Case Study: Vincent's Cappuccino Express

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a. Develop an organization chart for The Cappucino Express. Director (Vincent)


(2nd Outlet)

(1st Outlet)


b. What factors can be expected to have a major impact on the success of The Cappuccino Express? Factors that can be expected to have a major impact on the success of The Cappuccino Express are: i. Cost

Cost is seen to be one of the factor of having a success in running this business. It involves direct cost and indirect cost such as coffee bean, sugar, creamer, employee wages, Vincent’s salary, managers salary, assistant salary, cost of running equipment, utilities, rental and advertisement. These costs will affect the profits of the company. Beside that, the cost should be considered by the variable cost and fixed cost. The variable cost should parallel with the sale of the product for example the cost of coffee bean. Meanwhile fixed cost remains the same even when the business activity level changes for example premise rental. In other words, these cost assure the price of the coffee and profitability of the business.

ii. Location and Timing
Firstly when Vincent decided to run this business, he should choose a strategic location with a large potential customers and less competitors. Vincent decided to open the outlet at the industrial area in town, so most of the customers would be workers from the industrial area. Beside that, other outlets around the area will nevertheless affect Vincent’s business because they would be competitors who offer better place and better products. As for that, it is advisable to have a place with less restaurants or outlets in order to succeed in his business. It is obvious that a drive-through coffee outlet is set up at the right time at the right place.

iii. Premise or Business Concept
Premise or business concept offered by The Cappucino Express is a drive-through concept and less products. This concept looks unique and flexible. It gives an ample time for the rushing customers to have their meals at the office especially at this kind of industrial area. The outlet also needs less tables and chairs and no hassle for parking. Thus this concept will incurred lower cost and less capital. However, business only offers beverage and no food are sold. This could be part of descending factor of success because other outlets would offer food and drinks that gives choices to the people.

iv. Quality of the product and good service
The products served must be at the utmost quality in terms of taste and daily fresh brew served to the customer. Meanwhile, good customer feedbacks come from good service. Each manager, staff and Vincent himself should respond quickly and properly to the customer complaint. The aspects of fast service, efficient and friendly staff, and cleanliness are the increasing factors for a successful business.

c. What major tasks must Vincent undertake in managing The Cappuccino Express? Major tasks must Vincent undertake in managing The Cappuccino Express can be categorized by 4 functions of management: i. Planning

* Deciding opening new site or expansions to current sites * Preparing budgeted costing and cashflow in order to evaluate the actual result. * Planning for promotions and advertisement about product and outlet. * Determining pricing of the products.

ii. Organizing
* Identifing and eliminating non value added cost of the products. * Maintaining products quality.
* Maintaining good service.
iii. Leading
* Stimulating each manager in achieving targeted sales and profits. * Managing and evaluating employee efficiency.
* Motivating and rewarding employee to work efficiently and hardworking. iv. Controlling
* Evaluating a profitable or unprofitable business.
* monitoring each outlet continues to be profitable.
* Initiating new sites or expansions to current sites....
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