1.BRIEF SUMMARY
This business proposal analysis uses Michaels Porter 's Five Forces Model to analysis "The Broadway Cafe" management strategy. This proposal clearly identifies the issue and the factors that are affecting in declining Broadway Cafés sales. In, nutshell this proposal reveals the road map the Café to achieve its significant goals of keeping the business running, increase profit and to bring the café into 21st century business. 2.ISSUE
The Broadway Cafe emerged in 1952 in Brooklyn, NY. That is specialized in coffee, tea and full service bakery. This café thrived for 59 Years but now faces declining in business from last 5 Years as the new competitors are arriving rapidly tho it had competitive advantage from an established menu and loyal customer base. Now it seeks ambitious approach to realize its goals to bring the café back in the business. To make this vision possible some questions have come forth:
Reason of declining and how it can be conquered?
Can any new competitive advantage be created?
How profit can be increased?
How do we increase our capabilities to get the cafe in game and ahead too?
3.CONCEPT
This analysis is conducted on the Porters Five Forces theory that is crucial for effective strategic decision-making, the five forces that shape industry competition are:
Bargaining power of suppliers: This force analyzes how much power a business 's supplier has and how much control it has over the potential to raise its prices, which, in
Broadway Cafe is in a unique position to receive its makeover in the City of downtown Conway, and it appears that it will catch up to the 21st century. There is a downtown revitalization project that is in its development stage and the Conway Chamber of Commerce has invited all businesses to attend its monthly meeting to address areas of concerns, needs and/or
Currently, The Broadway Café is the only coffee shop in the area. However, recently, there have been postings that a Starbucks plans to move within the vicinity of our business. To improve the business and create a competitive advantage, we must first, research the competition through environment scanning (Baltzan & Phillips, 2007). Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization (Baltzan & Phillips, 2007). After reviewing the website of two competitors, Starbucks.com (2010) and Panera.com (2010), it appears these businesses are technologically advanced. The first step this Café must make is to install computers to provide accurate record keeping and store information. We have to develop a plan for employees that create an environment of respect and dignity in which leads by example and gives back to
Although, I feel there is not much Broadway Café has to do to remain on top, ensure steady business, and put their staff at ease knowing competition won’t run them out of business, it is always a great idea
With all the information I have provided and research that back my proposal I feel the obvious answer is to start undergoing renovations. Customers want a new and lively restaurant that promotes a better experience. With this project it will give customers a better feeling while eating at a restaurant and will give them an incentive to come back again and again. This project may take a few years and cost a good amount but every good company needs to take risks and this is a risk that is well worth is based on the information provided in my essay. I propose that in the years that follow the renovations of Einstein’s Bagels store that net worth and profits of the company will skyrocket and it will be a investment that will never be
optimize revenue, quality of service, and customer satisfaction. Furthermore, considering all the factors stated above, BB coffee shop would need to find a solution in order to improve the
Expresso Espresso coffee shop (EE) opened in March 2006 across the street from the University of South Alabama in Mobile. The shop targeted the 13,000 students as well as the faculty and staff. Todd Sylvester, the owner, has big dreams of expanding to another location. Although the business concept offered a warm environment with high quality products, it lacked sustainability, market knowledge, and competitive options. In spring 2006 the business was operating at a negative net-income. The following report explores the case of EE during the spring of 2006 and discusses alternative courses of action to current business strategies.
- Infrastructure company: the systems within the café to ensure all the information and stock flow in a smooth and effective way
Analysis of McDonalds Corporation using the Porters 5 forces model to asses its competitive position in the fast food industry.
The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“ in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes.
Porters' idea is that companies must respond strategically to competition in order to sustain long-term profitability. The five forces framework can be used to gain insight into the forces at the work in the business environment of a strategic business unit which need particular attention in the development of strategy. With a clear understanding of where the power lies, it will enable a company to take a fair advantage of its strengths, improve its weaknesses, and avoid taking wrong steps.
In order to understand the competitive environment, it is useful to carry out the Porter’s Five Forces Analysis:
Until recently, Porter’s Five Forces Model was the dominant theory applied to factors driving competitive forces in an industry. It hypothesizes that the level of competitive intensity within an industry arises from five specific sources in determining attractiveness of an industry to potential entrants. Porter developed Five Forces Analysis in response to SWOT analysis, a model he found too vague.
I will start my comparison with the approach of Michael Porter. It is important to know, that he distinguishes between three main focuses of business strategies, which are innovation, quality enhancement and cost reduction. In this case study it obvious that before the implementation of the new HR-strategy, Café Expresso concentrated on cost reduction, with the objective to achieve a competitive advantage through keeping their costs as low as possible.
The strategic problem considered is to analysed Café Desange operations at the time it ceased to trade and suggest recommendations
Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Porter’s Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.