Information

Small Business Enterprise

Good reputation and experience in the industry. Dues to an already established positive reputation, further expansion of business involve fewer risks. Moreover, the managers have experience in the industry, while a lack of experience is one of the top reasons for small business failure (Holmes, S. Haswell, S. 1989).
High quality of products served. The major reason for coffee shop success is the high quality of food served that results in positive reputation and word of mouth spread of information about services and products offered.
While, undoubtedly, there is a vast number of factors that have a positive influence on business functioning, the coffee shop has significant drawbacks that should be particularly considered when planning expansion.
Poor marketing campaign. The business has to concentrate on the development of the marketing mix alongside with research of the target audience needs. The issue is particularly relevant due to the fact that the target audience of the gift shop is mainly tourists. consequently, word of mouth recommendations are not sufficient enough. The variety of products offered at the gift shop should also be considered in relation to the target audience needs, perhaps, the products list offered should be expanded.
Poor labor specialization. Bob and Jane are the only two employees of the business. While their day to day duties involve simple serving work, obviously, the personnel are too qualified for this type of work. By hiring helpers that would serve at the coffee and gift shop, the managers could devote more time to marketing and planning of their business, thus, the efficiency of the business would grow. This issue is particularly relevant when considering business expansion.

Back To Top