Strategic Plan and Business Model for Tantalizing Coffee Shop

This report presents a strategic plan for a coffee shop, named 'Tantalizing Coffee Shop,' focusing on business development and management. It begins with a vision and mission statement, aiming for customer satisfaction and loyalty. The core of the report uses a Business Model Canvas to analyze the current and future states of the coffee shop, detailing customer segments, value propositions, channels, customer relationships, revenue streams, key resources, activities, partnerships, and cost structures. A value chain analysis is then conducted, covering primary activities such as inbound logistics, operations, outbound logistics, marketing, and service, along with support activities like firm infrastructure, human resources, technological development, and procurement. The report outlines the strategic plan's implementation over five years, with continuous advertising, sales, and marketing. Finally, it considers the strategy's impact on the environment and society, acknowledging both positive and negative consequences.

ENGINEERING MANAGEMENT
BUSINESS PLANNING REPORT
STRATEGIC PLAN FOR TANTALIZING COFFEE SHOP
AUGUST 26, 2017

Table of Contents
I. VISION AND MISSION.......................................................................................................3
II. BUSINESS MODEL CANVAS............................................................................................3
A. The current state................................................................................................................3
B. Future state.........................................................................................................................5
III. VALUE CHAIN ANALYSIS............................................................................................6
A. Primary activities...............................................................................................................6
B. Support activities...............................................................................................................7
IV. IMPLEMENTATION OF STRATEGIC PLAN............................................................8
V. IMPACT OF THE STRATEGY ON THE ENVIRONMENT AND SOCIETY.............9
2

STRATEGIC PLAN FOR TANTALIZING COFFEE SHOP
I. VISION AND MISSION
The vision of Tantalizing coffee shop is: To become the most outstanding coffee restaurant in
terms of the services we offer and customer satisfaction.
Mission: to win our customers’ loyalty at the first service. Once served, forever a loyal customer.
II. BUSINESS MODEL CANVAS
A business model canvas is a tool for creating and analyzing business models.
A. The current state
As it is, the coffee shop is quite small and congested. The customers cannot get enough sitting
space to relax well and stretch over for some more time after they have been served because they
have to pave way for other customers who are flocking in. An approved kitchen doesn’t exist for
preparing food. In addition, the business opens at 8 am and closes at 5 pm under the operation of
one manager who acts as a barrister and two waiter/customer service staff. Below is a detailed
analysis of the current state of Tantalizing coffee shop through the business model canvas:
a) Customer segments
The customers being served at the moment are made up of a majority of youth, ranging from the
age of 20 and 35. They make the largest percentage of customers that I have and they are loyal.
They are mostly from the neighborhood and the outskirts of the town. Sometimes the business
may get new customers who may make stop overs on their way to visiting scenic places. At
times it may just be passersby.
When they stream into the restaurant, the customers normally want to be served coffee, other
drinks and some snacks. These are usually readily available for the clients whenever they order.
However, there are instances when some clients may stop by and order some food or a variety of
drinks that are not in the restaurant’s menu. When such instances occur, I have to refer them to
the next nearby restaurants for them to get what they need. This has been a limitation because the
business tends to lose customers who could have been loyal, when I refer them to other places.
b) Value propositions

These refer to the products and services being offered to the client that create value to that
specific customer segment. I am offering the clients the best make of coffee, drinks, and snacks.
The quality of the services and the products offered is so charming at the moment and it helps in
retaining my customers.
I also offer home and events catering whenever a client calls for such. This helps in attracting
more customers to my business as we get to network with a lot of people my team is out for
events catering. The customers are usually pleased with the king of services being offered to
them and this goes to an extent of ensuring that they are fully satisfied and retained to the
business.
c) Channels
This describes the way in which a company communicates with and reaches its customer
segments in order to deliver a value proposition. For Tantalizing coffee restaurant, the
customers’ value proposition is delivered through the transportation by van if it is an outside
catering. The team travels to the venue of the event and offer the services and products required
accordingly. On the other hand, the customers who prefer stopping by at the restaurant are
communicated through advertisement of billboards and posters to make them aware of the
services and products we offer.
d) Customer relationships
This refers to the relationships established by the company with specific customer segments. The
current type of relationship that exists is motivated by customer acquisition and customer
retention. As per the mission and vision statement, the restaurant aspires to attract and retain the
customers at the first service. This ensures that a good rapport is established between the
business and the customers. Friendly and reputable relationships exist between the business and
the customers.
e) Revenue streams
These represents the amount of cash a company generates from each customer segment. At the
moment, the restaurant gets more income from the youth population. 90% of the income comes
from the youth segment. Income obtained from the population beyond the youth is very minimal
and at times negligible.
4

