Essay About Major Impact And Success Of The Business

The Chai Coffee Case Study
Discussion Questions:What factors can be expected to have a major Impact on the success of The Chai Coffee?         The factors that have a major impact on the success of the business are:Location of the businessRental/lease costCost of equipmentCost of producing each tea and coffeePrice of tea and coffee per cupWage costsLevel of competitionProduction rate per hourWhat major tasks does Varghese have to undertake in managing The Chai Coffee? The major task to be undertaken includes the following:Maintaining service and product qualitySupervision of employeesMaximizing employees performanceEnsuring each site to make sure that the business continues to be profitableEvaluating new sites for the construction of new outletsDeciding the type of promotions for the products3. What are the major costs of operating The Chai Coffee?      Major operating costs include:Rent at each siteEmployee wagesVincent’s assistant’s salaryEquipment costFurniture and fittingBusiness license Insurance for each siteAdvertising costCost of tea powder, coffee powder etc.Cost of suppliesGovernment rates and taxesVarghese would like to monitor the performance of each site manager. What measure, or measures, of performance should he use? Profitability is one of the methods that can be used to measure the performance of the employees. The other measures can be used are employee turnover, service and product quality and customer satisfaction.              If you had suggested more than one measure, which of these should Varghese select if he could use only one?  Profitability is the measure that should be chosen because the other measures don’t address the manager’s performance. Profitability is the primary objective of all business. Without profitability the business will not survive, so measuring the current and past profitability and projecting the future profitability is very important to the business.