan, Fry and Killing, 2004).
This chapter will employ Porter’s Five Forces Model
(Porter, 1979) to analyze the environment of the coffee house
industry while identifying the KSFs. Subsequently, a
competitive analysis to address the business opportunities and
threats will follow. The proposed strategy for the prospective
coffee shop will then be finalized.
48. 2. External Analysis
2.1 Unifying Blue Ocean Strategies and Michael Porter’s Five Forces Model
Michael Porter’s Five Forces model is one of the earliest models used to examine industry economics and
attractiveness. It provides a framework of five forces to determine industry profitability. These five forces
include:
Barriers to Entry
Supplier Power
Customer Power
Substitute Power
Intensity of Competitive Rivalry
The relationship among these forces is illustrated in Figure below:
49. Intensity of
Competitive Rivalry
Supplier
Power
Utilitarian Values
Our new
venture
Substitutes
Hedonic Values
Mediating Factors:
Value-Delivering Activities, i.e. CRM and
Channels of Distribution, Revenue Streams
The current availability in the market
Service Attitude
(People)
Shop Design
(Place)
Barriers to Entry
Food Variety
(Innovation)
Convenience
(Place)
Food Hygiene
(Product)
Fresh Coffee
(Product)
Dr. C.C. Tan (2013-2014)
Cheap Price
Level of Competition
Mediating Factors:
Value creation activities i.e.
production, operations, partnership
s, Cost Structure
Sustainable Innovative Business Model Framework (CC Tan, 2013-2014) – Unifying Blue Ocean Strategies and
Michael Porter’s Five Forces Model
Value Curves (Customer Value Proposition):
Substitutes Power
Customer
Power
(Target
Customers)
50. 2. External Analysis
In the following sections, these five factors will be analyzed respectively to identify the KSFs in the
industry.
2.2 Barriers to Entry (Weak to Medium):
Barriers to entry determine the ease with which a new company can enter the market. The possibility of
new companies entering the industry impacts competition.
High barriers to entry provide incumbents with advantage to deter new firms from entering the
market.
Low carriers to entry bring new firms opportunities to enter the industry and compete and
capture market share.
51. Economies of Scale
Capital Requirement
Barriers to
Entry
Competitor’s Retaliation
Access to Distribution Channels
Customer Switching Cost
Value-Delivering Activities Side:
Value-Creation Activities Side:
Product differentiation and brand identification
Figure: Structuring the Analysis of “the Barriers to Entry” (Value-Curve Competition) based on Sustainable
Innovative Business Model Framework (CC Tan 2013-2014)
52.
2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.1 Economies of Scale
Economies of scale are a potentially important component to cost advantage.
Firms that produce at larger volumes tend to enjoy lower costs per unit because they can spread fixed
costs over more units, employ efficient technology, or negotiate better terms from suppliers. However, the
magnitude of this cost advantage varies across industry.
53. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.1 Economies of Scale
In the coffee house industry, economies of scale are moderate.
At the store level, the fixed costs that drive scale economy advantages include equipment and real estate
cost.
There are also advantages in purchasing ingredients.
At the corporate level (e.g., the advantage of a chain of multiple stores versus a single independent
store), economies of scale arise from purchasing (bulk buying of materials through long-term contracts
and obtaining lower interest rates on financing), increased managerial specialization, financial (obtaining
lower-interest charges when borrowing from banks and having access to a greater range of financial
instruments), and advertising.
54. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.1 Economies of Scale
Since local coffee houses are relatively small, independent and decentralized, it is hard for them to reach
such efficient economies of scale.
However, most international coffee shop chains, such as Starbucks and Espresso Americano, can take
the advantage of economies of scale by fast expansion in some major cities such as
Shanghai, Beijing, and Shenzhen in China. Thus, in these major cities, the barriers is high for new
entrants.
In this respect, economies of scale are a KSF for coffee shop chain in Shanghai.
Shenzhen
62. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.2 Customer Switching Cost
Switching costs are fixed costs that buyers face when change suppliers.
There are few (if any) switching costs for customers to experience different coffee shops.
With this low barrier, it is a great opportunity for new entrants to gain new customers while earning a
competitive advantage, if they do succeed in getting the customers to switch.
Switching Cost Actions:
A company could try to establish some switching costs, such as when a customer can get every
10th cup for free utilizing a store stamp card.
Another example is introducing a reloadable cash card that can be used by customers for
purchases at a company’s system outlets.
63. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.3 Capital Requirements
Capital requirement to start up a coffee shop includes the investment in coffee making equipment as well
as working capital to finance rent, labor, and food ingredient expenses before the business generates
enough revenue to cover on-going expenses.
In Shanghai, this start-up capital requirement varies depending on the locations, sizes, and levels of
services with the range between 500,000 RMB to over 3,000,000 RMB.
With such a wide range, new entrants will have more flexibility in customizing their businesses according
to their budget.
The barrier of capital requirement in the coffee house industry is low.
64.
65.
66. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.4 Access to Distribution Channels
The new entrant must secure distribution of
its products and services.
Since coffee shops sell products directly to
their customers on site, the location is crucial
in determining consumer traffic.
The premium store location can use an
effective distribution channel to make the
products readily available.
A high barrier exists to new entrants because
some incumbents have already pre-empted
the most favorable geographic locations, and
posses relatively more experience in
operational management and promotion.
Based on the above analysis, store location is
a KSF for coffee shops.
67. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.5 Product Differentiation and Brand Differentiation
Most of the coffee houses in China offer coffee to
customers as a fashion or as a Western experience.
They adopt a differentiation strategy and are
continuously enhancing their identification.
For example:
Starbucks, the most famous international coffee shop
chain employing a differentiation strategy in
China, works diligently to create strong brand
recognition.
External reputation studies consistently place
Starbucks at or near the top of the most trusted highdifferentiated brands in China.
In China, having an iconic brand name directly
translates into market share.
When Starbucks first entered the Chinese market in
the late 1990s, Chinese customers had not developed
enough coffee knowledge and did not have the ability
to appreciate the taste of fresh coffee.
Until this day, they still believe Starbucks charges
expensive prices solely because they offer the
highest quality coffee in the world.
Additional revenue stream of Starbucks
68. The work suggests a framework for
identifying competitive customer value
propositions (CVPs) where four
hierarchical key dimensions of
customer value –
economic, functional, emotional, and
symbolic – are first identified. In the
second stage, a CVP is developed on
the basis of these value dimensions.
In the third stage, the CVP is
evaluated for competitive advantage.
It is proposed that economic and also
functional CVPs are more likely to
represent points of parity, whereas
emotional and social CVPs represent
points of difference for retail
companies seeking differentiation from
their competition and gaining of
competitive advantage.
Source: Timo Rintamäki, Hannu Kuusela, Lasse Mitronen, (2007) "Identifying competitive customer value
propositions in retailing", Managing Service Quality, Vol. 17 Iss: 6, pp.621 - 634
69. Retrieved 17 September, 2013, from
http://www.innovationmanagement.se/2009/10/12/how-toincrease-your-roi-by-measuring-and-managing-your-innovation/
Source:
The original Innovation Radar too is based on
Mohanbir Sawhney, Robert C., Wolcott and Inigo
Arronix – Jiyao Chen & Mohanbir
Sawhney, Sloanreview.mit.edu and Hbr.org & Kellogg
School of Management, April 1, 2006 & 2010.
