2228854880389410095400rightbottomMargarida Yomar Mataia Zinga21521558300Margarida Yomar Mataia Zinga215215583lefttopASSIGNMENT 2018Business Management 400ASSIGNMENT 2018Business Management 4CONTENT PAGEIntroductionStatement of strategic intentMissionVisionGoalsObjectivesCore Values Environmental scanningExternal environmental analysisInternal Environmental analysisForecastingStrategic formulationCorporate strategyGeneric StrategyImplementationStrategic Evaluation and controlIntroduction Copy Catz Design & PrintCopy catz shop is specialising in digital and litho production they handle all volumes of print media.Copy Catz I based in Cecil Rd, Plumstead Cape town and established in 2007, they have dedicated themselves to building a truly passion driven “one umbrella” solution for anything design and print related.Copy Catz handle everything from design & production of simple business card through to company catalogues, event invitations, menus, posters, customised labels ad a whole lot more.Over and above this, they offer Internet, laminating, binding, scanning, computer repairs/clean ups, faxing, and much more – and the best part of all, is that you can relax in a fun and funky environment enjoying a hot chocolate or a creamy cappuccino while you wait. I can positively contribute to this company because my skill and experience includes innovation in many areas, including strategies for more effective teamwork. I can also bring them new methods of design and production for their business better growing.Copy Catz is dedicated to deliver a wide range of business services to the public.
They primary objective is to supply clientele with efficient service, quality product and individual attention. They have created a one stop “umbrella” solution for all your design and print requirements therefore removing the hassle of having to deal with multiple companies.With a full range of copy shop service and internet café they are able to handle all your “day to day” office requirement. They also cater for all your design needs, from business cards, flyers and brochures through to corporate identities, media publications and website design.Chosen metrics for business size analysis:RevenueNumber of employeesRevenue/ month Current number of EmployeesR 10 000 Owner3 casual employeesMini-Monthly income statementRevenue 10,000.
00Variable costStockFixed costs:StaffInsurance(5000)(2000)(150)Net 2850Our Vision StatementOur vision is to become the number one public cyber café in the whole of Cape town, South Africa within the first five years of starting the business.Our Mission StatementOur mission is to build a world class and well equipped public cyber café brand that will become the preferred choice for a whole range of client ranging from individual client to corporate organizations in cape town.GoalCopy Catz has a propose of providing communities with the ability to access the internet, enjoy a cup of coffee, and share internet experience in a comfortable atmosphere.Copy Catz internet café marketing will constantly build on this mission.
Everything we do, from the pricing structure for our services to the ambiance we create, must be done with this mission in mind.We cater to: business people around the area, traveling people, university students. Our ambience and our services are designed for this clientele and our marketing efforts are focused on capturing this market. ObjectivesThe copy catz design and print objectives for the first three years of operation include:Grow total sales by 10% annually.Build customer loyalty through educational programs.Maintain a staff of enthusiastic employees excited to share their internet knowledge with copy catz customers.Build the copy catz Internet Cafe brand to the point where it becomes a household word in the area.
VALUES AND PRINCIPLES It is important for the participants of the business and employees to have shared values and work towards a common dream mission and vision. The values and principles will guide the actions of the members and employees of the business and form an important part of the culture of the business. The values of this business are as a follows:TimelinessDriving internal efficiencyEffectivenessCustomer intimacyTransparencyAccountabilityBrand and business reputationQualityInnovation Creativity3.
Environmental Scanning3.1 External environmental analysis (2 techniques)Competitive advantagesCompetitorsThe main competitors in Copy Catz internet café segment are Sadik café, Media café, Planet DVD & internet café, Southfield IT and internet café, these businesses are located in or near the area, and target a similar segment.Competition from online service providers comes from locally owned business as well as national firms. Due to the nature of the internet, there are no geographical boundaries restricting competition.As the business face both indirect and direct competitors that are well established in the in Western cape (Plumstead), it will be important for the business to adopt competitive advantages that will help it compete and obtain a lucrative proportion of the customers.The competitive advantages of Copy Catz:Location: the business will seek a suitable location in Western Cape, Plumstead region.
