STRATEGIC DEVELOPMENT 1 Table of Contents Introduction.................................................................................................................................................2 Mission........................................................................................................................................................2 Internal analysis...........................................................................................................................................3 External environment..................................................................................................................................4 Strategic analysis and choice.......................................................................................................................5 Long-term objectives...................................................................................................................................6 Generic and grand strategies........................................................................................................................7 Short term objectives...................................................................................................................................8 Functional tactics.........................................................................................................................................9 Policies and empower action.......................................................................................................................9 Strategic control and continuous improvement..........................................................................................10 Conclusion.................................................................................................................................................11 References.................................................................................................................................................12
STRATEGIC DEVELOPMENT 2 Introduction Java culture bakery and restaurant will be a new venture within the sector of food and beverages. It will respond to the new technologies by satisfying the changing demands of customers in Botswana. This will be an effective place to meet friends, relatives and to enjoy the time. In today's time, the demand for customers is growing for the good quality coffee and services. This organization will capitalize on the proximity to repeat customers group. It will offer the best food and beverages within the area by complimented pastries and free books that customers can enjoy and read their books by visit (Rolfo, & Finardi, 2014). The organization will be operated within the 2300 square foot with walking distance from public conveyance route. The budget of the organization will be $150000 (us). This is expected that the revenue from sales will be $580,000 to $7060000 in year three. Organization will try to preserve the effective sixty-five percent margin of profit and reasonable expenses of operating the business. The net profit margins of the organization will be supposed to be growing from $110000 to $125000 within a similar period. This will be an effective organization by offering a full menu of tasty food and beverage as products (Hsieh, & Chen, 2011). The strategic business plan will offer an opportunity to review the vision and focusing more on the strategy (Blackburn, Hart, & Wainwright, 2013). It will give a step by step plan to businessstart-up;establisheffectivenumbersofsales,profitabilityandgrossmargin (Woodcock, Green, & Starkey, 2011). My role as the administrative officer at the corporate level will be to develop the strategic plan for java culture bakery and restaurant. The plan will include the mission, strategic controls and continuous empowerment. Mission The mission of the Java culture bakery and restaurant will be to make the best effort to create the unique place at which consumers can socialize respectively within a relaxing and relaxed environment by enjoying the best food and beverage in the town. Java culture bakery and restaurant will be in the business to remove the daily stress by delivering the peace of mind by the convenient location, customer-friendly service, and consistently good quality products. This
STRATEGIC DEVELOPMENT 3 will be achieved through strictly following the guidelines of preparations. The activities of marketing will focused to maximize the sales at a higher margin. Brewed coffee, espresso drinks, and teas with refreshment food and beverages will be vended within the Java culture bakery and restaurant. It will also offer pastries, sandwiches, and salads. The menu of the organization will be supplemented through the free magazines and books that consumers can read within the Java culture bakery and restaurant. The organization will devote profits to enhance the employee’s satisfaction by providing constant returns to shareholders (Brock, Leblebici, & Muzio, 2014). The organization will make a contribution to welfare regarding the local community through supporting activities like civic and charitable. The organization will also support farmers to grow products by use of fair trade, production at a sustainable level, and organic products. It will give award to its local suppliers as many as possible through keeping the community. The organization will offer the customers tasty food and beverages within the area. Internal analysis Making a strategic business plan