CIS500 broadway cafe-final 2
CIS500 broadway cafe-final 2
Popular in Course
verified elite notetaker
Popular in Department
This 10 page Study Guide was uploaded by tophomework Notetaker on Sunday November 15, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 15 views.
Reviews for CIS500 broadway cafe-final 2
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/15/15
The Broadway Cafe 1 Running head: THE BROADWAY CAFE The Broadway Cafe Ursula Wallace Strayer University Information Systems for Decision Making CIS 500 Dr. Jim Dollens The Broadway Café Introduction The Broadway Café is a family inherited coffee shop located in Atlanta, Georgia. The business specializes in coffees, teas, a full service bakery, and homemade sandwiches, soups, and salads. It was once a hotspot for many years but for the past five years the business has been declining. Although Mr. Wallace had conducted a good business in his time, it appears as though new and improves methods needed to be in place to keep the business thriving. Mr. Wallace had acquired a wealth of knowledge about the coffee business and unfortunately before he passed way he was unable to share the information with us (his heir/successor). His system for record keeping consisted of a note pad that tracked inventory along with payroll and coupons. His advertising plan was by wordofmouth only and since he had an exceptional memory, he never recorded any family recipes or made a client list. In order to bring the Café into the 21 Century, quite a few changes need to be made. The business needs to gain a competitive advantage though technology, deploy a wireless network for customers, use CRM to implement marketing campaigns and sales strategies, and develop project management activities for implementing solutions. Competitive Advantage A competitive advantage is product or service that an organization’s customers place a greater value on than similar offerings from a competitor…These advantages are usually temporary because they are often duplicated by a competitor which in turn creates a perpetual cycle of improvement strategies (Baltzan & Phillips, 2007). Business that are developing strategies for improvements, must review their options before making quick snap decisions (Baltzan & Phillips, 2007). Techniques to consider would be environmental scanning, firstmovers advantage, and Michael Porter’s Five Forces Model (Baltzan & Phillips, 2007). Currently the Broadway Café is the only coffee shop in the area. Recently employees have heard rumors that a Starbucks plans to move in the area. In order to improve business and create a competitive advantage we first must research the competition through environment scanning (Baltzan & Phillips, 2007). Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization (Baltzan & Phillips). After reviewing the website of 2 competitors, Starbucks.com (2007) and Panera.com (2007), it appears as though these businesses are technologically advanced. Therefore the first step this Café needs to make is to install computer to provide accurate record keeping and store information. We need to develop a plan for employees that creates an environment of respect and dignity which also leads by example and gives back to the community (Starbucks, 2007). We need to develop a menu, create weekly and holiday specials, and offer samples of baked goods or small coffees with a purchase to stimulate customer loyalty (Panera Bread, 2007). Offering the customer a reason to come back with free samples is good business a practice (Panera Bread, 2007). Scanning the environment to determine that market provides us with a wealth of information. With this information we are able to develop Michael Porter’s Five Forces Model to establish a competitive plan. The Broadway Cafés buyer power would be considered high since its business has been declining over the past 5 years. If another coffee shop does move into the area it will create an even more competition while driving buyer’s power higher for customers. To reduce buyer power the Café must make its self more attractive for customers to buy from it instead of its competition (Baltzan & Phillips, 2007). One of the best ways to increase customer loyalty is to offer customers rewards (Baltzan & Phillips, 2007). The Café is considering mincing what its competitors are doing by offering customer free samples and coupons for retuning customers. At this point the Cafés supplier’s power is low because there are a variety of vendors that it uses to purchase supplies from to run the business. The Café will always constantly search for the finest quality at its lowest cost. One source that will be constantly used to obtain supplies from vendors would be the internet based service for the businesstobusiness marketplace (Baltzan & Phillips, 2007). The B2B is where buyers and sellers come together for private exchanges and well as reverse auctions (Baltzan & Phillips, 2007). The threat of substitute products or services is high in the coffee shop business because of the various competitors. The Café can reduce its threat of substitution by implementing switching costs. Switching costs are cost that can make customers reluctant to switch to another product or service (Baltzan & Phillips, 2007). The Café can implement switching costs by providing all customers with a savings card that calculates point towards a free purchase that can be redeemed at anytime. The threat of new entrants is high since pretty much everyone sells coffee nowadays (Baltzan & Phillips, 2007). Every restaurant and fast food chain that has a breakfast menu serves coffee. The market is flooded to merchants ready to meet the demands of customers. The pressure falls more on existing businesses to staying a float and meeting the demands of the customer since new businesses are entering with fresh eyes and first to market ideas to boost sales. Rivalry among existing competitors is considered to be high when competition is fierce in a marketplace and low when competition is complacent (Baltzan & Phillips, 2007). In the coffee industry rivalry among existing competition is high. As stated earlier everyone sells coffee. Therefore everyone is trying to impact business by developing a firstmover advantage (which occurs when a business can significantly impact its market share by being first to market with a competitive advantage) and customer loyalty or reward programs are implemented to entice new customers and keep existing ones (Baltzan & Phillips, 2007). Networks, Telecommunications, and Wireless Computing When considering innovate ideas for marketing strategies, the internet automatically comes to mind. Telecommunication systems enable transmission of data over public or private networks…Businesses can benefit from today’s modern network infrastructures that provide reliable global reach to employees and customers… Businesses around the world are moving to network infrastructure solutions that allow greater choice in wireless, voiceover internet protocol (VoIP), and radiofrequency identification (RFID) (Baltzan & Phillips, 2007). The Café