f) Key resources
As it is, the key resources are limited. They include: standard espresso coffee machine, and the
refrigerated counter display unit for selling confectionary.
g) Key activities
These refer to the most important things that a company must do to make its business model
work. The key activities for Tantalizing coffee restaurant include: acquiring the best products to
cook, cooking, serving the clients and attending to outside catering events.
h) Key partnerships
There are two suppliers at the moment that the restaurant deals with. There are no partnerships
established yet at the moment.
i) Cost structure
The costs incurred include: purchasing of products to be used for cooking, fuel, salaries for the
employees, transport and rent.
B. Future state
a) Customer segments
The target customer segment will be both the youth and the elderly. I will work hard and smart
towards actualizing this target. To start with the population of 40 years and above will be
increased to at least 40% of the total customers’ segment.
b) Value propositions
In addition to offering coffee, other drinks, and snacks, I will offer more food products. I will
also add the variety of meals being served and the kind of services being offered. It would be
wise to commence with building a spur, resting area, and some lodgings. This will be very
helpful as it will help cater for the passersby that may want to spend their time in the restaurant a
little bit longer. It will also go further in ensuring that the business doesn’t open only during the
day but on a 24/7 basis.
c) Channels
Communication to the clients will be through a website that will be designed for the restaurant.
The clients will be able to do their booking online and they can order for outside catering
through the website and get their services offered and products delivered to them on time.
5

d) Customer relationships
I will establish a personal relationship, mass relationship, and customized relationship between
the business and the clients.
e) Revenue streams
Revenues will be made out of making sales on the food prepared, offering outside catering
services, and lodging and spur services.
f) Key resources
Modern coffee maker machine, refrigerator, microwave, food products, chefs and vans for
transport of goods, and transit when going to offer catering services.
g) Key activities
Acquiring the best products to cook, cooking, serving the clients, attending to outside catering
events, checking in and out of clients who make use of the lodgings and spurs, hiring of seats.
h) Key partnerships
Distribution partners, payments providers, manufacturers, and retailers.
i) Cost structure
The costs incurred include: purchasing of products to be used for cooking, fuel, salaries for the
employees, transport and rent, equipment, software support and maintenance, and billboards for
advertisement.
III. VALUE CHAIN ANALYSIS
A value chain is made up of support activities and primary activities.
A. Primary activities
a) Inbound logistics
These refer to the efficient processes, ensuring high quality of raw materials. The restaurant will
be purchasing the food to be prepared and the ingredient from the suppliers that are verified and
acknowledged to deliver high quality products.
I will also perform a backward vertical integration to ensure that there is a reduction in costs and
that the products are of high quality. After the first few months, I will establish the best supplier
and cling to that supplier only for efficiency of products purchase and delivery.
b) Operations
I will ensure that the operations are of high quality, high output level, and that there are no
delivery problems when serving the customers. The size and efficiency of the equipment used in
6

the kitchen will be increased to ensure that there is delivery and output processes are hastened.
This will help in redeeming time hence saving money because time spent is directly proportional
to the money generated or lost.
c) Outbound logistics
This works in ensuring that the delivery process is rapid and accurate. With the software in place,
the customers can just make orders and place their lodging bookings hence increasing the
efficiency of service delivery. In addition, having purchased a van for the restaurant, the transit
of the team from the restaurant to the place of the event during outside catering will be very swift
hence hastening the delivery process.
d) Marketing and sales
This is essential in selling the brand of the company for the customers to be aware and attracted
to it. I will invest in mass media advertisement. This will help in capturing the attention many
people in a jiffy. It will also save on cost as the amount spent on the advertisement will be
economical as compared to advertisement through posters.
e) Service
I will install WI-FI in the restaurant and the lodging. This will provide the customers with their
comfort in that they can connect to the Wi-Fi and get their jobs done or enjoy listening to music
as they are being served. I will also ensure that the customers are able to pay for their services
through online means for convenience purposes.
B. Support activities
a) Firm infrastructure
I will purchase a new building and set the restaurant in order to move out of the small congested
restaurant that is currently functional. This will ensure that the workers are provided with
suitable working conditions as well as the customers.
b) Human resources management
I will recruit the right personnel and train them to meet the quality and standards that they are
expected to work under. This will ensure that the quality of services delivered is improved and
pleasing to the customers hence increasing the rates of income.
7

