The Performance Of Jerrys Business Marketing Essay

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1.0 Introduction

Entrepreneurship is an action for accelerating economic development of country. It is concern on the unemployment rate and creates more new opportunities to the people. According to Nandan (2011, p.1) mentioned that "Entrepreneurship refer to the overall course of action undertaken by an owner in starting and managing his enterprise for profit". The entrepreneurship are concentrate on develop new ideas to produce unique products or services to the people and concern on the capture opportunities. As a entrepreneur need to plan, organize and manage the whole things in the business. Entrepreneur requires various skills or abilities to achieve the final achievement and acquire confidence to overcome the uncertainty risk.

The assignment of task 1 is talking about the performance of Jerry's business. Jerry was a young graduate and was open a coffee shop. The shop name is Jerry's Sweet Coffee. The coffee shop is nearby shopping center or bus stop. The coffee shop only will close on Wednesday and this shop also has sold some desserts and foods such as ice cream, tarts, and muffin and so on. Jerry's coffee shop has a stable financial and effective and efficient in controlling its purchase and production cost.

The assignment of task 2 is identifying the Jerry's business strengths and weaknesses. The strengths of Jerry's Sweet Coffee are consist of produce high quality of coffee to the customers, sold the coffee with lower price and provide online service for the customer to search the products of coffee shop. The weaknesses of Jerry's Sweet Coffee are including not famous and popular and lack of customer loyalty.

The assignment of task 3 is giving some plans to improve company's strengths and overcome the company weaknesses. The plans that used to improve business's strengths contain total quality management to improve quality, advertising to increase profit or sales and using e-commerce. The plans to overcome the weakness are include innovation and going green to receive customer' support and appreciate.

The assignment of task 4 is about how to develop or grow the Jerry's business. It means that how to strengthen and maintain the business existing performance. The ways to expand business are include alliances, market development and product development.

2.1 Analysis business performance

Everyone also can start their own business that they like. While starting a business, need to know what the products need to sell to the customers, or need how much capital to support the business, and need to know who our customers are. Besides that, choice a location is very important because it will affect business performance. The other very important things for starting a business are include register business name, apply for permit or licenses to operate the business or hire employees to help company make profit.

2.1.1 The performance of Jerry's business

Jerry is a young graduate and started a new business. Jerry has operated a coffee business in 2010 year and the shop name is Jerry's Sweet Coffee. This shop is located in Malaysia, Kuala Lumpur. Kuala Lumpur is a busy city and has many people stay at there. Therefore, Jerry choice a location that nearby bus stops or near shopping center. It can reduce people cost by driving car to the coffee shop. People can take bus or taxi arrive the coffee shop and even can walk to the coffee shop after shopping. It is very convenience for people because can avoid wasted time to buy breakfast or lunch.

The coffee shop is open on Monday until Saturday. The coffee shop also has open on Sunday but only open half day. Sunday will have many customers because it is a family day. The shop can utilize the Sunday time to increase the income and cover back operating expense. The coffee shop will start the opening hours at 9.00 a.m until 10.00 p.m from Monday to Saturday. Then, the opening hours on Sunday is start from 8.00 a.m to 3.00 p.m. But, the coffee shop has choice one day doesn't have operated the business, it is Wednesday. So, it means every Wednesday the shop will close then employees have one day free time to accompany family members.

The products that sell to the customers in the coffee shop are including Aqua Coffee, Cappuccino, Hot Chocolate, Americano, Green Tea, Herbal Tea and so on. Besides that, Jerry's Sweet Coffee also has sold some foods such as sandwich, donuts, various tarts, and muffins. The Jerry's Sweet Coffee not just focuses on the teenagers or adults and also focuses on the children as a customer. It is because sometimes children will come with family members, so children can choice or order some desserts to eat. Therefore, the coffee shop also has sold some desserts such as different flavor of ice-cream and pudding to attract children. The coffee shop has sold many different foods or beverages, so customers can choice their favorite foods or beverages and desserts.

In addition, the coffee shop also has a stable financial. The coffee shop is effective and efficient in controlling purchase cost because making the purchase at lower cost from the different suppliers. The suppliers are including Carta Company and Fata Company. The coffee shop also efficient in controlling its production cost. The way to increase profit is reduce production cost by effectively use of labour and materials. The shop choice materials or tools such as computer and coffee machine that are at reasonable cost. The Jerry's Sweet Coffee pay reasonable salary to the labour to maintain its production cost. From the comparison, the profit that earn by Jerry's Sweet Coffee was increase two thousand dollars between 2010 year and 2011 year.

The expectation of Jerry's Sweet Coffee is hope that market share will be 13 %. Jerry also hopes that businesses can grow faster to become a large Coffeehouse Company and become a very famous coffee brand in the world.

