Cafe Espresso Case Study

Expresso Espresso Essay

1270 WordsJun 20th, 20146 Pages

Expresso Espresso case analysis
Analyze and record the current situation a- The Environment
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
For specialty coffee beverage services, including coffee, espresso, tea, chai and granite the leading drinks in 2004 were espresso-based beverages with…show more content…

It is a company with revenue of 52.5 M in 2005 with growth 3 % more than 2004.
Caribou coffee went public in 2005 reporting sales of $ 191 M in 2005. The firm expects to add 40 new outlets in 2005 and another 130 in 2006.
Coffee Beanery was a franchise; with over 200 branches in 2005 expect 40 new stores in 2006.
Peet coffee & Tea was another competitor with 111 retail stores.
Also there were large restaurants trying to find ways to capitalize on the specialty coffee industry i.e.: Macdonalds, Krisspy, Dunkin, Donuts …..
2- Threat of substitute product
As mentioned above, the specialty coffee industry had seen steady growth for years and the trend was expected to continue.
3- Bargaining power of Suppliers
There is no mention of suppliers in the case
4- Threat of new entrants
Entering the market requires heavy investment in establishing a name and make lots of outlets. It is a growing market with lots of pioneers that can make branches anywhere and threat the other chain in there selling areas.
5- Bargaining power of buyers
There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It

Show More

Similar Documents

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Case Study: Hard Rock Cafe - Florence Challenge

...Case Study: Hard Rock Cafe - Florence Challenge Hard Rock Cafe is an international restaurant franchise with a strong internal culture and external brand, and it recruits individuals that fit this unique culture. For its new venue in Florence (Italy), Hard Rock decided to supplement its hiring with Facebook, since traditional channels often proved slow and inefficient for sourcing candidates. Hard Rock not only needed to source 120 server to manager-level positions in four weeks, but also had to find candidates that fit their unique culture. Converting fans to hires through social engagement and branding Solution • Hard Rock recognized that its consumers and candidates were often the same person, and launched a multi-faceted Facebook campaign to leverage their strong ‘fan brand.’ • Hard Rock created a Facebook page from scratch, installed the Work for Us app, and uploaded their open positions. They allowed candidates to submit applications directly within Facebook. • They also ran Facebook Ads targeting people around Florence who ‘liked’ such items as ‘Rock and Roll’ and particular rock bands. Dynamic demographic and interest targeting honed in automatically on users that responded most to the job content. • Fans brought to the Page by ads could use social features embedded within the app to socially broadcast jobs. This drove viral fan growth, as the Page went from 0 to 1,000 fans in less than 24 hours and to 6,100 fans in 4 days. • The Hard Rock team responded to......

Words: 565 - Pages: 3

Case Study on Cafe Expresso

...Reflecting on the approaches to strategic human resources management, analyse the approach to SHRM adopted by Ben Thomson and Kam Patel at Cafe Espresso. The case of Caf Espresso highlights the importance of strategic human resource management in the success or even mere survival of a business organisation. Drawing from the experience of the coffee shop, it should be noted that strategic human resource management can apparently save a company by making it more competitive in the market. At the start of the case, we can see the Caf Espresso in turmoil because of the internal problems and external challenges that it faces. The Chartered Institute of Personnel and Development (2007) defines strategic human resource management as a general approach to the strategic management of human resources in accordance to the intentions of the organisation on the future direction it wants to take adding that it is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment, and matching resources to future need. Internally, the company suffers high staff turnover and low employee morale thus, hampering the ability of the workforce to convey excellent customer service. In this situation, two personalities have been instrumental in regaining the leadership which had been enjoyed by the specialty coffee retailer-the charismatic Chief Executive Officer Ben Thomson and the new global HR director Kam Patel. In trying to sell the......

Words: 442 - Pages: 2

Hardrock Cafè Case Study

...1. List representative companies with whom Hardrock Café competes? How would you position Hardrock in terms of their business focus (i.e. operational excellence, customer intimacy, or product leadership? Why? a. competitors: i. Plant Hollywood ii. The Johnny Rockets Group iii. Landry’s iv. Cleveland restaurant v. The Airplane Restaurant vi. Apple Farm in vii. Bubba Gump Shrimp Company viii. Belle of Louisville ix. Cold Spring Tavern x. Colonial Williamsburg xi. Delta King xii. Delta queen xiii. ESPN zone xiv. Rainforest Cafe xv. Union Oyster House xvi. Natchez Hardrock’s business focus: xvii. product leadership b. Why did you make this choice: i. create an experience for the customer ii. creativity of products/service (theme restaurant) iii. innovations iv. . new and changing marketing conditions v. new solutions according to customers’ preferences/customization vi. created a new product (pioneer of theme restaurants) vii. risk-oriented viii. measurement of performance and costs ix. on-going reengineering core business processes for greater effectiveness and efficiency x. higher prices (the customer doesn’t just pay for...

