THE BUSINESS MODEL CANVAS

“COFFEE PE CHARCHA”
KEY PARTNERS KEY ACTIVITES VALUE CUSTOMER CUSTOMER
RELATIONSHIPS
PROPORTION SEGMENTS
 COFFEE  MARKETING
 LONG
GROWERS  UNIQUE  COFFEE
 R&D TERM
COFFEE CO- AFFECTIONADOS
 SPECIALIZED CREATED
 LOYAL
COFFEE  SUPPLY CHAIN WITH  MOBILE
MACHINE MANAGEMENT CUSTOMER PROFESSIONALS
MAKER KEY CHANNELS
 THIRD  STUDENTS
RESOURCES PLACE  RETAIL
BETWEEN STORES
 PEOPLE
HOME AND
THE OFFICE
 BRAND

 PACKAGING
 A PLACE TO
HANGOUT
AND
WITH
BOTTELING
FRIENDS, DO
PLANTS
HOMEWORK
.

COST STRUCTURE REVENUE STREAMS

COFFEE AND MILK, RENT, PEOPLE COSTS, R&D. RETAIL SALES

BUSINESS PLAN OF “COFFEE PE CHARCHA”:

EXECUTIVE SUMMARY

 “COFFEE PE CHARCHA” has been the leader in the premium

coffee shop industry for decades.
 Largest Coffeehouse Company in the world.

1. OBJECTIVE:
 Objective is to establish company as the most recognized and
respected brand of coffee in the world.

2. MISSION:
  To inspire and nurture the human spirit- one person, one cup and
one neighbourhood at a time.
3. PRODUCT:
 Coffee beans, tea, etc. finest sources.
4. EMPHASIS ON FRIENDLY AND WARMING STORES:

 Improve the quality of life of the farmers.

5.Focused on having latest technology to improve customer

communication.

6. INTERNATIONAL STRATEGY:
 Focused on potential market of U.K., Canada, Japan, India
and China .

COFFEE PE CHARCHA Corporate Mission Statement

COFFEE PE CHARCHA Coffee’s corporate mission is “to
inspire and nurture the human spirit – one person, one cup and one
neighbourhood at a time.” This mission statement reflects what the
company does to keep its business running. It is clear that target
consumers are given emphasis in this corporate mission. The
following components of COFFEE PE CHARCHA’s corporate
mission statement influence strategic management in growing the
business:

1. Inspire and nurture the human spirit

2. One person, one cup and one neighbourhood at a time

IT’S Coffee “inspires and nurtures the human spirit,” starting with its
employees. To address this component of its mission statement, the
company maintains a small company culture, where rapport and
warmth are important. In this way, the corporate mission is a direct
determinant of  Coffee’s corporate culture. In addition, the same
component of the company’s mission statement pertains to customers’
experience. The business extends its warm and small company culture
to its customers. For example, employees and customers first names
 are used at coffee pe charcha. Also, the design of these coffeehouses
aims for warmth and cosiness. These approaches inspire and nurture
meaningful and warm relationships involving employees and
customers. Another factor to consider in COFFEE PE CHARCHA
Coffee’s corporate mission statement is that it indicates a personal
and gradual approach. The “one person, one cup and one
neighbourhood at a time” component shows that the company ensures
meaningful impact on every employee and customer. In parallel, this
part of the corporate mission means that Their Coffee plans to
continually and gradually grow the business, one place or
neighbourhood at a time.

COFFEE PE CHARCHA Coffee’s Corporate Vision

Statement
Coffee pe charcha corporate vision is “to establish it as the
premier purveyor of the finest coffee in the world while maintaining
our uncompromising principles while we grow.” This corporate vision
statement has the following components relevant to the business:

1. Premier purveyance
2. Finest coffee in the world
3. Uncompromising principles

Growth
Aiming to be the premier purveyor means that COFFEE PE
CHARCHA Coffee wants to achieve leadership in providing its
products, especially coffee of the best quality. The company achieves
this component of its vision statement by continuing its multinational
expansion as one of the largest coffeehouses and coffee companies in
the world. However, it is not yet clear if COFFEE PE CHARCHA
effectively addresses the “finest coffee in the world” component of its
corporate vision. Analysts and critics point out that coffee from
McDonald’s or Dunkin’ Donuts may be better than COFFEE PE
CHARCHA coffee in some aspects. Nonetheless, COFFEE PE
CHARCHA addresses the “uncompromising principles” component
of its corporate vision statement. These principles include ethical
conduct and a warm culture. The company maintains these principles,
especially during Howard Schultz’s leadership as CEO. Also, the
company satisfies the “growth” component of its vision statement, as
manifested in the continuing global expansion of the business through
new COFFEE PE CHARCHA locations. The company now has more
than 28,000 locations around the world. Thus, the business effectively
addresses its corporate vision.