would like to broaden its horizons and offer mobile coupons (m coupons) to its mobile customers. Mcoupons are instant redemption coupons that customers receive while either walking by the Café (or within a 25 foot radius of the café). The coupon could generate for a dollar off a latte or a 15 percent discount on an order and the customer would receive the offer to his/her cell phone. To redeem the coupon all the customer has to do is present the cell phone so that the offer can be downloaded (Cohesion Case, 2007). Mcoupons are better than traditional coupons because they are readily available for customers to use. The offers are stored on their cell phones and, since the customer always has the phone, the coupon is always handy or available to redeem. This method of marketing increases the customer base and redemptions rate of the mcoupons over the traditional coupons (Cohesion Case, 2007). Since mcoupons are internet based, the same risks that would apply to ebusinesses marketing would apply to mobile marketing. Being the mobile marketing is relatively new to businesses, protocols, privacy policies, disclosures, and SPAM emails blocks and other security features would have to be revamped to fit mobile devices (Australian Competition and Consumer Commission [ACCC], 2007). The wireless technologies that underlie mcommerce may raise privacy issues. These include the increased ability to collect individualised and personal information, the ability to track visits to wireless websites, and the ability to collect locational information about consumers (ACCC, 2007). The café could benefit from collecting and tracking response rates of mcoupons seeing that it generates analysis information about the customer and the business. Analysis information that could be gathered would consist of cluster analysis, association detection, and statistical analysis (Baltzan & Phillips, 2007). The first analysis that is considered helpful is cluster analysis. A cluster analysis is a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. Cluster analysis is used to segment customer information…to help identify customers with similar behavioral traits, such as clusters of best customer or onetime customers (Baltzan & Phillips, 2007). Custer analysis would be beneficial for mcoupons since it would market to regular customers items that they normally buy and onetime customer specials of the day. Second is association detection. Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information (Baltzan & Phillips, 2007). Association detection for mcoupons would record for instance the frequencies of how often or how quickly customers respond to the advertisement and if other items are normally purchase with them. Association detection would track the habits and the patterns of the customer. Third is statistical analysis. Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis, just to name a few (Baltzan & Phillips, 2007). Analyzed mcoupons in this area would generate information on how well the products are doing. Information gathered could consist of what the customer did/didn’t like or when to promote different/seasonal specials. Tracking mcoupons can prove to be beneficial no matter who receives them or act on them because mcoupons forwarded to other people can only increase our customer base. Customer Relation Management Customer relationship management (CRM) involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability...CRM is a business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future (Baltzan & Phillips, 2007). The behaviors of customers has changed the way businesses compete. Customers will leave if a company does not continually meet their expectations. They are more demanding because they have information readily available, they know exactly what they want, and they know when and how they want it (Baltzan & Phillips, 2007). Customer behaviors can also help businesses. An organization can find its most valuable customers by using a formula that industry insiders call RFMRecency, Frequency, and Monetary value…Once a company has gathered this initial CRM information, it can compile it to identify patterns and create marketing campaigns, sales promotions, and service to increase business… Knowing the customer, especially knowing the profitability of individual customers, is highly lucrative…There are 3 phases in the evolution of CRM: (1) reporting, (2) analyzing, and (3) predicting. CRM reporting technologies help organizations identify their customers across other applications. CRM analysis technologies help organizations segment their customers into categories such as best and worst customers. CRM predicting technologies help organizations make predictions regarding customer behavior such as which customers are at risk of leaving (Baltzan & Phillips, 2007). The Broadway Café can also implement these good business practices by developing on its website a section for customers to submit feedback and a discussion board where customers can post questions and respond to comments made by other customers. The feedback section will be used to compile information of customer reactions and the discussion board will be used for immediate responses. Managers will post responses on a quarterly basis throughout the day on the message board and responses will link directly to the customer who is posing the question to avoid confusion. Employees are developing the idea that customers are the most important part of business. Through various incentive programs, employees are seeing that by practicing good business ethics they are creating new customers, retaining old customers, and earning bonuses for a job well done (Baltzan & Phillips, 2007). The Broadway Café plans to offer reward programs to its employees also to boost morale and reiterate to its employees that customer satisfaction has to be the main goal. Some of the programs that are being considered are bonuses for employees who are the most helpful to customers, who keep the place neat and clean, and who have perfect attendance. These are just a few of the ideas that are being consider but as time goes on and business increases there will be opportunities for promotions, to collect stock options, and host of other incentives to let the employees know that when they doing an excellent job. Employees who conduct themselves in a manner that is pleasing to the customer need to be sufficiently rewarded. References Australian Competition and Consumer Commission (2007). Mcommerce. Retrieved December 9, 2007, from http://www.accc.gov.au/content/index.phtml/itemId/266899/fromItemId/8135#h2_21 Baltzan, P., & Phillips, A. (2007). CIS 500 Information Systems for Decision Making (4th Custom ed.). New York: McGrawHill. Cohesion Case (2007). Networks, Telecomunications, and Wireless Computing. Retrieved December 9, 2007, from http://www.cohesioncase.com/networks Panera Bread (2007). . Retrieved December 9, 2007, from http://www.panerabread.com/ Starbucks (2007). . Retrieved December 9,2007, from http://www.starbucks.com
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'