Vincent Cappucino

Topics: Costs, Variable cost, Management Pages: 6 (1269 words) Published: March 20, 2013
Vincent’s Cappuccino Express
Case Study 1

1. Organization Chart for The Cappuccino Express.

Vincent Chow
Managing Director/ Owner

Outlet B
Outlet A




Book Keeping/ Admin

2. What major factor can be expected to have major impact on the success of The Cappuccino Express?

a) Competitive strategy

In conjunction with a changing in lifestyle, he takes the opportunity to strategically identify a good market segment by offering a unique product in combination with its desirable location – industrial park area. Vincent sells the right product at the right place. The location affects the number of potential customers and the ease with which they can make their purchases.

b) Focus

Limited products range - 2 types of coffee; could enhance the final quality of presentation and quality for the product in the outlet. However, Vincent should consider to the external factor such as competition by the other coffee outlet which offer more varieties/products as compared to The Cappuccino Express. Vincent should have plan to expand for marketing activities and varieties of the product related to coffee in order to maintain his current and future customers as well as the entire business.

c) Quality ; Product and Employee

Product factors such as quality of the coffee beans, quality and reliability of brewing equipment will have influence on the product final taste. The experience employees and capability in handling raw materials, equipment, maintaining serving capacity as well as maintaining the flavor constantly are important to increase to customer’s satisfaction and tremendously give a huge impact on the customers as well as the whole outlet on long term

d) Cost Quality

Operating in optimum cost could give a market opportunity for Vincent to offer the product at reasonable price to customer. The lower lease/rental cost, the cost of equipment, and wage costs could be a catalyst for a better product serving and quality, a reasonable price, in a good outlet location.

e) Environment

Vincent should consider on overall factors of his business which involved in food consumption matters. A fresh, convenient and clean atmosphere surrounding the outlet, the location of the outlet, a quality of the products offered, and appearance of the employees could give huge impacts on customer satisfaction and perception of his enterprise.

f) Government Policies - Public and Local Law

Vincent may need to aware on the government policies and local law on the encouragement for entrepreneurship, local law and other relevant compliance related to food and beverages industry while operating at the industrial area.

3. What major tasks must Vincent undertake in managing The Cappuccino Express?

Vincent must have a clear view and focus on the objective of the business that can drive into business grow and profitable. The elements of planning, organizing, leading and controlling should be carried out in managing the business. Vincent may need to consider both internal and external barriers and opportunities in managing the business. Among other tasks that he should undertake in managing The Cappuccino Express as follows:

a) Business Sustainability

These internal and external factors that need planning, research and evaluating on the market and demand either the company should stay in business or need for new kind of products or services. The competition from the other similar industry player and the emergence of the new industry could affect the performance of the company. This is important for profit-oriented business entity whether the continuity of the business is sufficiently profitable or loss.

b) Employees Development and Efficiency

Vincent should emphasize on employees development by recruiting and providing...
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