Strategic Planning

Of

Brew and Chew Bistro

Strategic Management

Submitted By

Apoorva Gurung
Ayush Tamrakar
Bishal Dhakhwa
Miraj Sinya
Nayana Karki
Nikita Bajracharya
Remant Kumar Jha

Submitted to

Sujan Subedi
Faculty, LACM

BBIS 4th Year

Little Angels’ College of Management

2019

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SECTION I: PREAMBLE

1.1 Institutional Introduction

A coffeehouse, coffee shop, or café is an establishment that primarily serves coffee, related
coffee drinks. Some coffeehouses may serve cold drinks such as iced coffee and iced tea. A
coffeehouse may also serve some type of food, such as light snacks, sandwiches, muffins or
other pastries. Coffee houses range from owner-operated small businesses to large
multinational corporations
Sam’s Brew established in 2016 under the ownership of Sampurna Man Shrestha was
popular for its small place with a lovely ambience serving great coffee with a reasonable
price for its consumers. The café is located few meters inside the main road of Jhamshikhel
for its peaceful and heart-warming ambience. As it is located inside from the main road of
Jhamsikhel, the coffee shop had less flow of customers. In May 2018, Sam’s Brew changed
to Brew and Chew Bistro under the partnership of Mr. Sabin Nakarmi, Mr. Roman Shakya
and Mr. Sujan Niraula after upgrading their café’s ambience and expanding it to the first floor
of the building. The café is opened from 8:00 am in the morning till 8:00 pm in the night.
Around 5 employees are employed in this cafe for providing service where Mr. Sujan Niraula
oversees the daily operation of the café. The café serves good coffee as well as food items to
their customers. Due to emerging trend of drinking coffee in Nepal, the cafe has been running
successfully. It has been mainly targeted to the coffee lovers.
This cafe has been one of the major attracted places among all age groups due to its
ambience where customers can celebrate, have informal meetings and have casual meet up
with friends. The café provides different kind of coffee/tea and other alternatives. The most
ordered drinks among consumers are Cappuccino and Mint Lemonade. The café’s mission is
set to provide customer satisfaction whereas their vision is to expand their business to
Eastern Nepal.

1.2 Vision and Goal

The vison and goal of the company is to expand all over in Nepal with being a reupdated
coffee house. Customer satisfaction and maintaining the ambience, quality and standard are
also their vision and goal.

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1.3 Brand Promise
The brand promise of the coffee house is to maintain the quality and set the standards of the
coffee house.

1.4 Approach
The approach of the coffee house is to promote their brands with trustworthy staffs. Their
main focus is on youths who are addicted to coffee.

1.5 Values
Their shared values guide their actions and describe how they behave in the business:

 Be real and true.

 Everyone is responsible for their work.
 Committed in working extra time.
 Working well with different culturally diverse people.
 What we make, we make well.

1.6 Strategic Intent

Similar to other coffee shops, Brew and Chew Bistro aims to maximize their profits while
maintaining a proper environment and good hospitality to the customers. Brew and Chew
Bistro, strategic intent is to attract coffee lovers of all age group.

1.7 Priorities
 To deliver their vision.
 Community trust
 Building trust with customers.
They believe that their business can only be as healthy and strong as the communities in
which we operate. In the long run, healthy, sustainable businesses require thriving
communities.

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SECTION II: STRATEGIC ANALYSIS

2.1. External Analysis

External analysis means examining the industry environment of the company, including
factors such as competitive structure, competitive position, dynamics, and history. On a
macro scale, external analysis includes macroeconomic, global, political, social,
demographic, and technological analysis. The primary purpose of external analysis is to
determine the opportunities and threats in an industry or any segment that will drive
profitability, growth, and volatility.

2.1.1. Customer Analysis

The main focus of Brew and Chew Bistro is their customers. Understanding their customers,
they have set affordable price range. They also have set coffee alternatives for non-coffee
drinkers. Customers have find the ambience attractive from their quotes hanged upon the
wall.

2.1.2. Market Analysis

6. General assessment of the market size in which the institution is operating at present, and
how it may increase/decrease in future:

The café was firstly established as Sam’s Brew and after the change of authority it has been
named as Brew and Chew Bistro. In the pace the café is operating it has higher chance of
increasing in the future. As well as it has plans of expanding in future.

7. New developments seen in this market since last five years, and the extent to which the
institution has been affected by these developments.