for Java culture bakery and restaurant is essential. This will help to plan and give the insight to run a business more effectively (Vasarhelyi, et al., 2012). This will be a crucial element of the organization's strategic business plan. Strength The SWOT analysis will support to draw strength of Java culture bakery and restaurant regarding internal factors. These will also support to find out the advantages of business over other competitors and provide a competitive edge. The positive attributes of the organization will support to generate revenue. It will include the innovative items within the menu that are unique with Java culture bakery and restaurant and the connectivity with the location that gets the footfall at a high level. The organization will also use the POS to ensure maximum profits. Weakness This is also very important to identify the weaknesses within the business and improve them in handy situations (Onuonga, 2014). These will be the areas that present the disadvantages, and
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STRATEGIC DEVELOPMENT 4 any loss of profits. This can be anything by having an inexperienced worker to have a limited budget for marketing. These will be the area that not within the control and can instead works to compensate them. Opportunities These will be the areas that support to find out the actual potential within the business and help to drive more profits. The opportunities will be identified through looking at the real possibilities that increase the sales of the restaurant. Java culture bakery and restaurant will catch on early and harness trends to attract customers. Threats These will be the factors that potentially hamper the business of the restaurant. These must be well controlled over these kinds of factors and included within the business and prepared for the unforeseen circumstances. The risk will be involved within the business and these can be high competition and rise within the price of raw materials and increase of property rent (Asvanund, & Morgano, 2011). External environment The external environment contains a combination of aspects that come outside the organization and affect performance (Gupta, 2013). The analysis will depend on the factors that affect organizations' behavior. The PESTLE analysis framework will indicate the important influences according to the features of macro-environment. Political The regional integration will present trend and aspect that present the opportunities for the Java culture bakery and restaurant to expand at a global level. The government will improve the infrastructure and generate opportunities for the Java culture bakery and restaurant to access more suppliers. Economic
STRATEGIC DEVELOPMENT 5 The higher rate of the economic growth of a nation and the declining rate of unemployment will make the opportunities for the organization to gain more incomes from many markets around the globe (Wang, & Ellinger, 2011). Social Java culture bakery and restaurant will have opportunities to enhance sales based on the increasing demand for specialty food and beverages due to the growing middle class people around the globe. The organization will also have the prospect to broaden its range of healthful goods to catch more health-conscious customers. Technology This organization will have opportunity to improve the mobile application and linked facilities to gain more incomes by mobile purchases. The organization will also have the opportunity to increase efficiency of supply chain built on new tools that farmers use (Navarro-García, Arenas- Gaitán, & Rondán-Cataluña, 2014). Legal The organization will have opportunity to enhance performance by filling the regulations of safety on the ingredients from inherently modified organisms. The organization will perform more effective in these kinds of aspects. Ecological The trend of sustainability will be followed by the Java culture bakery and restaurant by ensuring the minimal impact of the environment. The organization will enhance more opportunities by managing corporate social responsibility (Auzair, 2011). Strategic analysis and choice Java culture bakery and restaurant strategy will be dedicated to get the new customers by retaining existing customers and getting consumers to devote more and originate back through more often. Establish a reliable base of customers will create more sales and provide favorable referrals (Teryima, & Angahar, 2014).
STRATEGIC DEVELOPMENT 6 Competitive edge The organization will place itself as the unique organization at which patrons can enjoy and spend time in the ambient environment. The comfortable chairs, with relaxing tune and lowered light will support the customers to relax from the day to day stress and differentiate the organization culture from the incumbent competitors. The sales strategy The organization will handle the dealings of sales. It will also speed up the services of customers as two employees will serve the clients. The one employee will prepare for the orders of customers and the second will care about the transactions of sales. All data of sales will be logged on terminal of the computerized point of sales and will be analyzed regarding marketing. The organization will build up the base of the client and use banners, customer referrals, fliers, and cross the promotion with the other business communities (Rumanti, & Syauta, 2013). Programs of customer retention will be used by the Java culture bakery and restaurant to make sure that customers come back and spend more amounts. The sales forecast The cost of food is assumed at least 25 percent of the coffee beverages and 50 percent for the retail pastries and beans. Long-term objectives The long term aims of Java culture bakery and restaurant will be about the expansion of store and growth strategies of every segment; that includes its entry within the bakery and restaurant business and initiatives to boost relations with customers. The organization will also plan to take the steps and ensure the growth within the upcoming fiscal years (Michelini, & Fiorentino, 2012). Segment specific plans The organization expects to improve them significantly over the upcoming years. It will also focus more on the brand building and generate more income from the present stores and increase