COFFEE PE CHARCHA Coffee’s Corporate Vision &

Corporate Mission – Recommendations
A good point about COFFEE PE CHARCHA Coffee’s mission
statement is that it is sufficiently abstract to make it applicable to
future business scenarios. However, this corporate mission does not
satisfy many of the conventional characteristics of ideal mission
statements. For example, COFFEE PE CHARCHA’s mission
statement does not inform about target customers, types of products,
and target markets. While the company presents a facet of its business
philosophy, the resulting corporate mission needs improvement to
satisfy ideal conventions. Thus, it is recommended that COFFEE PE
CHARCHA add such pieces of information in its corporate mission
statement to improve the matching of the statement with the business
and its operations.

COFFEE PE CHARCHA Coffee’s vision statement is concise, clear,

and inspiring, especially in terms of achieving and maintaining the
premier status in the coffeehouse and coffee industry. This focus on
leadership is a motivator that challenges management and other
members of the company’s human resources. Moreover, the corporate
vision is stable in terms of applicability to future business scenarios at
COFFEE PE CHARCHA Corporation. For example, the “premier
purveyor” component is expected to remain applicable in the long
term. However, the company fails to include new business operations
and products in the corporate vision statement. For example, tea,
pastries, and merchandise (consumer goods) are now part of the
product mix, as outlined in COFFEE PE CHARCHA’s marketing mix
or 4P. These products are not yet included in the company’s corporate
vision statement. Thus, a recommendation is to improve COFFEE PE
CHARCHA’s corporate vision by adding these pieces of information
regarding various products, to make the vision more accurate in
representing the business.

What's wrong with COFFEE PE CHARCHA?

I'm a solid believer in the long-term potential of COFFEE PE
CHARCHA, and a near-daily customer (sometimes more than once a
day). The chain should grow as it expands its Reserve and Roastery
brands globally, and its expansion in China is very impressive.
Where the chain underwhelms, however, is in welcoming customers
unfamiliar with its offerings. COFFEE PE CHARCHA has a large,
daunting menu that can be confusing, and the chain uses its own
language when it comes to sizing and customizing your beverage. In
some cases, such as the recent launch of the chain's blonde espresso
roast, it has taken its menu boards down entirely.
This setup can make visiting the chain unpleasant for new customers.
If you don't know the difference between a latte and a macchiato or a
Frappuccino and cold foam cold brew, ordering can be confusing
even when the menu boards are up. For a new customer -- someone
who generally gets their coffee from a convenience store or a diner --
the COFFEE PE CHARCHA offering is overwhelming. In many
ways, it's like walking into a Thai or Vietnamese restaurant that
names dishes but does not explain what's in them.
It's not a welcoming setup, and it often leads to customers being
corrected at the register when they order a "medium regular coffee."
In some cases, the lack of a full menu can even be off-putting to
regular customers -- the chain does not list its full roster of hot tea
flavours on its normal menu boards, and doesn't advertise many other
available items.
What can COFFEE PE CHARCHA do?
The chain clearly wants customers to use its app, and it displays its
full menu there. That's great for existing digital-savvy customers, but
it's not as ideal for someone who has just walked into one of the
chain's cafes simply looking for a cup of coffee.
As someone who works from a COFFEE PE CHARCHA most days,
I've often seen customers (generally older ones, given that I live in
southern Florida) unsure of how to order. In some cases, store
personnel pick up on this and kindly take them through a series of
questions so they can pick a drink they will enjoy. At more crowded
times, however, these new customers end up guessing, or just asking
for coffee when something more complicated would actually be their
preference.
COFFEE PE CHARCHA could easily address this with signage and
pamphlets explaining its menu (which it has offered in the past). In
addition, the chain could train its employees on how to make new
customers feel welcome, while helping them understand what has
become an enormous array of choices.

Why does this matter?

