The Broadway Café’s E-Commerce Introduction

Abstract

Broadway Café is a retail outlet that provides economic internet accessibility to its customers with bakery items, coffee, and other specialty items. In the context of the internet, the business provides various internet applications, including Usenet, FTP, Messenger, HTTP, e-mail, and all wireless network facilities. It is located in downtown Arlington at 2121 15th Street, and this makes it possible to accumulated customers with eating and business facilities at the same time. The target audience includes all age groups, and knowledgeable employees make it possible for success.

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Introduction

The invention of the computer has miraculously changed the whole scenario. Computers not only impinged on the global economy by increasing production, enhancing efficiency, etc. Along with business sectors like banking, stock exchange, etc., which witness extensive use of computers, other sectors have also been influenced by computers. Educational institutions, hospitals, etc., are now day’s increasingly using computers. Due to their vast facilities of computers are becoming more and more popular among households also. An increasing number of people are using computers in their day-to-day life. Thus, the demand for the internet would be high and added with refreshments the project is a sure success.

Key success points

The major points of success:

  • Broadway Café would provide internet facilities that would enable the users to access the web, and this is a huge leap from a traditional local coffee shop to a futuristic internet café.
  • It also provides educational programs as the employees are well net-savvy that encourages the population who are otherwise not comfortable with the net to use the café.
  • Broadway Café would be an entertainment hub for the customers in the area. As the location is downtown, the number of customers would be substantial.
  • Bakery items, coffee, and other specialty items would also add to the interests of the customers.

External Analyzes – Five Forces Analysis

The Threat of New Entrants

The internal environment is important to develop a successful business structure. To achieve this goal, the most important aspect is to organize a reasonably well-formulated configuration within the management group that would help the organization to deal with every possible circumstance. External Environment is also important. To understand the position of the restaurant in the bigger picture, the writer again tabulates the various external opportunities and threats confronting the café. Unlike previously, however, this time, the writer follows the popular ‘Five Force’s model’ (suggested by Michael Porter). This model helps us spot the five most significant forces that make or break an organization’s profit potential. These forces are the bargaining capacity of providers, the menace of new competitors, the menace of product replacements, the bargaining capacity of purchasers, and the level of rivalry among established companies in a particular industry. The new entrance threat is comparatively low for Broadway Café. At present, there are specialty coffee shops in the area, but they are exclusively interested in serving coffee and other items. These are Starbucks, Dunkin’ Donuts, and Moms and Pops. However, Broadway Café would be very different as it is a futuristic provider of coffee, comfort, and technology. The product differentiation and the capital requirements would be very different from that of the three possible existing businesses. (Silverberg, 2007)

Product Differentiation

The product of the business is unique in its approach. E-business is the procedure of selling and buying services or products with the help of electronic systems. Computer networks or the internet are the common fundamentals of the electronic system. Over the last decade, this form of business has grown into a huge volume and has spread all over the world. There are different forms of electronic business, starting from automated data collection systems to inventory management systems, electronic data interchange, online transaction processing, Internet marketing, supply chain management, and electronic funds transfer. This form of business is able to reach a large market on a fast note, and the cost is considerably low. Added with this is the availability of coffee. These two make it a good force.

Switching Cost

Switching costs would not be very difficult. The business is well established on, and that would reduce the fundamental capital cost.

Power of Buyers

The power of the buyers would not be a difficult norm. This is because the business operates on a retail basis, and the service and products are relatively low. This would enable all sections of the population to take advantage of the services provided by the business.

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Consumer Groups

The consumer group is fundamentally everyone who is in the vicinity of the café. The segments include all ages and gender, particularly the youths. They would be a prime target for the business. (Leonard-Barton, 2003)

E-business strategy

Business to Business, (B 2 B) Electronic Commerce (E-Commerce) has brought about a sea change in the way transactions are carried out between different entities in the business. B2B provides a way for manufacturers to develop products for clients, circumventing the traditional channels involved in doing business. The manufacturer, vendors, and customers can directly communicate with each other rather than letting intermediaries mediate. In facilitating easy access, E-Commerce provides a cost-saving method for different parties to a business to develop maximum productivity. The geographical barriers to conducting trade or manufacturing no longer exist. A manufacturer can sell or market through the Internet on a ‘virtual’ platform but will make huge profits in the real world as he can now get through to a buyer or supplier anywhere in the world. Specifically, E-Commerce integrates telecommunications, computers, and streamlined work processes. Business to Customer (B2C) e-commerce enables customers to get in touch with manufacturers directly. B2B helps organizations communicate. In both forms of this system, parties to a transaction avoid the unnecessary overhead costs, and the impact of the technology does more to expand the business than before. The digitized transaction will require taxation and customs regulations to be reviewed to adapt to this change. (Teece, 2001)

In many parts of the world, resources are inadequate or stretched to produce mediocre goods, which do not find worldwide markets. Even those firms, which aspire to international reach for their products, are hampered by poor infrastructure and unnecessary problems on the way.

Network, telecommunication, and M-coupons

There are government regulations, which have not reacted to changing technological environments as rapidly as they should. Partly this may be due to political compulsions, especially in developing countries, which impede quick decisions and action. There are developing countries, which could be serious players in the B2B scenario but do not cost competitive enough. Supply Chain Management (SCM) has been an issue in developing countries where it is a relatively new tool for production enhancement. The SCM model is delivered through channels using information technology and information exchange. For example, instead of having actually to send along inventory, a manufacturer can rely on the vendor-managed inventory software for B2B, which relies on a certain level of information substituting actual inventory. In this context, the business would provide huge opportunities for the customers and the café at the same time with a combination of networking, telecommunication, and M-coupons. (Nonaka, 2001)

Customer relation

Market research indicated that there should be a number of variables that should be maintained in order to gain a competitive advantage in the business. On seasonal period it is essential for the hotel to increase casual staff. It is also important that Effective service improvement strategies will be accomplished through training of employees that should include providing adequate training for employees to possess the skills that are required in performing their job tasks and develop an Efficient internal communication between restaurant managers and employees which will help employees to realize and understand what management expects (internal e-mail, blackboard).

