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KOLEHIYO NG LUNGSOD NG LIPA

Lipa City, Batangas

Survival Strategies of Selected Coffee Shop in Lipa City: An Evaluation towards


Strategic Operation

A Thesis Presented to the Faculty of the


College Business Administration
Kolehiyo ng Lungsod ng Lipa

In Partial Fulfilment of the Requirements for the Degree


Bachelor of Science in Business Administration of
Kolehiyo ng Lungsod ng Lipa

Prepared by:
Ms. Celestial Jeanneth

Leader
Mr. Lara Jeric

Mr. Albor Roilan

Ms. Banawa Nicky

Mr. Arzobal Joshua

Mr. Briones Christopher

Members

BSBA III-A
major in Marketing Management

October 2022

TABLE OF CONTENTS

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TITLE PAGE ……………………………………………………………………….. 1

TABLE OF CONTENTS ………………………………………………………….. 2

LIST OF FIGURES………………………………………………………………..

ABSTRACT………………………………………………………………………...

CHAPTER

I. THE PROBLEM

Introduction ……………………………………………………..4

Background of the Study………………………………………...6

Theoretical Framework…………………………………………..7

Conceptual Framework…………………………………………..8

Statement of the Problem…………………………………………10

Hypothesis of the Study ………………………………………… 11

Assumptions of the Study………………………………………...11

Significance of the Study ……………………………………….. 10

Definition of Terms ..................................................................... 15

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II. REVIEW OF RELATED LITERATURE

Research Literature ……………………………………………….. 19

Conceptual Literature ……………………………………………..20

Synthesis of the Study………………………………………………. 33

III. RESEARCH METHDOLOGY

Research Design …………………………………………………..35

Respondent of the Study ..................................................................36

Sampling Design……………………………………………………37

Data Gathering Instruments…………………………………………37

Data Procedure …………………………………………………….. 38

Statistical Treatment of the Study…………………………………… 39

Survey Questionnaire ……………………………………………………….. 44

REFERENCES ………………………………………………………………… 40

CHAPTER 1

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INTRODUCTION

Coffee is one of the most popular beverages in the world, and the coffee industry

is considered an important and high value-added business, the coffee shop market is

highly saturated; businesses are experiencing difficulties owning to a rapid increase in the

number of coffee shops, not only those of globally popular franchises but also shops

belonging to independent brands .The main purpose of this coffee shop is to From a

cultural standpoint, coffee shops serve as centre of social interaction a coffee shop

provides talk, read, write, entertain one another, or pass the time.

Customer satisfaction is the key to the success of an organization or business so

that it can be said that customer satisfaction is the goal of marketing management

activities for a product of the organization or industry (Hill & Wright, 2000). Fulfilling

customer satisfaction by providing what they want from a product can also encourage

consumers to loyalty to a brand of the product (Bayunitri, 2017). Therefore, customer

satisfaction is a long-term strategy for companies to be successful and survive for a long

time. Because of its significance to the company's success, research on customer

satisfaction has been widely conducted and has become a popular research topic in

marketing management. Several studies have shown that satisfied consumers are fewer

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prices sensitive, competitive, and loyal to the brand longer than dissatisfied consumers

(Erciş et al., 2012; Rahmah et al., 2018).

The result indicated that it is ideal for the society and coffee shops to adopt and

implement drive-thru services. This is to enhance the effectiveness and efficiency within

the production and distribution systems. This will enhance quality services thus saving

time and energy of consumers as they seek to address demands and preferences in

relation to consumption of coffee. Coffee is also vital for many reasons. This explains the

response majority on the need to adopt and implement coffee shops away from the

buildings within Western Illinois University. Erection of coffee shops away from the

buildings within the working place, University etc. will enhance the opportunity for

employees and students to enjoy services form the shops on a 24/7 basis. This relates to

the essence of quality area, plenty of space and other products, and quiet environment to

facilitate social needs such as meetings and bonding activities. In the execution of the

research, the sample size was minimal to provide effective generalization in relation to

the conclusion. This was a limitation to the execution of the study. Lack of financial

Resources also limited the essence of executing quality research process this

limiting the sample size to 60 participants. In the event of conducting future research

method, it is ideal to increase the size of the population sample thus ability to minimize

elements of biasness. Another limitation to the execution of the research study was the

