Professional Documents
Culture Documents
This paper is arranged in order to fulfill Management Accounting Lecture Assignment by:
Arranged by:
Venesa Hafid El Haq 120110170119
Sunny Angelia Naibaho 120110170120
Fatharani Hasya Abadi 120110170129
Tables of Figures
Figure 2.1 Chatime Logo ............................................................................................................................ 5
Figure 2.2 Chatime Industry Analysis ...................................................................................................... 8
Figure 2.3 Chatime Strategy Map ........................................................................................................... 14
Table of Tables
Tabel 2.1 Chatime Profile........................................................................................................................... 5
Tabel 2. 2 Chatime Balance Score Card ................................................................................................. 12
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CHAPTER 1
OVERVIEW
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see us? (Customer Perspective); What must we excel at? (Internal Business Perspective);
Can we continue to improve and create value? (Innovation and Learning Perspective). The
definition of Balanced Scorecard was imprecise and focused on the selection of measures
for each of the perspectives. The authors 'precaution on managers' well-documented
measurement assertiveness was shown with the alert that they shouldn't put their focus on
identifying what could be measured in the company, but on choosing only limited number
of measures customized by using attitudinal questions related to the company vision and
strategic goals. They endorsed that by "putting vision and strategy in the center of the
measurement system" improved organizational performance can be expected, but only if
appropriate changes in human behavior are made and necessary actions to achieve those
goals are carried out.
After over 10 years, franchise Chatime has carved put an impressive reputation as
the nation’s largest Bubble-tea brand. With an emphasis on metropolitan areas, the
Taiwanese franchise has translated a strong local history of iced-tea success into booming
global network. Innovation and adaption have been critical to Chatime’s operations, with
new initiatives proving to be key drivers for success. The brand has achieved double digit
like-for-like growth for three years in a row, and has its sights set firmly on continued
growth. Chatime also has a target to achieve 200 stores in Australia in 2021 and they are
on the track to achieve that. Chatime has a significant number of metro locations in major
cities. But, the critical point for Chatime how they can reduce their cost of entry to get
quicker return on investment for their investors and continue to grow the brand. The
balanced scorecard can serve as the focal point for the organization’s efforts, defining and
communicating priorities to managers, employees, investors, even customers. The
scorecard’s measures, on the other hand, are grounded in an organization’s strategic
objectives and competitive demands. And, by requiring managers to select a limited
number of critical indicators within each of the four perspectives, the scorecard helps focus
this strategic vision.
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CHAPTER II
ANALYSIS RESULTS
Industry Beverages
Headquarters Zhubei,
Taiwan
Services Tea
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Website chatime.com.tw/zhchatime.com.tw/en
Chatime is a Taiwanese franchise founded in 2005 with over 800 retail outlets
across countries like Taiwan, Malaysia, China, India, Macau, Vietnam, Singapore, Hong
Kong, Thailand, Korea, Philippines, Indonesia, Australia, Dubai, Vietnam, Canada, UK
and the United States.
In order to serve a beverage liked by all, Chatime uses sophisticated tea and coffee
machines to produce only the highest quality drinks. As the birthplace of pearl milk tea
beverages, Taiwan is set to revolutionize the tea brewing industry by capturing the attention
of fashionable tea lovers in a stylish and modern way.
With Chatime’s initiative in combining over 30 years’ worth of tea manufacturing
experience and expertise from a team of professional researchers, the tea drinking culture
is now experiencing an exciting shift - consumers are no longer content with consuming
teas laden with artificial ingredients and flavours - they want something real and flavourful.
In order to revolutionize the tea-drinking scene, Chatime uses only the best
imported tea leaves and quality ingredients, minus additives and preservatives. To keep
customers coming back, Chatime gathers ideas from top Japanese tea producers and takes
cue from their quality control and design concepts. Now, every cup of tea is freshly brewed
upon order. In line with the brand’s promise and commitment, Chatime will continue to
serve the best quality beverages and cultivate a modern tea.
