Caffe Finix: Evaluating Performance and Recommending Changes

This report provides a comprehensive analysis of Caffe Finix, a small business enterprise, focusing on its background, strengths, and weaknesses, and evaluating its performance using various measures. The report utilizes a SWOT analysis to identify internal and external factors influencing the business. It examines sales, finance, and marketing aspects. It suggests methods for overcoming weaknesses, such as high rent and staffing issues, and strategies for maintaining current strengths, including quality products and prime location. The report also explores opportunities for business expansion, including opening new locations and expanding the product range. Furthermore, it assesses existing business objectives, revises business plans to incorporate changes, and outlines an action plan for implementation. The report concludes by discussing the influence of recommended changes on the business and its members, change management strategies, and an analysis of performance improvements over time.

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Background of Caffe Finix and its strengths & weaknesses............................................1
1.2 Evaluation of the performance of business using different measures..............................2
TASK 2............................................................................................................................................3
2.1 Methods to be used for overcoming the weaknesses........................................................3
2.2 Ways to maintain current strengths and performance......................................................4
2.3 New areas in which the they can expand their business...................................................5
TASK 3............................................................................................................................................6
3.1 Assessment of existing business objectives.....................................................................6
3.2 Revise business plans to incorporate appropriate changes...............................................7
3.3 Action plan to implement the changes discussed about...................................................7
TASK 4............................................................................................................................................8
4.1 Influence of the recommended changes on the business and its members.......................8
4.2 Managing of the changes in the business.......................................................................10
4.3 Analysis of the improvements in the performance of the enterprise over a time period.10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business enterprises are the small ventures which are privately owned and with fewer
employees they run their operations. Such industries are known for driving innovation and
competition in many economic sector (Bridge and O'Neill, 2012). It plays a crucial role in the
growth of country's economy and provides employment to the citizens of that country.
Government has to understand the importance of small scale industries and need to support them
in every aspect. They can create an environment where these type of organisations can penetrate
and develop. In UK a company can be referred to as SME if it has turnover less than £25m or
employees number restricted to 250 only. It gave employment to approx. 15 million and had a
turnover of £1.8 trillion. Looking at the future scope of these sector, government has decided to
give every £1 from £3 which they will be spending to businesses by 2020. They are ready to give
contracts to the small and medium sized enterprises. Through this they are creating opportunities
for them. This report will be dealing with importance of this for economy of UK. How small
enterprises can be managed through change management and it is a revision of business plans by
them (Storey, 2016). All these will be discussed by taking example of a coffee shop i.e., Caffe
Finix.
TASK 1
1.1 Background of Caffe Finix and its strengths & weaknesses.
Caffe Finix is a coffee shop located in the city of Stratford which is situated in the east
London. This coffee shop debuted in the market in 2009 and has become a popular place for the
local coffee addicts. Someone who desire for a place where they can find peace and hang out
with friends, Caffe Finix is the best place for such purpose. Not only all these things, a visiting
customer also get choices of reading books because they have maintained a good collection of
books. All the operations of the shop is carried out in the 150 square foot (Burns, 2010). This
business of coffee shop is run by owner Peter Scott and employed 8 people for handling all tasks.
They provides various different kinds of coffee along with tea and breakfast. For identifying the
strengths and weaknesses of the business a SWOT analysis can be done. This will help the coffee
shop to make decision focusing on improving business operations and increasing profits
revenues. Strengths and weaknesses in the SWOT matrix are the internal factors.
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Strengths:-
It is defined as the areas of the company where it has expertise or has capabilities of
handing those task very well. Strengths of the business helps them in gaining competitive
advantage in the market. For example; Coca-cola has advantage of his strong brand name and
Apple are known for their different innovations in their products. Caffe Finix also has
advantages like it serves variety of product (Stokes, Wilson and Wilson, 2010). They are known
for their quality services and has good reputation among consumers. As it is very close to
Stratford college, which gives them benefit of attracting students or youths. Every year its sales
turnover is growing up and has excellent fresh & quality coffee and food.
Weakness:-
It is the limitations of organisation or it is a defect of firm's operations that it does not do
very well. For example; a company is selling low quality products can be example of this. As a
business consultant it is duty to find the areas where Caffe Finix is lacking behind. Following are
some weaknesses of the organisation:-
 Some of its coffee brands are not very much known;
 They have to pay a high rent which is affecting their business;
 It lacks the proper staffing management as they are failing in the process of retaining
employees (Down, 2010).