Words: 787 - Pages: 4

Case Study

...CASE STUDY: STARBUCKS COFFEE BY: KATHLEEN LEE GRC 411 CASE STUDY: STARBUCKS Brief History: The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in Washington with multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an opportunity to bring the café community environment he found in Italy to the United states and the Starbuck’s brand we know today began to take form. Selling espresso by the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations, Schultz raised the money with investors and purchased the company and fused them with his Italian bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by 1997, with locations around the United States, Japan and Singapore. Starbucks also began expanding its brand. According to George Garza in his article The history of Starbucks the following product lines were......

Words: 2534 - Pages: 11

Hardrock Cafe Case Study

...Introduction If you go to the Hardrock Café Web site today (May 1, 2014), you will be impressed. You will find a very slick and visually exciting home page that rotates you through stunning scenes of Hardrock hotels, casinos, dining locations and concert venues around the world. There is a “Rewards” tab that allows you to expand your personal information profile, track travel and vacation plans, and monitor your earned points from any number of Hardrock customer community involvement schemes. You can shop for a wide range of Hardrock branded products for men and for women as well as pricier rock and roll paraphernalia and collectors’ items. You will learn that Hardrock has nearly 200 locations across 51 different countries and that the firm’s history traverses the glory days of the rock and roll genre from 1971 to the present. All in all Hardrock Café purports to be a great success story. But things at Hardrock Café were not always so wonderful and there was a time in the 1990’s when the enterprise faced the possibility of going under as a business. As other theme-based restaurant chains like Plant Hollywood came on the scene and as organizations like resort and hotel chains sought to attract the 20 to 30+ year-old demographic, Hardrock began to lose its distinctiveness as a brand and a venue. Compounding these strategic issues, internal operations at Hardrock began to unravel, complicating the management and control of the business. It turns out that greatly......

Words: 1608 - Pages: 7

Cafe Pownd Case

...Café D Pownd Case INTRODUCTION Café D Pownd is a campus cafeteria, which serves 450 students and faculty, on the campus at the National Academy of Liberal Arts. The Café’s busiest time is at dinner time, where two thirds of the residents are expected to be served between 5:00 and 6:30 pm. The café serves meals, beverages, salads, desserts sandwiches and other snacks. Most students pay with their student meal cards. The Café is designed with three waiting lines, L1, L2 and L3. Line one is for the pre-cooked meals, and it provides a menu of its items. L2 is for the interactive cooking station and the students get to pick what they want to be cooked at that time. L3 is designated for the payment of meals. They have numerous complaints about services times amongst the different stations in the cafeteria. With the design layoff of the café it has caused a disturbance in wait time and flow. Jason Mah is the assistant resident manager and he is meeting a friend for lunch and notices the lengthy time it takes to get food. He decides investigate the problem and plans to discuss it with the director of housing services. PROBLEM STATEMENT Café D. Pownd experiences major delays in service times, due to an inefficient layout. Mah needs to create a plan to support the changes needed to Café D. Pownd. Mah needs to presents his findings in order to impact the management board. ANALYSIS/ CALCULATIONS It seems that Mah has put together a sustainable amount of data together to......

Words: 668 - Pages: 3

Levendary Cafe Case

...Assignment of the Levendary café case 1. Develop CAGE framework for restaurant/food business Cultural distance | Administrative distance | Food and drinking structureLife styleLocal food fashion Labor practice | Tax systemAccountingRegulation and authorization | Geographic distance | Economic distance | Logistical cost and qualityClimateIngredients | Per-capita incomePopulation Engel's coefficientSalary of restaurant staff Local competition | 2. Evaluate the way Levendary entered the China market. Entering the China market is a correct choice, but Levendary café didn’t make a good plan for it. Levendary had been very successful in the U.S.. It owned over 3,500 stores and was beloved by many loyal customers. But in 2008, its domestic growth became slow. The board of directors began to think about its overseas expansion. China was their target market since it had 1.4 billion people, and the 14.5% GDP growth over the past decade. Many American food companies like KFC and McDonald had proved that China was a worthy market to invest. However, Levendary didn’t make a proper plan before they entered China. Firstly, there should be a formal management structure of China business. A headquarter should be made in China , and there should be a local team which carried out the strategy of the Levendary HQ and manage the China business. Secondly, the manager who was responsible for China business should be well concerned since this position was quite important......