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unwillingness of the respondents to participate in the research process. This is because of

lack of financial motivation to enhance participation of the population sample towards

achieving the goals of the study. From this experiment, it is ideal to conclude that coffee

shops should act towards serving variation in demands and preference of the students and

other stakeholders. This is though operating on a 24/7 basis thus providing the

opportunity to enable students to address their needs at will (Lewis, 2011)

I.BACKGROUND OF THE STUDY

This study aimed to assess the Survival strategies of Selected Coffee Shop in Lipa

City: An Evaluation towards Strategic Operation. It utilized the descriptive method of

research. A total of 53 (100%) business owners/ managers of food parks in Lipa City and

Batangas City that are selling food and beverages are the participants of the study. Most

of the stalls in Lipa City are already closed, because they are the first to establish food

parks and some of them faced business bank compared to Batangas City food parks.

Based on the findings of the study, most of the owners who are using creative marketing

strategies have survived more than a year in business. The marketing strategies used by

the business owners are effective enough to attract customers. Food parks with an

average customer of 31 and above have creative marketing strategies on branding while

businesses in Lipa City have higher creativity on customers experience and visual

merchandising.

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II. THEORETICAL / CONCEPTUAL FRAMEWORK

2.1. Theoretical Review

According to an Ibis report (2011), the National coffee association (2016), and Starbuck

(2016), the coffee shop industry is popular worldwide because coffee shops serve various

purposes, such as chatting, meeting, eating, or studying. According to Han, Back, &

Barrett (2009), Han & Jeong (2013), Jung &Yoon (2013), and Ryu et al., (2008), these

characteristics are important for coffeeshop businesses to make efforts to maintain

current customers and to attract new customers. Such businesses must develop an in-

depth understanding of customers.

“coziness” and “comfort” as a state of physical relaxation in the atmosphere and that it

provided customers with familiarity comfort to create satisfaction in the hospitality idea.

According to Ha & Jang (2010), Heung &Gu (2012), Tripathi& Dave (2014), Han &

Hwang (2015), Han &Hyun (2017) effects of “atmosphere” inside the tourism industry

domain and feature advised that feelings of comfort from the environment are in all

likelihood to generate an experience of satisfaction. As an example, according to Han and

Jeong (2013), customers of an upscale American eating place and discovered a positive

effect of the atmosphere on customer pleasure. Mainly based on the extant literature, the

hypothesis is as follow:

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H1: Atmosphere positively affects customer satisfaction in the coffee shops.

Coffee quality was the last variable that can affect customer satisfaction.

According to Dorn, Messner, &Wänke (2016), Ha & Jang (2010), Han&Hyun (2017) and

Namkung& Jang (2007), food quality is the most significant element in the food service

business. According to Ha & Jang (2010), a full-service restaurant by Tsaur et al (2015)

and a hotel restaurant by Han & Hyun (2017), in an ethnic restaurant, found positively

significant association between satisfaction and food quality. Based on the evidence, this

research found that coffee quality influenced customer satisfaction.

H2: Coffee quality positively affects customer satisfaction in the coffee shops.

CONCEPTUAL FRAMEWORK

Input Process Output

Internal

- Survey questionnaire - Customer Satisfaction

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- coffee quality - Customer Loyalty

- Consistent in the field


- suppliers - Planning and
of coffee business
Scheduling
- Facilities
- Profitable

- Process flow
External

- Customer satisfaction

- Service staff

satisfaction

FIGURE 1

The Conceptual framework provides the foundation for the research its consists

independent variables, which are the internal and external Input. Besides the process

that’s helps to guide our research through survey questioner , planning , scheduling and

also process flow to meet the output which customer satisfaction , loyalty and profitable

in business world. Using this framework its will help the research and the business

continue growing with improving and also helps the future researcher.

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III. STATEMENT OF THE PROBLEM

This study aimed to determine the Survival Strategies of Selected Coffee Shop

Lipa City; An Evaluation towards Strategic Operation.

Specifically, it sought to answer the following questions:

1. How did you establish your pricing strategy compared to the pricing of your

competitors?

2. How did you merchandise your products to be more appealing to customers?

3. What marketing strategies do some coffee shop owners use to sustain business

operations?

4. What media were most effective at creating more foot traffic into your coffee shop?

5. What were the key challenges you had in implementing your marketing strategies?

6. What additional information can you provide regarding marketing strategies you

used to sustain business operations?