c) Technological development
I will focus on modernizing the newly acquired restaurant, evolving the menu and increasing the
value of the service offered by incorporating technology in the entire production process. I will
employ IT personnel who will be able to take charge of the newly deployed system hence
providing support to the users and clients as well. Embracing technological changes will help the
business surge forward and also gain a competitive advantage.
d) Procurement
There will be a team set out to ensure that the high quality products and equipment for the
restaurant are purchased. By doing this, I will be headed towards achieving the vision of the
restaurant which is, to become the most outstanding coffee restaurant in terms of the services we
offer and customer satisfaction. With the procurement team in place, quality is never a concern
to worry about.
IV. IMPLEMENTATION OF STRATEGIC PLAN
Below is a diagram that describes the implementation of the strategic plan over five years. Each
circle represents a year’s plan starting from the topmost circle. Advertising, sales and marketing
will be carried out throughout the five years to keep the company marketable and known vastly.
Acquiring a new
building and
modernizing it
Purchase of new
equipment
Hiring
professionals and
evolving the
menu
Selecting the best
vendors and
establishing
partnerships
System
Implementation
and user training
8

V. IMPACT OF THE STRATEGY ON THE ENVIRONMENT AND SOCIETY
The above strategy will pose both positive and negative impacts to the society. The positive
impacts will be highly appreciated and commended whereas the negative impacts will be dealt
with accordingly to help reduce the magnitude of the impact. For instance, the process of
acquiring a new building and modernizing it may have some negative impact on the
environment.
The process of refurbishing an existing building may be risky if the building is a flat and there
are people operating their businesses on other floors. In addition, the environment will be
polluted by the materials used in the refurbishing process. Besides that, the processes involved in
preparing food from the initial stage up to packaging may lead to emission of gases that may
definitely result to air pollution.
The purchasing of new equipment will pose a positive impact to the society. By purchasing new
equipment, the business people will be promoted and their businesses will expand. The new
equipment will also make the lives of the employees at work easy and efficient. This is because
the new equipment purchased will have high efficiency and high throughput hence resulting to
saving the time and energy that the employees would have spent working on an activity. By
purchasing the new equipment, the cash flow in the market will increase hence leading to more
gains by business people.
The strategic plan will provide new job opportunities for those who are qualified. By hiring
professionals, people in the community get new job opportunities that they can take part in if
they are competent enough. This helps in reducing the unemployment rate in the society hence
posing a positive impact. By evolving the menu, the customers’ demands will be met and their
needs and wants satisfied. This will improve their lifestyle in that, they will have a variety of
products and services to choose from when making their purchases.
Selecting the best vendors and establishing partnerships with other organizations poses a positive
impact to the society. By selecting the best vendors, a positive competition among vendors is
encouraged and they all choose to give their best in order to fit into the competitive market
9

space. This also aids in advancing the level of hard work and seriousness among the people in
the society. Establishing partnerships enable the various organizations in a partnership to give
back to the community through a variety of activities and events hence making the
community/society a better place than they found it.
The deployment of a system to be used in the business serves a greater purpose in diversifying
the user shopping experience. The customers will now be at ease when they carry out their
shopping hence saving on the time that would have otherwise been spent if the transactions were
conducted manually. The society will therefore benefit from the implementation of the system to
be used in shopping transactions.
All the positive impacts resulting from the strategic plan will be highly endorsed and embraced
to ensure that the utmost advantages are obtained from them. On the other hand, the negative
impacts on the society and environment can be mitigated by ensuring that the processes entailed
in the entire strategic plan are put to a close observation.
For instance, when refurbishing the acquired building, the constructors can be warned to be
careful not to pollute the environment with the unused construction materials. They should be
put to a close standard of construction and given the highest level of supervision. Concerning the
gases emitted into the atmosphere when preparing food, high quality equipment and green
energy resources can be adapted.
10