Jolly Java

Topics: Management, Coffee, Baking Pages: 5 (789 words) Published: October 8, 2011
Jolly’s Java and Bakery

Jolly’s Java and Bakery

For the SWOT analysis, I chose evaluate the business plan for Jolly’s Java and

Bakery. JJB is a bakery and coffee shop managed by two partners, Austin Patterson and David

Fields. The company offers a broad range of coffee and espresso products at competitive prices,

all from high quality Columbian grown imported coffee beans. In addition, the bakery will

provide freshly prepared bakery and pastry products at all times during business operations.

Catering to all of its customers by providing each customer coffee and espresso products made to

suit the customer is a top priority.

During the SWOT analysis, I discovered the strengths, weaknesses, opportunities,

and threats for the company. The background experience of the owners strengthens many areas

in the business plan. Austin Patterson has extensive experience in sales, marketing, and

management, and was vice president of marketing with both Jansonne & Jansonne and Burper

Foods. David Fields brings experience in the area of finance and administration, including a stint

as chief financial officer with both Flaxfield Roasters and the national coffee store chain,

BuzzCups. With this experience, the owners could address a well thought out start-up plan. The

partners will provide funding of $55.000 each from their own savings, which will cover start-up

expenses and provide a financial cushion for the first months of operation. A ten-year Small

Business Administration (SBA) loan will cover the rest of the required financing. In addition, the

company will be based in Washington. Because Washington has a cool climate for eight months

out of the year, hot coffee products are very much in demand. During the remaining warmer four

months of the year, iced coffee products are in significantly high demand, along with a slower

but consistent demand for hot coffee products.

A few weaknesses are present in the JJB’s business plan. The company does not have

a plan to balance product production and customer activity. In the business plan, it stated that six

to eight moderate batches of bakery and pastry products are prepared during the day to ensure

fresh baked goods are always available. Customer activity can fluctuate during the days, weeks,

and. If the company is not staying consistent with customer activity in the bakery, this will create

inadequate or excessive amounts of goods. This will result in not producing enough goods to

serve the customers or wasting the goods and losing money. Creating a daily activity log can

help make adjustments when planning how much bakery and pastry products need to be

prepared. In addition, the owners need to put more consideration on the employees. Hiring two

full-time bakers and six part-time baristas may not be in the best interest of the company. First,

there is only a $400 annual payroll difference between the full-time and part-time employees.

Also there are no benefits offered to the full-time employees. To create a productive working

crew, the needs of the employees need to be met. The problem with hiring a majority of part-

time workers is stability. Most responsible and dependable people are not able to balance their

daily expenses with only a part-time job. They would require a second job which can affect the

work environment.

The retail coffee industry in the United States has experienced recently rapid growth.

The cool marine climate in southwest Washington stimulates consumption of hot beverages

throughout the year. With minimal levels of competition in the immediate area, JJB is presented

with the...
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