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STRATEGIC DEVELOPMENT 7 the agreements of the licensing. The margin and return on the capital business will be reported to grow by the good percentage that is fast gaining traction. This will be the expectation that the global footprint of the segment doubled within the upcoming years. Java culture bakery and restaurant will also introduce the customer loyalty program. Connection with customers The organization will connect with its customers through the social, internet, mobile, loyalty and programs of cards. This is expected that the organization will serve more than 25 percent of the transaction within the nation and money loaded within the cards will grow over 20 percent. This is expected that the organization will get 10 percent of the payment through the mobile application. It will also remain positive about long-term objectives. Organization will also appreciate the strong market position, rapid growth, and strong market position (Holliman, & Rowley, 2014). The generic and grand strategies Generic and grand approaches of the Java culture bakery and restaurant will be to achieve the organization's mission. The objective of the organization will be to get success through good quality products like coffee, food, beverages, and entertainment products. The objective of the organization will be to keep the product with high value and quality. The objective of the organization will include the effective services of organization patrons. Every member of the organization will be efficient, courteous, and attentive. The organization will target customers and often. Organization business will be located within an accessible location and central to many individuals. The organization will have a business grasp on beverage, food and labor costs. The organization will have a business grasp on food, labor costs, and beverage. The organization will deliver the dining, entertainment, coffee house experience, and support to inspire the repeat business and encourage the word of mouth that recommended to the others. The key of the organization will be proper management of employee, inventory, and quality control (Mathooko, & Ogutu, 2014).
STRATEGIC DEVELOPMENT 8 Short term objectives Java culture bakery and restaurant will vend perishable comfort diet like sweet and tempting gifts that appeal to the wider target market. Products of the organization will be perishable at an extreme level. This is the expectation of the customers that the organization will sell the product that is scorched fresh daily and make the challenging to meet the daily demand without wasting the inventory. The objective of the organization will include that it builds the wider and committed base of customers and develop the business model that carries the sufficient income to cover the expenses despite the waste at a high level (Kralev, 2011). Revenue objectives and repeat business The organization will increase its revenues by efficient promotions and advertising like offerings deals on the particulars items on different weekdays. The organization can also add to the revenue totals through monitoring and adapting the demand by paying devotion to the flow of customers by the patterns of sales. Changes that bring the additional sales need little monetary outlay like adjusting the hours to be exposed that are expected to be generating displays that tempt consumers to purchase additional goods. The organization will stabilize the sales by repeat business. The promotional offering will bring new consumers within the door and monthly revenue targets will be met more easily through encourages return visits. Customer services with excellent features and reward system will be the main revenue drivers. The minimize waste and support the community The income of the business is the amount that leftover and after the subtracting deductible expenditure from the sales revenue. To accomplish the objective of the maximum income organization will reduce its waste without consecutively out the famous items. In today's time, the demands of the customers are rarely consistent. This is difficult to avoid waste. This will be important for the organization to carefully record the items that enable to predict the patterns of sales. The organization will achieve accuracy at an additional level through paying the attention to many variables that affect the patterns of sales like weather and holidays. The organization will consider donating the leftover baked products to homeless lodgings and community programs. It will contribute to the community within the manner with the net positive influence on the reputation and public as the whole (Dumi, Emurllai, & Jazaj, 2013).