1.2 Evaluation of the performance of business using different measures.
If an organisation wants to know the status of their business they can carry out
performance management program. This activity is the comparison of enterprise with its
competitor who are in the same sector (Goss, 2015). Performance of the staff, sales, production,
customer service are some elements which can be taken in account for this purpose. Following
are some areas where performance can be checked:-
Sales: If they want to know that if they are in loss or profit, sales of the organisation can indicate
that thing. Depending upon its aim they can evaluate this on the basis of monthly or quarterly
sales. Through this they can improve their customer service, quality and can increase market
share. By inspecting it they can modify their plans according to it, giving more importance to
staff, suppliers and distributors.
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Finance: For starting a business finance is needed and so it is crucial to analyse performance on
the basis of it. Different parameters like Return of Investment, valuation of asset, liquidity and
analysis of an operating expenses are included in this. Above listed all factors impacts the
financial health of the cafe. Caffe Finix owner aims at return of investment, so they should
constantly focus on analysing the financial resources available to them.
Marketing: After the product is manufactured, it becomes prime duty of the administration to
make it reach to the targeted customers. Marketing is the way through which communication can
be established between the consumer and company (Ackermann and Audretsch, 2013). Focusing
on the marketing aspects of the business they can improve the brand and product awareness
about whatever item they are offering. This is the most important factor through which they can
expand their market and get more customers. For promoting their cafe they can use advertising
which is a paid promotion. Advertising their services through different channels of media will
make people aware about this cafe. They have to build a strategy which focuses on bringing
creative marketing strategy.
TASK 2
2.1 Methods to be used for overcoming the weaknesses.
Location of any coffee house is a key place for doing any business and this will yield
more revenues. They can attract more consumers here but due to expensive rent it might affect
their profits. People generally faces issues related to parking so they can rent some area infront
of their cafe which will resolve the issue. Many materials expires in short span of time so they
have high inventory turnover rate (Burrows, 2015). They can adopt First in First out method for
sale and stock replenishment. Everyday effective restocking and recording is to be followed to
maintain the supply of right amount of the materials. They have to maintain the quality of the
products as food items and beverages are the commodities on which they are totally dependent
for their business. There can be variation in coffee and cupcakes because they are made at
different times. Each day there can be little difference, which makes quality control a difficult
task. To make sure that proper standards are maintained they should train their staff and give
them guidelines about how they can constantly improve the status (Schaper and et. al., 2014).
Different tasks and strategies should be made to maintain the taste and decoration of the same.
Employees who are working for them should be well versed with the serving techniques, after
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recruiting anyone they should provide them training about each and every part of the Caffe Finix.
Attracting more clients is the ultimate aim of the cafe, for that they have to satisfy them.
Consumer satisfaction can only be achieved if different benefits gets included in the cafe.
Marketing strategies like online promotion is the best way of promoting Caffe Finix. Almost
everyone uses internet so they should create online pages of their cafe. In those they can give
discounts and make them aware that they have to come out with different kinds of coffee.
Engaging people on this platform will give them reach to a wider audience (Malhotra and
Temponi, 2010). They can also use it as a place where they can take feedback from the customer.
Consumer can rate the cafe and may ask people to visit it. Giving ads in the local newspapers
and radio will also a way to popularize the Caffe Finix. Modification or innovation of the shops
should be there and a new theme should be used. Regularly changing theme and concept of cafe
attracts different people. Separate cabins should be built for families and couples so that they can
get privacy.
2.2 Ways to maintain current strengths and performance.
Caffe Finix totally focuses on complete quality in product and service.
They make sure that they set their business on prime location where scope
is more. Whatever services is served to the customers should be of
outstanding quality and they should get a health environment in cafe. To
improve or maintain the strengths they should deliver a better tasting
coffee drink (Olson and Staley, 2012). It is considered as a luxury item which is
affordable, so they should pour and give that thing in proper manner. This
sector is not much affected by the economy or any event related to the
economy of the country. Building a compliant or suggestion box would
encourage people visiting their so whenever they thinks that this
modification should be done in that. If comparison is made between the
other coffee place situated in Stratford areas it has better taste and high
quality product. Location of the shop is best and considerably far more
better than other as it is near to college, shopping, dining and
entertainment places. Its interiors are of world class as proper glass
decorations and art work is done. In that particular area it is the only coffee
house who is providing regular weekend evening entertainment. Simple
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things make people bore, assuming this in mind they have made sure some
fun activities should be there for almost everyone. People come to cafe to
spend quality time in peace so they has built a rooftop cafe (Gronum, Verreynne
and Kastelle, 2012) . Not only the coffee they are more focusing on other
beverages and food items which can be consumed with coffee. Different
types of tea of Asian countries are also served. As they made a good image
in the eyes of customer so in order to maintain that image they have to take
care of those loyal consumers who visits frequently to cafe. Giving them
discounts can be another way of attracting them.