According to the thinking behind the Innovation
Radar, innovation is defined as an initiative in any
dimension(s) of the business system to create
substantial new value for customers and the firm.
This innovation definition emphasizes three points:
Originality (an initiative to create new
value)
A Holistic view (An initiative in any
dimension(s) of the business system
Customer outcomes (the value
generated by the initiative for customers
and the firm).
The Innovation Radar creates a visually compelling
profile of the firm’s current innovation strategy
through measuring all twelve vectors.
Helps to create better alignment on innovation
strategy across functional areas.
70. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.5 Product Differentiation and Brand
Differentiation
Although there is intensive competition among
the coffee shops employing the differentiation
strategy and a high barrier of brand
identification, there is a great potential for a firm
to succeed in employing a low cost
strategy, because the current barrier of brand
identification is low in terms of weak
competition.
A low priced coffee house with a low cost
strategy can take this advantage to develop its
unique brand name and leverage it to capture a
substantial amount of market share while
generating high revenues.
Based on the above analysis, the barrier of
brand identification in the differentiated coffee
market is high yet, it is low in the low cost
strategy segment. Brand identification is a KSF
and presents itself as being the competitive
advantage for coffee houses.
71. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.6 Competitor’s Retaliation
Currently, there are more than 1,000 coffee houses
in Shanghai.
Except for some international coffee shop chains,
most of the local coffee houses are small,
independent, decentralized, and cannot reach
certain economies of scale.
It is hard for incumbents to unit together and
retaliate against new entrants.
On the other hand, China’s coffee consumption is
relatively new with only 10 to 15 years of
development.
To prosper in this market, all parties within the
industry should be aware of the importance and
benefits of reciprocal promotional activities,
collective efforts to create coffee culture in the
society, and also educating customers the reasons
to consume.
Considering these two aspects, the threat of
retaliation among the competition is weak for new
firms entering the market.
72. 2. External Analysis
2.2 Barriers to Entry (Weak to Medium):
2.2.7 Summary
The above analysis suggests that the barriers to
entry in the coffee house industry are low, and it is
favorable for new firms to enter the market.
New entrants will face some challenges on
economies of scale, access to distribution channels
(in the form of store locations), product
differentiation, and brand identification.
Nevertheless, they will have opportunities to gain
customers on issues such as low customer
switching cost, flexibility on capital
requirements, and immunity from competitor
retaliation.
Listed in the following are some KSFs retrieved from
this section (which become the key stimulating
factors to design and develop business model) :
Store location
Economies of scale
Effective marketing
Brand identification
74. 2. External Analysis
2.3 Supplier Power (Weak)
The evaluation of supplier power will examine supplierbuyer relationship in the industry. If supplier power is
strong, buyer will be in a weak position.
During the bargaining process, the supplier will seize
such an opportunity into gaining more profits from the
buyer in the industry.
2.3.1 Labor
As a developing country with the largest population in
the world,, Chin’s low labor is one of the main
attractions for industry investment.
In comparison to high-tech companies, coffee shop
chains do not need many specifically skilled employees.
In comparison to manufacturing companies, coffee shop
chains possess a lighter workload and provide better
working environment and benefits. This favorable
working opportunity will bring intensive competition in
the labor market. Therefore, labor, as one of the main
suppliers, has low power in its relationship with the
coffee shop chains.
75. Some cautionary trend that may affect the
overall labor workforce’s commitment to
work for new ventures i.e. the aging trend
of labor workforces such as we are
seeing elder Singapore serving in
restaurants nationwide. This should be
monitored and be taken into
consideration when the situation arises in
the future.
76.
77.
78. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.2 Food Suppliers
Coffee beans and other raw food materials are sufficient
and readily available domestically and abroad.
On the one hand, with China in the World Trade
Organization (WTO), the foreign coffee beans (nonroasted bean or green bean) import tariff has dropped
from 10.4 percent to 8 percent.
On the other hand, coffee beans are widely grown in
south China such as Yunnan and Hainan province.
Both quality and quantity for domestic coffee beans are
able to meet coffee shop chain’s requirements.
79.
80. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.2 Food Suppliers
Starbucks China, for example, decided to use domestic
coffee beans from Yunnan Province instead of imported
coffee beans from South America and other areas in
2008.
Therefore, it is not difficult for coffee houses to purchase
good quality coffee beans with competitive pricing.
If coffee shop chains can reach certain economies of
scale, they will not only have a wide selection in
different coffee bean suppliers, but also occupy a strong
position in the relationship with other food suppliers
such as milk, snacks, and sugars.
Therefore, the KSF here is the coffee shop chain’s size
relative to competitors.
81.
82. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.3 Equipment
One of the major equipment investments for coffee
shops is espresso coffee machines and roasters.
In China, the price of that equipment ranges from
10,000 RMB to 20,000 RMB depending on the country
of origin.
However, various kinds of coffee business websites and
exhibitions offer help to coffee shop entrepreneurs to
purchase those equipment in an effective and efficient
manner.
To sum up, the bargaining power for equipment
suppliers is weak.
83. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.4 Real Estate Lease
Compared to weak bargaining power from other input
suppliers, the real estate suppliers possess a strong position
in this supplier-buyer relationship.
Since price is dependent on traffic and customer’s
purchasing power, the good locations in the business center
districts are very costly and have rare vacancy.
Thus, the bargaining power for real estate suppliers is
strong for good locations.
84. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.5 Switching Costs
The coffee house industry participants face low
switching costs in changing suppliers.
Because suppliers such as food and equipment
manufacturers do not highly differentiate their
products, shifting suppliers is not difficult for coffee
shops.
However, for new entrants with limited budgets and
small order quantities at the start-up stage, shifting
suppliers frequently will bring an unstable supply system
and high business risks.
85. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.6 Supplier Resources
Most suppliers are not willing to have a vertical integration to open a retail coffee shop.
For the coffee beans and equipment suppliers, coffee shops are their major customer and revenue
source.
Therefore, the bargaining power for suppliers is low in terms of supplier resources.
86. 2. External Analysis
2.3 Supplier Power (Weak)
2.3.7 Summary
The bargaining power for coffee shop suppliers is low overall.
The coffee house industry participants are in a better position to choose various alternatives of the inputs such
as labors, raw food materials, or equipment.
Coffee houses should acquire sufficient funding and develop their scale to lower purchasing prices from
suppliers.
87. 2. External Analysis
2.4 Customer Power (Weak)
Powerful customers can capture more value from suppliers by forcing down prices, demanding better quality or
more services (thereby driving up costs), all at the expense of industry profitability.
Buyers are powerful if they have negotiating leverage relative to industry participants, especially if they are
price sensitive, using their clout primarily to pressure price reductions.
Currently, there are three different groups of customers with strong preferences and purchasing power for low
priced fresh coffee as a daily drink.
88. 2. External Analysis
2.4 Customer Power (Weak)
The first customer group is the young, fashionable, open-minded, well-educated local urban citizens.
After more than ten years of market cultivation, this group is already mature and most of them are
professionals.
