Running head: Business: BizCafe Business Review. Insert Insert Insert 16 August BizCafe Business Review A business progress should be regularly reviewed, with its day-to-day operations being reviewed after a certain period. Business review is important when one is uncertain of how well the business is performing, more so incase a business is moving in an opposite direction as opposed to the intended one. In addition, a business may become unresponsive to the demands of a market. The business review of Never Enough Café has resulted to visible returns in the accounting section, due to the management’s effort to differentiate its services and products from other cafe’s; indeed, the customer suggestion box entails remarkable remarks.
Customers analysis indicates that moist of our customers appreciate our services, the affordable prices, the great coffee, and the restaurant atmosphere. With all these complements from our customers, it is now evident why our sales have increased. The local labor reports indicate that the turnover rate has reduced from 16% to 12%, which is remarkable. The management has made sure that our employees are paid above the average wages in order to increase their performance by motivating them.
When employees are demotivated, their performance is likely to drop significantly; therefore, the management seeks to motivate employees, hence sustaining them by providing a favorable environment to work in (Lathan, 2009, p. 78). The previous customer survey rates our café’s customer satisfaction at 40%; however, at the moment, customer satisfaction has increased with 11.5% to 51%, which is remarkable but still below the industries average that stands at 60%. However, after week four, customer satisfaction rate has risen to 57%.
Nevertheless, it is important that our customer satisfaction rate lies above the industry’s average rate, and this calls for new strategies aimed at meeting the customer’s satisfaction. To market our café widely, the management has resulted to radio advertisement twice a day thus resulting to $560 cost. Though this is an incurred cost, the management believes that once the café is famous, the returns will rise. Product differentiation strategy ensures that a business provides unique services or products as compared to its competitors, thus attracting more customers. Therefore, the café will continue to offer unique services of different sizes of coffee to continue catering for all customers in general.
The uniqueness of a business is the key to customers’ attraction (Hitt, Ireland & Hokisson, 2009, p. 117). In order to reduce costs, the management has decided to stick to the on-the-job training, as it is still effective. Having conducted a business review, our major challenge is customer’s satisfaction and improvement of sales. Therefore, the management has expanded on advertisement and changed its operational hours to begin at 8am as opposed to 9am.
In addition, the management will stick to the product differentiation strategy and the low cost strategy in order to attain a bigger market share and attract more customers, thus increasing sales while maintaining quality. The management also aims at avoiding any costs at the moment, as it has enough inventories and rent is catered for. With these measures in place, we hope to increase on the café’s effectiveness, productivity, and sustainability. References Hitt, M., Hoskisson, R. and Ireland, R. (2009). Strategic management: competitiveness and globalization: concepts & cases. Edition 8.
OH: Cengage Learning Publisher. Latham, G. (2009). Becoming the evidence-based manager: making the science of management work for you. NY: Nicholas Brealey Publishing.