STRATEGIC DEVELOPMENT 9 Functional tactics Functional tactics of the Java culture bakery and restaurant will include delivering the qualityproduct.Theobjectiveoftheorganizationwillbetosellthefood,beverage, newspaper/magazine, and entertainment products by word of mouth. The organization will establish a relationship with the local hospitality organizations to create opportunities for the visitors to look forward and experience the good service. Reputational objectives Creating a strong reputation will be the main essential to objectives of the Java culture bakery and restaurant to attract loyal clients and generate a regular volume of sales. The organization will create a reputation by producing high-quality goods and maintain excellent customer service. This will be also tempting to vend products that are lesser perfect to minimize the waste. These deals may cost more within the long run through compromising the organization's reputation.The organizationwill also build a reputationby socialmedia, eventsof the community and local promotional prospects. Efficient and positive interactions with customers will boost the organization within the long run (Despeisse, Oates, & Ball, 2013). Margin goals Business model of Java culture bakery and restaurant will sell the optimally fresh offering that creates the potential for waste and monitor the profit margins. The percentages of sales will support the organization to exceed the operating expenses. The organization will shop around the low prices on elements and not compromise with the quality for sake of value and deliver high standards to customers. Organization efficiencies will enable to produce of more within the lesser time like consolidating procedures, eliminating bottlenecks and achieve more economies of scale by maintaining the margins that are critical to the model of business. Policies and empower action Java culture bakery and restaurant will be owned and managed by the owner. The organization will hire the manager to oversee the day to day operations at Java culture bakery and restaurant. The organization will hire an experienced manager within the definite industry within Oregon. This individual will be responsible to manage the staff, developing a marketing
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STRATEGIC DEVELOPMENT 10 strategy, ordering inventory, dealing with suppliers and performance of many other days to day managerial duties. The organization will believe that agreement of profit-sharing must be measured on the basis of first-year active results (Prothero, et al., 2011). Management team gaps Owner and management experience will support to retain the effective services and support to develop idea of business for Java culture bakery and restaurant. After getting the experience within the industry organization will open the dozens of branches and customer satisfaction surveys will provide the additional input with assessment of new opportunities of business. Financial policies and plan Java culture bakery and restaurant will capitalize on solid petition for high-quality products. The organization has a sufficient budget as a startup capital to open the business. The organization will get success by the successful management objectives through establishing the growing base of loyal customers and see its net worth doubling in the two years. The organization will sustain a strong gross margin with 65 percent combined with reasonable functioning expenditure and provide sufficient cash to economics further growth. The strategic control and constant improvement For the strategic control organization will implement the strategies more effectively and hire the attitude that has the friendly enthusiastic workers to make patrons feel welcome and valued. The organization will appreciate and constraint more on the training of workers to assure the best and possible quality service. The organization will work more to reduce the waiting time of customers and create an efficient ordering of products. The organization will organize the activities to track the performance based on the period, goods costs, and items. Requirements of labor will be matched to the projected within the organization sales and based on the previous performance for more efficiency. Scheduling will be done virtually and revised to accommodate changes by projecting the weekly, monthly, annual or labor costs. Workers' schedules will be sent through the email. Goods cost will be observed for improved efficiency too. Organization researchmethodswillregularlyhelptodeliverhigh-qualityproductsbymakingminor incremental developments within costs of items (Qader, 2015).
STRATEGIC DEVELOPMENT 11 Conclusion In the limelight of the discussion, it can be concluded that Java culture bakery and restaurant will get success at a higher level. This discussion covers the mission statement, functional tactics, internal analysis, planned analysis and superior, long-term objectives, external environment analysis, generic and grand plans, policies and empowers actions, short term objects, strategic control, and constant improvement. These all indicate that the organization will get success at a higher level through environmental analysis. Plans of the organization will also give more results with the support of appropriate policies and control over the strategies. The organization will offer an opportunity to review the vision and focus on the strategies. It will provide the step to step plan for the organization as a new venture to establish a favorable number of sales, profitability and gross margin.
