To Build or Buy
Effective Small Business Management
Professor Ed Kaplan
Java Culture, a coffee shop that serves the Oregon area of the United States, offers best tasting coffee beverages. The coffee shop makes use of high quality ingredients that are prepared under very strict guidelines. There are a number of business concepts that can be charted to be able to directly compete with the business; Java Culture. First, the business should offer premium quality coffee that is imported from the premium cocoa growing countries such as Brazil. The preparation process should follow the most pristine quality preparation guidelines thus ensuring that the products of firm are of very high quality and thus serve the purpose of the premium quality offering (Longenecker, Petty & Palich, 2012). Rather than focus on a few products as Java Culture currently does, there should be a focus on the provision of a wide variety of products for instance brewed teas, espresso drinks and other refreshment beverages which will be sold at the coffee bar of the firm. The firm can also add more products for instance sandwiches, pastries for the clients as well as small salads (Ferrell & Hartline, 2011). Coffee beans and preparation information will also be offered to the gourmet customers who usually prefer to make their coffee in the comfort of their homes. The variety of the offering will act to attract more customers to the firm thus they will be able to significantly capture a great deal of market share from the various competitors of the firm.
Secondly, the price of the products will be lowered in anticipation of the large economies of scale that the firm will be able to enjoy. Due to the high levels of projected sales due to the variety of the products of the firm, the focus will be on the ability of the firm to be able to offer lower prices to the customers. The effects of the economic crisis for instance the lowering of the purchasing power of the people in the US will greatly support the pricing strategy that the firm will have adopted. Moreover, the outlets of the firm will mostly be in strategic locations where the different consumers can be able to access the products (Longenecker, Petty & Palich, 2012). Java Culture is located near the Oregon State University and thus in most cases it is only accessed by the students of the university. The business that is proposed will be located in uptown Corvallis, Oregon. The high end consumers as well as the students who were previously served by Java Culture will have an ease of access to the new business and thus it would play an instrumental role in enhancing the competitiveness of the new business that will be started. The new business will also extend the place to include the ability of the consumers to make their orders online and thus be in a position to be able to make their orders which are later delivered to their homes or offices. This new strategy will cut down the number of customers who are visiting the physical stores of Java culture due to the new level of convenience that will be introduced in the organization (Bhusry, 2005).
It would make more sense to purchase Java Culture than to start a new business due to a number of reasons. First, I will benefit from the goodwill that Java Culture has in terms of the customers that the firm has and the high level of recognition in the Oregon area (Longenecker, Petty & Palich, 2012). Secondly, considering the employees of Java Culture, they have the requisite knowledge that has enabled them to be at the helm of the provision of high quality products over the years in the environment where the firm operates. The costs associated with the acquisition of the human resources will also be reduced. In the case of a new business, the firm will need to spend huge amounts of money in the selection and hiring of the employees who will serve in the organization. In...
Please join StudyMode to read the full document