Words: 416 - Pages: 2

Case Study

...Case Study: Hard Rock Café Steven Williams Devry University May 7, 2015 1. Identify the strategy changes that have taken place at Hard Rock Cafe since its founding in 1971. The first Hard Rock Cafe opened its approaches to individuals as a rule on June 14, 1971, in London by Isaac Tigrett and Peter Morton. The eatery originated as classic big city eatery and blossomed in a cult following with fans and patrons visiting from around the world. Now in the 21st century the Café has transformed into a really overall marvel. (Tigrett, 1998) Right when Hard Rock Café was introduced in 1971 it was just a direct diner that was focused on providing its patrons with a great dining experience coupled with the culture of Rock and Roll. After at some point or another hard shake proprietors comprehend that it wasn't adequate for be assorted and to be the pioneers on the support and incitement showcase so they realized another technique considering an inclusive experience: reinforced on preoccupation, sustenance and music. The founders decided to execute the thought of a restaurant as a diversion place where patrons could enjoy their food and could have an extraordinary visual and sound spot. 2. As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed? The Hard Rock has made its image selective and exceedingly looked for after. They offer dinners, they offer cabin rooms.. To attain that goal, they have assembled amid the time a......

Words: 451 - Pages: 2

The Broadway Cafe Case Study

...ISO CASE STUDY Broadway Cafe AUTHORS Julio Romero Zapata – Student ID 3031203 Amanthi Wijeyekoon – Student ID 3037866 Clara Chong – Student ID 3047408 Tina Swaker – Student ID 121271 Table of Contents Table of Contents 1 1 Introduction 2 1.1 Assumptions 2 1.2 Where to from here 3 1.3 Use of Groupware tool 3 2 Competitive Advantage 4 2.1 Making business decisions I – Porter’s Five Forces & Generic Strategy 4 2.2 Making business decisions II – Customer Order Process 5 3 Customer Relationship Management 7 3.1 Making business decisions II - CRM 7 3.1.1 Extended Strategy 8 3.1.2 New Technologies 8 4 Business Intelligence 9 4.1 Making business decisions II 9 5 Systems Development 14 5.1 Making business decisions II – PYT Business Requirement 14 6 Bibliography 15 Appendix B – PYT Business Requirement for New Payroll System 16 Appendix C - Groupware Tools 20 Figures Figure 1: As-is Broadway Cafe Rich Picture 2 Figure 2: Broadway Cafe Alters Diagram 3 Figure 3: The Broadway Café Five Forces model 4 Figure 4: Customer Ordering Process 6 Figure 5. As-Is payroll system 14 Figure 6. Flow chart payroll system 17 Figure 7: Team ISO Groupware Home Page 20 Tables Table 1: YouTube Pros and Cons 7 Table 2. Comparison of Spreadsheet and Databases 11 Table 3. Wikispaces advantages & disadvantages 20 Introduction This case study addresses the following information systems......

Words: 5097 - Pages: 21

Case Study

...CONFIRMING PAGES CASE 1-1 Starbucks—Going Global Fast The Starbucks coffee shop on Sixth Avenue and Pine Street in downtown Seattle sits serene and orderly, as unremarkable as any other in the chain bought years ago by entrepreneur Howard Schultz. A few years ago however, the quiet storefront made front pages around the world. During the World Trade Organization talks in November 1999, protesters flooded Seattle’s streets, and among their targets was Starbucks, a symbol, to them, of free-market capitalism run amok, another multinational out to blanket the earth. Amid the crowds of protesters and riot police were blackmasked anarchists who trashed the store, leaving its windows smashed and its tasteful green-and-white decor smelling of tear gas instead of espresso. Says an angry Schultz: “It’s hurtful. I think people are ill-informed. It’s very difficult to protest against a can of Coke, a bottle of Pepsi, or a can of Folgers. Starbucks is both this ubiquitous brand and a place where you can go and break a window. You can’t break a can of Coke.” The store was quickly repaired, and the protesters scattered to other cities. Yet cup by cup, Starbucks really is caffeinating the world, its green-and-white emblem beckoning to consumers on three continents. In 1999, Starbucks Corp. had 281 stores abroad. Today, it has about 7,000—and it’s still in the early stages of a plan to colonize the globe. If the protesters were wrong in their tactics, they weren’t wrong...