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IV.HYPOTHESIS OF THE STUDY

This study focused on survival strategies of selected coffee shop. A variable for

future research is whether, the owner has attention to employee values. And understand

how other business owners predict the idea. The strategy might assist coffee shop owners

to make better decisions. Suggested small business owners make better and consistent

thinking strategies when ethics is part of the making strategy process. If they continue the

strategy it will never further developed. And if their idea is further challenged, it will

strengthen the quality of the business. The results have implications for the marketing of

ethical strategies business of coffee shops. The activities and personality traits of the

business owner or manager exhibit the ability to explore potential opportunities the focus

of the business owner or manager should be on what they know, not whom they know.

ASSUMPTIONS OF THE STUDY

In this study we come up an idea from respected author below and we assure in

helps and benefits a lot in our study.

The first assumption was that coffee shop owners would provide adequate and truthful

responses during the interviews.

The second assumption was that the participants would share useful information on their

standard and unique marketing strategies.

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The third assumption was the selected coffee shop owner must give a powerful idea and

strategies.

My final assumption was that the sample size of 5 coffee shop owners in the study was

adequate for a multiple case study. ( Adeleke, A. (2019). Marketing strategies of

successful coffee shop owners).

SIGNIFICANCE OF THE STUDY

The generalization of this study would be great contribution to the knowledge in

relation to the Business Survival strategy of Selected Coffee shops in Lipa City Batangas

and to evaluate their Strategic Operation.

Furthermore results of this study could be highly significant and beneficial to the

following:

Potential Customers:

They are the consumers that have not yet purchased or try the different coffee shops

in Lipa City. This study aims to give insights and overview about overall performance of

the coffee shop and it would help them to choose the perfect coffee shop they wanted to

try.

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Community:

For they also play a vital role in the business and as well as the consumers. As this

research would give them idea that such shop exist in which helps them to find a place

for relaxation, meeting place and many more. Hence, giving back to the community and

making it a better place to live.

Business Owners

They will benefit the most, because the can use this study to know the strategies

on how to overcome in such problem facing by some owners and how they survived to

that circumstances.

Researchers

This refers to the students who are conducting the study. They will find self-

fulfilment and gain learning’s and skills in this study. This study will help and inspired

more researchers to be more innovative and creative in their future endeavours.

Future Researchers

This study will serve as their reference if they conduct the same study as the

proponents of this study does. This will serve as guide to further develop the research

with the connection to the variables used.

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SCOPE AND LIMITATION

This study focuses on the Survival Strategies of Selected Coffee Shop in Lipa

City , Batangas :An evaluation for strategic operation .The data collection will be

conducted to 100 randomly selected coffee shop in Lipa city Batangas who will represent

the population

This study will not cover other problems that are not considered as one of the

stressor and depressants. Each respondents is given the same questioners to answer .The

result of this study will be applicable only to the respondents of this study and will not be

used as a measure to the effects of the strategies of coffee shop who do not belong to the

population of this study .The main source of data will be the questionnaire, which is

prepared by the researcher .Scope and

LIMITATION

This study focuses on the focuses on the Survival Strategies of Selected Coffee

Shop in Lipa City, Batangas: An evaluation for strategic operation .The data collection

will be conducted to 100 randomly selected coffee shops in Lipa city Batangas who will

represent the population.

This study will not cover other problems that are not considered as one of the

stressor and depressants. Each respondents is given the same questioners to answer .The

result of this study will be applicable only to the respondents of this study and will not be

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used as a measure to the effects of the strategies of coffee shop who do not belong to the

population of this study .The main source of data will be the questionnaire, which is

prepared by the researcher.

DEFINATION OF TERMS

Product Quality

This situation requires full involvement of the coffee shop supply management

Throughout the growth and manufacturing process of the beans (Starbucks 2016).

Moreover this element should be congruent with the actual product quality (Zeithaml

2017).

Lifestyle Experience

The cafe provides its customer with a memorable experience. The goal is to

position itself as an alternative third lifestyle destination for its customers regularly (Said

2016). According to (McCunn 2016) such a social design framework is an essential

component. That encourages congruence between the coffee shop and the behavioural

needs of the user.

Quality Customer Service

Knowing customers experience can influence their willingness to buy or pay more

if the service are of quality. Therefore the management has come up with strategies that

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maintain high quality customer service. For example they understand that someone who

is paying for a product may not be willing to queue or wait for long period before the

service is rendered (Stanoeva 2017).

