Our gourmet food and coffee target a whole range of customers from as long as they can access the café. The café most serve the passersby and other regular customers. The market is undifferentiated and any customer can buy coffee as long they are coffee lovers and gourmet food of their choice. Our services quality features are a unique brand of coffee, innovative services, quality beverages, and affordability offer the best niche to the target market (Agyekum, C., Haifeng, H., & Agyeiwaa, A. 2015).
PassBy offers a wide range of beverages, coffee, and gourmet food for every customer. Our products and services are excellent and of the quality expectations of our customers. The company is dedicated to creativity and innovation in preparing the products and services to fit the customers’ needs. The gourmet food and coffee offerings to our customers come along with the ultimate café dining experience in a modern, relaxed, and peaceful environment.
The coffee shop is located in the heart of Brisbane city. This location is strategic and full of prospective customer traffic. This will offer convenience to our customers and also play a role in reducing cost in the value chain, which ultimately has an impact on prices of gourmet food and coffee. The business intends to grow and have a way of serving their client in a more convenient way by incorporating technology. This will also help in building a competitive edge in the coffee lovers’ market.
The coffee house is open for 9 hours every day of the week and provides its customers with ample time to share their preferential drinks and foods in a modern, serene, comfortable environment. At PassBy, customers are valued and given the best services they deserve. The owner is the quality manager and all the customers’ suggestions are directed to his office for action. The business expected to increase the bonding with its customers by building a mobile application which can be used to check for available services as well as foods and other integrated entertainments.
PassBy café had become a brand name among the coffee lovers with quality beverages in the city. This increased the number of customers frequenting PassBy café making the sales per day increase. PassBy is self-sufficient with enough cash flow to cover all the contingent expenses. Most eh revenue is gained from the sales of coffee and gourmet foods which are the main serving in PassBy café. To add on more revenues, the business intends to have a food preparation kitchen certified.
For PassBy to be marketable, it needed key resources for value addition in the value chain. The key resources to PassBy are the customers who frequent into the café every day their daily serving. Others are human resources, a machine for coffee preparation, food kitchen, and fridge as well as brand name, and a new relationship.
For successful business and market leadership, beneficial and mutual partnerships are inevitable. PassBy has relationships with other coffee shops, suppliers, forum and communities, specialized magazines, and influencers like bloggers. Each one of these will be engaged for a specific purpose(s) which will add value to the services offered.
PassBy focuses mainly focus on producing quality coffee and beverages which are up to the standards and meet the expectations of the customers. PassBy also does promotional activities to attract more customers and retain the old ones. It has also created a well-established channel of giving feedback to the management hence creating a loop of getting feedback.
For any production to be complete, there costs associated with it. PassBy incurs both fixed costs and variable costs which will be appropriated in the final product. Fixed costs include payment of salaries and house rent. Variable costs include electricity bills, water bills, and others.
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Key partners Coffee shops Customers Suppliers Community |
Key activities Cooking of coffee and other confectionaries Feedback from customers Promotional activities Management of customers |
Values proposition Best Beverages and coffee Convenience Gourmet food Quality services Modern, relaxed, and peaceful environment Satisfaction of customers’ needs |
Customer relationships Presence of manager Customer communication |
Customer segments All coffee lovers of all ages Undifferentiated market |
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Key resources Customers Human resources Finance Facilities |
Channels Strategic location |
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Cost structure Fixed and variable costs |
Revenue streams Sales of coffee and foods |
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Key partners Bloggers Customers Other coffee shops |
Key activities Marketing and branding Online feedback system and surveys |
Value proposition Best Beverages and coffee Convenience Gourmet food Quality services Modern, relaxed, and peaceful environment Satisfaction of customers’ needs Fast services through the use of the mobile app for payment and orders Time-saving |
Customer relationships Presence of manager Customer communication Mobile Application In-store promotions |
Customer segment All coffee lovers of all ages Undifferentiated market Professionals and corporate personnel |
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Key resources Food kitchen Websites Café mobile application |
Channels Mobile application Online web |
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Cost structure Fixed and variable costs · Rent · Salaries · Power · Water The company expected to incur app development cost which was fixed |
Revenue stream Sales of coffee and fast foods Revenue from chain PassBy café in the city Advert in the app Order and reservation fees Fee for seat reservation |
Value chain covers the activities that include the process of making the product and bring it to the market near the consumers. These processes start from sourcing for raw materials to the last step of making sales of the product or service (Aguko, 2014). This is adding value to the products and services. The value chain analysis offers the platform on which businesses have a better view of their production process.
Through value chain analysis, PassBy café was able to find out areas for optimization. Optimization not only brings efficiency but also create a competitive advantage over PassBy. The alignment and optimization of activities in value chain were important to PassBy by identifying areas to cut on costs and create efficiency. Below was the value chain analysis of PassBy café
The value chain activities form the base of PassBy operations. These activities are divided into two categories. Primary or main activities are the first category. The activities that form part of the primary activities include:
Inbound logistics: These are activities which obtain the raw materials from the suppliers. PassBy is dedicated to creating and maintaining good relationships with the suppliers. PassBy has come up with initiatives to ensure the continuous supply of quality beverages is maintained. The company had embarked on establishing support programs for the farmers as they are the key to its supply chain management program aiming to spur growth in coffee production.