They are currently the major consumers for the high priced differentiated coffee shops yet cannot afford
the expensive coffee to freshen up every working day.
Thus, they are going to shift from fashionable coffee drinkers to daily coffee drinkers.
89. 2. External Analysis
2.4 Customer Power (Weak)
Another large proportion of coffee consumers are those returnees who have finished their studies in Western
countries and returned back home for work.
In the recent five years, the number of returnees dramatically increased. Merely in Shanghai, there are
over 80,000 returnees working and living there today. This figure is expected to increase drastically every
year.
Many of these returnees have lived in Western countries for many years, and have become accustomed
to the coffee culture. Visiting cafes several times a week and drinking coffee during breakfast is a habit for
these consumers.
Upon their return to China, they have carried to living in this fashion. However, they are not content with
the price of fresh coffee in China, which is much more expensive than in Western countries.
90. 2. External Analysis
2.4 Customer Power (Weak)
The third group is foreigners who are studying, working or visiting in China.
Most foreigners are from coffee-drinking nations and are used to having coffee on a daily basis.
Therefore, they expect to get fresh coffee in China just like at home.
However, China’s coffee houses only target the tipping-point market with high-end customers, thus unable
to satisfy this group’s needs.
91. 2. External Analysis
2.4 Customer Power (Weak)
In relation to consumer power, although consumers face low switching costs to change vendors, there are
several factors that limit a buyer’s bargaining power to coffee suppliers.
First, the coffee house industry is a retail industry that directly deals with individuals that are end
customers. These customers usually only buy one or several cups of coffee at a time for personal
consumption and thus, there is little to none negotiating leverage for them to bargain with coffee houses.
92. 2. External Analysis
2.4 Customer Power (Weak)
In relation to consumer power, although consumers face low switching costs to change vendors, there are
several factors that limit a buyer’s bargaining power to coffee suppliers.
Second, although fresh coffee vendors are profitable, buyers do not threaten to integrate backwards and
produce the industries’ products themselves.
Although Chinese customers find fresh coffee appealing and want to carry on Western café life style, they
are still not a coffee-drinking nation.
If the fresh coffee’s price is very expensive, individuals can just decrease their coffee consumption and go
for other soft drink substitutes such as bubble tea or green tea.
Additionally, it is difficult for individual consumers to conduct backward integration because of the lack of
experience, funding, and other necessary capabilities, and most importantly, it makes no sense for an
individual to make an effort to integrate backward for the sake of consumption.
93. 2. External Analysis
2.4 Customer Power (Weak)
In relation to consumer power, although consumers face low switching costs to change vendors, there are
several factors that limit a buyer’s bargaining power to coffee suppliers.
Third, although the majority of fresh coffee customers are price sensitive and the differentiation strategy
dominates the coffee house market, customers cannot easily find equivalently low-priced products to play
one vendor against another.
Based on the above analysis, customer’s bargaining power is weak and low priced coffee shops with low cost
strategies can seize such large potential market demand.
94. 2. External Analysis
2.5 Substitutes Power (Medium to Strong)
A substitute performs the same or similar function as an industry’s product by a different means.
When the threat of substitutes are high, industry profitability suffers.
Substitute products or services limit an industry’s profit potential by placing a ceiling on prices.
If an industry does not distance itself from substitutes through product performance, marketing or other means,
it will suffer in terms of profitability, and often growth potential.
There are a large variety of substitute products for the coffee house industry in terms of functionality.
Large variety of substitute products for the coffee house industry in terms of functionality
95. 2. External Analysis
2.5 Substitutes Power (Medium to Strong)
2.5.1 Instant Coffee
Instant coffee has a first mover advantage and dominates Chinese coffee
market by its low price, ready-availability and convenient preparation.
Along with the increase in consumers’ coffee tastes, the poor quality of
instant coffee will not satisfy Chinese customers anymore and this market
share will shrink in the future [unless instant coffee products are innovatively
re-developed].
However, for the white-collar workers that can fully appreciate the taste of
coffee, sometimes they have to turn to instant coffee because the availability
of fresh coffee is highly limited, and also the 30 RMB per cup of coffee is not
affordable for daily life.
Nevertheless, if there is a low-cost strategy coffee house offering low price
fresh coffee with reasonable quality, customers will much more likely
consume fresh coffee rather than instant coffee that comes with poor quality.
Therefore, instant coffee, a major fresh coffee substitute, poses a strong
threat for those coffee houses adopting a differentiation approach. It is
however, not a threat for the firms that utilize a low cost strategy.
96. 2. External Analysis
2.5 Substitutes Power (Medium to Strong)
2.5.2 Coffee in Fast Food Restaurants
Fast food restaurants, such as Pizza Hut, KFC and McDonalds, offer coffee
with relatively low prices.
All of these restaurants entered China as symbols of Western culture and
gained tremendous economic success within the country. Coffee is only one
small product in their food menu that has more than thirty different kinds of
food and drinks. The single taste and long-waiting time cannot meet some
professionals’ needs for fresh coffee.
Also, because public media attached labels of unhealthy food to these fast
food restaurants, the major coffee consumers, the well-educated
professionals with economic capability, avoid consuming food in these
restaurants.
Consequently, the threat of coffee in fast food restaurants is weak, especially
for a low cost coffee store offering good quality coffee with competitive
prices.
97. 2. External Analysis
2.5 Substitutes Power (Medium to Strong)
2.5.3 Tea and Other Soft Beverages
China is traditionally a tea country. The wide range of prices
gives tea a competitive advantage to be daily drinks for
individuals.
Often soft beverages such as bubble tea, energy drinks, fruit
juices, sodas, and milk-flavored drinks are available at
supermarkets, restaurants, coffee shops or food stands.
Although these beverages hold a major market share in the soft
beverage market, coffee, a modern symbol of Western
culture, cannot be replaced in terms of its characteristics such
as the function (of providing a stimulant) and taste.
If there is a low cost strategy coffee shop which makes good
quality coffee, has competitive prices, located in the central
business district for the convenience of consumers, the
substitute threat of tea and other soft drinks will be weak, at
least from the standpoint of the target customer segments
described above.
98. Market Needs for Healthy Drink: (Market Green Ethics in Small
Venture)
Healthier Bubble Tea available in China:
Bubble tea, a drink that originated in Taiwan and is today
sold throughout China and parts of the American west
coast, is a sweet milk tea beverage containing tapioca
pearls. In China, it is usually sold in small street shops
where tapioca pearls are mixed with ready-made milk tea
in a plastic cup and served immediately, warm or cold.
Recently, bubble tea has become available in
supermarkets. The brand Xiangpiaopiao offers
prepackaged versions of the drink in five different flavors –
green tea, black tea, chocolate, coffee and purple yam.
Xiangpiaopiao recently also introduced to the market a
new version of the drink that leaves out tapioca in favor of
nata de coco, a translucent jelly made from coconut water.
To make it easier for consumers on the go to sip through a
straw, the nata de coco is cut into thin strips. As nata de
coco is high and dietary fiber and lower in fat and
cholesterol than tapioca , this innovation might make the
beverage more popular among young Chinese who are
increasingly concerned with their health.