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Many store that no Wi-Fi
Strongly branded
facility
Unique tea, juice, and
Medium-high price for
coffee
development country
Fast service
Sometimes overload
Always make a new
capacity (long queue)
promotion and discount
Almost have no different
Have a good design interior
with other brands that have
Superior technology
the same products
Strength Weakness
Threats Opportunity
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2.3 INDUSTRY ANALYSIS
Figure 2.2 Chatime Industry Analysis
a. Competitive Rivalry
Competition between competitors in the bubble drink business is intense competition to
gain market share. Because, products can be quickly replaced and many competitors have
the same ability to face competition.
The risks faced by Chatime: Medium-High (4)
b. Threat of New Entrants
In the bubble drink business, competitors can easily enter the market to sell bubble drink
types. The capital needed to start a bubble drink business does not need large capital, so
that competitors can easily enter the market share, both large and small scale bubble drink
businesses. Also supported by Indonesia's tropical climate and tend to be hot, then entering
the bubble drink business is a great business opportunity that can relieve thirst, coupled
with unique toppings that can also release hunger.
Risks faced by Chatime: High (High-5)
c. Bargaining Power of Suppliers
In the bubble drink business, the bargaining power of suppliers for the raw material for
making bubble drink is quite low, because there are quite a lot of raw material suppliers to
make bubble drink, we can find it in many places and include daily raw materials, and
suppliers for raw materials replacement is also available.
Risks faced by Chatime: Medium-Low (2)
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d. Bargaining Power of Buyers
Bargaining Power Buyers in the bubble drink business are quite strong. Seeing competitors
in this business is quite a lot, by offering a variety of taste innovations and all types of
prices, the offer of buyers / consumers in demanding lower prices or better quality is also
quite strong.
However, with the branding program owned by chatime, it can reduce the risk of this
bargaining power of buyers, because consumers will continue to buy chatime products with
branding programs that only exist on Chatime products.
Risks faced by Chatime: Medium (3)
e. Threats of Substitute Product
In the bubble drink business, there are many substitute products for Chatime drinks, both
from small to large scale bubble drink.
The risks faced by Chatime: High (5)
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as small as they can because the smaller the better it is so that they can set a lower selling
price than other competitors.
Financial Perspective
Customer Perspective
Internal Business Process Perspective
Learning and Growth Perspective
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Tabel 2. 2 Chatime Balance Score Card
Financial Perspective
Customer perspective
Improve
customer
Customers Percentage of satisfaction by
80% 85%
loyalty loyal customer fast service &
good quality
food
Improve
10% from 15% from
Acquire new Percentage of advertisements
existing existing
customers new customers and promotion
customers customers
programs
Keep the
Percentage of
Improve freshness &
drink thrown 15% 10%
products quality good taste of
away (defect)
the drink
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Identify
Increase new Number of new
customers’s 3-4 new menu 5-6 new menu
product menu drink menu
needs
Percentage of
Selective in
On time delivery on time
choosing 80% 85%
by suppliers deliveries by
suppliers
suppliers
Percentage of
Develop 85% employees 90% employees
employees Held a training
employees skills participated participated
trained
Increase Percentage of
Update the
information processes with
information 70% 75%
system real time
system process
capabilities feedback
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Figure 2.3 Chatime Strategy Map
Increase
operating
Financial Perspective
income
Increase
Develop information
Learning and Growth Perspective system
employee skills
capabilities
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2.9 FINANCIAL MEASUREMENT
In Chatime financial measurement, writer use the financial data from Starbucks
Company (SBUX) due to the data limitations about Chatime financial data.
Profitability Ratio
Liquidity Ratio
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* In Millions of USD (except for per share items)
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REFERENCES
(n.d.). Retrieved from https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-
guides/glossary/pages/pricing-decisions.aspx.
https://www.investing.com/equities/starbucks-corp-financial-summary
https://journal.cea.org.mk/index.php/ceajournal/article/view/64/61
https://www.chatime.com.tw/en/2018/07/04/chatime-listed-best-bubble-tea-brand-2018/
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