Strategic Management and Leadership Business Plan for Cafe Paradiso

This report presents a detailed business plan for Cafe Paradiso, encompassing strategic management and leadership principles. It begins with an analysis of the company's vision, mission, values, and objectives, followed by an identification of key stakeholders and communication strategies. The report explores the market for the business, customer needs, and data collection methods. It also outlines financial requirements, human resources, and physical resources. Part B of the report provides an alternative business plan, including a description of the business, products and services, marketing activities, target market, pricing policy, and promotional strategies. Financial indicators, KPIs for community awareness, quality, sales, and workforce are also discussed. The plan concludes with a communication strategy for relevant parties, including formal and informal methods. The report is based on the case of Cafe Paradiso, an establishment that aims to provide high-quality coffee, nutritious meals, and excellent services to its customers.

Strategic Management and Leadership
Business Planning
Student Name:
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Module Code:
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Part A: Written Questions and Answers
1. Business Vision: Businesses formulate vision statements to show their aspirations for the future
operations. Most importantly, the purpose of such visions is to help businesses set out view of
their future to gain enthusiasm, commitment, and stretch their performance. In a case of the
Cafe Paradiso, management seeks to ensure that the company becomes the
most preference point for shopping among customers that live beyond
Mountain Glen.
Business mission: Businesses design different mission statements to show
provide their stakeholders and employees a form of clarity regarding the
overall purpose of the organization. This implies that leaders and managers
draft mission statements to build an understanding and confidence
concerning how the strategy relates to the overall purpose. After reading the
case of the Cafe Paradiso, it is apparent that the company seeks to provide
products and services that meet expectations of all customers in terms of
their needs and wants. This spans from providing high quality coffee,
delicious nutritious means, and excellent services. Furthermore, the company
seeks to differentiate itself from other cafes by producing fresh, light, and
healthy meals that meets the tastes and needs of customers. In overall, the
company mission is to target employees and employees that enjoy good
coffee.
Value and objectives: Business values involves the underlying principles designed to
offer guidelines on how to achieve a strategy. While at the same time, businesses use objectives
as statements of specific outcomes of what they seek to achieve. The Cafe Paradiso has
managed to establish two key objectives; to maintain a market share through

the change of ownership and grow shares to 40%, and generate a net margin
of 20%. However, the objectives fail to meet as aspects of specific,
measurable, realistic, and time bound.
2. Key stakeholders in the business
Businesses have stakeholders that affect operations of the business (Schneider & Sachs, 2017).
The internal stakeholders include the staff, chef, business analysts, and managers in different
departments (Brendan and Margret Elliot). While the external stakeholders include the
community living in and out of Mountain Gen, the government, suppliers, and competitors.
3. Communication with the stakeholders
Communication in business stakeholders is vital for growth of any business (Waterschoot &
Van Den Bulte, 2011). Every leader has own strategies of communicating with stakeholders.
As the owner of the Cafe Paradiso, I would schedule meetings with staff. The
approach will help save time on operations. I would also use project summary
reports such as marketing or sales reports. I would sent out reports in a
period of one week, one month, or few days following the implementation of
a project (Riel & Fombrun, 2007). This will involve highlighting the top performing
products and services and reassuring them about the situation. I would also
send out newsletters or emails through the company intranet.
4. Market for the business
The findings from the company SWOT analysis shows the situation of the market as well as the
internal position of the company. Most importantly, the social pattern reveals that the area has
continued to show an increasing population growth across customers of all ages. The area also

has an increased number of shoppers because of a large and growing local population. The
center already has few cafes.
5. Needs of customers
The needs of customers involve their expectations after consuming products and using services
offered at the Cafe Paradiso. Currently, every customer has a need to enjoy
healthy and light meals. Benefit from a friendly environment. Furthermore, customers seek to
get the value of their money through desserts, cakes, and beverages. Customers want high
quality coffee, delicious nutritious meals and excellent services.
6. Research would take both primary and desktop data collection process (Myers, et al. 2011).
The primary data would involve conducting a survey to understand the opinion of customers
living in Mountain Gen area. While desktop research would involve reviewing menu of different
cafes in the area. The findings from the two studies (research) will help me decide on different
pricing strategies such as discounted, psychological pricing, low price or high prices relatively to
what competitors offer.
7. KPIs
a. Café food sales through average sales size
b. Operating income growth higher than the net sales
c. Inventory growth through increased purchases
d. Growth in the number of customers
8. Requirements of the business
a. Financial
The Cafe Paradiso will require financial capital as part of the initial investment to
start its operations. For instance, the business require a purchase price of $170,000.
Furthermore, the estimated start-up cost stands at $209,810. Management will

