Analyzing Cafe Fernandez and Wells: Business Report and Plan

This report provides a comprehensive analysis of Cafe Fernandez and Wells, a small business enterprise. It begins with an introduction to the business, including its mission, vision, and operational profile. The report then delves into an analysis of the business's performance using comparative measures, evaluating employee statistics and sales data against a competitor. Key weaknesses, such as high employee turnover and limited space, are identified. The report proposes specific measures to address these weaknesses, including salary adjustments, employee training, and physical expansion. Furthermore, it outlines strategies to maintain and strengthen existing performance, emphasizing the importance of equipment, ambiance, and customer engagement. The report concludes with a revision of the business plan, an action plan for implementing changes, and an assessment of the impact of proposed changes on the business, aiming for improved overall performance.

SMALL BUSINESS ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................4
1.1 Profile of small business enterprise..............................................................................................4
1.2 Analysis of business using comparative measures of performance....................................................5
TASK 2.......................................................................................................................................................7
2.1 Appropriate measures to overcome identified weakness...................................................................7
2.2 Ways in which existing performance can be maintained and strengthened........................................8
2.3 Recommend with justification new areas in which firm can expand.................................................9
TASK 3.....................................................................................................................................................11
3.1 Produce an assessment of existing business objectives and plans....................................................11
3.2 Revision of business plan to incorporate appropriate changes.........................................................11
3.3 Preparation of action plan to implement changes.............................................................................12
TASK 4.....................................................................................................................................................13
4.1 Impact of proposed changes on the business and its proposal..........................................................13
4.2 Ways in which changes will be managed in the business................................................................13
4.3 Improvement in the performance of business..................................................................................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
In current era more and more people are focusing on establishing their own business.
Business is established but with commencement of operations firm start facing many problems.
In the current report, small business firm is selected and issues faced by it are discussed in detail.
In this report, ways that can be adopted to solve the business problem are identified. Apart from
this, the extents to which implemented steps prove effective for business are also discussed in
end part of the report. In this way entire research work is done in the report.
TASK 1
1.1 Profile of small business enterprise
In business every firm develop its own vision, mission, goals and objectives in order to
determine the specific direction in which it needs to pay due attention t grow its business at fast
pace. Cafe Fernandez and Wells main aim is to provide excellent quality services to the
customers on time and in proper manner. Profile of the small business enterprise is given below.
Name Cafe Fernandez and Wells
Address 1-3 Denmark Street, WC2H 8LP, London
Phone Number 02033029799
Vision and mission statement of the F&W café is given below.
Mission: Café is mainly focused on making high quality of service to the customers with
proper hygiene. Firm intends to make available good environment in the premises so that they
can enjoy their mean and coffee (Huizingh, 2011). In order capture market share and to enhance
business at rapid pace mentioned firm intends to make available edible items at reasonable price
to the customers.
Vision: The vision of F&W café is to prepare and provide high quality of meal to the
customers so the good image of the café can be developed among the customers. Firm intends to
do this be seating high quality standards that will be followed for preparing an edible item on the
order placed by the customer. Firm is also focusing on selecting those candidates as employees
that have good experience in the relevant type of business. By doing so firm intends to ensure

that it have well qualified workforce n its business. Areas in employees performance is weak are
identified and by giving training to the employees their weak points are converted in to strength.
Some strengths or strong areas in which firm is in good condition are given below. s
 All sort of equipments and machines are provided to the employees from preparing edible
and drink items like sandwich and coffee.
 Main focus is given on the café interior and it is prepared in such a way that create
positive image of the café among the people.
 The third major strength of the firm is that it innovate its product line and under this
innovation is done in the ingredients that are used to prepare sandwiches. In order to
innovate product line café manger do thorough research and ways in which different type
of sandwiches are prepared in other nations of the world are identified (Harford, Mansi
and Maxwell, 2012). On the basis of research changes are made in the sandwiches and
customers response on same are recorded.
 Some concessions are given to the new customers in order to create loyal customer base
in the business.
 Those customers that are regularly visiting the café are given gift vouchers. Such kind of
things promotes positive word of mouth marketing for the firm.
 Different variety of sandwiches is provided to the customers under one roof. Hence, ever
time customers does not receive same sort of sandwiches when they visit café.
There are some problems that are faced by the relevant small size business firm. Some weak
points of the Fernandez and Wells is given below.
 The big problem that café is facing in respect to its business is mainly related to the lack
of proper management of order. It can be said that sufficient number of customers are
received by the café but it failed to deliver order on time. Customers have to wait for their
order which irritate them (Mielach, 2016). There is lack of proper space in the premises
due to which sometimes customers have to wait for seat in the cafe.
 Hired employees are not working for long time in the café due to which time spends on
their training gone waste. Apart from this there is a lack of proper coordination among
the employees due to which order delivered very late sometimes to the customers.

