MBA717 Strategic Business Plan for Java Culture Bakery and Restaurant

Verified

Added on  2022/09/06

|15
|4340
|17
Report
AI Summary
This report presents a strategic business plan for Java Culture Bakery and Restaurant, a new venture in the food and beverage sector. The plan outlines the company's mission to create a relaxing environment with high-quality food and beverages, catering to changing customer demands in Botswana. It includes an internal analysis utilizing SWOT, and an external analysis using PESTLE. The report details long-term and short-term objectives, generic and grand strategies, functional tactics, and strategic control mechanisms. Financial projections, including a budget of $150,000 and revenue forecasts, are also provided to justify the firm's viability. The plan emphasizes competitive advantages, customer retention strategies, and expansion plans. The role of the administrative officer in developing and implementing the strategic plan is also defined, ensuring alignment with the company's goals for growth and sustainability.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running Head: STRATEGIC DEVELOPMENT
0
STRATEGIC DEVELOPMENT
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
STRATEGIC DEVELOPMENT
1
Table of Contents
Introduction.................................................................................................................................................2
Mission........................................................................................................................................................2
Internal analysis...........................................................................................................................................3
External environment..................................................................................................................................4
Strategic analysis and choice.......................................................................................................................5
Long-term objectives...................................................................................................................................6
Generic and grand strategies........................................................................................................................7
Short term objectives...................................................................................................................................8
Functional tactics.........................................................................................................................................9
Policies and empower action.......................................................................................................................9
Strategic control and continuous improvement..........................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Document Page
STRATEGIC DEVELOPMENT
2
Introduction
Java culture bakery and restaurant will be a new venture within the sector of food and
beverages. It will respond to the new technologies by satisfying the changing demands of
customers in Botswana. This will be an effective place to meet friends, relatives and to enjoy the
time. In today's time, the demand for customers is growing for the good quality coffee and
services. This organization will capitalize on the proximity to repeat customers group. It will
offer the best food and beverages within the area by complimented pastries and free books that
customers can enjoy and read their books by visit (Rolfo, & Finardi, 2014).
The organization will be operated within the 2300 square foot with walking distance from
public conveyance route. The budget of the organization will be $150000 (us). This is expected
that the revenue from sales will be $580,000 to $7060000 in year three. Organization will try to
preserve the effective sixty-five percent margin of profit and reasonable expenses of operating
the business. The net profit margins of the organization will be supposed to be growing from
$110000 to $125000 within a similar period. This will be an effective organization by offering a
full menu of tasty food and beverage as products (Hsieh, & Chen, 2011).
The strategic business plan will offer an opportunity to review the vision and focusing
more on the strategy (Blackburn, Hart, & Wainwright, 2013). It will give a step by step plan to
business start-up; establish effective numbers of sales, profitability and gross margin
(Woodcock, Green, & Starkey, 2011). My role as the administrative officer at the corporate level
will be to develop the strategic plan for java culture bakery and restaurant. The plan will include
the mission, strategic controls and continuous empowerment.
Mission
The mission of the Java culture bakery and restaurant will be to make the best effort to
create the unique place at which consumers can socialize respectively within a relaxing and
relaxed environment by enjoying the best food and beverage in the town. Java culture bakery and
restaurant will be in the business to remove the daily stress by delivering the peace of mind by
the convenient location, customer-friendly service, and consistently good quality products. This
Document Page
STRATEGIC DEVELOPMENT
3
will be achieved through strictly following the guidelines of preparations. The activities of
marketing will focused to maximize the sales at a higher margin.
Brewed coffee, espresso drinks, and teas with refreshment food and beverages will be
vended within the Java culture bakery and restaurant. It will also offer pastries, sandwiches, and
salads. The menu of the organization will be supplemented through the free magazines and
books that consumers can read within the Java culture bakery and restaurant. The organization
will devote profits to enhance the employee’s satisfaction by providing constant returns to
shareholders (Brock, Leblebici, & Muzio, 2014). The organization will make a contribution to
welfare regarding the local community through supporting activities like civic and charitable.
The organization will also support farmers to grow products by use of fair trade, production at a
sustainable level, and organic products. It will give award to its local suppliers as many as
possible through keeping the community. The organization will offer the customers tasty food
and beverages within the area.