Waste Management

Is a part of the corporate social responsibility. In fulfilling its commitment to

waste management the cafe reduces its waste disposal through increased recycling and

promotion of reusable cups among its customers (Visser 2017). However such effort

faces several challenges. The importance of waste management in the context of societal

benefits through promoting the use of reusable cups (Stokes and ksster 2018).

Customer Satisfaction

Customer satisfaction was first introduced by Cardozo (1965) as cited in Bei and

Chiao (2006), since then there has been followed by several definitions regarding to the

customer satisfaction. He pointed out that the increase of consumer’s satisfaction would

determine the repurchase behavior and the intent to purchase of other products (Chang,

Chou, and Lo, 2014).

Services cape

Is a concept developed by Booms and Bitner (1981) to emphasize the impact of

the physical environment in which a service process takes place as cited by Musriha

(2012).

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Cash flow prediction

is the ability to predict the availability and surplus of cash generated in the

business (Fatma & Chichti, 2018). Casual dining: A restaurant that offers a casual

ambiance and food at moderate prices where formal dressing is unnecessary. Table

service usually either involves food served preplated or on platters with or without a

buffet option (Nadiril & Gunay, 2017).

Creative cash flow reporting

refers to the steps taken to create an altered impression of the operating cash

flow, to provide a misleading signal of a company’s sustainable cash flow (Lorek &

Willinger, 2019).

Dashboard report

A management tool that measures and presents critical data on the important

business performance areas in a summarized manner much like a car dashboard (Fisher,

2017).

Independently owned and operated coffee shop

An independent coffee shop owned by a majority of residents free to make their

decisions regarding advertising, operational, and legal decisions (Nadiril & Gunay,

2017).

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Menu mix

The ratio of each item on the menu in relation to the rest of the items on the menu

regarding its sales, popularity, and profit (Nadiril & Gunay, 2018).

Point of purchase (POP)

Point of Purchase is marketing material placed at locations where customers

make purchase decisions. For instance, a tall, menu, tent card display at a restaurant

entrance or danglers hung above a food deli display counter (Niehm & Eckerson, 2020)

Survival strategies

Means cutting costs, laying off employees, tightening profit margins and saving

cash, in stark contrast to growth mode, during which a company reinvests profits,

expands operations and brainstorms growth strategies with long-term payoffs.

Extant Literature

Refers to texts or music that has survived from the past to the present time, as

opposed to lost work.

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CHAPTER II

REVIEW OF RELATED LITERATURE

The following are the review of related literature which helps to resolve the

problem of the research topic:

Conceptual Literature

Jackson and Jackson (2017) described a sustainable business as an entity that creates

profit and typically benefits the needs of others in services or products. The challenges

for many small-business owners include how to develop and integrate innovation

strategies to sustain long-term growth (Adams, Kauffman, Khoja, & Coy, 2017). For the

purposes of this study, sustainability includes addressing the issues that help small-

business owners sustain and grow a viable business entity. Cronin-Gilmore (2017)

conducted a qualitative case study design using in-depth interviews to obtain information

from a purposeful sample of 20 small-business owners in the United States. The

CroninGilmore findings suggested owners of the small businesses require the following

elements to remain sustainable (a) have a solid strategic plan, (b) conduct environmental

scanning that includes competitive strategies and plans, and (c) increase stakeholder

involvement approaches. Additionally, Cronin-Gilmore suggested that while small-

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business owners have knowledge of their product or service, they typically lack skills to

develop a strategic and operational business plan.

Today’s consumers expect a greater variety of purchasing and consumption

experiences. Kim and Jung (2018) stated that modern consumers focus on unique and

sensory experiences. To support this argument, the focus of recent research has been on

the importance of sensory marketing utilizing human senses.

It has several advantage and disadvantages in starting a small business because the

economic status can affect and play a big role, Osmond (2018). They can first make a

plan about their business which can help in the improvement of the company especially

the owners.

According to (Bayunitri, 2017) to fulfil the customer satisfaction by providing what

they want from a product can also consumers to loyalty to a of the product brand and the

customer satisfaction is a long-term strategy for companies to be successful and survive

for a long time.

Research Literature

The significance to the company's success, research on customer satisfaction has

been widely conducted and has become a popular research topic in marketing

management. In several studies have shown that satisfied consumers are less price

sensitive, competitive, and loyal to the brand longer than dissatisfied consumers (Erciş &

0Rahmah et al., 2018).

