Business
This essay will cover a reflection of my experience with simulation of Biz Café. Therefore, after going through this essay, you will be able to have an idea concerning what I learned from the Biz Café simulation and how it operates. Firstly, my main concern will be about the challenges we faced as a team, and they were overcome. Importantly, I will illustrate how the team made the coffee connection to run a successful coffee shop. Lastly, I will discuss my thoughts on teamwork and the significant factors of operating a small business.
Our objectives were to be the best coffee bar in the region as per the local restaurant guide, to turn in proceeds from our first month of operations, and to maintain a high gross margin. The decision strategy was to increase wages of the managers and keep them ahead of everyone. This was because the overall cost is low and this increased productivity that fits both strategies of our business.
Topics discussed
Management
The Biz Café had nine servers though this number was not enough. Consequently, the satisfaction of our initial clients was hurt. Therefore, we were looking for highly productive and satisfied employees. To attain this strategy, we decided to raise the wages of our workers, and we are planning to do so in future due to the average growth of our business.
Marketing
While setting our coffee prices, customers were upset by raising it. Although this was better at the start and later prices were adjusted downwards. The cups were bought in a maximum bulk, and this helped to lower the cost. In our coffee business, there was a competition out to sell the business by many cups, and this made us stay ahead in cumulative revenue and dominated in retained earnings.
Operations
The strategy of maximum hour enabled us to win the best working hours. Consequently, it increased our sale volume. As for how much to buy, if coffee is purchased in excess, it will be thrown out to lose the entire cost of the coffee per pound. On the other hand, if a little purchase is made, it will cost us an extra dollar per pound. Therefore, it was too expensive for us to order much coffee than too little.
Changes
During the second period, we are planning to employ two more servers because the managers were stressed. We are hoping that with few hands on the business, the managers will be better. Moreover, we will stop advertisements for the same as at now because we want to concentrate on our customers.
Advice
My advice to individuals who would wish to open up a small coffee business is that they should not lose hope because the business will give them the opportunity to experience the importance of the basics of business especially through operating a small coffee shop. Similarly, they will gain experience with the financial statements. Additionally, they will be able to differentiate cash and accrual accounting concepts. Importantly, they will be able to handle staffing issues, operations management for a small service business like my coffee shop, the importance of customer satisfaction, and marketing and promotion. Lastly, the growth of sales, profit maximization, and management of daily operations of a coffee shop will assist such people to understand the advantages and disadvantages of operating a customer service oriented business like a coffee shop.
Results
Our coffee shop is expected to grow its sales revenue to $ 5,688 (28.9%) in the next three years. As the best coffee shop in the area, we are striving to maintain the gross profit margin at 28.6% with a reasonable operating expense. The net profit or income was $ 2,886.75. Thereby, selling about 1,422 cups during the same period. In achieving the above results, our coffee shop made the best effort in creating a unique place where customers can socialize in a comfortable and a relaxing environment as they enjoy their coffee in town. Therefore, we are in the business to help our clients in relieving their daily stress through the provision of ambiance, convenient location, and products of consistently high quality. Regarding the customer satisfaction, our balanced scorecard was over 80% with a customer satisfaction of about 40% and the brand awareness was 5.4.
Lessons
Biz Café has given me the opportunity to be familiar with the significant factors of starting and operating a small business successfully. These factors include management, accounting decisions, marketing, and operational decisions. Consequently, the simulation in Biz Café has offered a hands- on experience that has necessitated the group members to make some crucial decisions in business that has contributed to the business making (Stuart). In overall, I have developed a clear understanding of the management of a small business and what I feel of becoming the owner. After having the opportunity to start and operate a coffee shop from a practical viewpoint, my strength and knowledge of the daily operational functions of the business have been broadened. With the assistance from the team, we were capable of making careful decisions that are required to operate a successful coffee shop business.
Bibliography
Stuart, James. "Biz Cafe Student Manual". Imperative software Inc. (2007): n. pag. Print.