1.2 Analysis of business using comparative measures of performance
Main of the F&W café is to earn maximum profit by attracting more and more customers
towards premises. In this regard it takes many steps in its business. There are many other type of
café that are making available similar products services and are giving tough competition to the
business firm. In this context, Lantana Cafe is one of main rival of the F&W cafe. Comparison of
both is done in the below given tables.
Table 1: Employees statistics of Cafe F&W
Year ending 2015 Café F&W
Staff absenteeism in
percentage
8.00%
Job satisfaction 92.00%
Staff Absenteeism in
days
16 days
Table 1: Employees statistics of Lantana Cafe
Year ending 2015 Lantana Cafe
Staff absenteeism in
percentage
7.00%
Job satisfaction 85.00%
Staff absenteeism in
days
15 days
In order to compare both café three areas are selected namely staff absenteeism
percentage, days and job satisfaction. It can be observed from the table that Café F&W employee
turnover is slightly higher than the competitor as its employees absenteeism percentage is 8% in
comparison to 7% of rival firm (Johanso and Mattsson, 2015). However, job satisfaction
percentage of its employees is high then Lantana café. For comparing both firms in better way
sales figures of café are considered. Value of sales of both cafe is given below.

Table 1: Sales of Cafe F&W
Year Cafe F&W
2015 500
2014 430
2013 400
2012 300
2011 280
Table 1: Sales data of Lantana Cafe
Year Lantana Cafe
2015 450
2014 350
2013 300
2012 260
2011 200
It can be seen that both café sales increasing at rapid pace in past few years. Sales
increases consistently in case of both firms. It is identified that sales of café F&W is always
higher then Lantana café in all years from 2011-15 (Gambardella and McGahan, 2010). This
thing revealed that F&W café is in much better condition than rival firm and this happened
because firm is consistently innovating its product line.
TASK 2
2.1 Appropriate measures to overcome identified weakness
In order to convert weakness in to strength some measures that can be adopted are given
below.

 High employee turnover: In the business firm there is moderate employee turnover. In
order to solve this problem it is very important to identify the reason due to which such
kind of problem comes in existence. If that reason will not be identified then corrective
action will be taken in the wrong direction which will not be good for the business.
Salary may be one of the main issue due to which moderate employee turnover is
observed in the business. In order to solve this problem firm can increase its employee’s
salary (Bushee and et.al., 2010). The gross salary must be more than the amount that is
paid by the rival firms. In a single day large number of customers comes in the café
premises. Newly hired employees take time to prepare sandwich and making available
food items to the customers. At place of these new employees if there will be old one
then it will be easy to make available product to them on time. Moreover, there will be
better coordination among the employees at the workplace. Old employees can be
retained only when their salary will be increased by reasonable amount on time.
Employee cost will increase for the café but at same it will be able to retain trained
employees in the business which will lead to elevation in productivity and profitability of
the business.
 Employee training: Employee turnover is already at moderate level and newly recruited
employees are not able to serve customers in better way. Thus, it becomes very important
for the Z&W café to provide training to the employees (Bear, Rahman and Post, 2010).
By doing so coordination among them and their efficiency level can be enhanced. During
training period brief session will be carried out on the roles and responsibilities that
employees have to perform on their job. This will ensure that employees understand their
responsibility and at their own level will handle operations in better way. As there will be
less need of intervention from side of manager at the workplace. Training programs will
increase efficiency and productivity of the employees which will lead to elevation in the
firm profitability.
 Reduce waiting time: In the Z&W café one of the main problems is that there is less
space in the premises. Hence, on single time firm cannot serve all customers that come in
premises for lunch or coffee. So the big challenge for the managers is to make seating
arrangements for the customer. Sometimes customer waits for long time for completion
of order which create negative image of the café among the customers. In order to solve