99. 2. External Analysis
2.5 Substitutes Power (Medium to Strong)
2.5.4 Summary
Although fresh coffee has a wide range of substitutes, it still strongly
appeals to customers because of its unique competitive advantage
including Western culture image and special taste.
For a low-cost strategy coffee store in the central business district
offering good quality coffee with competitive prices, the substitute threat
is weak.
There are several KSFs addressed from the above analysis:
Competitive prices
Reasonable coffee quality
Good store location
100. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
Competitive rivalry is the most important factor that
influences the attractiveness of the industry.
If the intensity of competitive rivalry is weak, new entrants
can secure profits easier. However, if the intensity of
competitive rivalry is strong, new firms face difficulties in
becoming established and to be profitable.
There are more than 1,000 coffee shops in Shanghai in
2009, and this figure is expected to double by 2020.
Because most shops employ the differentiation
strategy, competition within this market segment is
becoming more and more intense.
On one hand, international coffee giants with years of
experience operating in China became market leaders.
They have acquired premium locations and gained brand
awareness from customers.
On the other hand, local coffee houses boost to seize
market share and benefit from industry profits.
Usually, they are relatively small scale, independent and
flexible.
101. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
Currently, there is not much competition in low-cost
strategy coffee shop markets because few to none exist in
this segment.
However, whether it is the low cost or differentiation
strategy that the coffee shop employs, there are only two
kinds of coffee store in terms of their different operations
models – international coffee shop chains or local coffee
houses.
102. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
2.6.1 International Coffee Shop Chains
International coffee shop chains sped up their progress to enter into
major cities of China by opening more and more outlets in the past
years.
Starbucks has already expanded their outlet locations from first-level
cities to second-level cities. Until 2009, Starbucks owned 360 retail
stores across 26 cities in China.
Other international coffee shop chains, such as Segafredo from
Italy, CITE from France, and Kohkan from Japan, joined this battle and
opened their outlets in Shangai, Beijing, Guangzhou and Shenzhen.
104. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
2.6.1 International Coffee Shop Chains
International coffee shop chains have sufficient funding, a professional management team to ensure efficient
operation, ability to acquire business center locations, and they provide standardized service and food quality.
In terms of coffee and food, international coffee shop chains usually offer more than fifteen different tastes with
cakes, and other foreign food to customers.
They differentiated their products by using high quality coffee beans and other raw food materials.
In terms of brand identification, except Starbucks and a few other companies that entered China over ten years
ago, many international coffee shop chains are new entrants with fewer than three years.
These new businesses are still immature and thus, their brand is not well recognized among customers.
However, all international coffee chains emphasize their own brand and spend a lot of money on advertisements
through different media channels.
105.
106. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
2.6.2 Local Coffee Houses
Local coffee houses are usually small and independent. They are following current major market trends which are led
by international coffee shop chains to benefit from industry profits.
Usually, local coffee houses are located in some residential area near school, public transit and other big institutions.
These areas are not the best but still have a lot of traffic.
Local coffee houses offer a range of food and drinks, such as coffee, tea, noodles, rice and other Chinese
food.
The prices of coffee in these local coffee houses are higher than international coffee shop chains because
there are relatively fewer customers and they provide customized person-to-person service.
Compared to international coffee shop chains, local coffee houses differentiate themselves by luxurious shop
décor and environment, and not in terms of coffee quality.
Some local coffee houses exploit such advantage and offer poor quality coffee products with expensive
prices.
115. 2. External Analysis
2.6 Intensity of Competitive Rivalry (Medium)
2.6.3 Summary
In China’s fresh coffee shop market, both international coffee shop chains and local coffee houses employ
differentiation strategies, thus, the rivalry among competition is strong for the differentiation segment but not for the low
cost segment.
International coffee shop chains offer good quality coffee along with high prices, yet, some local coffee houses offer
poor quality coffee associated with high prices as well. Thus, such coffee houses are attempting to reap in the profits
without offering the benefit of good quality coffee.
As a result, the competitor with a low-cost approach that offers good quality coffee without inflated prices will succeed.
The KSFs include:
Competitive Prices
Reasonable coffee quality
Utilitarianism (Functional) Values
Store location
Differentiation Strategy
State of Competition:
Low-Cost Strategy
Overly crowded
Open Space (Opportunities exist)
116. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
Porter’s Five Forces Model provides a perspective in assessing the attractiveness within the coffee house
industry.
Through the analysis of the five external forces, some KSFs of the coffee house industry in China have been
identified.
This section will summarize the overall industry assessment and all KSFs previously discussed.
2.7.1 Overall Industry Assessment
The overall attractiveness of the coffee industry in China is favorable, especially to the low-cost strategy
coffee shop offering good quality coffee with competitive prices.
The barriers to entry in the coffee house industry are weak to medium.
This is favorable to new firms entering into this market not only because it encompasses low
customer switching and minimal threat from competitor’s retaliation exist, but also because of its
flexible capital requirement and economies of scale.
Moreover, it is not easy for existing coffee companies to defend against new participants. This is
because existing firms have to leverage KSFs such as choosing different premium store
locations, enlarge economies of scale, and also strengthen their brand identification to further raise
the barriers against other participants.
117. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.1 Overall Industry Assessment
The bargaining power for the coffee shop suppliers is overall low, which is favorable to a coffee company’s
development.
Since China comprises two of the most significant industries in terms of its size and reputation, the agriculture
and manufacturing industries, coffee house industry participants are in a better position to select various
alternatives to inputs. These inputs can include labor, equipment and raw material.
For example, the coffee bean supplier is one of the most important suppliers for coffee shops.
After China joined the WTO, the tariffs of imported coffee bean dropped from 10.4% to 8%.
The growth of domestic coffee plant is also favorable to coffee shops since good quality coffee beans are
widely planted in Yunnan Province and Hainan Province selling at competitive prices.
It is easy for coffee houses to lower their purchasing costs.
118. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.1 Overall Industry Assessment
The bargaining power for the coffee house customers is overall weak.
Individual customers have little selection for fresh coffee in shops that have the differentiation
approach. As a result, low priced coffee houses with the low cost approach poses a huge
potential for economic success given the current market demand.
There are multiple substitutes in China’s market with a wide range of prices.
These include items such as instant coffee in the supermarket, drinks from fast-food
restaurants, tea and other soft beverages. Such substitutes pose a strong threat for
differentiated coffee houses in terms of low prices, variety, convenient preparation, and easy
availability.
However, if low cost strategy coffee houses can offer good quality coffee with competitive
prices, it can weaken the substitute’s threat in terms of a coffee’s fundamental values such as
taste, quality, and image.
In terms of competitive rivalry, since the differentiation strategy dominants the coffee house
market, intensive competition exist between international coffee shop chains and local coffee houses.
Hence, it is favorable for low cost strategy coffee houses to enter this market and seize this business
opportunities.
The overall assessment is summarized in Table below.
119. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
Coffee shops’ development in China is at a fast growth stage in the industry life cycle and this directly
translates into a rapid increase of market share. This presents opportunities for new entrants to
enter, and market leaders aim to expand in order to secure this gain in market share.
The overall attractiveness of the coffee house industry in China is favorable which implies there is a great
potential in the market, especially for coffee houses adopting the low cost approach.
120.
121.
122.