8. Key success factors promoting the institution to lead in the selected market segments:
 Taste
 Affordable Price
 Branded Coffee Beans

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9. Fill up the following figure with to-the-point statements:

Threats of new institutions coming in the same Threats of substitute offers

market There are currently places that provide
The coffee market is growing in nature therefore coffee alternatives. Therefore, there is
the café has the possibility of new entrants in the threat of substitute offers.
market.

Competitiveness among the industry

There are competitors who are currently selling
coffee. There are coffee houses who are selling
coffees from more than two decades. So, there is
competition among the competitors.

Bargaining power of the customers Bargaining power of the suppliers

The café is based upon the customer loyalty. There is no current bargaining power of
Therefore, customers can ask for discounts suppliers according to the café owners.
and offers in the further.

2.1.3. Competitor Analysis

10. The THREE of the closest competitors in ranking order:

 Le Trio
 House of Coffee
 Annie’s Bakery Café

11. How are the competitors distinct from this institution? What are their distinctive features
better than this institution?

Le Trio is one of the reupdated multi-cuisine brand. It is one of the closet competitors since
they share a common location and people prefer Le Trio over Brew and Chew. House of
Coffee is famously known for their coffees at an affordable range. It doesn’t take any service
charges or VAT from their customers. Annie’s Bakery Café is also known for coffee but is
mainly famous for their waffles which is attracting customers more these days.

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12. How is this institution distinct from the competitors in terms of its selected business
offering and institutional features?

Along with coffee, the café serves continental dishes for the ease and preference of
consumers. The food serve here in this café is loved by their customers. They do provide
coffee alternatives in their cozy ambience with their good hospitability and clean
environment. They serve their coffee in good quality of beans.

13. The THREE competitors that this institution needs to really consider:

 Café Soma
 Karma Coffee
 Café Coffee Day

14. A competitor that the institution has no capacity to compete with:

Himalayan Java is the competitor that the café has lesser capacity to compete with.

2.1.4. Environment Analysis

14. How do you project the impact of overall macro environment on overall industry that this
institution specializes in? Outline the key aspects.

Impact of Political Legal Environment Impact of Socio-cultural Environment

 The provision of Service Charges and VAT  The current trend of growing coffee
has been affecting the café. lovers in the market has increased
expectation of them.
Impact of Technological Environment Impact of Economic Environment

 There is not use of POS Machine in this  No impact of economic environment in

cashless era. the café.

Impact of Global Environment Impact of Other External Factors

 No any impact of global environment since  No any other impact of external factors.
the café is only located at one place.

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15. What should be done to overcome the above stated problems?

Responding to Political Legal Environment Responding to Socio-cultural Environment

 The government practice to abolish  Making coffee as per the demand and
Service Charge and VAT. preference of coffee lovers.

Responding to Technological Environment Responding to Economic Environment

 Implementation of POS Machine or  No impact of economic environment

Digital Wallets for cashless payments. in the café.

Responding to Global Environment Responding to Other External Factors

 The café needs to expand nationally  No any other impact of external

before expanding globally factors.
.

16. Fill up the following figure (OTCP Analysis)

Market Opportunities Prevailing Threats

 Increase of coffee consumers  Lesser advertisement can prohibit café

 Affordable coffee prices suitable for to expand.
everyone.  The café doesn’t support cashless or
digital payments which can effect
them.
Strategic Constraints Institutional Problems

 The café is not able to perform  High employee turnover.

strategically.  Lack of new customers.
 Is not able to reach out towards their
customers.

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2.2. Internal Analysis

An internal analysis examines your organization’s internal environment in order to assess its
resources, competencies, and competitive advantages. Performing an internal analysis allows
organizations to identify their strengths and weaknesses. This knowledge aids the strategic
decision making of management while they carry out the strategy formulation and execution
process.

2.2.1. Performance Analysis

Performance analysis is a measure of the success or failure of a project using various

parameters. It helps in developing a positive culture of project management that yields
excellent results. A good program performance typically needs: proper management of
stakeholders. The café’s profit has been increased by 50% of last year’s result.

