CUSTOM COFFEE AND CHOCOLATE Small businesses typically do not start with the formal process of formulating their mission and vision Small businesses typically do not start with the formal process of formulating their mission and vision Entrepreneurs are driven primarily by their personal drive and curiousity and opportunities they see Entrepreneurs are driven primarily by their personal drive and curiousity and opportunities they see The implicit mission is usually simply to survive and thrive The implicit mission is usually simply to survive and thrive Composing a mission statement involves spelling out a firm’s purpose of existence and take can three forms: Composing a mission statement involves spelling out a firm’s purpose of existence and take can three forms: Purpose based Purpose based Product based Product based Service based Service based Customer based Customer based

SAMPLE MISSION STATEMENTS Purpose based: "The mission of a manufacturer should be to overcome poverty, to relieve society as a whole from misery, and bring it wealth.“ (Matsushita) Purpose based: "The mission of a manufacturer should be to overcome poverty, to relieve society as a whole from misery, and bring it wealth.“ (Matsushita) Product based: “To be the most successful premium manufacturer in the industry.” (BMW) Product based: “To be the most successful premium manufacturer in the industry.” (BMW) Service based: “DHL enhances the business of our customers by offering highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence.” (DHL) Service based: “DHL enhances the business of our customers by offering highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence.” (DHL) Customer based: “We will become the world's most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live.” (Pfizer Malaysia) Customer based: “We will become the world's most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live.” (Pfizer Malaysia)

POSSIBLE MISSION STATEMENTS Purpose based: Making the world a better place by serving quality food to customers and giving sustenance to farmers. Purpose based: Making the world a better place by serving quality food to customers and giving sustenance to farmers. Product based: Delivering the best coffee and chocolate to the brightest people. Product based: Delivering the best coffee and chocolate to the brightest people. Service based: Service based: We provide the ambience and the bites for people to meet. We provide the ambience and the bites for people to meet. We provide coffee and chocolate for people for companionship. We provide coffee and chocolate for people for companionship. Customer based: Fulfilling the needs of those with a refined sense of taste. Customer based: Fulfilling the needs of those with a refined sense of taste.

Strengths Product well received. Have established a reputation. Have established location. Able to maintain principles. Opportunities Can replicate approach in locations with similar customer profile. Weaknesses Space constrain. Lacking capital. Little control over supply. No experience in managing logistics of delivery service. Threats New entrance can easily imitate business model.

DEVELOPING TACTICAL PLAN Need to anchor tactical plan on strategic objectives. Need to anchor tactical plan on strategic objectives. Key strategic concerns: Key strategic concerns: Protect current achievements Protect current achievements Expand without undermining profitability Expand without undermining profitability Key tactical components of strategy: Key tactical components of strategy: How to develop customer loyalty? How to develop customer loyalty? How to deter competition? How to deter competition? How to increase revenue? How to increase revenue? What criteria should be used to ensure profitability? What criteria should be used to ensure profitability?

STRENGTHWEAKNESSES OPPORTUNITIES  Develop processes and standards to ensure consistency in quality.  Develop distinct identity and brand image.  Offer complementary products.  Renew current lease.  Develop criteria for location search.  For long-term, acquire know-how on delivery service or outsoruce service.  Develop long-term business plan to get investor or financing. THREATS  Reduce imitability by developing loyalty based on interpersonal service quality.  Use long-term contracts for purchasing of key ingredients.  Register Custom Coffee and Chocolate as trademark.  Start advertising.

TACTICAL ACTION How to develop customer loyalty? How to develop customer loyalty? Offer highly personal service Offer highly personal service Introduce loyalty and discount cards Introduce loyalty and discount cards Use franchising Use franchising How to deter competition? How to deter competition? Build brand image thru trademark protection and advertising. Build brand image thru trademark protection and advertising. How to increase revenue? How to increase revenue? Offer more products to generate more revenue per purchase Offer more products to generate more revenue per purchase Select products that do not require sit-in customers Select products that do not require sit-in customers Given limited sitting available, offer products that do not require long wait. Given limited sitting available, offer products that do not require long wait. What criteria should be used to ensure profitability? What criteria should be used to ensure profitability? Open new location where there is high foot traffic. Open new location where there is high foot traffic. Demographic character should target professionals and middle class. Demographic character should target professionals and middle class. Near campuses, offices, at corners and near transportation hubs. Near campuses, offices, at corners and near transportation hubs.