Broadway CaféCase Study

Presented by:Julio Romero ZapataAmanthi Wijeyekoon

Clara ChongTina Swaker

Competitive Advantage

Presented by Tina Swaker

PORTER’S FIVE FORCESThreat of substitutes

· Modernised espresso machines· Pricing maintained at below industry average· Introduce new and evolve existing coffee & tea

flavours· Switching costs for buyers kept high

Rivalry among existing competitors

· Competitive pricing· Coffee and Tea of the month· Speedy service through restructuring store layout· Offering healthy and light choices· Discounts/offers· Good payroll system· Buyers switching costs kept high· Premium products at premium prices

Threat of new entrants

· Business intelligence · Maintain loyalty programs· Market share· Barriers:o Loyal customerso Differentiation in products and serviceso Excellent customer service)o Entry/Exit Capital requirementso Good employee managemento Effective business technologies

Buying Power

· Value for money· Customer suggestions listened· Friendly service· Switching costs kept high· VIP Card· Customer service training

Supplier Power

· Quality of products· Price· Product availability · Imposed switching costs· Speed of delivery· Reliable Roaster

HIGH

HIGHHIGHLOW

HIGH

SUPPLIER POWER

Supplier Power

· Quality of products· Price· Product availability · Imposed switching costs· Speed of delivery· Reliable Roaster

LOW

THREAT OF SUBSTITUTES

Threat of substitutes

· Modernised espresso machines· Pricing maintained at below industry average· Introduce new and evolve existing coffee & tea

flavours· Switching costs for buyers kept high

HIGH

THREAT OF NEW ENTRANTS

Threat of new entrants

· Business intelligence · Maintain loyalty programs· Market share· Barriers:o Loyal customerso Differentiation in products and serviceso Excellent customer service)o Entry/Exit Capital requirementso Good employee managemento Effective business technologies

HIGH

BUYER POWER

Buying Power

· Value for money· Customer suggestions listened· Friendly service· Switching costs kept high· VIP Card· Customer service training

HIGH

RIVALRY AMONGST EXISTING COMPETITORS

Rivalry among existing competitors

· Pricing maintained at below industry average enabled through introducing new equipment and technology

· Coffee and Tea of the month· Speedy service through restructuring store layout· Offering healthy and light choices· Discounts/offers· Good payroll system· Buyers switching costs

HIGH

WHICH OF THE THREE GENERIC STRATEGIES?

• Combination of two strategies used within the Café

• Cost Leadership

• Differentiation

CUSTOMER ORDER PROCESS

Broadway Café As-Is order process

Broadway CaféTo-Be order process

Start

Counter AFood Ordered

Counter BBeverages ordered &

food picked up

Counter CBeveragespicked up

Counter DPay for food &

beverages

Counter ECream, sugar,

lids

End

Start

Counter CFood &

beverages picked up\delivered

End

Counter BBeverages & food ordered

and paid

Customer Relationship Management

Presented by Clara Chong

CUSTOMER RELATIONSHP MANAGEMENT

• identifying customer requirements for designing specific marketing campaigns

• effective customer service and improved customer satisfaction

• increased sales, greater profitability, and customers’ loyalty

• Reporting– Customer?– Time range?

• Analyzing– Why?

• Predicting– Products?– Approach the customers?

CUSTOMER RELATIONSHIP MANAGEMENT

STRATEGY USING YouTube

• a simple advertisement of the new machines and the benefits

• The advertisement will be viewable in store as well as uploaded to YouTube

EXTENDED STRATEGY

• A short video about how to make a coffee or espresso, pointing out the ability of the employees.

• Customers can:– enjoy the news or movies from new TV

screens– read the daily newspapers and magazines – listen to the in-store music

• Atmosphere

• Promotions

NEW TECHNOLOGIES

• Facebook

• Twitter

• Blogging

• AdWords

• Text messaging

Business Intelligence

Presented by Amanthi Wijeyekoon

System Development Life Cycle

Presented by Julio Romero Zapata

Payroll System Rich Picture

Payroll System

THE BROADWAY CAFÉ PAYROLL SYSTEM

Time SheetConcerns

Tax Calculations Accuracy

Staff & members concerns

Payroll well-done

AimReplace overall payroll system

currently used on

The Broadway Café

by a new automatic system which

must fit the specified

requirements.

START

Collect Time Sheets

Review Punched-In

PassConsolidated Information

YES

CALCULATIONS-1

NO

APPROVALS

Pass

NO

YES

CALCULATIONS-2

SEND TO TAX MANAGER

CALCULATIONS-3

PAYROLL SYSTEM

START

AS-IS Payroll System Flow Chart by Iso-Team

Calculations 1:

- Regular hours- Overtime hours- Holliday hours- Grand total- Sick Time- Vacations time- Grand total

Calculations 2:

- Regular payments- Overtime payments- Holiday payments- Staff member commissions- Grand total

Calculations 3:

- Calculate sick time- Calculate vacation time

Payroll System Flow Chart (AS-IS) & Requirements

It is compulsory for the system allows users…

It is required to replace “punched in system” by an electronic equivalent system…

The system must be able to calculate automatically regular pay…

The payroll system must consider a database design and implementation…

The tasks previously stated must be measured using Key Performance Indicators…