Internal analysis
Making a strategic business plan for Java culture bakery and restaurant is essential. This
will help to plan and give the insight to run a business more effectively (Vasarhelyi, et al., 2012).
This will be a crucial element of the organization's strategic business plan.
Strength
The SWOT analysis will support to draw strength of Java culture bakery and restaurant regarding
internal factors. These will also support to find out the advantages of business over other
competitors and provide a competitive edge. The positive attributes of the organization will
support to generate revenue. It will include the innovative items within the menu that are unique
with Java culture bakery and restaurant and the connectivity with the location that gets the
footfall at a high level. The organization will also use the POS to ensure maximum profits.
Weakness
This is also very important to identify the weaknesses within the business and improve them in
handy situations (Onuonga, 2014). These will be the areas that present the disadvantages, and
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
STRATEGIC DEVELOPMENT
4
any loss of profits. This can be anything by having an inexperienced worker to have a limited
budget for marketing. These will be the area that not within the control and can instead works to
compensate them.
Opportunities
These will be the areas that support to find out the actual potential within the business and help
to drive more profits. The opportunities will be identified through looking at the real possibilities
that increase the sales of the restaurant. Java culture bakery and restaurant will catch on early and
harness trends to attract customers.
Threats
These will be the factors that potentially hamper the business of the restaurant. These must be
well controlled over these kinds of factors and included within the business and prepared for the
unforeseen circumstances. The risk will be involved within the business and these can be high
competition and rise within the price of raw materials and increase of property rent (Asvanund,
& Morgano, 2011).
External environment
The external environment contains a combination of aspects that come outside the
organization and affect performance (Gupta, 2013). The analysis will depend on the factors that
affect organizations' behavior. The PESTLE analysis framework will indicate the important
influences according to the features of macro-environment.
Political
The regional integration will present trend and aspect that present the opportunities for the Java
culture bakery and restaurant to expand at a global level. The government will improve the
infrastructure and generate opportunities for the Java culture bakery and restaurant to access
more suppliers.
Economic
Document Page
STRATEGIC DEVELOPMENT
5
The higher rate of the economic growth of a nation and the declining rate of unemployment will
make the opportunities for the organization to gain more incomes from many markets around the
globe (Wang, & Ellinger, 2011).
Social
Java culture bakery and restaurant will have opportunities to enhance sales based on the
increasing demand for specialty food and beverages due to the growing middle class people
around the globe. The organization will also have the prospect to broaden its range of healthful
goods to catch more health-conscious customers.
Technology
This organization will have opportunity to improve the mobile application and linked facilities to
gain more incomes by mobile purchases. The organization will also have the opportunity to
increase efficiency of supply chain built on new tools that farmers use (Navarro-García, Arenas-
Gaitán, & Rondán-Cataluña, 2014).
Legal
The organization will have opportunity to enhance performance by filling the regulations of
safety on the ingredients from inherently modified organisms. The organization will perform
more effective in these kinds of aspects.
Ecological
The trend of sustainability will be followed by the Java culture bakery and restaurant by ensuring
the minimal impact of the environment. The organization will enhance more opportunities by
managing corporate social responsibility (Auzair, 2011).
Strategic analysis and choice
Java culture bakery and restaurant strategy will be dedicated to get the new customers by
retaining existing customers and getting consumers to devote more and originate back through
more often. Establish a reliable base of customers will create more sales and provide favorable
referrals (Teryima, & Angahar, 2014).
Document Page
STRATEGIC DEVELOPMENT
6
Competitive edge
The organization will place itself as the unique organization at which patrons can enjoy and
spend time in the ambient environment. The comfortable chairs, with relaxing tune and lowered
light will support the customers to relax from the day to day stress and differentiate the
organization culture from the incumbent competitors.
The sales strategy
The organization will handle the dealings of sales. It will also speed up the services of customers
as two employees will serve the clients. The one employee will prepare for the orders of
customers and the second will care about the transactions of sales. All data of sales will be
logged on terminal of the computerized point of sales and will be analyzed regarding marketing.
The organization will build up the base of the client and use banners, customer referrals, fliers,
and cross the promotion with the other business communities (Rumanti, & Syauta, 2013).
