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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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My friends and I are going to open a cafeteria. The name of our cafeteria is Moonlight cafe which means that nightlife coffee shop especially for all those people who have works or something to do the next morning. To earn some profit meanwhile produce a place for the people to relax when it is their leisure time. Our business will be a partnership because we plan to make our cafeteria a place is cheap and relaxing.


The location that we choose will be nearby residential area. The customers that we aim for are those who work hard and plan to have a relaxing time. The reason and the purpose that we choose this location is because the population of the place is dense and to fulfil our aim. (MAP PV16)

Problems which might face

One of the factors that will be face by us will be lack of capital. The reason why the lack of capital is when a partnership is formed, there are partnership tax will be pay to the government as a corporate tax. When starting up a business, there will be a lot of expenses the most likely will consume all the money that you invest into the business. And must always think about the future expenses like rental fee, taxes and raw item cost. In most of the business start-up without earning profit but it will be better while the business survives more longer. So the survivability of business will all depending to the capital. According to Bureau of Labour Statistics' Business Employment Dynamics 20% of business fail in first year and the second year with 30%, In the fifth year there will be half of the business will fail and only 20% of the company will survival until tenth year. This shows that the survivability of business is decreasing with year.

In addition, the marketing skill will be a major factor when doing a business. The marketing skill will be one of the ways, the will increase the fame of the business. When the business is success, so there is more customer is coming so the income will be increase as the fame increase. The fame of the business is increasing with the survivability of business is because when the business is well known, it will make the customer more confident when doing business with it. When doing business or doing a co-operate with other business or company, the other company will not easily fail because the fame it has will become a constant income for it. And their business record also recorded with better record, so the failure of it will not be that easy.

Besides that, a newly business build a customer base will not be an easy task. This is due to the fame of the business. A new business is like a clean white paper, it will not have any bad record and also it will not have any database. So building a customer database will take a long time. When the business has a constant customer that means that the business has a constant income whether the market is good or bad. It is like a salary to the business and the new customer will be like an overtime to it.

So, when starting a business with a partnership there is a problem that guarantee will be facing is the management skill. Every individual will have his own management style, so when a bunch of people with different management might bring a major problem, but if they can cope with of other people and ingratiate with them it will be a good sign but not everything will be that smoothly, when their management skill can't cope with other this will make the business in a terrible situation. And if the situation continued is a long period, it will make the partnership breakup or even the business will be in failure. So choosing a partner or having a partner that specialise in management will be a good decision to let them to settle the company management.

Location always will be the first problem that face when construct a business, there is a lot of thing that are needed to be in consideration. As an example, the age of customer target, if targeting a younger customer beside college of school will be primary consideration and the population of that place, if there is not a popular spot so the business will hard to seen. So to determine a suitable location firstly must know what age group that you are targeting then and the spot that you having is a good spot to let people to seen.

At the first factor we talk about that is 50% of survivability of business in the fifth year. Beside from capital, the competition of the business also considers as a major problem that might facing when doing a business, especially a restaurant. In here we need to talk an interesting factor in urban. The urban area competition will be decreasing when the business is creating far away from urban. So when the business is creating a rural area, the competition is not that high and stressful. This is because here are not many selections at the rural area but urban area is full of selection. So the let the customer select you, you must be the most attractive amount of them or else you will be limited and failed your business.


To raise capital, the party can recruit new members in order to provide more funds for running the business. Besides, a greater number of members improve the chance to borrow money from the banks. Having a good business plans will convince more potential investors to contribute to the business.

The firms must establish itself in the market and keep encouraging customers to return to purchase its products over and over again. Apart from that, providing a better customer service and quality of the products will keep customer to come back as much as possible. They can also advertise their business through social media, this will help to generate more new customers and build a customer base.

Every worker must have a knowledgeable marketing strategy to increase sale productivity. The firms should provide marketing education to its staff constantly to keep the marketing knowledge of the staff up-to-date. To successfully sell a product requires not only quality of the products but also the ways how a business sells it, such as communication by telling how the advantages of the products are and how it benefits to the customers.