2.2.2. Analysis of Strategic Options

17. List of all direct and indirect operations/services that this institution offers.
 Food and Beverages
 Wide Parking Area
 Free Wi-fi Services

18. The competitive and sustainable positional placement of the business offering/services of
the institution, and tentative strategic options the institution should opt.
Rising Stars Question Marks
Service/s Service/s

Strategic Options Strategic Options

 

Cash Cows Hungry Dogs

Service/s Service/s

Strategic Options Strategic Options

 

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2.3. SWOT Analysis

19. What do the promoters, financers, administrators, customers, staff, supervisors, trainers,
competitors, and other community members of the institution speak about its organization’s
core competencies and weaknesses. To be condensed through longitudinal panel discussions:
Strengths Weaknesses

 Location  Kitchen staffs

 Machinery  Inventory management
 Parking space  POS machine
 Wi-Fi service  Less advertisement
 Customer loyalty  Financial limitation

Opportunities Threats

 Tourist Attraction  Direct Competitors

 Applicable to all age groups  Indirect Competitors
 Increase in coffee lovers  Government Regulation
 Lesser bargaining of supply  Increasing price of coffee beans
 Business expansion  Employee retainment

20. The selective inputs on how could this institution could be able to cash on its strengths,
and materialize the opportunities so as to minimize the risk of weaknesses and threats.
S vs. W Strategy O vs. T Strategy SO vs. W Strategy SO vs. T Strategy

21. Identification of at least THREE things that are highly important for this institution but
beyond the institutional capacity so as to strategically manage this institution.

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SECTION III: ANALYSIS OF STRATEGIC ALTERNATIVES

3.1. Strategic Options

22. The THREE aspects each against the given strategic alternatives so as to achieve
institutional success.
Strategic THREE Strategic Problems THREE Potential Solutions
Alternatives

Survival

Sustain

Differentiation

Growth

Diversification

Business
offering
Customization

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Standardization

3.2. Prioritizing the Options

23. Among the above-stated problems and strategies, which ones should be focused the first
and why? Select the top five strategies randomly from any components of item 33 and
provide reason for doing so.
Top Five Strategic Choices Priority Reasons
1. Growth  To increase its sales, keeping the business
affordable and to strengthen the foundation for
future success.
 To provide finest espresso consistently to the
large market.
 To improve profit and create value of the
company.
2. Business offering customization  To serve all type of customers.
 To reduce cost.
 To evaluate the outcomes.
3. Differentiation  To build the company’s own brand.
 To make the company’s coffee quality superior.
 To offer and serve different customers with
different product and services.

4. Diversification  To cover large market share in different location.

 To attract new customers offering them
something extra than the existing one.
 To earn more revenue and profit by selling other
beverages and foods.

5. Sustainability  To grow and survive in the competitive world.

3.3. General Strategic Planning

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24. Outline the short-term and long-term plans to address the selected strategies.
Top Five Strategic Choices Short-Term Plans Long-Term Plans

1. Growth  Listen to the customers  Open different branch

feedback. in different place and
 Simply day to day target new customers
activities and automate by introducing new
workflow to improve products.
productivity.
2. Business offering
customization

3. Differentiation  Add new features to  Focus on new

existing product and technology for better
modern the way of quality and low cost
accepting payments. and establish the
brand.
4. Diversification  Brainstorm with the team
for new ideas to add and
improve the products and
services.

5. Sustainability  Focus on reduction cost  Focus on providing

and making more sales quality service to the
through advertisement customers.
and marketing.

SECTION IV: BUSINESS/SERVICE PLANNING, DEVELOPMENT AND

IMPLEMENTATION

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4. Product/Service Planning and Development
25. On the basis of above deducted strategic analysis and alternatives, develop a detailed plan
covering each functional aspect of the institutional system so as to facilitate in the self-
execution of pre-determined set of strategic alternatives. To do so, complete the following
checklist of 7Ps.
Indicators Intended Action Programs
Improvement in quality helps company increase in sales. So
the company should test the quality of products and enhance
the quality which ultimately increase the company’s
P1: Product productivity.
As price determine company's profit and survival, the price of
the product should be reasonable and also should focus on
P2: Price price differentiation.

P3: Place Company should establish the factory away from residence
area to minimize health hazards. Also, the company should
assess what channel is the most suited to their product.

P4: Promotion Company should promote the product by considering the

government policies and maintaining the standard of the
product and position in the consumer’s mind as a less harmful
product than that of other competitors. It helps to boost up
brand recognition and sales.
P5: People Company should select, recruit, hire and retain the proper
people, with the skills and abilities to do the job. And they
should take feedback of the people time and again as well as
focus on the workplace safety of the employee.
Company should be ensured that they repeatedly deliver the
P6: Process same standard of service to their customers effectively and
efficiently. Resources should be allocated as per requirement
and implement the standardized methods.
Actions should be taken regarding waste management and
P7: Physical Environment environmental pollution

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