Though this might be costly in terms of rentals, but it will attract a high volume of customers as the area is busy and is central to the clients.Value: the business will adopt a value suggestion that offers quality service of internet, value for money, timely services and delivery of solutions.Build strong brand: the business will focus on building a strong brand that stands for reputation, effectiveness, customer intimacy and creativity and innovation.Internet market: the business will implement internet market intelligence creativities aimed at studying competitors and perceiving their weaknesses. The business will strive to have an edge over the competitors. The business will also study the consumers and offer them exactly what they need.
The business will put the customer first; the outlook of this high profits and sales.Porter’s Five Forces of Competitive Position Analysis were developed by Michael E Porter with the objective of measuring and evaluating the competitive strength and position of a business organisation. This theory is based on the concept that there are five force that determine the competitive intensity and attractiveness of the internet café market. Porter’s five forces help the to identify where power lies in business situation. This is suitable both in understanding the strength of an organisation’s current competitive position and the strength of a position that an organisation may look to move.
Copy Catz also use this strategy of Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weakness and to avoid mistakes.The following outlines some clear trends of how these forces work in a cyber café each of the five forces shaping the structure of any industry.Porter’s Five Forces ModelSupplier power: Suppliers of the internet Café industry includes ISP’s, Governments, Creditors, and Public Utility Providers and so on.
All of the above mentioned suppliers enjoyed tremendous power in this industry. Here we have discussed some of them in brief;ISP’s: Cyber café depends on the ISP’s for their bandwidth. AS Rocket net is not yet connected with the submarine cable connection, thereby the ISP’s fix charges for bandwidth as their will, sometimes with no concerns to the cyber cafés. Moreover, ISP’s don’t provide promised bandwidth all the time and the internet connection get slow. This is one of the reasons of declining the prospects of the industry.Government: Government is the sole provider of safety and security to the business which they have spectacularly failed to do.
Government can also sabotage the business if the business makes a lot of profit in there.Buyer power: Buyers are the least powerful similar to other industries of this country. Both the government and the owners of the cyber cafés are not aware of the buyer’s need. The environment and the service quality are so poor that the parents do not want to send their kids to the cyber café.
Furthermore, the staffs are so poorly trained and bad-mannered that people do not feel comfortable to spend time out there.Threats of Substitute: over the past years, people are using the internet connection at home and small number of people start using internet café. This reduction is due to many reasons. Mainly the reduced cost of broadband connection and lowering cost of computer and other communication tools are poising serious threats to the cyber café business.
Last generation mobile phone, lap top and computers are increasing in number and serving peoples communication needs in a better and convenient way.Threats of New Entrants: potential new entrants in this industry are limited in number. The reason why is the less profit and overcast future of this industry. There are lots of telecentre’s in cape town which can turn into a cyber café with less or little effort.Rivalry among Established Firms: Rivalry amongst established firms in this industry is intense. As I have said before the profit margin is reducing and many firms have left the industry.
Those who remain in the industry are fighting for the remaining market share which is shrinking day by day. The competition is creating cost pressure among the contestants.How they affect the firm in its particular situation?A five forces analysis help the business to understand the factors affecting profitability of the company, also assess the industry attractiveness, how trends will be affect by industry competition, and whether to increase capacity of the company by:Actions to take Actions to avoidUse this model where there are at least three competitors in the market Avoid using the model for an individual firm; it is designed for use on an industry basisConsider the industry lifestyle stage Must consider the impact that government has or may have on the company EFE Matrix (External Factor Evaluation Matrix)The table below represent the key external factors of Copy Catz Design ; Print internet café with Its Opportunities and Threats.Key Externa Factors Weight Rating Weighted ScoreOpportunities Growing population of daily Internet users 0.7 2 0.
14Growing demand in the market 0.8 3 0.24Population between 16-24 0.8 4 0.32Threats Dropping cost of Internet access 0.5 3 0.15Economic down turn 0.
6 2 0.12The arrival of a new internet café 0.7 4 0.28Reducing price of the accessibility of internet itself 0.8 4 0.323.