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He & Harris (2020), identify Covid-19 could potentially change how we see the

world, the ways in which we think, and how we conduct our lives. Notwithstanding the

human tragedy of lost lives, broken families, and scarred communities, the economic and

social changes caused by a pandemic-driven lockdown will constitute a cultural legacy

which will live long in our memories and those of future generations. The pain is

personal, emotional, psychological, societal, economic, and cultural; and it will leave

scars. The purpose of this study is to investigate how service brand loyalty can be

enhanced through customer involvement, based on involvement theory and symbolic

interaction theory as theoretical backgrounds (Nguyen, Huynh Ngan 2020).

Base on the study of the Gautama, A. H., & Rahadi, R. A. (2020) customer

preference on coffee shop consumptions they discuss the difference in motivation in

coffee shop consumptions and awareness of its effect on peoples. Nguyen, Huynh Ngan

(2020) aims to create a digital marketing plan for the author’s future coffee shop by

mapping which digital marketing channels or a combination of digital marketing

channels the coffee shop can utilize to approach potential customers, boost brand

awareness, and enhance customer engagement. To explore opinions of the fresh coffee

shop owners toward the importance of shop environment components by using the

concept of the style, the theory of important picture perception, the concept of shop

identity design, and the concept of market segmentation, market targeting and market

positioning (STP Marketing) by Auddong, M. N. (2019).

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Samper, Quiñones-Ruiz, (2017), Stated that one of the world’s most traded

agricultural commodities, coffee constitutes a significant part of the overall economy and

a major source of foreign revenue for many developing countries. Coffee also touches a

large portion of the world’s population in the South, where it is mainly produced, and in

the North, where it is primarily consumed. Responding to the trend of increased interest

on sustainability, it is therefore not surprising that coffee continues to be at the forefront

of sustainability initiatives that transcend into other agricultural industries. Based on

literature and authors’ experiences, this article reflects on the VSS evolution and

considers a sustainability model that specifically incorporates producers’ local realities

and deals with the complex scenario of sustainability challenges in producing regions.

This top-down/bottom-up approach could also lead to origin-based, actionable and

focused sustainability key performance indicators, relevant for producers and consistent

with the UN’s Sustainable Development Goals. The initiative also aims to provide a

sustainability platform for single origin coffees and Geographical Indications (GIs) in

accordance with growers’ own realities and regions, providing the credibility that

consumers now expect from sustainability initiatives, additional differentiation options

for origin coffees and economic upgrade opportunities for farmers.

This enables students and other stakeholders from the region of reference to save

time and energy as they enjoy their favourite beverage. Adoption of the drive-thru

services also contributes towards the elimination of the long queues of the coffee

consumers thus efficiency in service delivery and satisfaction among consumers. Several

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factors contribute towards the consumption of coffee. One of the common factors in the

determination of coffee consumption is the social factor. The social context such as

personal relationships, executive or friendly meeting, and reunions lead to increase in the

consumption of coffee. The main reason behind the social factor is the environment of

influence thus the ability to embrace the situation with the beverage consumption. It is

also evident that students take coffee for psychological reasons. This is to maintain

mental alertness thus highly level of focus on the issues of concern. Consumption of

coffee is also associated with class thus the act of economic reasons in the determination

of coffee consumption (Blazey, 2017).

From this perspective, coffee plays a critical role in the enhancement of the performance

of students within the institutions. Coffee also plays a critical role in the bonding aspect

of human existence. Various individuals including students make coffee shops their

meeting points to interact on personal and common issues. These interactions range from

social communication or meeting to personal relationships between couples and girlfriend

and boyfriend interaction. It is ideal to note that coffee is an aspect or component for

bonding as it is a reflection of friendship and togetherness among the students and other

stakeholders. Most individuals also depend on coffee for biological reasons. These may

include prevention or delaying of certain diseases (Parkinson’s disease), elimination of

rectal cancer, prevention of dizziness especially among the old population, and

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elimination of certain types of diabetes. In the act of consuming coffee, it is ideal to

obtain effective and efficient services thus ability to save time and energy. Adoption and

implementation of drive-thru services acts towards the automation of activities within the

coffee shops (Balch, 2017).

At the point when an organization hopes to build up itself in the commercial

center, it regularly swings to branding to help. The idea of branding and identity is to

make a look and feel instantly identifiable and unmistakable in the commercial center.

Great branding can expand the estimation of the item and the organization itself. An

organization's personality in the market place can easily make or break its profitability as

a whole, Laure, (2018).