System development

Strengths of system development would include possible means of exploiting the strength by enhancing reputation in the marketplace and can be strengthened further so that the clientele grows.

Valuable intangible assets can be used as a possible way of setting the restaurant apart from other competitors. Standard of product can be used to gain more popularity. The more people become aware of the café connection of superior broadband and interesting food, the more they are likely to come back to the restaurant.

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Cost advantage due to exclusive access to specific ingredient products and can help owners to cut down on costs and increase profits seriously. The owner’s Enthusiasm can be used to motivate the ‘disinterested’ staff members. Energy can again be used to pep up the place and the staff. Ease in training new entrants can ensure the prompt appointment of new aspirants. Who can join in quickly without having to spend days training and losing interest in the process? The low level of expertise required for a majority of employees can ensure a large variety of people to choose from. Stable and hands-on management can be the best in the profession should be incorporated in the business with newer ideas and better service. A strong tradition of customer service would help, and the traditional aspects can be cashed upon with more success by manifesting these qualities. (Argote, 1993)

Alongside, there is a huge amount of opportunity. A growing trend among youngsters to eat out and surf the internet would be an advantage. Making the restaurant more youth-friendly may be a place to start. Lack of truly proper internet café in the area and the new items introduced (as explained in the point above this) should be kept thoroughly ‘authentic’ even if they are slightly off-beat. Collaboration with global players through franchising or other commercial arrangements would also help. This way, the organization can develop by opening newer and better outlets and can even set up outlets abroad. Restructuring the business to play in a lower/different market segment would help, and there is a great opportunity to open the business to a variety of income groups so that it becomes accessible for the maximum number of customers.

HR audit

A Human Resource audit is a very important aspect for a business to flourish and develop into a bigger organization. This measure is taken to monitor the development of the Human resources of the organization and properly channel their output with maximum utility possible.

Staff agreement

The Café can always make the fundamentals of the HR policies strong by preparing a contract for all newly recruited and formerly recruited staff to sign the bond.

Finance Planning

Furthermore, waiting for the change in staff payment, etc., to help save a spot of money and then shifting to a more favorable location in the field of staff training for yielding better results while services.

Hierarchical system

Formulating a hierarchical system for all workers and providing them incentives in the form of better positions and payments after a certain period or level of service would also be very helpful.

Feedback

A customer affiliation program might help. This can be as simple as a customer response book/leaflet to be filled up by the client after the meal, and in the same context, it can be stated that a proper human resource development department will be of much help. Even if this seems too expensive at the beginning, the restaurant must at least seek proper consultancy support as soon as possible.

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Training session Planning

Proper training sessions, workshops, and team-building tactics might help. Also, a good pay package and greater facilities might keep the turnover rate down and actually make the staff feel like a part of the business.

Department segmentations

Lastly, it should be kept in mind that the utmost utility of human resource development with training would be fruitful when it is looked upon with care about creating proper department and corresponding posts and utilizing a systematic recruitment process as this would be extremely helpful. (Hollingshead, 2005)

Analysis

Corporate social responsibility is a very important aspect of the modern world of business. It is evident that once the business grows, the CSR grows with it at the same time. This is because, with the growing involvement with society, a business makes a profit out of it, and it is at this point the society demands a share of this profit. This share is obviously not in cash but in kind. Society expects the business to return some of the profit acquired from the society in some way or the other. It can be done by social work or developing social amenities, or simply maintaining a specific high level of the service provided by the business. In this case, it would be food and service quality for the café. (Leavitt, 2002)

The utilitarian view could absolutely affect the way in which a person makes their important decisions. Sometimes it is a matter of who should be happy when all is said and done – the decision-maker or those affected by the decision? That, as hard as it may be, is up to whoever is dealing with the problem. Whether utilitarianism is ethical or not is a matter of opinion. If the utilitarian ideas are used by a moral-minded intelligent person, then it could be considered ethical and even just. The bottom line is that it is extremely important to have an ethical judgment in all decision-making processes. No matter what views are taken, an ethical side to it can always be found. As seen with utilitarianism, some acts can be deemed unethical, while others are ethical because they do what is best for all involved. Utilitarian decision-making means that the happiness of the greatest amount of people involved will be the reason for the final outcome. That, paired with moral thinking, creates ethical decision-making.

References

Argote, L. (1993). Ideas in organizations: Continuity and change. International Review of Industrial and Organizational Psychology 27(6) 333-389.

Hollingshead, A. B. (2005). Training: The impact of practice on performance. Wellington: Small Group Research.

Leavitt, H. J. (2002). Structural, technological and humanistic approaches. Chicago: Rand McNally.

Leonard-Barton, D. (2003). Implementation as mutual adaptation of technology and organization. Research Policy 17(23), 251-267.

Nonaka, I. (2001). The knowledge-creating company. Harvard Business Review, 69(6), 96-104.

Teece, D. F. (2001). Theoretical change and the nature of the firm. Auckland: TVC.

Silverberg, NG. (2007). Theoretical change and economic theory. New York: Pinter.

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