Out of the 5 running stores, two are not able to generate any profit and the managers believe that this is because of the locations of the stores. One of the partners suggested consulting a marketing research firm however, the other partners think of it as a costly endeavor. The concept of using GIS technology for combining the business information with the demographic data for assessing the proper location for the stores is also being considered by the business partners. However, balancing the financial issues with the strategic planning problem is a complex process for the firm which urged the partners to cancel the bespoke software development and other IT projects of The Coffee Company.Based on the given case, the partners of The Coffee Company have selected two options for generating their profit earning process. The first option is to focus on the relocation of the two stores that are not operating in a profitable manner and the second option is to improve the customer service process of the concerned stores for increasing the volume of customer footfalls. In the words of Reid and Hinkley (2006), the location of a business house has a major influence on the operational and strategic decision-making process of a firm. Newby (2009) specified that factors such as consumer convenience, the presence of target consumers, market competition, transpiration for procurement of resources, demography and cultural background can the help the business in assessing the contribution of a location for business sustainability.Changing the location of the stores for The Coffee Company has to be conducted based on proper information that would allow them to make quick decisions and implement them.
The Coffee Company Report