2.3 New areas in which the they can expand their business.
Every small scale business always aims at expanding their business on
larger level and earn for profit. As it started its operations in 2009 and they
didn't thought that they will reach at such level. After the successful years
now time has came to expand and penetrate their business (Altman, Sabato and
Wilson, 2010). Till now they were only restricted to one city i.e., Stratford,
which is a small city so market out there is also limited to that area. They
can open their shops in capital of UK i.e., London. It is world's one of the
largest cities so that means they will be expanding their services in
international market. Big business plans bring big opportunities as well as
workload. Caffe Finix before taking any action or carrying out any activities
they should work on a business strategy which they will be adopting.
Market research should be done and analysis of the competitors is
also required. Market conditions of both cities will be different from each
other so they cannot use the same strategies which they were using in
Stratford. London which is very crowded area and a lot foreigners visit
different destination of it. It is the best location for expanding their market
as location gives them competitive advantage. Lifestyle of people are far
more better than the previous city and has access to almost every resources
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available in their market. Coming out with the best products is on the top
priority of the organisation because the core area is the coffee and food.
There is a tough competition and many coffee houses are well settled.
No one will accept the usual or normal products and services, they have to
come with a new idea. Their aim will be providing a unique fresh coffee to
the customers on reasonable rates (Fassin, Van Rossem and Buelens, 2011). They
have to use freshest coffee beans and consistent flavour which attract more
& more people. They should focus on the strategy that they will be
convincing the consumer in their first visit only because if he will be
satisfied he will come back. A happy consumer also advertise through his
words of mouth and asks his friends or family members to go and visit that
coffee house.
After the food and beverages then comes the service and employees.
In Stratford there were only 8 people who was giving their services in Caffe
Finix but in London cafe will be of bigger size and operation will be at
larger level (Cowling, Liu and Ledger, 2012). For this a large number of
employees has to be recruited who already have skills and experience in
working with any reputed restaurants and pubs. Although they don't have a
HR team who can carry out the hiring process, so they can take help of any
consultancy firm. They will help them in admitting right candidate who
posses skills related to this profession. After the recruitment they have to
be trained in skills which they lack.
Every day new cafes, restaurants and pubs opens in London but
people hardly notices it and because they don't have anything new to offer.
To make it a successful debut and make people aware that certain cafe is
going to open they have to promote the event. Through promotion in
newspapers and local channels invite people giving them discounts. Other
thing they can do is building the organising charity on the same day and
should donate every .5% of their profit to poor and needy people.
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TASK 3
3.1 Assessment of existing business objectives.
Objectives and goals are the final result which a organisation has aimed for. Everyone
has different goals depending upon the size of the organisation and in what kind of market they
are operating their business. Caffe Finix has set some targets which they have to
achieve in the period time. This gives them advantage from their competitor
because they are clear that what they wanted to do and on what factors
they have to focus (Rae, 2010). In this past decade a concept has developed in
which people go through the internet and see the review on different cafes
written by the product review companies. So they have objective of getting
good reviews and have to be “Best Coffee shop in the area”. All the
foreigners who are coming in the city should definitely visit them and
tasting their coffee. They have objective of maintaining a 60% gross margin
and always wanted to provide finest coffee items. By a survey done by an
independent organisation has ranked Caffe Finix one of the finest place to
have coffee because they have excellent location and service. Through this
it is clear that the first objective is achieved by the organisation (Islam and et.
al., 2011). There daily customer is almost 600 per day which describes how
successful they are in that area. Caffe Finix has never comprised from their
quality standards so their quality checking team makes sure that they are
delivering quality coffee beans made coffee. They have always provided
these products at a competitive price.
3.2 Revise business plans to incorporate appropriate changes.
Marketing strategies of Caffe Finix will be focusing on getting new customers and
retaining the existing. Building loyal consumer not only gives profit or generate
revenue but also will provide favourable referrals. A comfortable setting
which includes chairs, led lights and light music will release the stress of
the people visiting in the cafe (Chittithaworn and et. al., 2011). This will separate
Caffe Finix from its competitors. It holds a place where a peace
environment is maintained by them. All the employees will be engaged in
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different tasks like barristers will handle the sale transactions and three
employees will be given responsibility of serving customer. By introduction
of this there will be efficiency in the work. Whatever the data related to the
sales will be later be used for evaluating purpose. In order to build a strong
client base they will build banners & fliers and utilize them with other
businesses in the country. Through making policies and strategies make
sure that customers should come to the cafe again and spend much more.