The small businesses beset with the survival difficulty due to the stiff competition

including the high cost of utilizing traditional sales promotional techniques found a way

to compete and stay in contact with regular and potential customers through the use of

social media. They created social-media fan pages on FaceBook. Dineva, Breitsohl, and

Garrod (2017) mentioned in their study that the fan pages provided opportunities for the

businesses to understand the behavior of consumers and release collaborative promotions

(Schembri & Latimer, 2016), However, consumer-to-consumer and consumer-tobusiness

difficulties using social media still crop up needing attention from small businesses

(Dineva et al. (2017).

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Furthermore, Pomering (2017) suggested that small business owners who use the

marketing mix could benefit by recalibrating the traditional 4Ps to a changing,

sustainable society.

Entrepreneurs seek to retain long-term customers by using resources to cultivate

relationships with customers (Osakwe & Anaza, 2018). Technological considerations and

marketing strategies that recognize the brand, customers, and supply chain relationships

improve an organization's competitive advantage (Ndabako, Bello, & Iliyasu, 2019;

Osakwe & Anaza, 2018). Customers play an integral role in growing marketing resources

for small business owners. Accessible, evidence-based information allows consumers to

make informed decisions on purchases. Transparent SBOs that demonstrate sensitivity to

social and cultural community needs might receive stronger support from lenders or

investors (Dunne & McBrayer, 2019).

Camello Lima (2018) posited the threat of new entrants refers to new or existing

companies that bring new capacity to the industry. Industry rivalry exists between

competitors seeking top market positions using competitive strategies (dos Santos et al.,

2018).

According to Dr. Rustan (2021) the presence of coffee stalls that were

initially in domination for the lower with a low price, experienced development as

the progress of development in Indonesia, almost in all areas in South Sulawesi has a

coffee shop, with a variety of flavors Coffee, this gives an indication that our society

makes coffee stalls not only come just to drink coffee, but developed as a

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place to build social communications involving various characters and interests

of each visitor who come to the coffee shop

Winiarczyk-Raźniak, (2021) stated that this study is focused on global coffee

franchises because a single brand can control factors other than spatial design, such as

coffee price, quality, brand identity, and service. This study looks at global coffee

franchises from the spatial design marketing perspective, to examine the value and

importance of a space as not only one of the elements of spatial design, but also as a

marketing agent. To this end, spatial design marketing will be presented for Starbucks

and Blue Bottle, which are the front-runners of the global coffee franchise sector. This

study also explores the meaning of directional space, within the global coffee franchises,

a meaning that will be transformative in the future. This study is significant in that it

derived three spatial marketing characteristics and six strategies that can enhance the

spatial value of coffee shops and the experiential value of consumers.

According to Science Direct (2017) stated that Coffee is a universally popular

product, with very distinct sensory characteristics and a stimulant effect due to the

caffeine content. While many people consume more than one coffee per day, it is

common to have a favourite coffee during the day, associated with a specific context.

Preferring a context to another can provide valuable information about the most favoured

aspects of the coffee experience, that may reflect individual physiological differences that

affect food/beverages perception. Open-ended questions can be useful to collect this

information because they allow subjects to freely describe their experiences. This study

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aims at: 1) exploring consumers' preferred coffee consumption contexts and their

relationship with individual physiological characteristics; 2) developing an approach to

facilitate and make more efficient open-ended question analysis, using together semiotic

and statistical tools.

This study focused on sensory marketing that appeals to the five senses of coffee

shop customers (“sight,” “smell,” “sound,” “taste,” and “touch”) to provide a sustainable

growth model for the saturated coffee shop market. .The results showed that there are

statistically meaningful relationships between “sight” and dominance, “sound” and

arousal, “taste” and dominance, “taste” and arousal, “touch” and dominance, and “touch”

and arousal. In addition, it was confirmed that there are significant relationships among

the PAD emotions; pleasure also has positive effects on flow and behavioral intentions.

Finally, this study found significant moderating effects of hedonic and utilitarian usage

motivations on the hypothesized relationships. Based on our findings, several important

academic and business implications are provided, which can contribute to the

sustainability of coffee shops( Jang, H. W., & Lee, S. B. (2019).

Dharmayanti, P. D., & Darma, G. S. (2020)..The sophistication of technology

such as smartphones that everyone had, it makes start-up entrepreneurs use it very well.

