Brian and Mark Are in the Early Stages of Planning

Essay

Brian and Mark are in the early stages of planning for a café they would like to open. Brian has a strong business background and currently works as a staff accountant at the corporate office for a local restaurant chain. Mark has been the store manager for a small bakery for the past few years where he was started as a barista. The two of them believe that combining their complementary skill sets will provide them the best opportunity to succeed in the café industry. Their café will feature unique roasts of coffee and espresso sourced from a local coffee bean roastery. They would also like to bake gluten-free and vegan desserts to sell to their customers. Brian and Mark intend to market their offerings as a premium choice and are aware that the pricing will not appeal to all, especially those strictly seeking the cheapest option. They would also like the café to offer space for small community events and in-house events like trivia, book signings, or open mic nights. They have scouted locations and believe they will take over another café's lease since the current renters have chosen to close their shop after eleven years. The neighborhood where the building is located also features trendy shops, dog parks, bookstores, and local restaurants. Brian and Mark have tentatively decided to name their café Java City and would like to open within the next 9 months if possible.
a. Are Brian and Mark using a cost leadership or product differentiation, and why?
b. What is an appropriate strategic plan the company should set for themselves, and what is an appropriate way to measure their performance?
c. Identify a factor for each of Porter's Five Forces that could impact the strategy for the company.
d. If the company also decides to perform a SWOT Analysis, then what are the internal strengths and weaknesses and external opportunities and threats the company could encounter?
e. If you needed to make a recommendation to management based on your analysis in parts a, b, c, and d, what would you select? Please provide as much detail as possible to support your decision.