Development of a Business Management Model for Coffee Shop Entrepreneurs

Abstract

The objectives of this study are 1) to investigate key components of a business management model for owners of fresh coffee shop enterprises; 2) to develop the management policies and procedures for efficient practices; and 3) to provide coffee business entrepreneurs with useful business and management guidelines. The samples include 20 professionals, either entrepreneurs or executive members with at least a year’s experience in managing a fully-integrated coffee shop business. The Delphi technique was conducted to elicit appropriate responses. The coffee shop business represents a popular, fast growing segment with huge market value. Nonetheless, the success rate is relatively low considering the considerable number of similar business. Evidently, a greater competitive strength and financial capital of large-scale businesses constrain the growth and survival of small coffee business as well as novice entrepreneurs. An effective management approach toward a sustainable coffee business and a favorable survival rate is associated with the Crown of Success model, the “10P Objective Collaborations & Key Results (OCKR)”. A focus group was carried out, the results indicated the experts agreed with the developed 10P model. Then, Principal Components Analysis and reliability measures were carried out. Primary factors and sub-factors underlying relationships were determined. The results reveal the 10-P strategic management model for successful coffee house business, which consists of 1) Personnel employees within the organization; 2) Perspective, attitudes and corporate identity; 3) Products; 4) Philosophy; 5) Performance; 6) Place; 7) Promotion to boost sales; 8) Pricing; 9) Perception and conceptual understanding; and 10) Personality traits of staff. These constituents are needed to achieve goals while creating cost advantage and differentiation over competitors. The components of the 10-P strategic management model are intertwined. Effectiveness in management, cooperation and teamwork of Objective Collaboration & Key Result (OCKR) along with appropriate strategies to deal with component loss reduction will lead to coffee house’s substantial performance improvement. Thus, the designed 10-P management model was made into an instruction manual. It is anticipated to facilitate the smooth operation and long term achievement of coffee business entrepreneurs.