Programs of customer retention will be used by the Java culture bakery and restaurant to make
sure that customers come back and spend more amounts.
The sales forecast
The cost of food is assumed at least 25 percent of the coffee beverages and 50 percent for the
retail pastries and beans.
Long-term objectives
The long term aims of Java culture bakery and restaurant will be about the expansion of
store and growth strategies of every segment; that includes its entry within the bakery and
restaurant business and initiatives to boost relations with customers. The organization will also
plan to take the steps and ensure the growth within the upcoming fiscal years (Michelini, &
Fiorentino, 2012).
Segment specific plans
The organization expects to improve them significantly over the upcoming years. It will also
focus more on the brand building and generate more income from the present stores and increase
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
STRATEGIC DEVELOPMENT
7
the agreements of the licensing. The margin and return on the capital business will be reported to
grow by the good percentage that is fast gaining traction. This will be the expectation that the
global footprint of the segment doubled within the upcoming years. Java culture bakery and
restaurant will also introduce the customer loyalty program.
Connection with customers
The organization will connect with its customers through the social, internet, mobile, loyalty and
programs of cards. This is expected that the organization will serve more than 25 percent of the
transaction within the nation and money loaded within the cards will grow over 20 percent. This
is expected that the organization will get 10 percent of the payment through the mobile
application. It will also remain positive about long-term objectives. Organization will also
appreciate the strong market position, rapid growth, and strong market position (Holliman, &
Rowley, 2014).
The generic and grand strategies
Generic and grand approaches of the Java culture bakery and restaurant will be to achieve
the organization's mission. The objective of the organization will be to get success through good
quality products like coffee, food, beverages, and entertainment products. The objective of the
organization will be to keep the product with high value and quality. The objective of the
organization will include the effective services of organization patrons. Every member of the
organization will be efficient, courteous, and attentive. The organization will target customers
and often. Organization business will be located within an accessible location and central to
many individuals. The organization will have a business grasp on beverage, food and labor costs.
The organization will have a business grasp on food, labor costs, and beverage. The organization
will deliver the dining, entertainment, coffee house experience, and support to inspire the repeat
business and encourage the word of mouth that recommended to the others. The key of the
organization will be proper management of employee, inventory, and quality control (Mathooko,
& Ogutu, 2014).
Document Page
STRATEGIC DEVELOPMENT
8
Short term objectives
Java culture bakery and restaurant will vend perishable comfort diet like sweet and
tempting gifts that appeal to the wider target market. Products of the organization will be
perishable at an extreme level. This is the expectation of the customers that the organization will
sell the product that is scorched fresh daily and make the challenging to meet the daily demand
without wasting the inventory. The objective of the organization will include that it builds the
wider and committed base of customers and develop the business model that carries the
sufficient income to cover the expenses despite the waste at a high level (Kralev, 2011).
Revenue objectives and repeat business
The organization will increase its revenues by efficient promotions and advertising like offerings
deals on the particulars items on different weekdays. The organization can also add to the
revenue totals through monitoring and adapting the demand by paying devotion to the flow of
customers by the patterns of sales. Changes that bring the additional sales need little monetary
outlay like adjusting the hours to be exposed that are expected to be generating displays that
tempt consumers to purchase additional goods. The organization will stabilize the sales by repeat
business. The promotional offering will bring new consumers within the door and monthly
revenue targets will be met more easily through encourages return visits. Customer services with
excellent features and reward system will be the main revenue drivers.
The minimize waste and support the community
The income of the business is the amount that leftover and after the subtracting deductible
expenditure from the sales revenue. To accomplish the objective of the maximum income
organization will reduce its waste without consecutively out the famous items. In today's time,
the demands of the customers are rarely consistent. This is difficult to avoid waste. This will be
important for the organization to carefully record the items that enable to predict the patterns of
sales. The organization will achieve accuracy at an additional level through paying the attention
to many variables that affect the patterns of sales like weather and holidays. The organization
will consider donating the leftover baked products to homeless lodgings and community
programs. It will contribute to the community within the manner with the net positive influence
on the reputation and public as the whole (Dumi, Emurllai, & Jazaj, 2013).