The different departments require a variety of skill amongst individuals. The party can gather members who have different specialised skill respectively to carry out different tasks in order to operate the business like audit, account and production. In addition, they can also pay higher wage to attract more experts to work together.

The party must be very careful when determining a location to start up a business. They can have a market research before deciding where to run the business. A visible business usually has a higher chance to make profit. It should be as near as possible to bus stop or train station so people can get to its location with ease.

To compete with competitors, the party should find out who the competitors are, what are their offering and unique selling point. In this way, they can lower their price and provide a more flexible or premium services which the competitors do not meet the advantages they give.

Corporate social responsibility

Social responsibility in business or corporate social responsibility (CSR) pertains to people and organizations behaving and conducting business ethically and with sensitivity towards social, cultural, economic, and environmental issues. Striving for social responsibility helps individuals, organizations, and governments have a positive impact on development, business, and society. The benefits of the socially responsible is building relationships with customers is the cornerstone of a successful company and having a social responsibility policy can impact the buying decisions of customers. Otherwise than that is building a positive relationship with customers and their communities can lead to increased sales and rising profits.

So why is the CSR being important in business? Corporate social responsibility (CSR) is a broad term used to describe a company's efforts to improve society in some way. These efforts can range from donating money to non-profits to implementing environmentally-friendly policies in the workplace. CSR is important for companies, non-profits, and employees. There is also a corporation's initiative to assess and take responsibility for the company's effects on environmental and social wellbeing. They create the best environment for the workers and give them everything that they need to get the job done.

Apart from that, social responsibility is an ethical theory, which individuals are accountable for their civic duty. In this way, there is also a balance between growth and the welfare of society. If the equilibrium is maintained, then the social responsibility is accomplished. The theory of social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment, then it would be considered to be socially irresponsible. In a larger group of capacity, social responsibility and ethics is applied within said group as well as during interactions with another group or an individual.

Business have developed a system of social responsibility that is tailored to their company environment. If social responsibility is maintained within a company than the employees and the environment are held equal to the company's economics. Maintaining social responsibility within a company ensures the integrity of society and the environment are protected. The ethical implications of a decision or action are overlooked for personal gain and the benefits are usually material. This frequently manifests itself in companies that attempt to cheat environmental regulations. When this happens, government interference is necessary.

Adding value

   Every cafe has to consider the effects of adding value to the products that it is producing and selling out. The concept of added value is actually very simple. Added value is basically the upgrade or enhancement a company or business gives its products or goods during the manufacturing stage of the products before offering and selling the products and goods to the company's customers and consumers. Added value applies to situations where a company or business takes a similar or rather equal product and gives the product or good an extra feature or an add-on to increase the value of the good. A very good example that can be taken from our café Moonlight is the production of a cup of coffee.

Coffee is made from coffee powder that is manually hand-grinded by our staff members from organic coffee beans that are harvested from our own coffee bean farms. This process of upgrading a product from one to another such as from coffee beans to coffee powder and from coffee powder to a cup of coffee is a very good example of adding value. Let's assume that the price of coffee beans is RM3. By grinding the beans into coffee powder, its value increases up to RM5. And lastly, by making a cup of coffee out of the powder increases its value up to RM7. This example of the price or value increasing is known as adding value. Companies and businesses are starting to learn that consumers aren't all that interested in the products that we provide for them and rather than that, they are much more interested in what the product will do for them. Because of such a factor, the concept of added value exists.  

Another acceptable example can be extracted from the Bose company. A company which produces high end audio products such as speakers, headphones, earphones, and many other highly innovating and uncommonly good quality audio products. Bose realized the importance of this factor and took action to maximize its profits by focusing on producing good quality high end audio products such as its wireless Bluetooth headphones rather than just manufacturing and selling speakers. The concept of adding value was applied in the many years of refinement of the company's products. If our café succeeds and we start up a franchise in the coming years. We can sell our products to our customers at a much higher price if compared to regular cafés. Nike Inc. is a good precedent. If you compare Bata products to Nike products, it is very obvious that Nike products will outsell Bata products even though its price is much higher than the price of Bata products.

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