all these problems new rooms can be build on the roof of café. By doing so sufficient
extension can be made to the firm customer serving capacity in single time period.
2.2 Ways in which existing performance can be maintained and strengthened
It is very important for the business firms to identify their weak points and to act on same
in order to convert weakness in to strength. In order to transform weakness in to strength firm
needs to formulate specific strategy by using which it can do so. Following are the ways that can
be followed by the café in order to improve its performance:
 Tools and equipment’s: Cafe F&W can make available required equipments to its employees
so that they can prepare order in proper way. It is also very important to make available
advanced tools that are equipped with the modern technology to the employees. Proper
training can be given to the employees that are new in the relevant work (Bear, Rahman and
Post, 2010). By doing so employee’s performance can be improved to great extent and their
capacity to serve customers in single time period can be enhanced. Hence, firm profit and
sales will increase at rapid pace and it will be able to make best use of its workforce.
 Ambience: As per research it is proved that ambience greatly plays an important role in
forming positive or negative perception about café among the people. If there will be
excellent interior and lighting in the room positive image of the café will be created among
the customers. Relevant colours can paint on the walls which may attract attention of the
customers in the cafe. Mild music can be played in the café which will create pleasurable
environment in the café. All these things create good image of the café among the people and
elevate positive word of mouth marketing about the firm among the customers and general
public. Hence, café in order to improve its performance can improve its interiors.
 Youngsters: Youngsters are the firm target customers because mentioned group people like
to eat fast food. Firm in order to improve its business performance can form a strategy that
will attract more and more target customers to visit firm cafe. In this regard discount can be
given to the regular customers or big concession can be given to those individuals who are
bringing new customers in the café (Zott and Amit, 2010). By making all these efforts in
proper way café can increase its sales revenue.
 Innovation: In order to increase revenue in the business it is important to increase customer’s
footfalls in the premises. This can be done only when firm is offering something different to
the customers. In order to differentiate self business firm from others firm can innovate its

product line and under this it can offer varied variety of sandwiches to the customers. Along
with this different type of coffee can be provided to the customers. All these things will help
firm in serving different type of customers in proper way. If firm will be able to made
available products to the people according to their test and preference it will be able to earn
more profit in its business. Hence, by following these strategies firm can improve its business
performance.
2.3 Recommend with justification new areas in which firm can expand
There are many steps that can be taken by the Z&W café in order to maintain its existing
performance and to make business more stronger then before. Below some ways are given that
can be followed by the business firms for improving its business performance.
 Diversification: Diversification is the one of the best strategy that are used by almost all sort
of the business firms irrespective of their size (Czarnitzki, Hanel and Rosa, 2011). Z&W café
can use this strategy and under this it can add new product or services in the product line. By
doi(ng so it will be able to fulfil needs of the each and every type of customers. This strategy
will help firm in enhancing its customer base. Changes can be made in the current product
line in terms of price and quality. It can be said that diversification strategy will certainly
help café in enhancing customer footfalls in its premises.
 New location: Z&W café can enhance its business and under this it can increase number of
its premises. In this regard it needs to identify the areas where most of its target customers
live. By establishing a new branch on the appropriate place firm will be able to enhance its
product sales at rapid pace. Before taking a decision in respect to commencing an operation
in the new area firm needs to evaluate its budget and bank balance. On the basis of evaluation
of cash position firm will be able to determine the debt amount that it needs to take from
banks to fund its capital investment. All these factors will help firm in identifying whether
sufficient fund will be arranged on time to finance investment that will be made on the
construction of new premises (Hockerts and Wüstenhagen, 2010). Hence, café by
commencing its operations in to new areas can improve its performance but it needs to
consider lots of factors before taking final decision.
 Global expansion: If possible café can expand its business operations at the global level.
This is possible for the firm because products served by the café are popular across the globe
as large number of people consumes sandwich and coffee. Firm needs to do research which