Document Page
STRATEGIC DEVELOPMENT
9
Functional tactics
Functional tactics of the Java culture bakery and restaurant will include delivering the
quality product. The objective of the organization will be to sell the food, beverage,
newspaper/magazine, and entertainment products by word of mouth. The organization will
establish a relationship with the local hospitality organizations to create opportunities for the
visitors to look forward and experience the good service.
Reputational objectives
Creating a strong reputation will be the main essential to objectives of the Java culture bakery
and restaurant to attract loyal clients and generate a regular volume of sales. The organization
will create a reputation by producing high-quality goods and maintain excellent customer
service. This will be also tempting to vend products that are lesser perfect to minimize the waste.
These deals may cost more within the long run through compromising the organization's
reputation. The organization will also build a reputation by social media, events of the
community and local promotional prospects. Efficient and positive interactions with customers
will boost the organization within the long run (Despeisse, Oates, & Ball, 2013).
Margin goals
Business model of Java culture bakery and restaurant will sell the optimally fresh offering that
creates the potential for waste and monitor the profit margins. The percentages of sales will
support the organization to exceed the operating expenses. The organization will shop around the
low prices on elements and not compromise with the quality for sake of value and deliver high
standards to customers. Organization efficiencies will enable to produce of more within the
lesser time like consolidating procedures, eliminating bottlenecks and achieve more economies
of scale by maintaining the margins that are critical to the model of business.
Policies and empower action
Java culture bakery and restaurant will be owned and managed by the owner. The
organization will hire the manager to oversee the day to day operations at Java culture bakery
and restaurant. The organization will hire an experienced manager within the definite industry
within Oregon. This individual will be responsible to manage the staff, developing a marketing
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
STRATEGIC DEVELOPMENT
10
strategy, ordering inventory, dealing with suppliers and performance of many other days to day
managerial duties. The organization will believe that agreement of profit-sharing must be
measured on the basis of first-year active results (Prothero, et al., 2011).
Management team gaps
Owner and management experience will support to retain the effective services and support to
develop idea of business for Java culture bakery and restaurant. After getting the experience
within the industry organization will open the dozens of branches and customer satisfaction
surveys will provide the additional input with assessment of new opportunities of business.
Financial policies and plan
Java culture bakery and restaurant will capitalize on solid petition for high-quality products. The
organization has a sufficient budget as a startup capital to open the business. The organization
will get success by the successful management objectives through establishing the growing base
of loyal customers and see its net worth doubling in the two years. The organization will sustain
a strong gross margin with 65 percent combined with reasonable functioning expenditure and
provide sufficient cash to economics further growth.
The strategic control and constant improvement
For the strategic control organization will implement the strategies more effectively and
hire the attitude that has the friendly enthusiastic workers to make patrons feel welcome and
valued. The organization will appreciate and constraint more on the training of workers to assure
the best and possible quality service. The organization will work more to reduce the waiting time
of customers and create an efficient ordering of products. The organization will organize the
activities to track the performance based on the period, goods costs, and items. Requirements of
labor will be matched to the projected within the organization sales and based on the previous
performance for more efficiency. Scheduling will be done virtually and revised to accommodate
changes by projecting the weekly, monthly, annual or labor costs. Workers' schedules will be
sent through the email. Goods cost will be observed for improved efficiency too. Organization
research methods will regularly help to deliver high-quality products by making minor
incremental developments within costs of items (Qader, 2015).
Document Page
STRATEGIC DEVELOPMENT
11
Conclusion
In the limelight of the discussion, it can be concluded that Java culture bakery and
restaurant will get success at a higher level. This discussion covers the mission statement,
functional tactics, internal analysis, planned analysis and superior, long-term objectives, external
environment analysis, generic and grand plans, policies and empowers actions, short term
objects, strategic control, and constant improvement. These all indicate that the organization will
get success at a higher level through environmental analysis. Plans of the organization will also
give more results with the support of appropriate policies and control over the strategies. The
organization will offer an opportunity to review the vision and focus on the strategies. It will
provide the step to step plan for the organization as a new venture to establish a favorable
number of sales, profitability and gross margin.
Document Page
STRATEGIC DEVELOPMENT
12
References
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance:
business, strategy, and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), 8-27.
