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 ecommerce. 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.