123. Five Forces:
Strength
Impact to Coffee House Industry
Barriers to Entry
Weak to medium
Favorable to new entrants
Supplier Power
Weak
Favorable
Customer Power
Weak
Favorable
Substitute Power
Medium to strong
Unfavorable to differentiation
Favorable to low-cost strategy store
Intensity of Competitive Rivalry
Medium
Unfavorable to differentiation
Favorable to low-cost strategy
Overall Rating
Favorable
124. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
The previous overview of this industry suggests several KSFs that are listed below ranked in order by
descending importance (note: Criterion of important here is how many times a KSF was identified in Five
Forces Analysis).
Enable to establish brand awareness
Importance Level of KSFs
The Qualifiers – Functional Needs
High Brand
Recognition
Effective
Marketing
Economies of
Scale
Reasonable
Coffee Quality
Competitive
Prices
Good store
location
125. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
Store location is the most important issue in the coffee house industry. As a fresh coffee retailer, the
targeted customers are the well-educated young professionals, returnees, and foreigners.
A good store location for coffee houses includes central business districts, high-traffic shopping malls, or
other suitable transportation centers such as airports and subway stations near the business districts.
Store location is a direct determinant for a coffee shop’s success and has been previously identified as a
KSF in the sections of barriers of entrants, substitute power and rivalry competition.
Store location:
Well-educated
young
professionals, retur
nees, and
foreigners.
126. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
Competitive prices and good quality are KSFs on the second level in terms of its importance.
In the current coffee house market in China, the differentiation strategy dominates with fresh
coffee priced to be unreasonably expensive.
Differentiated coffee houses spend high amounts of money to build up a luxurious brand
image, justifying their inflated prices.
Some local coffee houses follow this market trend and profiteer from this by offering poor
quality coffee with high prices.
Competitive prices and reasonable coffee quality are thus imperative in matching market
demand and weaken the threat of substitutes. Both factors have been identified as KSFs in the
substitute power and competitive rivalry sections.
127. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
Economies of scale are another vital KSF in the coffee house industry. This can be depicted when
international coffee shop chains, such as Starbucks, rapidly expanded their outlets in some major cities
in China.
Economies of scale not only conserve a firm’s operating cost, but it also increases their bargaining
power with suppliers. Since the coffee houses are usually located in high traffic areas, it enhances their
brand recognition due to its ease of visibility. It has been identified as a KSF in the barrier to entry
section.
Channels of Distribution (Economies of Scale)
Reduce Cost
Value Visibility
Economies of scale
128. Value Curves (Customer Value Proposition):
Reduce Cost and
increase partnership
Utilitarian Values
Hedonic Values
Value Visibility and Relationship
Mediating Factors:
Value-Delivering Activities, i.e. CRM and
Channels of Distribution, Revenue Streams
Service Attitude
(People)
Shop Design
(Place)
Convenience and
Chain (Place)
Food Hygiene
(Product)
Fresh Coffee
(Product)
Substitutes
Channels of Distribution and
CRM (Economies of Scale and
Brand Relationship)
The current availability in the market
Substitutes Power
Our new
venture
Cheap Price (Value
for Money)
Supplier
Power
Mediating Factors:
Value creation activities i.e.
production, operations, partnership
s, Cost Structure
Intensity of
Competitive
Rivalry:
Level of Competition
Barriers to Entry
Food Variety
(Innovation)
Dr. C.C. Tan (2013-2014)
Customer
Power
(Target
Customers)
Store location:
Well-educated
young
professionals,
returnees, and
foreigners.
Economies of scale
and Brand
Awareness
129. 2. External Analysis
2.7 Overall Assessment and Key Success Factors
2.7.2 Key Success Factors
Marketing is an effective way to keep a coffee house distribution channel flowing and is also an important
KSF in the industry’s barrier to entry section.
International coffee shop chain’s emphasis is on creating and building their brands.
Coffee in China is not a highly differentiated product to consumers, thus, brand recognition plays an
imperative role for coffee houses to differentiate themselves to increase consumer traffic.
It is a KSF and is addressed in the barrier to entry section as well.
130. 2. External Analysis
2.8 Competitive Analysis based on Key Success Factors
Based on the above analysis, the following performance evaluation of the two
major kinds of competitors is scored over a five-point scale (see Table below).
A score of 1 indicates the lowest perceived performance while a score of 5
suggests the highest level of performance in the area.
The table indicates the international coffee shop chains have a score of 25 out of
30. The international coffee shop chain model is more successful in comparison to
the local coffee house model.
There is an inherent nature for this industry to be attractive. The reasons are
because of China’s magnitude in sizes both geographically and
demographically, and the high profit margin that exist for fresh coffee. This
possess various opportunities for new entrants to succeed in this market.
131. Local Coffee
House
Key Success Factors:
International
Coffee Shop
Chains
Total
25
15
Price
3
1
Quality
5
3
Location
5
4
Business Model
Marketing and Operations
Mix KSFs:
Price
Product
Place
Promotion/Relationship
Economies of Scale
4
Marketing
Branding
4
4
Potential
Threat
Zones
2
3
2
Opportunities
resulted from
their Relatively
undeveloped
132. 2. External Analysis
2.8 Competitive Analysis based on Key
Success Factors
2.8.1 Opportunities
Firstly, new entrants have a great
opportunity to gain customers by offering
fresh and good quality coffee at a lower
price.
International coffee shop chains offer
premium coffee at 25 to 35 RMB per cup
while local coffee houses offer lower
quality with an even higher price.
With the coffee beans costing between 1
and 3 RMB per cup of coffee,
opportunities exists for new entrants to
offer between quality coffee than local
coffee houses yet cheaper than
international coffee shop chains.
Secondly, local coffee houses are fairly
undeveloped in terms of economies of
scale, branding, and marketing. Thus, it is
easier for new entrants to surpass them
by reaching certain economies of scale,
building a strong brand name while
promoting through marketing campaigns.
133.
2. External Analysis
2.8 Competitive Analysis based on Key Success Factors
2.8.2 Threats
The first challenge for new entrants is that some competitors are already located in the most favorable geographic locations.
Most of the international coffee shop chains are located in crowded shopping malls or other business centers. The high real
estate lease cost and infrequent vacancy associated with these favorable locations are threats to new entrants.
The second challenge is that some international coffee chains have already been established in China’s market for more than
ten years. They have build up a reputable brand name to customers as can be seen by Starbucks, a symbolic word used by
those that live a luxurious lifestyle.
The third challenge is the economies of scale for the international coffee shop chains. Most international coffee shop chains
have several outlets within the same city, decreasing their business risks while lowering their operating costs.
But not least, there is a potential threat coming from international coffee shop chains with low cost strategy. Although the
prospective company can leverage its first mover advantage including establishing a stable and low-cost supplier chain, building
high brand recognition up, etc., low cost international coffee shop chains still will be strong competitors by their substantial
management experience, huge financial resources and economies of scale to obtain volume discounts on ingredients.
134. External Analysis:
Opportunities
2. External Analysis
2.8 Competitive Analysis based on Key
Success Factors
2.8.1 Opportunities
Firstly, new entrants have a great
opportunity to gain customers by offering
fresh and good quality coffee at a lower
price.
