First things first, READ THE MANUAL!!
There were important bits of information that we skimmed over the first time around, and it set us back for 1 or 2 periods.
It’s imperative that you define your business goals, objectives and strategies during this first period. It may also be a good idea to start developing a simple budget and contingency plan just in case your lecturer asks for them at the end of the semester.
Start-up Decision
The first thing we needed to do was choose our style of furniture and equipment. We knew that there possibly wasn’t going to be an opportunity to change, so we chose new furniture and the most efficient machine. Who would want to sit in a new cafe with dingy, used furniture anyway?
We chose the green theme furniture because they looked more comfortable. The modern theme looked seemed suitable as well, but…. nah. We also chose the AutoFour espresso machine, which was expensive but it’s worth it. In comparison to the cheaper option, it makes twice as much coffee, 30% faster, so why not?
We also decided our name would Bean There, Ground That because it was unique and catchy. Where we’re from everyone wants their name to include island, or spice (because we’re in the Isle of Spice). Your lecturer may or may not be grading the creativity of your names. And no, you do not borrow ours. It’s copyrighted (Lol).
General Decisions
After locking in those decisions, we’re able to hire staff, buy coffee, cups and whatnot.
Management
- Hired 15 servers, and chose the pay them $9.00 each, since the industry average was $8.75.
- Paid managers $650.00, since their industry average was $600.00
Marketing
Pricing
- Pricing – we tried to choose a not-too-cheap and not-too-expensive price. $4.00 for the medium cup
Advertising and Promotion
You may want to go all out on advertising early in the simulation to max business awareness asap. Once it gets to 98.4% it doesn’t move. You can cut that expense once it’s maxed.
- Online (at $200 per day) – General awareness $1400.00
- Radio (at $200 per spot) – 5 per day $14000
Operations
- Shop hours – 7:00 am to 11:00 pm
- Purchases – Coffee 45 lbs, Cups 20,000
Creative Design
- Well…. A certain someone wanted a fancy logo and that takes time, so our logo wasn’t ready yet
Special Decision
- Insurance – We opted to buy insurance because you never know. We might get hit by a meteorite or something.
All that was left to do now, was to sit and wait for the simulation to advance to Period 1.
Stay tuned!!
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