Adding customers is one of the easiest ways to increase same-store

sales. Every time a new person walks into a COFFEE PE
CHARCHA, the chain has the opportunity to create a loyal customer.
That requires making people unfamiliar with the brand feel like they
are part of the club.
This isn't hard, but it's an area that the coffee chain has mostly
ignored. Creating new loyalists might be as simple as matching
someone with a new drink that becomes a favourite, or it could be
showing a customer how to order a simple cup of coffee that doesn't
cost $5 or more.
WHAT COFFEE PE CHARCHA FACING AND WHAT THEY
CHANGED?
Yesterday, the coffee giant released its latest SEC filing. It

begins with a five-page letter "to all COFFEE PE CHARCHA

stakeholders," and is signed by the company's CEO and president,

Kevin Johnson, and its chief financial officer, Patrick Grismer.

While strikingly optimistic in tone, the letter reveals that COFFEE PE

CHARCHA will close up to 400 company-operated stores over the

next 18 months. It points out that the company typically closes about

100 stores in the Americas every year, primarily because of lease

expirations and other circumstances.

But the really big announcement is the reason behind the closures.

According to the letter, the company is laying the foundation for a

"transformational phase" that will introduce a new store format

known as "COFFEE PE CHARCHA Pickup." 

"COFFEE PE CHARCHA Pickup is tailored to customers who prefer

to order ahead and pay through the COFFEE PE CHARCHA mobile

app for pick-up, or those who want their COFFEE PE CHARCHA

delivered to them by placing an order through Uber Eats," the letter

explains.
"We believe this transformation of our store portfolio, blending

COFFEE PE CHARCHA Pickup stores with traditional COFFEE PE

CHARCHA stores in dense metropolitan markets, will elevate the

customer experience and position COFFEE PE CHARCHA for long-

term growth."

What makes this idea so radical is the fact that COFFEE PE

CHARCHA built much of its brand on being what former CEO

Howard Schultz described as a unique "third place," the place

between work and home that customers could go to meet friends, get

work done, or simply hang out.

Which leads us to the most powerful line in the letter:

No matter the format, we know that the COFFEE PE CHARCHA

"third place" experience occurs from the moment a customer
envisions their daily COFFEE PE CHARCHA Experience to
wherever they enjoy that COFFEE PE CHARCHA beverage.
Wow.

This is a major shift in strategy--a statement that the "third place" has

become more symbolic than literal. 

Of course, it makes sense that customers wouldn't want to hang out in

their local COFFEE PE CHARCHA in the middle of a pandemic. But

here's the interesting thing: According to COFFEE PE CHARCHA,

the data indicate that this change in customer behaviour was clearly

noticeable before the rise of the novel coronavirus.

For example, COFFEE PE CHARCHA says that even prior to the

Covid-19 outbreak, it discovered that about 80 percent of transactions

in U.S. company-operated stores were for "on-the-go" orders. This

insight led the company's leadership team to re-examine U.S. stores

and devise a new strategy that could capitalize on changing customer

behaviour. 

In fact, according to the letter, this process of revaluation and redesign

of the store experience has already been underway for two years.

This is more than a brilliant series of moves on the part of Starbuck--

it's also a lesson in emotional intelligence, the ability to understand

emotional behaviour and put that knowledge to work.

Let's break down what exactly COFFEE PE CHARCHA did.

First, the company leveraged data from its mobile app and store sales

to see clear changes in consumer behaviour. At the same time,

company leadership had a realization about the brand. 

Yes, it had taken the company years to establish its reputation as that

"third place." 
Years of giving away free Wi-Fi.

Years of allowing stores to become remote offices for thousands, if

not millions, of people.

Years of building an emotional connection between customers and

stores. 

But with that emotional connection firmly in place (and the data to

prove it), COFFEE PE CHARCHA leadership had the confidence

needed to make adjustments that it hopes will allow the brand to

become more efficient and improve customer experience.

And now that the coronavirus has essentially changed the world,

COFFEE PE CHARCHA is wasting no time executing its strategy--in

fact, accelerating previous plans.

We have here a great case study in how businesses can stay relevant,

and take advantage of a negative situation to make positive changes.

What business leaders can learn from COFFEE PE

CHARCHA

If you own a business, chances are that you have changes you've been

wanting to make. Maybe you were just starting to put things together.
Or, maybe you already had a full strategy in place, and were searching

for the right time to execute.

Well, for all the negatives that Covid-19 has brought to your business,

it has the potential to do one thing positive:

It can give you the inspiration and the motivation to finish your plan

and put it into action.

THANK YOU 

NAME: AKSHAT DOSHI

ROLL NO. 18
K.E.S.SHROFF COLLEGE
ASSIGNMENT 4