2.1.2 Conclusion

Jerry's Sweet Coffee has operated for one and half year already. Jerry's Sweet Coffee is nearby bus stop and shopping center, it is very convenience for customer. The coffee shop also has sold some desserts or foods. The performance of this business is not bad and has a stable financial.

2.2 The company's strengths and weaknesses

After starting a business, need to know the own business's strengths and weaknesses. Therefore, SWOT analysis is a useful method to help company analysis its strengths and weaknesses. SWOT analysis is a planning tool that used to formulate strategy to support the company goal. According to Griffin (2007, p.68) stated that "Strengths are skills and capabilities that enable a company to conceive of and implement its strategies". The company's strengths are used to gain benefits to compete with other company. The research shows (Griffin, 2011, p.69) "weaknesses are skills and capabilities that do not enable a company to choose and implement strategies that support its mission". If knowing company's weaknesses, the company require put more effort to change the weaknesses become the strengths.

2.2.1 The strengths of Jerry's Sweet Coffee

Nowadays, many customers are concern on the quality of products. If the quality of products are not good, it will reduce the number of customers come to the shop buy products. According to Mishra (2009, p.237) stated that quality means meeting the needs of the customer". Therefore, businesses require produce high quality products to satisfy the customer's needs and increase the company profit. The first strength of Jerry's coffee shop is having high quality of coffee. Jerry's Sweet Coffee is use high quality of coffee beans to make the coffee such as Robusta, Arabica coffee beans. So, many customers are attracted by the coffee taste and come to buy the coffee.

The other strength of Jerry's Sweet Coffee is sold the foods or beverages with lower price. So, the coffee shop has increase the number of sales and increase revenue. The research shows (Roeser et al., 2007) "price objectives include increasing profitability, increasing sales, gaining market share and eliminating competition". For example, Jerry's Sweet Coffee sold Aqua Coffee with the price is RM 6.00. But, the other coffee shop sold this Aqua Coffee with the price is RM7.00. Then, the Jerry's Sweet Coffee has earned more profit because the price of product is lower than the other competitors. If the price of coffee is low, and then it can prevent the potential competitors enter the market.

Furthermore, the Jerry's Sweet Coffee also has provided an online service for customer. Customers can search any products or beverages in the shop at anytime through online. The benefit of online service is save cost and time. For example, customers no need come to the coffee shop and search the foods or beverages through the menu or catalogs. So, it can reduce customers driving cost. The webpage will show and list out any price of products or various products immediately to the customers.

2.2.2 The weaknesses of Jerry's Sweet Coffee

The weakness of Jerry's Sweet Coffee is not famous or popular because the business is only has operated for one and half year. Therefore, it will affect that many customers cannot get more information about this coffee shop. Besides that, the coffee shop hasn't built a good brand name and loses many customers. It is because the coffee shop does not have many resources or gain not enough experiences to do any improvement.

The other weakness of Jerry's Sweet Coffee is losing of customer loyalty. Jerry's Sweet Coffee also lack of loyal customers, although have produce high quality of products. It is because some customers are trying to find the alternative products and nowadays many customers have increased their expectations. According to the customerloyalty website, it said that "Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers". Therefore, the loyalty customer concept is very important to the company.

2.2.3 Conclusion

The strengths of Jerry's Sweet Coffee is providing high quality or products, sold the products with lower price and has establish an online service. The weaknesses of Jerry's Sweet Coffee are include the business is not famous or popular and lose customers loyalty.

2.3 The plans of action to improve business performance

A plan is also known as a strategy. A plan is give a clearly direction for the enterprise to continue operate business. It is used to improve strengths and overcome the weaknesses. As an entrepreneur, should concentrate on the long term orientation to achieve the business's goal. Therefore, entrepreneur must plan to gain competitive advantages to over rivals or competitors and eliminate the difficult problems.

2.3.1 The plans to improve Jerry's business strengths

The total quality management is very important because it is to ensure that the existing standards are met. It means that this management is used to improve the quality of coffee. The effective total quality management is containing various tools and techniques and procedures. The Jerry's Sweet Coffee should always manage and check the coffee machines regularly to prevent the quality of coffee are become badly. If the shop wants to meet or challenge the next level, also require to develop the practical procedures. The Jerry's Sweet Coffee should set a goal such as no exist any defect in the all products. Therefore, it can motivate employees to put more effort to achieve the goal.

The advertisement has played an important role in economy. According to Trehan (2009, p.39) mentioned that "Advertising is used for communicating business information to the present or prospective customers". Although the coffee shop sold the coffee with lower price, but also need to continue increase the profit or revenue through advertising. For example, the Jerry's Sweet Coffee is produce a new type of coffee such as Carber Coffee with the price is RM 5.00, then the shop need introduce this type of coffee to all customers through advertising. Then, the information about the new coffee will attract the attention of customers to purchase this coffee. In addition, the coffee shop also can convey some message such as discounted products through flyer, radio or television.