The purpose of this study was to determine the effectiveness of the use of Instagram on

the Coffee Shop "Ngocok Es Kopi".The results showed that the number of active users of

the Instagram platform in Indonesia was dominated by 18-31 years old user groups. This

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is a strong reason for marketing Ngocok Es Kopi chose to use Instagram because the

group is by market segmentation. The Instagram platform is very helpful for introducing

products to consumers. Showing photos of the Ngocok Es Kopi products that look fresh

and added with the eccentric tagline on the glass packaging, this gives a distinctive

impression and makes potential consumers curious to try the product. Strategies are taken

to increase the number of followers by giving them prizes in the form of discounts or free

drinks on the condition that they have to follow the Instagram account of Ngocok Es

Kopi, and give away by taking part in quizzes conducted by Ngocok Es Kopi.

According to Bunyamin, B., Hadidu, A., & Manda, H. M. (2021) the business sector,

especially the food and beverage business, continues to develop rapidly and dynamically

from conventional concepts to modern concepts, which causes competing competition

between these businesses so that a strategy is needed to survive.

Pan, H. Y. (2020) stated that the research adopts an expert questionnaire design,

with independent coffee shop operators in Taiwan as the main research object, and

through questionnaires to understand the key factors for the success of independent

coffee shops in Taiwan. This study retained six questions based on the results of the

questionnaire. The results of the questionnaire can be divided into four dimensions, first,

the external environment of the enterprise; second, the management team concept and the

internal environment; third, marketing planning dimension; fourth, equipment planning

and product characteristics. The follow-up can be further analyzed and expected to

effectively help independent coffee shop operators understand the interaction between

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key factors in the success of coffee shops. Although the consumer demand for coffee in

Taiwan is increasing, it is undeniable that the operation of independent coffee shop still

faces serious challenges. The survey also shows that food safety awareness must be

influenced by the external environment. Operators must shape an excellent management

team and create a sound business philosophy and a smooth internal control process.

Andreevic, H. A. (2020) The goal of the research is to analyze the strategies of

Russian SMEs and the way these companies use their resources and competences to

choose a strategy to follow thus allowing them to acquire sustainable competitive

advantages to achieve better development of the company. The multiple case study is

conducted on the sample of 14 Russian SMEs from coffee house industry in Moscow,

Saint Petersburg and Ekaterinburg. Based on the semi-structured interviews conducted

with the owners and top-managers of these companies, the collected data was analyzed in

order to pinpoint similarities and differences in the SMEs’ approaches towards their

strategies, as well as gain a deeper understanding of the motivation and internal processes

of these organizations. The results underlined the strong support of owners and managers

of strategy implementation. However, in practice despite strong support, the actual choice

of a strategy and its degree of implementation vary widely across the sample. Based on

the planning time-frame criteria, three groups of companies were identified as they

demonstrated similarities in their strategy-related activities and approaches. The

interview results revealed that the actual choice of a strategy and its implementation are

linked to the stage of SMEs’ development. This is explained by the connection between

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operation periods and the resources available and perception of the companies’ stability

with regards to external environment. The research results may prove useful to SMEs’

owners as it can provides them with a roadmap of enterprise development and best

practices among SMEs, especially in the coffee house industry.

Chiang, W. Y. (2020) stated that the Ppurpose of the agricultural business

environment is expended to the whole world. Transaction records in point of sales and

customer relationship management (CRM) systems can be large-scale data for long-

established global chain businesses. Thus, the purpose of this paper is to using a proposed

data mining approach to discover valuable markets/customers of urban coffee shop

industry (retailer) in current environment of Taiwan, which can implement the industry's

data-driven marketing strategy on a CRM system.

According to Prayogo, A., Diza, T., Prasetyaningtyas, S. W., & Maharani, A.

(2020)They said that the nature of the food and beverage service industry is a fast paced

environment and needs to communicate with each other between employee-employer and

employee-customer in order to adapt and understand very fast with the workflow in the

workplace. The food and beverage industry are required to generate healthy working

environments and conditions for their employees to commit and motivate. The work is

one of implications that is able to affect people’s psychological healthiness and life as an

employee has their own duty to complete each task given to make the company survive,

being controlled by the top management and access to make social interactions with other

employees. One of the major challenges is to generate work environments with a high