3.3 Action plan to implement the changes discussed about.
 Market Analysis
Caffe Finix has always focused on local residents of Stratford and other than this all the tourists
who are visiting the city are the main target audience.
 Market Segmentation
As cafe is near to college its marketing operations are focused on students, people working there
in offices and different departments. These section of the college are more tend to consume
coffee as they have to do lots of work. Coffee is a thing which brings activeness and refreshes
the person.
 Target Market Strategy
Caffe Finix serves the people who like to have coffee in a relaxing environment. Different age
group people might have different taste and follow a specific trend. But the coffee shop is near to
college so that means all the clients will be students and faculty of the college (Chell,
Nicolopoulou and Karataş-Özkan, 2010). Most of the students consider coffee shops as a place
where they can study and meeting their people. No extra charge will be taken from the students
for expending more than 3 hours in coffee shop. This will motivate them to come to go to that
place and consume coffee of their choices and as well as this will be also build loyal consumer
base. Such type of ideas bring new consumer and retain the existing one. Those who are coming
to the coffee shop on regular basis will be given more preference and they will be treated as
important customers. Caffe Finix can take suggestions and feedback from them regarding any
issue which they think is affecting the growth of the business.
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TASK 4
4.1 Influence of the recommended changes on the business and its members.
In a business their can be many ups & down, so to cope up with those conditions a new
strategy is made. Any modification and changes in the existing plan will have a wide impact on
the enterprise. In a business environment there are some external factors which affects the
operations of the cafe house (Carraher and Paridon, 2015). Although its competitors do influence
its market but below mentioned elements of the surrounding is also making a huge impact.
 Social Factors
This factor consists of behaviours, tastes and day to day routine of the citizens because it is
related to changes in social structure. People coming in Caffe Finix could order different coffee
or food according to their tastes and need. This is influenced by their lifestyle or the environment
they are living in. A old age person might order something else than a person who comes in the
category of youth. It all depends on the age, gender and other factors that basically define buying
choices of people (Jasra and et. al., 2012). They have to critically analyse these social
components and develop strategies which are following the market conditions. Any big coffee
house chain whenever opens their cafe or shops in different countries the first thing they do is
research the market. This activity help them in knowing social and cultural environment because
every nation have differences in these pattern. In research activity information related to
consumer, religion, language and lifestyle are kept in mind if they have to get success in the
business.
 Legal Factors
Government laws and regulations are the part of legislation and any changes in these
would create a significant impact to the business of the enterprise. If Caffe Finix have to
smoothly run the operations they have to follow these guidelines related to their sector.
They should modify and do changes according to needs of the laws. These legislations
are not permanent as it modify from time to time, any amendment in these should be
monitored by the human resource department of the cafe or the owners of it. Caffe Finix
manger should be aware about consumer protection laws, environment, health & safety of
the staff and other employment legislation.
 Economic Factors
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Global economy is reaching new heights due to expansion of the business environment.
Companies existing in the market are experiencing profits and are expanding their
operation in new locations (Draycott and Rae, 2011). When standard and life style of
people will increase than automatically demand of the products will go up. Such demands
are creating opportunities and they are seeing it as a way of making huge profit. But it is
not necessary that economy will be constant or will always see highs. It is an
unpredictable factors because a lot of elements influence its trends and by this it
regularly witnesses fluctuations. If the economic is facing a good time than demand of
that product will rise as well as price will also go high. In the unfavourable condition it
will go down. Economic changes can be in any form like changes in interest rate, wages
rate and the rate of inflation. If Caffe Finix observes that there is low interest rate and
demand of the products are high, this will encourage them in expanding their business
and take calculative risks.
 Political Factors
Politics run any country so without its success no business can get success. Government
changes in almost every country in decided period of time. Such type of brings change in
brings different policies. Companies have to adopt to regulations and environment set by
the EU. Regulation of the enterprise and power of customers gets influenced by the
political environment. For better market there is need of political stability (Nga and
Shamuganathan, 2010).
 Technological Factors
Any new ideas and innovations in the technology brings advantages to different
enterprise. This helps them in carrying out their activities more efficiently as they can
reduce costs and develop new products. Companies can share their information or store
them in computers.
4.2 Managing of the changes in the business.
People:- Employees or the customers might not accept changes as it
can bring feeling of fear and ambiguity. Although these changes might be
for their betterment but in initial period they will hesitate to accept it.
Through these changes they might not work properly or could impact their
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