International coffee shop chains offer
premium coffee at 25 to 35 RMB per cup
while local coffee houses offer lower
quality with an even higher price.
With the coffee beans costing between 1
and 3 RMB per cup of
coffee, opportunities exists for new
entrants to offer between quality coffee
than local coffee houses yet cheaper
than international coffee shop chains.
Secondly, local coffee houses are fairly
undeveloped in terms of economies of
scale, branding, and marketing. Thus, it
is easier for new entrants to surpass
them by reaching certain economies of
scale, building a strong brand name
while promoting through marketing
campaigns.
Threats
2. External Analysis
2.8 Competitive Analysis based on Key Success Factors
2.8.2 Threats
The first challenge for new entrants is that some competitors are
already located in the most favorable geographic locations. Most of
the international coffee shop chains are located in crowded shopping
malls or other business centers. The high real estate lease cost and
infrequent vacancy associated with these favorable locations are
threats to new entrants.
The second challenge is that some international coffee chains have
already been established in China’s market for more than ten years.
They have build up a reputable brand name to customers as can be
seen by Starbucks, a symbolic word used by those that live a
luxurious lifestyle.
The third challenge is the economies of scale for the international
coffee shop chains. Most international coffee shop chains have
several outlets within the same city, decreasing their business risks
while lowering their operating costs.
But not least, there is a potential threat coming from international
coffee shop chains with low cost strategy. Although the prospective
company can leverage its first mover advantage including
establishing a stable and low-cost supplier chain, building high brand
recognition up, etc., low cost international coffee shop chains still will
be strong competitors by their substantial management
experience, huge financial resources and economies of scale to
obtain volume discounts on ingredients.
135. The External Analysis Structure:
External Analysis:
KSFs
Opportunities
Threats
Strategy Proposals:
Vision and Mission
Strategic Goals (implementing through establishing Balanced Scorecard Systems)
Business Model:
Product Market Focus (Targeted Customers)
Value Propositions (Products and Services, the Value Curve)
Value-creating activities (Cost-leadership driven)
Value-delivering activities (CRM driven to establish brand relationships)
Cost Structure (Cost-leadership enabled)
Revenue stream (Store bounded)
136. 2. External Analysis
2.9 Strategy Proposals
In the previous sections, we made an overall assessment of China’s coffee industry and outlined the external
environment for the industry as a whole. We now propose a strategy for the prospective coffee shop chain.
2.9.1. Vision and Mission
The company’s vision is to provide an affordable fresh coffee while making coffee a daily drink and not a luxurious
experiences in China.
The company’s mission is to become the leading low-cost strategy coffee shop chain in China, initially with one store
but expanding to own more than one hundred outlets, highly recognized for its fresh and convenient food and drink
products.
137. 2. External Analysis
2.9 Strategy Proposals
In the previous sections, we made an overall assessment of China’s coffee industry and outlined the external
environment for the industry as a whole. We now propose a strategy for the prospective coffee shop chain.
2.9.2 Strategic Goals (Implementing through establishing a Balanced Scorecard Systems)
The strategic goals of the company are fulfilling the company’s vision, achieving its fast expansion and revenue
growth, and making fresh coffee a part of people’s daily lives.
In the short term within five years of development, the company’s number of outlets will increase from 1 to 10, and the
company’s market share will reach at least 30% in the coffee house industry in Shanghai.
In the long run, the company will be a leading low-cost fresh coffee shop chain, and be able to develop its business to
all the provinces in China.
Vision and Mission
Financial:
Leading low-cost fresh coffee shop chain in China
Fast expansion and revenue growth
Short-Term:
Customer:
Operations:
1-10 outlets within 5
years
Market share at least 30% in coffee
house industry in Shanghai
Implement cost-leadership strategies across business model
Learning and Growth:
Implement HRM Policies and Continue to learn and fine-tune business model
Long-Term:
138. 2. External Analysis
2.9 Strategy Proposals
In the previous sections, we made an overall assessment of China’s coffee industry and outlined the external
environment for the industry as a whole. We now propose a strategy for the prospective coffee shop chain.
2.9.3. Product Market Focus
Shanghai has a large population of professionals, returnees, and foreigners.
There is a great potential for these three groups of customers to consume fresh coffee as their daily drinks.
Therefore, the product market focus will be on these three consumer segments in Shanghai.
139. 2. External Analysis
2.9 Strategy Proposals
In the previous sections, we made an overall assessment of China’s coffee industry and outlined the external
environment for the industry as a whole. We now propose a strategy for the prospective coffee shop chain.
2.9.4 Value proposition
The vision of the prospective coffee shop chain is offering affordable fresh coffee to people on a daily basis.
Therefore, the value proposition of the company is being a leading low price fresh coffee shop chain in China, to
“provide the customers with a fresh quality cup of coffee for them to accomplish success in each day’s works.”
140. 2. External Analysis
2.9 Strategy Proposals
In the previous sections, we made an overall assessment of China’s coffee industry and outlined the external
environment for the industry as a whole. We now propose a strategy for the prospective coffee shop chain.
2.9.5 (Business Model) Core Activities
The prospective company will employ a cost leadership strategy. This strategy requires that the cost of providing the
product or service to the company is low, by gaining efficiencies, reducing costs and controlling overhead.
The company’s customer strategy is three-fold. First, it will acquire new customers. Second, it will try to retain existing
ones. Third, it will seek to increase the number of times that existing customers visit the shop.
The company’s product strategy is to offer a mix. The main products are comprised of roughly ten different tastes of
coffee. The supplementary drinks will be fresh fruit juice, and hot chocolate. The company’s supplementary food will
encompass the classic Western snacks such as cakes, bagels, breads, and also some special Chinese easy-to-go
food such as rice rolls and congees.
Value-creating
activities
Efficiency
Cost Structure Strategy:
Cost Leadership Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities
Customer and CRM Strategy:
Acquire new customers
Retain existing ones
Seek to increase the number of
times that existing customers
visit the shop.
Targeted
Customers
141.
142. 3. Internal Analysis
The recommended strategy proposal for the prospective coffee shop chain has been presented at the end of
the last chapter based on the evaluation of the coffee house industry’s external environment.
This chapter will develop a conceptual proposal of the company’s flagship store and provide a Business
Model framework analysis to determine whether the company’s internal capabilities are sufficient to
implement the proposed strategy or what internal capabilities we need to build to implement the proposed
strategy.
143. 3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
As an independent start-up company, the prospective coffee shop chain will first centralize its funding and
resources to develop a successful flagship store.
Resources
Centralizing
Structure
and Funding
Value-creating
activities
Efficiency
Cost Structure
Strategy:
Cost Leadership
Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities
Customer and CRM
Strategy:
Acquire new
customers
Retain existing ones
Seek to increase the
number of times that
existing customers
visit the shop.
Targeted
Customers
144.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.1 Structure and Funding
The prospective flagship store will adopt a centralized organizational structure, which means the company
can consolidate power and decision-making abilities at the top of the organizational chart.
Top managers making the organization’s key decisions will be beneficial for the low-cost strategy
start-up retailer because of its easiness for control and coordination and efficiencies through
economies of scale.
The funding consists of private capital and lending from some financial institutions.