In addition, an online service is just for customers to search the different products is not enough, it cannot improve the business performance. Therefore, the coffee shop should use e-commerce to expand the business through internet. According to Rob & Coronel (2009, p.230) have mentioned that "e-commerce is use internet to transact business and add value to organization". For example, the coffee shop sell various products on online and then customers can purchase Aqua Coffee, muffins, ice-cream, Americano and so on through the internet. So, this plan can assist coffee shop to increase the profit.

2.3.2 The plans to overcome Jerry's business weaknesses

The first plan to overcome the Jerry's business weakness is innovation. Innovation is plan that can help Jerry's business to become famous and popular. The Jerry's Sweet Coffee should change the containers or box more unique or special to attract the attention of customers. For example, the Jerry's Sweet Coffee can made some cartoon on the container or box such as Mickey Mouse, Winnie the Pooh, Doraemon, Domo and so on. When customers purchase coffee, they will collect these containers and show to the other friends or relatives. Therefore, Jerry's Sweet Coffee becomes more famous because customers are attracted by the design of container and box.

The plan to foster or increase customer loyalty is going green. According to Greene, stated that going green is providing green products and do recycling work. For example, design eco-conscious stores, save energy by using efficient lighting and heating systems, and uses water efficient equipment and fixtures. These approaches will lead to gain customer loyalty because the coffee shop respect environment.

2.3.3 Conclusion

The plans to improve business's strengths are includes total quality management and e-commerce. Advertising is a promotional tools, it can increase the sales of coffee shop. The customers can know about the colour, feature and flavor and price of coffee through the advertising, radio, television and flyer. The plans to overcome the weakness are consist of innovation to change the designing and going green to boost customer loyalty.

2.4 Development and growth of business

Nowadays, have many competitors are exist in the business world. So, development and growth is very important for enterprise to travel to meet more customers' needs and increase company position. The enterprise should investigate some ways to maintain or strengthen the business's existing performance. Therefore, the business growths go through several ways such as alliances, joint venture, market development and product development.

2.4.1 The ways to maintain or strengthen the business's existing performance

Alliances is an approaches that to develop and grow the business. The small businesses also implement alliances because the partners can provide technology, expertise and capabilities. According to Patz and Rakowski (2009, p.5) mentioned that "A strategic alliance is a cooperative arrangement between two or more organizations designed to achieve a shared strategic goal". For example, Jerry's Sweet Coffee is partner with Barnes and Nobles bookstores. Then, Jerry's Sweet Coffee provides coffee to the customers in the bookstore. Therefore, coffee shop will increase productivity faster and both of them also can increase revenue.

The other ways to strengthen the Jerry's performance is joint venture. The advantages of joint venture are having more resources, increase technical expertise and establish markets and distribution channels. For example, Jerry's Sweet Coffee set up a joint venture with Chinese Company to buy and process coffee beans in China's southwestern province of Yunnan. Jerry's Sweet Coffee teaches local farmers to grow high-quality coffee beans through sustainable practices. After a few year, Chinese customers will embrace Jerry's Coffee as a high quality brand. Besides that, Jerry's Coffee Shop can open coffee shop in Brazil or America as an expansion business. This way can provide more products and services to the customers in different city or state.

Furthermore, product development also is one of the growth strategies to enlarge business. The Jerry's Sweet Coffee should develop new products to the existing customers. For example, spend some money to implement research and development activities to produce new foods or beverages to current customers such as ice cream mixed coffee and cola mixed chocolates. This approach can retain existing customers and prevent customers attracted by other competitors.

2.4.2 Conclusion

The coffee shop should think and plans some development and growth strategies, if want to improve existing performance. Alliance, joint venture and market development are used to satisfy customer's need and to grow high quality coffee. Product development is a best way used to retain customers by putting new ideas to develop new products.

3.0 Conclusions and Recommendations

In task 1, I have learned about when starting a business need to know operate what business, what products the company will produce, know about the customers that the company target, and locations of shop and also decide the opening hours. When I doing this task, I waste a lot of time to decide want operates what business and need produce what products or services to the customers.

Besides that, I have learned about what are strengths and weakness in task 2. From the task 2, the strengths of business is about the shop have ability to operate the business. Conversely, the weaknesses of business will affect the number of sales and customers. When doing this task, I use three days to complete it task.

In task 3, I known that have some plans or approaches can progress business's strengths and overcome business's weaknesses. The plans to improve business's strengths are to gain competitive advantage to over its rivals. The advantages of plans to overcome the business's weaknesses are to prevent or avoid lose customers loyalty and help the businesses to become more famous.

On the other hand, I have learned about the development and growth strategies to improve business performance in task 4. All small business can enlarge or expand business through some methods such as joint venture, alliances, market development and product development. The small business can increase resources, increase technical expertise or retain existing customers through these all methods.