Woodcock, N., Green, A., & Starkey, M. (2011). Social CRM as a business
strategy. Journal of Database Marketing & Customer Strategy Management, 18(1), 50-64.
Hsieh, Y. H., & Chen, H. M. (2011). Strategic fit among business competitive strategy,
human resource strategy, and reward system. Academy of Strategic Management Journal, 10(2),
11-59.
Brock, D. M., Leblebici, H., & Muzio, D. (2014). Understanding professionals and their
workplaces: The mission of the Journal of Professions and Organization. Journal of Professions
and Organization, 1, 1-15.
Rolfo, S., & Finardi, U. (2014). University Third mission in Italy: organization, faculty
attitude, and academic specialization. The Journal of Technology Transfer, 39(3), 472-486.
Vasarhelyi, M. A., Alles, M., Kuenkaikaew, S., & Littley, J. (2012). The acceptance and
adoption of continuous auditing by internal auditors: A microanalysis. International Journal of
Accounting Information Systems, 13(3), 267-281.
Onuonga, S. M. (2014). The Analysis of Profitability of Kenya's Top Six Commercial
Banks: Internal Factor Analysis. American International Journal of Social Science, 3(5), 94-103.
Asvanund, P., & Morgano, S. M. (2011). Photoelastic stress analysis of external versus
internal implant-abutment connections. The Journal of prosthetic dentistry, 106(4), 266-271.
Gupta, A. (2013). Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences, 2(1), 34-43.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
STRATEGIC DEVELOPMENT
13
Wang, Y. L., & Ellinger, A. D. (2011). Organizational learning: Perception of the
external environment and innovation performance. International Journal of Manpower, 32(5/6),
512-536.
Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluña, F. J. (2014). External
environment and the moderating role of export market orientation. Journal of Business
Research, 67(5), 740-745.
Auzair, S. (2011). The effect of business strategy and external environment on
management control systems: a study of Malaysian hotels. International Journal of Business and
Social Science, 2(13) 526-631.
Teryima, S. J., & Angahar, P. A. (2014). Corporate level strategic analysis and choice as
a measure of achieving performance in organizations:(a survey of Dangote groups of
companies/conglomerates) quoted on Nigeria stock exchange market. International Journal of
Business and Economic Development (IJBED), 2(2).
Rumanti, A. A., & Syauta, K. J. (2013). Determining strategies based on strategic
position analysis in Small and Medium Enterprises. International Journal of Information and
Education Technology, 3(4), 442-447.
Michelini, L., & Fiorentino, D. (2012). New business models for creating shared
value. Social Responsibility Journal, 8(4), 561-577.
Holliman, G., & Rowley, J. (2014). Business to business digital content marketing:
marketers’ perceptions of best practice. Journal of research in interactive marketing, 8(4), 269-
293.
Mathooko, F. M., & Ogutu, M. (2014). Coping strategies adopted by public universities
in Kenya in response to environmental changes. Journal of Management and Strategy, 5(1), 93.
Kralev, T. (2011). Management by objectives: Management philosophy for prosperous
tourism organizations. UTMS Journal of Economics, 2(1), 83-87.
Document Page
STRATEGIC DEVELOPMENT
14
Dumi, A. R., Emurllai, E., & Jazaj, G. (2013). Performance Quality and Long–Term
Objectives, Educational Services and Priorities in Albanian Administrative Reforms. Academic
Journal of Interdisciplinary Studies, 2(2), 167.
Despeisse, M., Oates, M. R., & Ball, P. D. (2013). Sustainable manufacturing tactics and
cross-functional factory modeling. Journal of Cleaner Production, 42, 31-41.
Prothero, A., Dobscha, S., Freund, J., Kilbourne, W. E., Luchs, M. G., Ozanne, L. K., &
Thøgersen, J. (2011). Sustainable consumption: Opportunities for consumer research and public
policy. Journal of Public Policy & Marketing, 30(1), 31-38.
Qader, M. R. (2015). A novel strategic-control-based Distribution Static Synchronous
Series Compensator (DSSSC) for power quality improvement. International Journal of
Electrical Power & Energy Systems, 64, 1106-1118.
chevron_up_icon
1 out of 15
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]