Comprehensive Business Report: Enchanted Cafe Strategies

This report provides a comprehensive analysis of the Enchanted Cafe, a proposed sole proprietorship cafe. It begins with an introduction to the business, exploring its nature, advantages, and disadvantages, and emphasizes the importance of PESTLE analysis in understanding the external environ...Read More

EFFECTIVENESS IN
BUSINESS WORLD

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Nature of business.............................................................................................................1
B) Advantage and disadvantage of owning a business..........................................................2
C) Importance of PESTLE in start-up business.....................................................................3
TASK 2............................................................................................................................................4
A) Impact of globalisation on business..................................................................................4
B) Suitable technology used for business...............................................................................5
TASK 3............................................................................................................................................5
A) Identifying customers........................................................................................................5
b) Ways to attract customer....................................................................................................6
TASK 4............................................................................................................................................6
A) Role of ethics in business..................................................................................................6
B) Ways to treat staff ethically...............................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
There are many things an entrepreneur has to keep in mind before establishing its
business. The current report will discuss all the important factor that affect the business. The
report will deeply analyse the type of business and the environment in which it operates.
Different organisation operation, need of customer, employees will be mentioned. Ethical values
and morals in business will also be studied in report. Globalisation impact on the working of firm
has also been discussed.
TASK 1
A) Nature of business
From past and present report, it has come forward that, hospitality industry is growing
faster and have much potential of growth and success in near future. With the development of
tourism, this industry is getting necessary boost required for its success (Prajogo, 2016). If an
person decide to invest in this industry the chances of its success are higher. The owner plan to
open a cafe and decided to name it Enchanted cafe. The nature of business will be sole
proprietor, in this whole business in owned by single person. The possessor has decided to
choose a location that can provide it great visibility and will easily able to attract people. The
proprietor has decided that cafe will offer both fast food for young people and also organic and
natural food for health-conscious people. The cafe will provide take away facility as well so that
people can take their product home (Blank,2013). Other than this Cafe will also provide place for
hosting special events and providing their services in that events.
1

Illustration 1: Elements of business start up
(Source: Planning for restaurants, 2006)
§
B) Advantage and disadvantage of owning a business
Owning a business comes up with many advantages and disadvantage some of which are
mentioned below:
Advantages
Business Control: Being a sole proprietor make it easy for you to take important decision
of business. Entrepreneurship provide you with power and control to work and direct your
business. It provides independence to owner and the way it works or remain activate in business.
Owner himself can take decision or can hire competent team to work in the interest of firm
(Rosemann and vom Brocke, 2015).
Money Potential: Having one’s own business help in making much more money
compared to working for someone else. Productivity, marketing plan, sales are all under the
owner. It has great potential in earning in big amount.
Disadvantages:
2

Financial risk: Working alone lead to higher financial risk. All the investment necessary
for firm need to be done by the employer himself. The money invested in a start-up is always at
the risk as the success of business is not guaranteed.
Strain: It brings lot of responsibilities on the head of owner. The owner had to work for
long erratic hours because of their demanding work schedule which create strain on the owner.
Entrepreneur become the sole authority of firm and is responsible for all administrative task.
C) Importance of PESTLE in start-up business
PESTEL is analysis is used by many firm in order to understand the impact of external
environment on the working of business operation. PESTLE stands for:
P - Political
E - economic
S - social
T - technology
E - environment
L- Legal
This analysis identifies factors and help firm in smoother running. PESTLE help
entrepreneur in many ways by having proper analyse of economic condition, it can formulate it
strategy according to it and design its operation. For instance, if the economic condition of
country is good than he can add high cost products in its menu and if its opposite it can provide
quality food at low price to attract customer. New people in business are generally unaware of
the laws and regulations implemented by Govt. PESTLE help in identifying those laws and help
firm in avoiding any political hassle. By knowing latest technology firm can invest in them so
that their work can become easier (Storey, 2016). Knowing social value and environment of
place help to gain attention of local people. These all factors help in finding stability in market
and also provide firm competitive advantage.
3

Illustration 2: PESTLE analysis
(Source: PESTLE Analysis, 2013)
TASK 2
A) Impact of globalisation on business
Business management can be described as an act where different people come together to
achieve a single goal. Globalisation can be described as interconnection or market at global level.
In this business works in international market and do business in global industry.
Advantage of globalisation
Global market: Going global will help enchanted cafe to work at much bigger level. It will
increase the customer base of firm and will also increase the annual income and revenue of firm.
It will provide firm with global presence and help make brand name in other countries (Black,
Calitz and Steenkamp, 2015).
Exchange of Knowledge: Knowledge and information are most important factor in the current
time. Going global will help the owner in learning different ways of business which will help in
the growth and development of whole firm. It will also hep entity in adjusting to the rapid
4

