Reference no: EM131455609
Case study
The questions in this assignment all relate to the following case study.
Vuyo is a young aspiring entrepreneur that would like to embark on a new venture of opening a coffee shop within walking distance from the University of Johannesburg, namely: The Busy Bean. With the growing demand for high-quality gourmet coffee and the rise of coffee-culture amongst students, Vuyo's aim is to incorporate local coffee roasters into one space whilst offering his customers the best prepared coffee in the area, complimented with baked and gourmet goods, as well as a place to establish meaningful connections.
His vision for his new venture is to improve and support the lives of South Africans - one cup at a time. Consequently, The Busy Bean will also serve as an accredited training facility and provide the platform for individuals seeking certification and experience in the service-intensive hospitality industry as waiters, bakers, chefs and baristas. In essence, Vuyo envisions The Busy Bean to be a ‘one-stop-shop' for job creation and ultimate customer satisfaction. Fully committed to local upliftment and prosperity, Vuyo further aims to work extensively with local contractors and upcoming artisans for the construction, design and décor of his shop. He hopes to capitalise on the, The Busy Bean's proximity to the campus to establish a core group of repeat customers. If successful, he would like to open franchises in other areas.
In an attempt to enhance his venture's credibility for potential investors, The Busy Bean's coffee will be ethically sourced thereby supporting Fairtrade Coffee, which helps protect both farmers, as well as the environment, through the coffee process. The Busy Bean will invest its profits to increase training opportunities while providing stable returns into the business. Vuyo is excited to be in the business of providing piece of mind to customers through great ambience, convenient location, well-trained staff, friendly customer service, and products of consistent high quality.
With a Degree in Marketing from the University of Johannesburg, Vuyo has plenty ideas on how to launch promotions on campus to initially attract his customers. Although there is a coffee shop just down the street from his desired location, Vuyo does not seem to think it will be a problem.
However, he has a few questions regarding this venture and is unsure if such a big idea is truly an opportunity. He therefore contacts you, as an expert in the field of Business Management, for sound advice.
Question 1
Answer the following questions as they relate/in relation to the case study.
Q.1.1 By making use of examples, explain how The Busy Bean includes human activities, production, exchange and profit components to meet the needs and expectations of customers.
Q.1.2 Vuyo wants to know how sustainable his business concept is.
Identify and explain two ways in which The Busy Bean can be sustainable.
Q.1.3 Describe using an example, one type of need The Busy Bean can satisfy in the community?
Q.1.4 Despite his excitement, Vuyo is hesitant to implement his idea in practice - it just seems too risky. He also needs a lot of money to start his business.
1.4.1 How can a lack of capital prevent The Busy Bean from producing products or services to meet the needs and expectations of customers?
1.4.2 Briefly explain why risk-taking is such an important trait to be successful as an entrepreneur in his context specifically.
Q.1.5 From a business management perspective, in what way can the economic principle benefit Vuyo's new venture?
Q.1.6 The owner of the coffee shop decides to immigrate and wants to sell his business. Vuyo now has the option of buying an existing business or renting a commercial space to enter into the business world.
Analyse the option of buying this existing business by specifically referring to three advantages and three disadvantages.
Q.1.7 Explain why it is important for Vuyo to conduct a feasibility study of his idea?
Question 2
Answer the following questions as they relate/in relation to the case study.
Q.2.1 Vuyo cannot seem to decide whether he should manage this venture alone or if he should make use of an alternative route for optimal success.
Q.2.1.1 Distinguish between two possible options of business forms for Vuyo's venture based on the following aspects: independence, liability and taxation.
Q.2.1.2 Based on your distinction above, explain what form of business would best suit the needs of Vuyo's business? Give a reason for your answer.
Q.2.2 By making use of examples, briefly explain the importance of a business plan from the following perspectives:
Q.2.2.1 Internal stakeholders;
Q.2.2.2 External stakeholders.
Q.2.3 Identify and briefly discuss one location factor that could positively impact Vuyo's business, and one location factor that could negatively impact Vuyo's business.
Question 3
Answer the following questions as they relate/in relation to the case study.
Q.3.1 Briefly explain how social media platforms like Facebook can impact Vuyo's business.
Q.3.2 Explain the interrelatedness of environmental factors as a characteristic of the business environment by making use of an applicable example.
Q.3.3 Vuyo needs to understand the impact that certain environmental variables could have on his business so that he is able to respond to changes in the micro- environment and macro environments.
Q.3.3.1 Considering the macro-environment, explain how a drastic increase in the demand for skilled labour in the hospitality industry could influence the implementation of Vuyo's vision for his business?
Q.3.3.2 Considering the market environment, explain how an incorrect delivery from suppliers could impact on the daily operations of his business? Give an example.
Q.3.3.3 Considering the market environment, explain how a competitor like another coffee shop could influence Vuyo's business? Give an example.
Q.3.3.4 Considering the macro-environment, how could the economic recession of the country influence Vuyo's business? Give an example.
Q.3.4 By using examples, explain the difference between an opportunity and a threat within the context of Vuyo's business environment.
Question 4
Answer the following questions as they relate/in relation to the case study.
Q.4.1 Identify and briefly explain two drivers of CSR within Vuyo's business.
Q.4.2 Identify and discuss one way in which Vuyo could effectively engage with his employees and investors as primary stakeholders.
Q.4.3 Give an example of how The Busy Bean coffee shop's CSR could contribute to sustainable development.