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Fundamentals of entrepreneurship are a study about the foundation of how to manage, develop and organize a business. In entrepreneurship, it also includes of bear the risk in business and the allocation of resources like labor, capital and land to helps the business grow. Entrepreneurship is very important because it also includes decision making, innovative thinking and the ability of entrepreneurs to manage their business.
In this assignment, task 1 will be discussing the review business performance of Jerry's Café since his business start. After that, the strength and the weakness of Jerry's Café facing will be listed and analyze. After analyze, the plan of action that will help to improve Jerry's Café will be discuss. Lastly, the ways to strengthen and maintain his business will be defined in a week of time by investigate those café in Penang.
Analyzing Business Performance of Jerry's Café
2.1What is Business Performance?
Business performance is on how a business grows and maintain from the day the business started. Firstly, the performance of Jerry's Café since it open will be analyzed in order to find the ways that can help Jerry improve his business.
2.1.1 Business Performance of Jerry's Café
After Jerry graduate, he had opened a new shop and names it as Jerry's Cafe. It is located opposite to the secondary school, SMK Jalan Pasir Puteh which located Ipoh. Jerry's Cafe mainly serves western food like steak, fish and chips, spaghetti, pizza and snacks. While in beverages Jerry's Café serve pure juice, types of colorful cocktail and hot drinks like cappuccino. Jerry's open his café on 10.00 a.m until 9 p.m. Due to the secondary school are located opposite to Jerry's Café, so numbers of student will often go to his café to take their lunch and dinner. So, the general customers of Jerry's Café are student and family. At first, Jerry only employs 2 people to serve the customers and 2 chefs to prepare food for the customer. But after a certain period, Jerry found that the customers are slowly increased and they started feel difficult to handle all the customers at the same time. So, Jerry's had employ 2 more staff to serve customer to overcome this situation.
In generally, Jerry's Café only own 20% of the market share compares to others café. But slowly, there are few competitors appear who name as Friendster Café, Momo Café, and I-Cafe that located nearby Jerry's Café. All of this café are serving western food and drinks which same with Jerry's Café and this give opportunity to the customer to choose café that they like. So, indirectly it had affected Jerry's Café business with decreasing of revenue and numbers of customer. Sometimes, the revenue that receives in that day is insufficient to cover the cost of employees which cause Jerry feel depress and worry about his business.
In my conclusion, Jerry can be said as is an entrepreneur that don't have any experience because he just graduate from his study. So, he have no ideas that how to improve his café and must fully understand the business performance of the café if want to give advice to Jerry.
2.2 Strength and Weakness
Every business has its own strength to keep compete with its competitors and as competitive advantages. Besides strength, a business will also have its weakness where competitors might be strong than them. In this task, the strength and the weakness of Jerry's Café will be determine one by one.
2.2.1 The Strength of Jerry's Cafe
After review the performance of Jerry's Café, the strength and the weakness of his café are determine. The first strength of Jerry's Cafe is available of parking for customer to park. Nowadays, restaurant and or cafés are available everywhere but not all of them have enough parking to allow their customer park and go to the restaurant. So they end up choose to go those restaurant which parking are available.
The second strength is Jerry's Café serve pork free in all this food. Jerry's decide to serve pork free foods to all his customers because his café are located opposite of a secondary school. So he feel that if his café serve pork free foods, other races like Malay can also consume their food and can attract more customer. Besides, serving pork free foods enable Jerry's allow to employ Malay employees help to serves the Malay customers. This also allow Malays customers having their food without worries and more comfortable.
The third strength is Jerry's Café is the location of his café. Firstly, compare to others café Jerry's Café are located most near to SMK Pasir Puteh, so many student and parents will went there and have their meal which only few step to reach the café from the school. Location is very important to consider when you decide to start up a business, it will determine whether customer will prefer to go or not and whether your café are easy found by the customer.
2.2.2 Weakness of Jerry's Café
The first weakness that Jerry's Café have is the price of food and drinks. Compare to Jerry's Café competitors, the price of his food and beverage are a bit higher. It is because Jerry persists to use the finest ingredients to prepare all his food and beverage in order to let customers fully enjoy their meals. So, some others consumers will think that why the price would will be higher comparing to others café whereas serving the same food.
The second weakness that Jerry's Café have is less of small advertisement like flyers, and brochure. Since the opening of Jerry's Café, Jerry had never advertised his café in order to let more people know about them. So, lack of people to know that there's a new café open in this area and even they saw the café also don't know what cuisine that the café serving.
In my conclusion, every organization has its own strength to compete with competition and weakness that have to overcome. By determining this, it is much easier to find the ways to overcome those weaknesses and improve Jerry's Café.
2.3 Plan of action
Plan of action is which steps are planned in order to performed well in completing any task. So in this task, few of the plans of action will be use to advice Jerry in improving his café.