changing market they will become more aware to the different technologies which they can
implement in cited firm.
Disadvantages:
Competition: Going global increases the competition firm faces. There can be many
competitions related to product services, target etc. It’s not easy to attract customer as they have
many choices to select from which have major impact on their behaviour.
Legal effects: Going global increases the risk firm faces. Extra attention has to pay on the
different law of different countries attract more attention towards human rights etc. Example of
globalisation IKEA operate at global level with satellite office and branches in numerous
location. It’s one of known name in furniture industry. Apple is another e.g. who works in
American but its manufacture process is done in china (Zajda, 2015).
B) Suitable technology used for business
`There are many technologies that enchanted cafe can use in order to bring success to
firm. Such as
Touchscreen food vendors: This are digital boxes which provide variety of products available in
40 seconds. Enchanted cafe can adapt this technology in their firm it will help them in reducing
the staff and cost related to it.
Tablet Restaurant Management: There is app known as Breadcrumb that provide real view of
tables and menu of restaurant. This will help enchant in attracting customer and it will also make
it easy at the time of workload.
LED Alert system: This system helps in managing time. This technology is used in kitchen of
restaurant which suffer from utmost chaos at the time of serving. This led light illuminate the are
which are ready to use. It alerts workers when the pots are dry and ready to use (Zajda, 2015).
TASK 3
A) Identifying customers
It is important to have target market. Before targeting the market it’s necessary to understand the
difference between who will buy your product and who you want to sell the product. Enchanted
Cafe has decided to target youngster and college students as their main service user. Young
people are more prone to eating out instead of older people. Keeping the target people in mind
5

firm had decided its products and concentrating more on fast food that will attract this generation
towards them. People are becoming more conscious regarding their health (Curtis and Cachia,
2015). Its not only elder people that are conscious about health but the young generation of
country are also becoming more and more aware of health. Including organic food help in
attracting health conscious student. Adding health conscious food was strategic move made by
firm. Providing organic food not only attract youngster but also elderly people.
b) Ways to attract customer
Attracting customer is main job of firm. There are different ways through which
Enchanted Cafe can attract customer few are mentioned below
Networking: Firm can't wait for customer to come to them, its entity responsibility to attract
customers. For this it is necessary to increase the visibility of firm. Enchanted cafe can ask for
customer referrals. They can ask their customer to spread their name among other people. Other
than this they can drop menu at local business and can provide attracting discount to entice the
customer. It can also use smart flyer to advertise their products and services. Distributing menu
is old way of attracting customers, smart flyer help in attracting customer at much higher rate.
Other than this partnership with local business will also be in the favour of firm (Wollaeger,
Getterand Behe, 2015)
Happy hours: Happy hours help in bringing more customer to the cafe. Enchanted cafe can
introduce this, it will help in boosting the sale. Hosting happy hour different from other rival will
help in attracting more customers. Other than this firm can host their own event to attract
customer and can also embrace big events present to them.
TASK 4
A) Role of ethics in business
Ethics can be described as individual judgement of what is right and wrong. Decision
made by organisation affect the whole working and culture of entity. Ethical behaviour can have
many benefits on organisation. Ethical operation goes beyond the employee ethic and
relationship its directly related to the profitability of firm (Van Leeuwen. and et.al., 2015). The
way firm behave to their client, the service they provide help in building the reputation of
business. Having correct ethical value will help Enchanted Cafe in creating positive image
6

among its community, other business individuals etc. It will also pique the interest of investors in
determining whether the firm is worthwhile investment or not.
B) Ways to treat staff ethically
Companies like Aldi, McDonalds are known for their business values and ethics. These
business ethics help them in treating their staff right and retain them to firm. It’s important to
treat the workers of firm rightly, so that they remain loyal to firm and help in the growth and
development of firm. In Aldi to support their employees company has implemented many of
policies one of them is, Aldi sick policy where the employees are provided with pay leaves if
they are sick and unable to work (Verbos, and Miller, 2015). Enchanted can also adopt this
valued to make their staff happy and satisfied.
CONCLUSION
It can be concluded from above report that there are many things that an owner has to see
before starting its business. There are many type of business. Location and target market play
major role in the success of firm. Pestle help in identifying potential threat. While ethical values
play major role in the development of firm.
7

REFERENCES
Books and Journals
Black, P., Calitz, E. and Steenkamp, T., 2015. Public economics. OUP Catalogue.
Blank, S., 2013. Why the lean start-up changes everything. Harvard business review.91(5).
pp.63-72.
Curtis, H. and Cachia, M., 2015. The impact of globalisation on organisational communication:
an interpretative phenomenological analysis.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer
Berlin Heidelberg.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Van Leeuwen, T. and et.al., 2015. The economic importance of acaricides in the control of
phytophagous mites and an update on recent acaricide mode of action research. Pesticide
biochemistry and physiology. 121. pp.12-21.
Verbos, A.K. and Miller, J.S., 2015. When harm is at stake: ethical value orientation, managerial
decisions, and relational outcomes. Journal of Business Ethics. 127(1). pp.149-163.
Wollaeger, H. M., Getter, K. L. and Behe, B. K., 2015. Consumer preferences for traditional,
neonicotinoid-free, bee-friendly, or biological control pest management practices on
floriculture crops. HortScience. 50(5). pp.721-732.
Zajda, J., 2015. Globalisation and its impact on education and policy. In Second International
Handbook on Globalisation, Education and Policy Research (pp. 105-125). Springer
Netherlands.
Online
Pestle analysis. 2013. [Online]. Available Through :<file:///home/user/Downloads/energies-06-
05023.pdf/>. [Accessed on 27th October 2016].
8

Tim Berry. Planning for restaurant. 2006. 2013. [Online]. Available Through
:<https://www.entrepreneur.com/article/164826>. [Accessed on 27th October 2016].
9