CUSTOM COFFEE AND CHOCOLATECUSTOM COFFEE AND CHOCOLATE

Small businesses typically do not start with the formal Small businesses typically do not start with the formal process of formulating their mission and visionprocess of formulating their mission and vision

Entrepreneurs are driven primarily by their personal drive Entrepreneurs are driven primarily by their personal drive and curiousity and opportunities they seeand curiousity and opportunities they see

The implicit mission is usually simply to survive and thriveThe implicit mission is usually simply to survive and thrive Composing a mission statement involves spelling out a Composing a mission statement involves spelling out a

firm’s purpose of existence and take can three forms:firm’s purpose of existence and take can three forms: Purpose basedPurpose based Product basedProduct based Service basedService based Customer basedCustomer based

SAMPLE MISSION STATEMENTSSAMPLE MISSION STATEMENTS Purpose based:Purpose based: "The mission of a manufacturer should "The mission of a manufacturer should

be to overcome be to overcome poverty, to relieve society as a whole poverty, to relieve society as a whole from misery, and bring it wealthfrom misery, and bring it wealth.“ (Matsushita).“ (Matsushita)

Product based:Product based: “To be the most successful “To be the most successful premium premium manufacturermanufacturer in the industry.” (BMW) in the industry.” (BMW)

Service based:Service based: “DHL enhances the business of our “DHL enhances the business of our customers by customers by offering highest quality express and offering highest quality express and logistics solutionslogistics solutions based on strong local expertise based on strong local expertise combined with the most extensive global network combined with the most extensive global network presence.” (DHL)presence.” (DHL)

Customer based:Customer based: “We will become the world's most “We will become the world's most valued company to valued company to patients, customers, colleagues, patients, customers, colleagues, investors, business partners and the communitiesinvestors, business partners and the communities where where we work and live.” (Pfizer Malaysia)we work and live.” (Pfizer Malaysia)

POSSIBLE MISSION STATEMENTSPOSSIBLE MISSION STATEMENTS

Purpose based: Purpose based: Making the world a better place by Making the world a better place by serving quality food to customers and giving sustenance serving quality food to customers and giving sustenance to farmers.to farmers.

Product based:Product based: Delivering the best coffee and Delivering the best coffee and chocolate to the brightest people.chocolate to the brightest people.

Service based: Service based: We provide the ambience and the bites for people to meet.We provide the ambience and the bites for people to meet. We provide coffee and chocolate for people for companionship. We provide coffee and chocolate for people for companionship.

Customer based:Customer based: Fulfilling the needs of those with a Fulfilling the needs of those with a refined sense of taste.refined sense of taste.

StrengthsStrengthsProduct well received.Product well received.

Have established a reputation.Have established a reputation.

Have established location.Have established location.

Able to maintain principles.Able to maintain principles.

OpportunitiesOpportunitiesCan replicate approach in locations Can replicate approach in locations with similar customer profile.with similar customer profile.

WeaknessesWeaknessesSpace constrain.Space constrain.

Lacking capital.Lacking capital.

Little control over supply.Little control over supply.

No experience in managing No experience in managing logistics of delivery service.logistics of delivery service.

ThreatsThreatsNew entrance can easily imitate New entrance can easily imitate business model.business model.

DEVELOPING TACTICAL PLANDEVELOPING TACTICAL PLAN

Need to anchor tactical plan on strategic objectives.Need to anchor tactical plan on strategic objectives. Key strategic concerns:Key strategic concerns:

Protect current achievementsProtect current achievements Expand without undermining profitabilityExpand without undermining profitability

Key tactical components of strategy:Key tactical components of strategy: How to develop customer loyalty?How to develop customer loyalty? How to deter competition?How to deter competition? How to increase revenue?How to increase revenue? What criteria should be used to ensure profitability?What criteria should be used to ensure profitability?

STRENGTHSTRENGTH WEAKNESSESWEAKNESSES

OPPORTUNITIESOPPORTUNITIES

Develop processes and Develop processes and standards to ensure standards to ensure consistency in quality.consistency in quality.Develop distinct identity Develop distinct identity and brand image.and brand image. Offer complementary Offer complementary products.products.

Renew current lease.Renew current lease. Develop criteria for Develop criteria for location search.location search. For long-term, acquire For long-term, acquire know-how on delivery know-how on delivery service or outsoruce service or outsoruce service.service. Develop long-term Develop long-term business plan to get business plan to get investor or financing.investor or financing.

THREATSTHREATS

Reduce imitability by Reduce imitability by developing loyalty based on developing loyalty based on interpersonal service quality.interpersonal service quality. Use long-term contracts for Use long-term contracts for purchasing of key purchasing of key ingredients.ingredients.

Register Custom Register Custom Coffee and Chocolate Coffee and Chocolate as trademark.as trademark. Start advertising.Start advertising.

TACTICAL ACTIONTACTICAL ACTION How to develop customer loyalty?How to develop customer loyalty?

Offer highly personal serviceOffer highly personal service Introduce loyalty and discount cardsIntroduce loyalty and discount cards Use franchisingUse franchising

How to deter competition?How to deter competition? Build brand image thru trademark protection and advertising.Build brand image thru trademark protection and advertising.

How to increase revenue?How to increase revenue? Offer more products to generate more revenue per purchaseOffer more products to generate more revenue per purchase Select products that do not require sit-in customersSelect products that do not require sit-in customers Given limited sitting available, offer products that do not require long wait.Given limited sitting available, offer products that do not require long wait.

What criteria should be used to ensure profitability?What criteria should be used to ensure profitability? Open new location where there is high foot traffic.Open new location where there is high foot traffic. Demographic character should target professionals and middle class.Demographic character should target professionals and middle class. Near campuses, offices, at corners and near transportation hubs.Near campuses, offices, at corners and near transportation hubs.