2.3.1 Plan of Action to Improve Jerry's Cafe
The first plan of action that can advise to Jerry is he can make a menu with value set of lunch or dinner. In this value set lunch or dinner, it must be cheaper compare to a la carte to attract more customers. After finishing prepare menu with value sets, Jerry's should put the menu in the board and put outside of the café as a tools for small advertisement. So that anyone who passes by his café can easily know what foods and value sets that Jerry's Café provide. This is one of the marketing strategies that use by the famous Bistro Café in Ipoh, Euro House.
The second plan of action that can advise to Jerry is can design some brochure to distribute to the people who pass by. Firstly, many consumers are afraid to get in to a new café to get their meals because they worry the meal that café serve are not delicious. So, Jerry can introduce about the food they serve and services that provide to let them know that what foods that Jerry's Café serve.
The third plan of action is ask the feedback from the customer. After customers take their meals, Jerry can asks the feedback from the customer to know what to improve and how was the food that Jerry's Café serve. So that Jerry can know what is their weakness and try to improve. Besides, this action will let customers understand that they are very concern about the customer needs and try to improve to reach the feedback that they gave.
Nowadays, wireless fidelity is very common and almost all the café provide these facilities to attract more customers. This facility is mostly needed and welcoming by those teenagers because they can enjoy their meal thus serve internet without any charges. Besides, it is also very common for teenagers to check in when they are in certain places. So when they have their meals in his café, wireless fidelity enable them to check in Jerry's Café and it can indirectly help Jerry to advertise his café in those social website or application like Foursquare and Facebook.
The next plan action is Jerry's can open a Facebook page in the social website. It can be use to introduce the special dishes or drinks that Jerry's Café serve to attract more customer and let more people know about his café. In the page of the social website, Jerry can put in all the details like contact number, location, and time of operate.
The following plan of action that can advise to Jerry is train his staff on how to serve customer politely and friendly. Nowadays service are very important in food & beverage industry, because a good services from the staff will helps to attract more customer and customer will come over and over again.
All the plans of action below can be uses to capitalize its strength and overcome those weaknesses of Jerry's Café face. Besides, by implementing those actions, it helps a lot in growing and maintains Jerry's business.
2.4 Ways to Maintain and Strengthen Existing Business
Jerry had ask for help to investigate the ways of maintained and strengthen existing business effectively. For this purpose, he had bought ticket to investigate on how those café operate in Penang.
2.4.1 Define Ways to Maintain and Strengthen
After one week time of investigate the café business in Penang, the ways of Jerry can use to maintain and strengthen his business had been defined. The first ways is location expansion. AÂ businessÂ strategyÂ in which growth is obtained by increasing the number of stores in whichÂ customersÂ canÂ buyÂ aÂ company'sÂ productsÂ andÂ services. After the business of Jerry's Café become more stable, he can consider about to expand his shop in the other area. Expanding his business in other area can help to increase visibility of Jerry's Café. Besides, the use of amount of ingredients will be increase, so that Jerry can gets that ingredient in bulk to get a cheaper price. Next, location expansion also enable Jerry's Café have broader of customer. Furthermore, Jerry can delegate his employees to help to manage his branches, so things will be complete faster because one person can't do for so many things.
Next, when making investigation on those café businesses in Penang, they have provided delivery service to their customer. Although the size of the café are not large enough, but the customer of the café are unstoppable and always full. So, to those who are busy and couldn't take their meal can be call for the delivery from the café. Which is means that they can still enjoy the food that your café provides even they are busying with their works. According to entrepreneur website, Jerry should prepare a complete business plan for a new location. Determine where and how you'll obtain financing. Choose location based on what's best for your business, not your wallet.
Lastly, Jerry's can target others market who can helps them earn more money. In now Jerry's are targeting those student and family. But now onwards, Jerry's had to investigate which markets are more willing to spend in having their meals. But then Jerry's Café must also prepaid food that reach specific standard only can attract more customers.
In my conclusion, if a business wish to keep sustain in an industry, they must keep develop and investigate on how others café operate and dare to change. By implementing all this ways, Jerry's Café for sure will become café that most popular in this area.
In my conclusion, Jerry can be said as is an entrepreneur that don't have any experience because he just graduate from his study. So, he have no ideas that how to improve his café and we must fully understand the performance of his café before providing any advises. Every organization has its own strength to compete with competition and weakness that have to overcome. By determining this, it is much easier to find the ways to overcome those weaknesses and improve Jerry's Café. All the plans of action below can be uses to capitalize its strength and overcome those weaknesses of Jerry's Café face. Besides, by implementing plans of actions, it helps a lot in growing and maintains Jerry's business. Lastly, if a business wish to keep sustain in an industry, they must keep develop and investigate on how others café operate and dare to change. By implementing all this ways, Jerry's Café for sure will become café that most popular in this area.