apply for an initial bank loan of $104,905 and an equity of $104,905 from Brendan
and Margaret payable after two years.
b. Human resource
The business will design different requirements as part of the skills of employees. They will work in
different departments such as communications, operations, financial, sales and marketing, customer
relations, and legal officer. Besides, the business management team will consist of Brendan and
Margaret Elliot. Brendan will work as chef while Elliot will work as a communications manager. The
business will also employ four other staff to work as full-time and part-time.
c. Physical resources
The business will use a number of physical resources to support its operations (Paley, 2008). The
business will require coffee brewers, furniture, computer, counter, utensils, and van,
9. Licences or permits
Every business irrespective of the area of operation, must obtain a license or a permit for lawful
operations. In my case therefore, I would secure a food authority licence. It will allow me to
have the capacity to produce safe food before supplying and selling to customers.
Part B: Written Assessment
1. An alternative Business plan
a. Business description
The Café Paradiso business seeks to provide high
quality coffee, delicious nutritious meals and excellent service to different
categories of customers. Most importantly, the business targets young,
young adults, and adult customers living in and out of Mountain Gen area.
The business seeks to prepare and provide different types of take away
beverages such as fine coffee. Furthermore, the business seek to offer an

ambience environment for customers that want to hold parties and
conferences. The business will ensure that it remains one of the stopover
for shoppers in Mountain Gen area that are keen on health products.
b. Business products and services
The Café Paradiso business seeks to provide a wider range of products and
services to its customers. For example, the business will offer the
following categories of products;
i. Coffee
j. Beverage
k. Cakes and desserts
l. Fresh and light meals
m. Space for meetings, conferences, and parties
c. Marketing activities
i. Products and services
The Café Paradiso business will serve more than 6,000 customers both “dine in” and
“take away” per month. The business will also receive families, business travelers,
groups, couples, and shoppers. Management will offer exceptional cuisine to reflect
high quality food (Ramaseshan, Ishak & Kingshott, 2013). The menu will cover fine
coffee, beverage, cakes and desserts, fresh and light meals. The food list will also
reflect entrée dishes, main dishes, and desserts. The business will open from 8:00am to 5:00pm
Monday to Saturday and from 8:00am until midday on Sunday.
ii. Target market
The target market for the business includes guests that need ambience environment for “dine in” that
come for meeting events, breakfast, and dining. The business will introduce private diner, community

fundraisers, wedding rehearsal meals, corporate parties, and meetings (Ataman, et al., 2010). The
second category of customers will include shoppers and staff found within the shopping centre.
iii. Pricing policy
Management will consider a number of factors to price food and services. Café will offer discounts to
groups of customers who need conferences and meetings. Management will also use premium-pricing
strategy to reflect value of its services.
iv. Promotion and advertising
The marketing department will use integrated marketing communication mix (Polat & Akgün, 2015)
to create awareness about available products and services. The advertising will focus on motion
pictures, billboards, and print media. Public relations will involve sponsoring of boutique weddings,
newly wed couples, and honeymooners. Marketing representatives will organize for community
relations (Ataman, et al., 2010). Furthermore, direct response will cover strategies such as designing
and creating social media accounts and sending direct emails to customers for appreciation.
d. Financial indicators
The business management will rely on two key elements to measure its performance in the market. ()
proposes that a business can apply sales and expenses. Therefore, the café business will use the sales of
food and expenses on operations to measure its performances.
e. KPIs
i. Community awareness
Management will assess the performance of the café through community awareness (Marek, 2014).
The awareness will depend on the proportion of customers that come for shopping at the café or
remember the name of the café.
ii. Quality

Management will use customer feedbacks to assess the quality of different types of coffee, cakes &
desserts, beverages, and foods. Management will adopt five dimensions of service quality to assess
assurance, responsiveness, reliability, empathy, and tangibility.
iii. Sales
Management will rely on comparative specific products and services sale to assess their performance.
Management will measure the growth of sales for a period of three to six months
iv. Workforce
Management will evaluate and compare the performance of different staff. The business will use survey
instruments to evaluate performance of staff based on the level of execution, quality of work, level of
creativity, amount of consistent improvement, customer and peer feedback, response to feedback,
ability for accountability, task completion rate, time management, and reaction to feedback.
2. Communication of business plan to relevant parties
Management will adopt a business communication plan (Strieker, 2015). Besides, identification of the
target stakeholders will form an important element.
a. Formal plan – communication department will create formal methods of
communication (Ellis, 2009). The method will cover calling for meetings, conference
calls, posters, emails, or newsletters.
b. Informal methods – Communication department will design and utilize informal
channels of communication (Jones, 2008). The channels will cover lunch meetings,
sporting events, voice mail, and hallway conversations.

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