Private capital funding comes from the company’s co-founders, encompassing over 50% in the
total required capital. It will be able to provide the company more flexibility for development rather
than being driven by the initiative of maximizing profit to pay off borrowed money as soon as
possible.
Resources
Value-creating
Value Curves
Value-delivering
Centralizing
Targeted
activities
(Value
activities
Structure
Customers
Efficiency
Propositions)
and Funding
Customer and CRM
Flexibility for
Strategy:
development
Acquire new
Adaptability in
customers
decision
Cost Structure
Retain existing ones
Easiness for
Strategy:
Seek to increase the
control and
Cost Leadership
number of times that
coordination
Strategy
existing customers
Efficiency through
visit the shop.
EOS
145.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.2 Location
A premium store location is the most important KSF in the coffee house industry. The target customers of the
company are the young professionals, returnees and foreigners who have the potential to consumer coffee
everyday. For the flagship store, it is ideal to be located in the central business district. It is better than
shopping malls because the area can provide a steady flow of traffic while bearing the potential to cultivate
regular customers that may visit the store several times a weak.
Matched – Aligned – Enabled.
Resources
Value-creating
activities
Efficiency
Cost Structure
Strategy:
Cost Leadership
Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities i.e. CRM
and Channels of
Distribution.
Location, Busine
ss Area.
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Targeted
Customers
146.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.2 Location
Shanghai has a large population and encompasses many business districts. As a result, there are a lot of
options for the prospective company to reside that vary in terms of intrinsic and extrinsic values.
Some first-tier business districts such as Nanjing Road and Huaihai Road are too expensive for the start-up
store while customers there usually not price-sensitive.
Low-cost strategy companies, therefore, cannot fully leverage their advantages in comparison to the
differentiation strategy companies.
147.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.2 Location
The second-tier business districts such as Wujio Square in Yangpu are good for the prospective company
because of several advantages:
First, real estate lease is cheaper for the second-tier business centers in comparison to the first-tier ones.
Second, it also comprises of a big population that includes professionals, returnees, and foreigners for whom
coffee appeals but more importantly, who are price sensitive.
Third, it is a high-traffic commercial zone located near public transit centers such as the subway stations and
buses.
Lastly, it is near some famous universities such as Fudan University and Shanghai Jaitong University.
148.
149.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.3 Business Area
The company will occupy 50 to 100 square meters as its flagship store’s business area. In contrast to the
differentiated coffee houses that spend huge sums of money on 200 square meters of business area, the
prospective firm is not focused on creating a luxurious atmosphere but simply to offer affordable fresh coffee
to mature coffee consumers.
Such consumers are not craving for the Western experience, but want coffee to freshen up their busy
schedules. Thus, most customers will take coffee to-go.
The business area will be divided into two sections, one for sit-in guests and the other for take-out orders.
Recognizing that the business entails high traffic, the two sections will be separated, free of
interruptions, while the staffs can accommodate for both the needs of sit-in and take-out customers. This
tactic will effectively save some fixed costs for the company while satisfying different customer groups.
150.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.4 The Name, Logo and Corporate Identity
Brand is another significant KSF for the start-up coffee house.
The business image such as the name, logo and corporate identity are critical in making a concentrated and
compact marketing statement for the company. The primary corporate identity will be much like an
international coffee chain’s. The brand and logo will be simple to remember and fit suitably well with the
company’s vision and mission, and reflects the customer value proposition and the nature of value-creating
and delivering activities i.e. CRM. Store décor will be elegant yet simple.
Matched – Aligned – Enabled.
Resources
Centralized
structure and
Funding.
The name, Logo
and Corporate
Identity
Branding
Value-creating
activities
Efficiency
Cost Structure
Strategy:
Cost Leadership
Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Targeted
Customers
151.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.5 Reloadable Cash Card
The company will promote reloadable store cash cards to customers. This reloadable cash card will require
customers to deposit initial sums of money that can be used at any of the company’s outlets for the ease of
convenience. The cash holders will enjoy several benefits such as the ability to order food via internet or the
self checkout machine, point collections for a free coffee, and other membership promotion and awards.
Matched – Aligned – Enabled.
Resources
Centralized
structure and
Funding.
The
name, Logo
and
Corporate
Identity
Branding
Value-creating
activities
Efficiency
Cost Structure
Strategy:
Cost Leadership
Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities:
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Revenue Streams
Reloadable Cash Card
Targeted
Customers
152.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.6 Operating System
The prospective company will employ an integral operating system to improve efficiency, reduce cost, and
provide convenience to customers.
The target customers for coffee shops are the professionals that are rushed for time and want to
acquire a cup of coffee through a relatively quick and easy process.
It is imperative for this operating system to keep an accurate inventory record, daily sales, and
other supplementary information such as employee and customer information.
The advanced operating system not only offers check-outs by cashier quickly, but it also allows
customers to conduct self-checkouts in store or via internet easily.
The coffee shop will select such an advanced operating system that meets all the requirements
described above to better satisfy a customer’s tangible and intangible needs.
153. Matched – Aligned – Enabled.
Operating System matching value-creating-and-delivering
Resources
Centralized
structure and
Funding.
The
name, Logo
and
Corporate
Identity
Branding
Value-creating
activities
Operating
System for
Efficiency
Cost Structure
Strategy:
Cost Leadership
Strategy
Value Curves
(Value
Propositions)
Value-delivering
activities:
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Operating System:
Self-Checkout
Revenue Streams
Reloadable Cash Card
Targeted
Customers
154.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.7 Products
The company will deploy a strategy of having a wide product mix to provide a comprehensive nutrition menu
while satisfying different consumer food preferences. Such the company is competing by selling coffee on
price, the different product lines will balance the company’s profit and cater to more customer groups.
The main beverage for the firm is hot and cold fresh coffee with different tastes.
Other beverages include hot chocolate, milk, and some fresh juices. In terms of food, there are some classic
Western snacks such as cakes, bagels, and sandwiches, and also some Chinese classic snacks such as rice
rolls, soups, and meatballs.
The mediating forces
of value-delivering
and revenue stream
activities
•
Variety of hot and
cold fresh coffee
•
Variety of healthy food
menu and snacks
Product-Mix Strategy
Originally targeted
customers
Extended
segments
155.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.7 Products
Thus, to better fulfil such product-mix strategy, the company will promote different combinations of food and
drinks with attractive price.
On one hand, combinations can help customer select food based on different nutrition preferences.
On the other hand, sales through combinations can directly increase the company’s revenues.
156. Matched – Aligned – Enabled.
Operating System matching value-creating-and-delivering
Resources
Centralized
structure and
Funding.
The
name, Logo
and
Corporate
Identity
Branding
Value-creating
activities
Operating
System for
Efficiency
Value Curves
(Value
Propositions)
Cost Structure
Strategy:
Cost Leadership
Strategy
•
•
Value-delivering
activities:
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Operating System:
Self-Checkout
Variety of hot and
cold fresh coffee
Variety of healthy food
menu and snacks
Product-Mix Strategy
Revenue Streams
Reloadable Cash Card
Targeted
Customers
157.
158.
159.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.8 Services
The company will place emphasis on the convenience of customers. There will be traditional staff services for
both sit-in and take-out customers. All the staffs in store are well trained in providing professional customer
service and it is their first priority to ensure customers are fully satisfied throughout the entire shopping
process.
