The purpose of this report is looking for improvement measures for remodeling the Sunshine cafe. In this report, we make a study of our cafe's potential customers, strengths and weaknesses, benefits, profits, as well as the risks. We also make careful plans for the transformation of our operation modes.
Sunshine is a privately owned cafe on the street in front of our school. Many students will come here with their friends or lovers to drink coffee and chat with each other in their leisure time. When approaching the final exams, Sunshine is filled with a lot of students with different majors. They will stay here for the whole night for they are not allowed to stay at the self-taught room overnight in their school. The popularity of Sunshine has risen steadily until recently.
However, the development of market such as the appearance of competitive cafes and the complexity of customer demands result in some changes. Sunshine does not meet the satisfaction of the customers here. Customers especially students, want to get comfortable atmosphere, reasonable prices and good quality services.
Therefore, customers often express their dissatisfactions, revealing their complaints on dim lighting, smoky air, insufficient seats, relatively poor services and unacceptable prices.
Recently, we have launched a survey of customers by means of sample interviews and questionnaires to cope with the existing problems. We investigates the structure of our customer groups and find that there are a large variety of customers, existing and potential , from busy workers stopping for a quick brew on their way to the office to teenagers and students looking for a hangout. We also enquire them what is the degree of their satisfaction or dissatisfaction with our cafe’s price, atmosphere, menu, coffee, service and so on.
Besides, customers suggest that the licenses should be posted on the wall , prices should be more reasonable, menu be updated and variable, coffee be fresh-roasted , dishes delivery be quicker, overall vibe and the music be engaging , bathroom be maintained and kept clean ,free wireless connection be available ,electrical outlets be more ,business hours be prolonged ,daily accounting and administrative duties be conducted and so on. All the suggestions above for the transformation of our cafe is collected from sample interviews and questionnaires with the assistance of 38 people: 10 are passerby ,20 are customers dong work on their laptops or reading books and writing in our cafe , 8 are proprietors and service staff here.
It is vital to improve our cafe by reconstitution and staff training, for example, we had better increase the options for our customers and make more delicious food, as well as cut prices of some discount of some dishes and offer some discount to regular customers. We must also train our staff to increase the speed of service, staff friendliness, and stuff attentiveness. This improvement plan needs a sum of 128,120 Yuan to transform our cafe, decorate the rooms, and train the staff and so on.
After improvement, our café’s income and profit will increase 15% every year. That means, our annual net profits will change from 80000 at present to 92000 the first year after remodeling.
The success of this remodeling in fact is based on innovation. It is necessary to create a new environment and promote new products. The article of Use Innovation to Create High-Impact Business Value gives some ideas of innovation.
Three key innovation components
1. Scientists and engineers often need a reality check to be sure their projects are in tune with what the market can and will accept. The successful product may not always be the superior technical solution. The folks in the white laboratory coats need a better understanding of exactly how a new product can be turned into market advantage.Opening up and maintaining communications between these two groups is the key to ensuring that R&D initiatives are based on a solid understanding of corporate needs and goals and market realities, and that leaders on the business side understand the possibilities of emerging technologies and are prepared to support and embrace them.
2. Look in the right direction. The best companies continuously scan their own organizations and industries, looking for obstacles or opportunities.
3. Go to market smart. When the best innovators find a promising idea and prepare to take it to market, they do so carefully, in stages, and always with an eye on both technical feasibility and business reality.