2 Internal environmental analysis (2 techniques)IFE matrix known as one of the best strategic tool to perform internal audit of any firm. I used this strategy to evaluate Copy Catz Design ; Print internet café internal environment and reveal its strengths as well as weaknesses. This is displayed in the table below.Key Internal factors Weight Rating Weighted scoreStrengths Offers Coffee 0.07 3 0.21Well-Informed 0.08 4 0.32State of the art equipment 0.
07 3 0.21High speed of internet 0.10 5 0.50Clear vision of the market need 0.06 3 0.18Strong Customer service support 0.10 5 0.50Weakness Scale of the internet is small 0.
07 1 0.07Opening hour is limited 0.08 2 0.16Dependence on quickly changing technology 0.10 1 0.
10Target audience is limited 0.05 2 0.10What makes the Copy Catz internet café distinctive?Copy Catz delivers a distinctive forum for communication and entertainment through the medium of the internet. Copy Catz offer what the public needs:Strong brand image:Deliver methods of communication and volumes of information available on the internet.
Implement the cost that the client can afford and in such way that they are not socially, economically or politically isolated.Copy Catz provide the community with social, educational, entertaining, atmosphere for worldwide communication.Provides full access to email, WWW, and other internet applications.
Provides clients with a unique and innovative environment for enjoying great coffee and bakery items.How long resources would remain valuable?Not all the organisation remain valuable, even seemingly successful organisations may flourish for a while, in favourable environment, and then find that they cannot stand up to a strong competitor. Those firms that possess truly strategic resources are likely to be more profitable than their competitors, remain profitable as competition intensifies, whereas fresher or weaker competitors may struggle and be more hardy in the face of changes environment.In case of the copy catz resources would remain valuable for a long period, probably a period of five years above.3.3 Forecasting (1 technique)Copy Catz Sales were projected by calculating the total number of hours each terminal will be activated every day and then producing a conservative estimate as to how many hours will be purchased by consumers.Cost of sales: The cost of bakery items is 25% of the selling Price, cost of internet is about R10.
000 per month, cost of email 30% of the selling price.Employed below is a Time serious forecasting technique, used to forecast future possible outcomes and events..
4.Strategy Formulation4.1 Corporate Level strategyThere is various strategy that can be applied to achieve potential growth of the company, but I will emphases diversification and intensive strategy as one of the tools to achieve company tools.Concentric DiversificationOne of the main decisions that the company make is whether to offer additional core services, which have become more important because people advantage internet access at home and so don’t need to go to the internet café to access the internet. The main advantage of this strategy to the company is that it helps business owners achieve the synergy because they can use the experience from selling one product or service.
Below are the commonly offered by internet cafes:Selling Books: instead of going to the book story, in which can be far from the place you live, people can choose to go to the internet café which is surround the are to buy a book that they need for.Selling computer: This goes hand in hand with computer repair businesses, can be taken further by selling web design and search engine optimisation services. these industries are all related, finding a mix that work well together allows the company to stay afloat when one arm isn’t doing well.Offer Courses: will attract clients to the company.Computer repairs: company can advertise these services outside the business and help ensure revenue should users of the internet access services dry up.Conglomerate DiversificationThis strategy helps the company to build a new strong brand in different areas that is totally unrelated to the organization current situation. This can be huge leap of faith as company’s current management has limited knowledge of the new unrelated market but this strategy can lead to high return on investment in new industry, can open u additional opportunities which can help to further develop internet café business, access to new technologies and creates opportunities for strategic partnership.
The internet café can achieve this form of diversification strategy through acquisition with firms in the desired industry (Diversification for SME’s, 2009).Intensive strategyThis strategy helps the company to grow by expanding its product line or its market reach. The grid is used to detect new intensive growth and is mainly considers product and market. The product can be current or new product, and the market can be current market or new market. Existing Product NewMarket Penetration Product DevelopmentMarket Development DiversificationExistingMarketNewMarket penetration: Copy Catz owner must expand their current product in current market by reduce the price of the internet usage, printing, laminating, etc. To penetrate the market better. This ensures that the company expands its market share and shows intensive growth.