Additionally, the company will offer different kinds of services for a consumer’s convenience.
First, the company will promote a self-checkout system. Customers can use self-checkout machines in the
store to purchase a product quickly via the company’s reloaded cash card. Subsequently, they can obtain the
food directly in the picking-up area.
Second, if customers that are in close proximity to the store order more than 200 RMB, they can use the
internet check-out service and receive free delivery.
Third, the prospective company can offer catering services for particular business meetings or other various
business events.
160.
161. Matched – Aligned – Enabled.
Operating System matching value-creating-and-delivering
Resources
Centralized
structure and
Funding.
The
name, Logo
and
Corporate
Identity
Branding
Value-creating
activities
Operating
System for
Efficiency
Value Curves
(Value
Propositions)
Cost Structure
Strategy:
Cost Leadership
Strategy
•
•
Variety of hot and
cold fresh coffee
Variety of healthy food
menu and snacks
Product-Mix Strategy
Value-delivering
activities:
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Operating System:
Self-Checkout
Services:
Self-Checkout
Internet checkout
Special events
Revenue Streams
Reloadable Cash Card
Targeted
Customers
162.
3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship Store
3.1.9 Open Hours and Staffing
At the start-up stage, the flagship store will be scheduled for daily operation from 8.30 am to 8.30 pm for a
total of 12 hours.
In Shanghai, most coffee houses open after 10.00 am and close at 10.00 pm because they focus on
customers’ leisure time. However, the prospective company focuses on customers’ working time, and
thus, the open hours should be earlier than China’s legal start-work time of 9.30 am, and later than the endwork time of 5.30 pm.
The shop will provide fresh breakfast to customers as such are rare occurrences in the current coffee house
market.
Fresh Breakfast
163. 3. Internal Analysis
3.1 Conceptual Proposal of the Company’s Flagship
Store
3.1.9 Open Hours and Staffing
The flagship store will employ both full-time and parttime staff to save costs and ensure effective
operational requirements.
Staff loyalty is of significance to any business and as
such, the company will adopt a flexible, respectful, and
trust-based working environment for them.
All employees will be treated equally and an effective
award system will be established.
164. Matched – Aligned – Enabled.
Operating System matching value-creating-and-delivering
Resources
Centralized
structure and
Funding.
The
name, Logo
and
Corporate
Identity
Open hours
and staffing
Branding
Value-creating
activities
Operating
System for
Efficiency
Value Curves
(Value
Propositions)
Cost Structure
Strategy:
Cost Leadership
Strategy
•
•
Variety of hot and
cold fresh coffee
Variety of healthy food
menu and snacks
Product-Mix Strategy
Value-delivering
activities:
Location and Business
Areas:
Target second-tier
commercial districts
of Shanghai
To-go customers
Sit-in customers
Operating System:
Self-Checkout
Services:
Self-Checkout
Internet checkout
Special events
Revenue Streams
Reloadable Cash Card
Targeted
Customers
165.
3. Internal Analysis
3.2 Sustainable and Innovative Organizational Learning-enabled Business Model
In the previous section, some concept proposals of the flagship store were introduced.
This section, the sustainable and innovative organizational learning-enabled business model
framework (CC Tan, 2013a, Chetsopit et al. 2013) identifies key competencies and business
architecture that a company must achieve to be successful.
In addition, it defines the interconnection between them while providing a road map to examine
whether the business model components i.e. value-creating activities, value-delivering activities like
customer relationships management (CRM) and the customer value proposition are consistent.
High consistency will lead to successful performance, while inconsistencies will lead to poor
performance. A consistency model is shown in the following.
166. Business Model
Vision
Strategies
Resources
Produce Value
Intensity
Design Value:
Products and Services
Customer Value Propositions
Customer-facing activities
Deliver Value
Targeted Customers
Bases of competition
Earn Value
Regenerate Resources, Continuous Improvement and Learning, Innovation
Figure: Sustainable Innovation-cum-Learning driven Business Model Framework (Source: Tan, 2013a)
167. Innovation-Value-Driven Supply-Side Competency-and-Customer-side Opportunity Bridging Business
Model introduced (C.C. Tan, 2013b) – Consistencies across the Business Model
3 Levels of
Characteristics on
Activities:
Consistency
Reinforcing
Optimization
5-Forces
CompetitiveAdvantage
Characteristics on
Resources:
Resource Velocity
Not easily
purchased
Resources
Durability
Resources
Activities
Difficult to
Partners
imitate
Not readily
substituted
Consumes
Competitive
superiority
Cost Structure
3 Levels of Characteristics
on CVP:
Parity
Points of Differences
Resonating
Innovation
Value Curves
(Customer
Value
Propositions)
Margin
Break-Even
Cash Flow
Equity Growth
Resource Regeneration or Recycle
3 Levels of Characteristics
on Customer Equity:
Value equity
Brand equity
Relationship equity
CRM
Customer
Segments
Channels of
Distribution
Generates
Revenue Stream
168. 3. Internal Analysis
3.2 Sustainable and Innovative Organizational Learning-Enabled Business Model
The following sections will apply this business model framework to assess the alignment of the
prospective coffee shop chain’s strategy, resources, value-creating activities, value-delivering
activities, customer value propositions, targeted customers, cost structure and revenue streams.
It also defines the gaps that the company needs to focus on the business plan.
3.3. Resources
Resources include:
Management preference analysis (cf. Diamond E Framework of Crossan, Fry, &
Killing, 2004)
Management values
Management decision criteria
Current management experience
Managers’ specific functions
Gap in management experience
Organization Analysis
Structure
Systems: Information technology system, recruiting system, training
system, reward system
Organization Culture
Resource Analysis
Human Resource
Operational Resource
Financial Resource
169.
170. CRM is a relationship-cum-knowledge based practice to help organization realizes its strategies.
However, to be effective, the preconditioning factors or mechanisms have to be effective
themselves, in particular business strategies and the business models.
In response to many research findings that still the majority of the companies, as high as 93%
for tourism industry have either no or unorganized innovation (Nilsson-Andersen and
Andersen, 2012), researchers like Johnson (2010) proposed that innovative business model
thinking may be the next solution, which challenges for new set of customer value
propositions, profit formulas, the key resources that value proposition requires, and the key
processes needed to deliver it.
The similar concept, rooted in learning-enabled closed-loop systems, is first proposed by Tan
(2013a), first published at a national research conference in Thailand by Tan and colleagues and
research students (Chetsopit Trongsawat et al. 2013), which further be extended to incorporate
theories of creativity, innovation, and resource regeneration or higher level of greenness ethical
and sustainability concepts in Tan (2013b). The later version is given in the Figure below.
171. Business Model
Vision
Strategies
Resources
Produce Value
Intensity
Design Value:
Products and Services
Customer Value Propositions
Customer-facing activities
Deliver Value
Bases of competition
Earn Value
Regenerate Resources, Continuous Improvement and Learning, Innovation
Figure: Sustainable Innovation-cum-Learning driven Business Model Framework (Source:
Tan, 2013b; Chetsopit Trongsawat et al. 2013
Targeted Customers