Words: 3684 - Pages: 15

Case Study

... in regard to a possible promotion chance, Sally and Andrew chose a candidate who has closer relationship with them, which, to other employees, was quite demotivated. Approaches To solve the problems existing in leadership, a problem-solving tool called root-cause analysis shall be adopted provided with the following reasons: 1. Root cause analysis (RCA) is a method of problem solving used for identifying the root causes of faults or problems. A factor is considered a root cause if removal thereof from the problem fault-sequence prevents the final undesirable event from recurring. 2. According to the case and the problems identified above, all of the factors exist inside of the company and have the characteristic of preventing from further appearance with the removal. For example, if responsibilities shared under a reasonable departmentalization, the late payment of café lunch will be avoided. Roles Piyush Joshi: 1. Problem identification on organizational structure. 2. Research on organizational structure. 3. Compiling of organizational structure. Kapil Goel: 1. Problem identification on organizational structure. 2. Research on organizational structure. Navneet Kaur: 1. Problem identification on motivating. 2. Research on motivating. 3. Writing of introduction. 4. Compiling of motivating. Xiao LI: 1. Problem identification on leading. 2. Research on leading. 3.......

Words: 2177 - Pages: 9

Image Cafe Case

...prejudice. He could be right, but there are always exceptions, as a result, he pre-limited sources of capital. Wooten also focused on the financing of customers and angels investors for the ImageCafe. It's a clever strategy, but Wooten did not reach its target and failed to raise enough funds. 5- Apparently going to the West Coast would generate additional costs and unexpected problems, so Dwayne Walker’s offering would be very expensive in this case; however, half a million, in portions of $ 20,000, I believe it is reasonable. Investors have a right to know how their money is used, and Wooten needed a good amount of money to start your business. If I were him I would have accepted this offer. 6- Until 1999, Wooten raised bridge loans of $ 710,000, with a current burn rate of $ 50,000. To complete the ImageCafe site would take a year and a half, then, I need another half to generate revenue. So, ImageCafe need to survive for two years, that is to reach the break-even point, the ImageCafe could rise from 2 million. In this case, 3 million would not be necessary. 7- This depends on the ability to raise a sufficient amount of money. You can complete your site, find multiple clients, your products are ready for launch, but can never run out of money. If you have the money, then the business can be viable, so I would ignore this offer. But, if he could not raise money every effort would be ruined. Comparing the possibility of losing everything, I would be happy......

Words: 733 - Pages: 3

Case 1 Solana Motel Cafe

...1. Introduction Barry owns a motel and café in Solana beach. He hired a couple to run the daily operation of the Solana Motel and Café. Barry is only able to visit the motel and café periodically, he is afraid of internal fraud. He wants help with implementing internal control systems in order to prevent or detect fraud. In the next parts we will discuss the main concerns in the motel and café and suggest internal control systems to Barry to tackle these. 2. Motel Business The biggest concern in the motel business is that the couple (employees) Barry hired, to run the daily operation of the Solana Motel and Cafe, is both in charge of receiving money and depositing money. This leaves a high opportunity to commit fraud. For example, the couple could not record the payment received from the customer, so it will not be noticed when this money is not deposited at the bank. Moreover, they are in charge of the records of the rooms rented. They could indicate that the room is not rented, while the room actually is rented and keep the payment. This will not be noticed because the payment is not recorded. The best way to counter these problems would be in the case where different tasks are performed by different people. However, in the case of Solana Motel and Cafe segregation of duties would be very costly, because it is a relatively small firm and they only have a few employees. Segregation of duties in larger hotels will be discussed more extensively in the last section. In...

Words: 2124 - Pages: 9

Analysis of the Broadway Café Case Study

...An Analysis of the Café Case Study CIS 500 May 1, 2011 Dr. Evangeline Jefferson, Ed.D. Strayer University Analysis of the Broadway Café Case Study The intensified use of Information and telecommunication in business operations has increasingly been adopted as the best tool to confront the rising competition in the hospitality industry. Just like any other business entity, though unique in nature, many hotel and restaurant operators will have to adopt and intensify the use of system and e-commerce techniques in boosting the overall competitiveness of business entities. The unique nature of these businesses has indeed formed the backbone incentive for choice of Broadway case study as the subject of this paper. This case study is aiming at improving the business knowledge of information technology adoption hand in hand with intangible concepts such as enterprise resource system, wireless network and SCM within the hotel industry. The subsequent literature in this text therefore examines in detail how the use of use of technology; E-Business strategy; Networks, Telecommunications, and Wireless Computing; Customer Relationship Management as well as Problem-solving Analysis are capable of delivering a competitive advantage to Broadway Café. Implication of technology to Broadway Café’s Competitive Advantage Competitive advantage is a hallmark of cumulative effective of successive profitability and strong market share that an organization achieves in the long term......

Words: 963 - Pages: 4

0 Replies to “Cafe Espresso Case Study”

Lascia un Commento

L'indirizzo email non verrà pubblicato. I campi obbligatori sono contrassegnati *