Market Development: main goal of this strategy is to enter an existing product into a new market. When the copy catz company start their business, their target was people in Plumstead. Now they want to develop their market in whole suburb area. The planning to build business through new geographic markets in order to extend their new market.
(Miller, B).Product Development: the company must introduce new products into existing market in order to meet customers need more closely and outperform competitors, through the introduction of a new product.I selected these two strategies because internet café is a small business which offer similar product and services, by applying these strategies will help the owner to differentiate themselves from others internet cafe and determining what strategies to employ to bridge the gap between where they want to be and where they are. It also helps the owner to analyse the potential for each of the growth strategies. If the owner operates in an expanding market ca grow through market penetration, they may also choose to grow either through market development or product development depending on its internal strengths.4.
2 Generic strategy DifferentiationCopy Catz Design ; print internet café will follow a differentiation strategy in order to achieve a competitive advantage in internet café market. In addition, Copy Catz Design ; print shop delivers clientele with a fun and funky environment enjoying a hot chocolate or a creamy cappuccino while waiting, distinguishing itself from the other internet café around the area. They also handle everything from the design ; production of a simple business card through to company catalogues, event invitations, menus, posters, customised labels and a whole lot more.Due to the strong competition in the area, the owner of Copy Catz must look for ways to differentiate themselves from the other businesses, like differentiate their place of the business in order to achieve and maintain a competitive advantage.The owner of this business recognized the need for differentiation strategy and strongly believe that combining a coffee with complete internet service is the key to have success. The fact that Copy Catz is situated in visible place and offer a good environment gives a chance to enter the new window of opportunity and enter into a profitable niche in the market.This strategy is suitable for this business because most of the internet café provide the similar or same service, and applying this strategy will help them to attract customers even from different area. However, Copy Catz shop will develop unique products to respond to customers’ preferences, as opposed to one homogenous good, like offering: We handle everything from the design & production of a simple business card through to company catalogues, event invitations, menus, posters, customised labels and a whole lot more with relax and good environment.
All this product differentiation mentioned above will give customers from different segments of the market a wide variety of good to choose from.Implementation In order to guide the organization through the steps involved in implementation strategy of an internet café, the company should: Established hours of operation and rules for users: this allow the company to run efficiently. Users will be less likely to get upset with other users or the coordinator, if everyone works according to the rules established in the company. It will be very important if that youth have the primary voice in creating these rules.
It similarly for the parent company to stand behind reasonable rules set by youth.Identifying additional services to be provided: the company should allow each and every person to create an email account for themselves, search the world wide web, they should also offer a workshop on how to use an internet, send and receive email as well.Launching the café: Provide the perfect opportunity for its promotion. Considering about holding a reception just prior to the opening of the café. Invite staff from other company in the community, invite parents and educators. Most of them youth.
This will bring opportunity for the staff to answer all the questions about the internet, and the world wide web. Helping visitors and promoting: Not everyone is a computer knowledgeable, so in the first days of the internet café operations the coordinator may need to familiarize with all visitors with computer, email, and web and provide them with a short workshop that will increase their level of computer literacy.Motoring and evaluate: it is very important to monitor and evaluate the company enterprise. Monitoring allows the organization to ensure that the venture is moving forward as projected, keep track of how the internet café is being used and check on young people’s needs. Then the program can be improved where is needed.
Evaluation is likewise important to assess whether or not the internet café is gathering its goal and objective. This result can be used not only to improve internet café but also to increase funds and to improve program strategies and policies.Promote the internet café: The company must know their target audience to identify the right methods of promoting. Below is the list of some audience:YouthPeople living around the areaStudentsOutline the possible barrier to effective implementationBarrier to effective implementation can be listed as:Organizational structure: this is very important tool in the organization of this size, so this seems that changes must need to improve in the company current structure. The structure of the organisation may help in the process of implementation, the owner must need to ensure that the structure set would support the requirements of the organisation to improve efficiency and effectiveness of the overall business. Alternatively, strategies should be formulated based on the existing structure so that it can be implement without any complication. Organizational culture: this can be a barrier of implementation initiatives in many ways. Reluctance to change or fear of change is a reason why some initiatives cannot be implemented as smoothly as possible.
