Case Study: Vincent's Cappuccino Express
CASE 1 : VINCENT’S CAPPUCINO EXPRESS
a. Develop an organization chart for The Cappucino Express.
Director (Vincent)
Assistant
Manager
(2nd Outlet)
Manager
(1st Outlet)
Employees
Employees
b. What factors can be expected to have a major impact on the success of The Cappuccino Express?
Factors that can be expected to have a major impact on the success of The Cappuccino Express are: i. Cost
Cost is seen to be one of the factor of having a success in running this business. It involves direct cost and indirect cost such as coffee bean, sugar, creamer, employee wages, Vincent’s salary, managers salary, assistant salary, cost of running equipment, utilities, rental and advertisement. These costs will affect the profits of the company. Beside that, the cost should be considered by the variable cost and fixed cost. The variable cost should parallel with the sale of the product for example the cost of coffee bean. Meanwhile fixed cost remains the same even when the business activity level changes for example premise rental. In other words, these cost assure the price of the coffee and profitability of the business.
ii. Location and Timing
Firstly when Vincent decided to run this business, he should choose a strategic location with a large potential customers and less competitors. Vincent decided to open the outlet at the industrial area in town, so most of the customers would be workers from the industrial area. Beside that, other outlets around the area will nevertheless affect Vincent’s business because they would be competitors who offer better place and better products. As for that, it is advisable to have a place with less restaurants or outlets in order to succeed in his business. It is obvious that a drive-through coffee outlet is set up at the right time at the right place. iii. Premise or Business Concept
Premise or business concept offered by The Cappucino Express is a drive-through concept and less products.
a. Develop an organization chart for The Cappucino Express.
Director (Vincent)
Assistant
Manager
(2nd Outlet)
Manager
(1st Outlet)
Employees
Employees
b. What factors can be expected to have a major impact on the success of The Cappuccino Express?
Factors that can be expected to have a major impact on the success of The Cappuccino Express are: i. Cost
Cost is seen to be one of the factor of having a success in running this business. It involves direct cost and indirect cost such as coffee bean, sugar, creamer, employee wages, Vincent’s salary, managers salary, assistant salary, cost of running equipment, utilities, rental and advertisement. These costs will affect the profits of the company. Beside that, the cost should be considered by the variable cost and fixed cost. The variable cost should parallel with the sale of the product for example the cost of coffee bean. Meanwhile fixed cost remains the same even when the business activity level changes for example premise rental. In other words, these cost assure the price of the coffee and profitability of the business.
ii. Location and Timing
Firstly when Vincent decided to run this business, he should choose a strategic location with a large potential customers and less competitors. Vincent decided to open the outlet at the industrial area in town, so most of the customers would be workers from the industrial area. Beside that, other outlets around the area will nevertheless affect Vincent’s business because they would be competitors who offer better place and better products. As for that, it is advisable to have a place with less restaurants or outlets in order to succeed in his business. It is obvious that a drive-through coffee outlet is set up at the right time at the right place. iii. Premise or Business Concept
Premise or business concept offered by The Cappucino Express is a drive-through concept and less products.