STRATEGIC DEVELOPMENT 12 References Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business, strategy, and owner-manager characteristics.Journal of small business and enterprise development,20(1), 8-27. Woodcock,N.,Green,A.,&Starkey,M.(2011).SocialCRMasabusiness strategy.Journal of Database Marketing & Customer Strategy Management,18(1), 50-64. Hsieh, Y. H., & Chen, H. M. (2011). Strategic fit among business competitive strategy, human resource strategy, and reward system.Academy of Strategic Management Journal,10(2), 11-59. Brock, D. M., Leblebici, H., & Muzio, D. (2014). Understanding professionals and their workplaces: The mission of the Journal of Professions and Organization.Journal of Professions and Organization,1, 1-15. Rolfo, S., & Finardi, U. (2014). University Third mission in Italy: organization, faculty attitude, and academic specialization.The Journal of Technology Transfer,39(3), 472-486. Vasarhelyi, M. A., Alles, M., Kuenkaikaew, S., & Littley, J. (2012). The acceptance and adoption of continuous auditing by internal auditors: A microanalysis.International Journal of Accounting Information Systems,13(3), 267-281. Onuonga, S. M. (2014). The Analysis of Profitability of Kenya's Top Six Commercial Banks: Internal Factor Analysis.American International Journal of Social Science,3(5), 94-103. Asvanund, P., & Morgano, S. M. (2011). Photoelastic stress analysis of external versus internal implant-abutment connections.The Journal of prosthetic dentistry,106(4), 266-271. Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment.International Journal of Modern Social Sciences,2(1), 34-43.
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STRATEGIC DEVELOPMENT 13 Wang, Y. L., & Ellinger, A. D. (2011). Organizational learning: Perception of the external environment and innovation performance.International Journal of Manpower,32(5/6), 512-536. Navarro-García,A.,Arenas-Gaitán,J.,&Rondán-Cataluña,F.J.(2014).External environmentandthemoderatingroleofexportmarketorientation.JournalofBusiness Research,67(5), 740-745. Auzair,S.(2011).Theeffectofbusinessstrategyandexternalenvironmenton management control systems: a study of Malaysian hotels.International Journal of Business and Social Science,2(13) 526-631. Teryima, S. J., & Angahar, P. A. (2014). Corporate level strategic analysis and choice as ameasureofachievingperformanceinorganizations:(asurveyofDangotegroupsof companies/conglomerates) quoted on Nigeria stock exchange market.International Journal of Business and Economic Development (IJBED),2(2). Rumanti, A. A., & Syauta, K. J. (2013). Determining strategies based on strategic position analysis in Small and Medium Enterprises.International Journal of Information and Education Technology,3(4), 442-447. Michelini, L., & Fiorentino, D. (2012). New business models for creatingshared value.Social Responsibility Journal,8(4), 561-577. Holliman, G., & Rowley, J. (2014). Business to business digital content marketing: marketers’ perceptions of best practice.Journal of research in interactive marketing,8(4), 269- 293. Mathooko, F. M., & Ogutu, M. (2014). Coping strategies adopted by public universities in Kenya in response to environmental changes.Journal of Management and Strategy,5(1), 93. Kralev, T. (2011). Management by objectives: Management philosophy for prosperous tourism organizations.UTMS Journal of Economics,2(1), 83-87.
STRATEGIC DEVELOPMENT 14 Dumi, A. R., Emurllai, E., & Jazaj, G. (2013). Performance Quality and Long–Term Objectives, Educational Services and Priorities in Albanian Administrative Reforms.Academic Journal of Interdisciplinary Studies,2(2), 167. Despeisse, M., Oates, M. R., & Ball, P. D. (2013). Sustainable manufacturing tactics and cross-functional factory modeling.Journal of Cleaner Production,42, 31-41. Prothero, A., Dobscha, S., Freund, J., Kilbourne, W. E., Luchs, M. G., Ozanne, L. K., & Thøgersen, J. (2011). Sustainable consumption: Opportunities for consumer research and public policy.Journal of Public Policy & Marketing,30(1), 31-38. Qader, M. R. (2015). A novel strategic-control-based Distribution Static Synchronous SeriesCompensator(DSSSC)forpowerqualityimprovement.InternationalJournalof Electrical Power & Energy Systems,64, 1106-1118.