Resource Allocation: this represents different types of resources within the organization were allocated for the purpose of making things happens. The resources in this company represents things such as money, computer, printer, other equipment, and systems that have been allocated for each implementation initiatives. Too much or not enough resources could affect the success of any implementation initiatives.Communication: this plays a very important role in implementation initiatives because without communication nothing can be implemented successfully. Some of the problems that a company might have is a missing communication, because people tended to assume something rather than gathering the right information and some of the staff members refuse to share information. Internet café is a very small company with few staff member, so everyone must work together and be able to communicate the barriers when the strategies become overly complex.
How to overcome these barriers?Once the barrier and the reason for their existence have been identified, the company implement strategy on how to overcome these barriers. The first theme that was identified was the ability for coordinator to investigate or understand the idea or strategies presented: barrier to implementation could be overcome if people understand that not all ideas or strategies are good idea. Although the idea may seem good in the first instance, once it is thought through, the idea may not be suitable for the company. Another way of overcoming the barrier is to have people for the right attitude: when the company has people with the right attitude they take on the project with a positive outlook. They take time to think things through and weigh out the consequences of their actions, rather than launching into the project just because it had been given to them to implement. Equally, when they come through to barriers when implementing projects, they will find way to overcome this because they have a right attitude to deal with the issues.
Good quality leadership: is a key important to overcome barrier in implementation process, is also important in formulation needed in organization to be successful. Open suggestions from others can be useful to overcome barrier when arise. This because they believe that the manager who manage the company can be to entrench with the project, hence the suggestions from others can help to come up with fresh ideas to overcome barriers identifies.In summarise, the attitude of someone with strong leadership abilities is one of the ways barriers can overcome within Copy Catz Design and print internet café. It is thought that if the leader has the foresight to plan appropriately, understand the business, open to suggestions, has a positive attitude and the drive to achieve a goal, the company can be more successful in its implementation initiatives.6.
Strategic evaluation end controlFrom the panel the owner has complete and total control over all client computers, in a single location or even as part of networking of such cafes.To run a network just set up a single PC as a server, using a static IP address. Antamedia can then work across the internet, securely controlling every computer as easily as if it were in the same building.The company can implement computer management software to monitor the users’ time and the speed each user receives; it can apply some security settings to protect the computer while it is used to navigate.Software like handy-cafe helps to have full control of the users, time they have paid and create a system to end the automatic session when the time is upThe owner can do almost all the operations from a single panel, including setting up or adjusting:Full security optionsLock or unlock any computerInternet explorer settingsReboot or shut downEtc. etc.The control process will be conducted by using Total Quality Management techniques. This technique is used in order to enhance competitive performance by improving the quality of product at the company (Grant et al.
, 1994). An increase in quality leads to higher productivity through less rework, rejects and waste. This leads to a lowering of costs and customer complaints (Deming, 1982), so that market share grows together with increased goodwill, and repeat and new business. Quality is achieved through continuous improvement of all activities of the organization.
This seen as a long term rather than a short-term strategy. TQM’s techniques is not a quick fix as it requires radical changes in an organization culture, implementing TQM is long-term strategy. (Patten, 1991).ConclusionInternet has changed the way of living in many ways.
The world has become closure and information is easily accessible through internet. Peoples of this age are information overload. Internet café is one of the important channels to meet the growing customers need for information and communication. From the above mentioned analysis of the external environment of the internet café industry, I have identified some reasons for too early downturn of this industry. I also identified few opportunities and threats relevant to the industry.
Internet café is able to sustain in the long run and thereby there need to have diversification of the business which will reduce the risk of the business. Internet café is neither considered an IT industry nor an SME (Small and Medium Enterprise). Alongside, government must maintain law and order and ensure safety. Finally, cyber cafes need to provide less privacy to improve its image in the society. ReferencesDavid P. Baron, Business and Its Environment, Third Edition, 2000.Janet Morrison, the International Business Environment: Diversity and the Global Economy, 2002.
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