The company had also established networks with trading companies and exporters. This chain of networking with key stakeholders in the coffee industry is part of the supplier chain management program with the ultimate objective of ethical sourcing of beverages. Through these networks, the source of coffee is from around the world including Africa, Asia, and Latin America.
Operations: PassBy started to purchase, roasts, and sell quality coffee beans and related products. Although the company was young, the potential for growth was exponentially high. To maintain the quality standards and heritage, it coffee was roasted a little longer compared to other coffee makers to maintain intense flavor that. The company had recently acquired roasting machines at leasehold. The company also acquired a modern kitchen and coffee machines all with the aim of maintaining quality services and products.
Outbound logistics: PassBy reaches its customers via the main café in Brisbane city. Although it had plans to have chains of outlets, one in the city had remained the major outlet and contact with the consumers. The company also aimed to explore other cities by embellishing a roasting warehouse which will be a centralized source of roasted coffee beans. This was an optimal strategy but doable owing to the competitive advantage and goodwill it had gained during that period. It also targets the online coffee lovers where it created a mobile app show off its services customers and also make payments online and reservations.
Marketing and sales: This is one of the key activities in value chain analysis. PassBy had plans to expand and explore other markets for dedicated growth strategy. To achieve this growth, marketing becomes an integral part of value chain branding. During expansion, intensive marketing was not an option for PassBy. To achieve this, PassBy had to engage marketing teams and use all the available methods of product promotion and marketing to create a strong brand. The company set aside a significant budget for marketing. The company has made good use of internet marketing through the social media platforms and mobile app.
Service: Customer service was a priority at PassBy café. Before its expansion strategy, the company solely relied on the customer services to have goodwill in the café market. It has built a premium image to the customers by offering quality coffee from quality beverages. The customers were, even more, attracted to the quiet, serene, and peaceful environment PassBy was offering. The company has a trusted customer service which has gone a long way toward building long-term customer loyalty. To cement this, the company had developed a mobile app where customers accessed the company services by making reservations and paying online.
Infrastructure: The infrastructure includes planning, finance, and other organizational resources. PassBy had a weak infrastructure especially on the aspect of technology. The company was dedicated to making improvements on integrating technology into its operations. It acquired kitchen equipment to keep up to pace with modern food preparations procedures.
Human resource management” href=”https://#”>Human resource management: PassBy was new in the coffee sale market and only had three employees. In its growth trajectory much on human resource development need to be done to facilitate employee training and growth. The company has used human resource policies to ensure that its employees are satisfied and motivated in their work. The employees’ development encourages them to be ethical and customer oriented while going about their work.
Technological development: Technology was needed in various aspects ranging from roasting and blending of coffee, customer service, and marketing. PassBy had more focus on technology transformation of the café operations. Being a new company in the coffee café, PassBy had not done much on technology integration to its operations. As its growth potential became evident the management had begun making arrangement on transforming its operations by use of technology. The company had begun to develop a mobile app for customers to make reservations, and online payments.
Procurement: In the 21 century, procurement management is becoming important. The company had no much procurement operations. In its growth stage, procurement management became critical. The company had set strict procurement policies and procedures by integrating the integrated information system which was a centralized method of procurement.
Changes in technology are an important aspect to any business organization as well as the community. Technology makes accomplishing tasks easier and fast. In the case of PassBy café, the use of mobile apps in making reservations, bookings, and online payments make the company services easier and convenient. Acquiring a modern kitchen is the best thing PassBy café did for the purposes of quality production of foods and coffee. However, requires power to run and this put pressure on hydropower. The use of mobile apps also contributes to mobile phone addiction by the users (“New Questions on the Impact of Technology | ethics”, 2016).
Installation of roasting machines and blenders is an important milestone to PassBy café. It increases the quality of their coffee beans as they are able to roast the beans to their customers’ preferences. However, the process has a negative impact on the environment by producing gaseous emissions to the air which for long are depleting the ozone layer causing greenhouse effects (Borland, 2007). The gases also increase the level of acid rain which has negative effects on buildings and crops (“Acid Rain”, 2018).
References
Aguko, S. (2014). Value chain analysis and organizational performance of beer manufacturing companies in Kenya (MBA). The University of Nairobi.
Borland, S. (2007). Global warming ‘is good and is not our fault’. Retrieved from https://www.telegraph.co.uk/news/uknews/1563054/Global-warming-is-good-and-is-not-our-fault.html
New Questions on the Impact of Technology | ethics. (2016). Retrieved from https://ethix.org/2011/06/26/new-questions-on-the-impact-of-technology
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