will help it in identifying the nation where it will be profitable to open premises. In order to
ensure success of the business operations in the foreign land café needs to understand taste
and preference of the customers. Product will be made available to the customers according
to their taste. This strategy will help café in establishing its business in short time period on
foreign land.
 Online services: Café can start online booking services under which on its websites
customers can place an order and get delivery of the food item at their home (Sharma,
Chrisman and Chua, 2012). This business model is gaining high popularity in current time
period as firms like MC Donald are increasingly use this model to enhance sale of their
products in multiple nations of the world. This strategy will help firm in serving customers
that live in areas which are far away from its premises. Hence, firm will be able to serve
more customers in single day and its revenue will increase at fast pace.
TASK 3
3.1 Produce an assessment of existing business objectives and plans
Current objectives and plans of the Café Z&W are as follows.
 Develop customer relation: Main aim of the firm is to increase its relationship with the
customers. In this regard it is giving discount to its regular customers. This help firm in
developing good relationship with the customers.
 Retention: Main objective of café is to retain more and more employees in the business.
Usually when any employee leave his job new one is hired at his place. Training need to
be given to the new employee in which lot of time is spent. Hence, firm main aim is to
retain employees in the business for long time (Rosenbusch, Brinckmann and Bausch,
2011). Employee turnover is moderate in the business and in order to break this trend it is
necessary for the firm to give good amount of salary to the employees.
 Increasing sales: Other main objective of Z&W café is to elevate its sales. In this regard
it is making available variety of sandwiches to the customers. However, wide variety of
coffee is not provided to the customers. Hence, it is very important for café to improve its
product line.
3.2 Revision of business plan to incorporate appropriate changes
The changes that firm needs to make in its business plan are given below.

 Develop customer relation: In order to increase relationship with the customer firm is
already providing discount to the customers that are regularly visiting F&W café. In order
bring change in the business plan firm can stop giving discount to the customers. Instead
it can make available product at cheaper price in comparison to rival firm. By doing so
firm will be able to promote positive word of mouth marketing of its brand name among
the target customers.
 Retention: In order to retain employees on job higher amount of salary can be given to
them (Gassmann, Enke and Chesbrough, 2010). Apart from this performance appraisal
system can be implemented at the workplace. On the basis of results of performance
appraisal hike can be given to employees in their salary. Increasing sales: In order to enhance sales firm can make changes in its business plan. In
this regard it can do marketing of its product through traditional channel of
communications and on social sites like Facebook. Such kind of strategy will make firm
name popular among the people. Variety of coffee can be made available to the
customers. These two things will certainly increase firm profit.
3.3 Preparation of action plan to implement changes
Action plan to implement above mentioned changes are given below. Develop customer relationship: In order to increase customer relationship products will
be made available at cheaper price to the customers in comparison to rival firms. In order
to do so firm will make purchase of raw material at a very cheaper price from the
suppliers. This will generate economies of scale in the firm business. Due to reduction in
cost firm will be able to make available its product at cheaper profit to the customers
without compromising with its margin. Hence, in this way action plan will be
implemented in the business. Retention: In order to retain employee’s good amount of salary will be given to them.
This elevation in the employee cost will be adjusted by the business firm (Zellweger,
Sieger and Halter, 2011). Due to availability of items at relatively low price customer
footfalls will increase in the premises which means revenue will be increase. Hence, it
can be said that employee cost will elevate but on same time revenue will also enhance

due to availability of product at cheaper price. In this way burden of elevation in
employee cost will be easily bear by the firm. Increasing sales: In order to enhance sales advertisement will be done through TV and social
media. Contact will be established with the ad making agency. Apart from this advertisement will
done through social media and all strategies in this regard will be formed by the firm at its own
level.
TASK 4
4.1 Impact of proposed changes on the business and its proposal
Proposed changes positively affect the business firm. This is because in current time period
business firms compete with each other on the basis of price and quality. In the business plan it is
proposed that economies of scale must be generated in the business. If this will happen then cost
of business will decline which will help firm in selling product at low price. On other hand, it is
proposed that salary of employees must be high (Birkinshaw, Brannen and Tung, 2011). This
change will positively affect business firm. This is because if employee’s salary will increase
they will work for long time in café. This means that customer service capacity of the firm will
be high and very less time will be spend on training and development of the employees. On other
hand, expenditure will be made on advertisement of the firm name due to which people will
become familiar with its name. Hence, positive image of the café will be created among the
people. It can be said that proposed changes will positively affect business firm.
4.2 Ways in which changes will be managed in the business
In order to manage changes in the business many steps will be taken. In order to purchase
raw material at low price consistently contract will be signed with the suppliers for more than a
year. Under this at low price suppliers will made available raw items to the firm and in lieu every
time Z&W café will purchase raw item from relevant supplier. On other hand, high amount of
salary will be paid to the employees. Due to offering of product at low price firm will be able to
attract more and more customers. Hence, high amount of salary will be adjusted by the elevation
in sales. In this way proposed change will be managed (Collis and Hussey, 2013). Cost of
advertisement is very high and instead of paying cost entirely by using retained earning some
amount of loan will be taken from bank. Means that some proportion will be finance by equity
and some by debt. In this way changes will be managed in the business.