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capacity for organizations to learn about the current situation that happened to the

company. The company needs to have a planning function which involves strategy to

develop a complete set of plans to coordinate and integrate from one activity to another,

define an organization’s goals and achieve those objectives

Base on Igbinakhase, I. (2021) this chapter focused on the determinants for SMEs

and entrepreneurship post-pandemic success. SMEs and other enterprises have been

greatly impacted by the COVID-19 pandemic globally with diverse outcomes. While

some SMEs have experienced failures and have permanently closed operations due to the

COVID-19 pandemic, other SMEs have shown resilience and have been able to adapt

their operations to cope during and post pandemic periods. The resilient SMEs' successes

have been made possible by several critical factors in the internal and external business

environments. Some of the determinants for SMEs and entrepreneurship post-pandemic

success include financial literacy and savings culture and technology adaption.

Furthermore, identified challenges that hamper SMEs' survival and post-pandemic

success rate include financial challenges and lack of online presence. Finally,

recommended solutions to challenges that hinder SMEs' post-pandemic success include

SME participation in capacity development programmes.

According YJ Yoo, The Journal of the Korea Contents Association  ( 2017)The

purpose of this study was to examine the effect of servicescape on customer satisfaction

and brand loyalty in Franchise Coffee Shops. Also, this study investigated a mediating

effect of brand image in the causal relationship between servicescape and customer

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satisfaction and, between servicescape and brand loyalty. The results of this study are as

follows: Firstly, among components of servicescape, aesthetics, cleanliness and pleasance

affected brand image. Secondly, among components of servicescape, aesthetics,

cleanliness, pleasance and space affected customer satisfaction. Thirdly, among

components of servicescape, pleasance and space affected brand loyalty. Fourthly, Brand

image significantly affected customer satisfaction and brand loyalty. Fifthly, customer

satisfaction significantly affected brand loyalty. Sixthly, brand image had a mediating

role in the causal relationship between servicescape and customer satisfaction and,

between servicescape and brand loyalty.

U Suhud, M Allan, SF Wibowo, E Sabrina, G (2020) Journal of Foodservice

Business Research  Consumer behavior within a traditional market has received a lack of

scholarly attention. This study aims to examine the impact of product quality, service

quality, and price on customer satisfaction within a traditional market in Indonesia. The

participants were visitors of a café and coffee shop colony at a traditional market, in

Jakarta. Data were collected at Pasar Santa, a traditional market in South Jakarta that has

been modified into a new concept for attracting younger patrons. Data were analyzed

using exploratory and confirmatory factor analyses, and structural equation model. As a

result, product quality, service quality, and price insignificantly affected customer

satisfaction. In addition, this current study offers three modified models to explore the

role of each predictor variable. This study helps to enhance our knowledge toward the

consumer behavior engaging in the traditional markets.

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Synthesis of the Study

The synthesis of the research summarizes the idea, techniques than can improve

on modern literature reviews in many ways. Namely these people and also the procedure

provide enhanced level of the study.

Winiarczyk-Raźniak, (2021) Osakwe & Anaza, 2018, Ndabako, Bello, & Iliyasu, 2019,

Their study is focused on global coffee franchises because a single brand can control

factors other than spatial design, such as coffee price, quality, brand identity, and service.

This study looks at global coffee franchises from the spatial design marketing

perspective, to examine the value and importance of a space as not only one of the

elements of spatial design, but also as a marketing agent. Entrepreneurs seek to retain

long-term customers by using resources to cultivate relationships with customers.

Technological considerations and marketing strategies that recognize the brand,

customers, and supply chain relationships improve an organization's competitive

advantage.

Accordingly, scholars have conducted studies on various marketing strategies for

coffee shops. They have focused on marketing strategies based on customer relationships,

brand image improvement, and corporate social responsibility. These studies were based

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on the traditional marketing viewpoint that consumers select coffee shops using rational

decisions.

Cronin-Gilmore (2017) conducted a qualitative case study design using in-depth

interviews to obtain information from a purposeful sample of 20 small-business owners

in the United States. The CroninGilmore findings suggested owners of the small

businesses require the following elements to remain sustainable (a) have a solid strategic

plan, (b) conduct environmental scanning that includes competitive strategies and plans,

and (c) increase stakeholder involvement approaches. Additionally, Cronin-Gilmore

suggested that while small-business owners have knowledge of their product or service,

they typically lack skills to develop a strategic and operational business plan competitive

advantage . Pan, H. Y. (2020) Although the consumer demand for coffee in Taiwan is

increasing, it is undeniable that the operation of independent coffee shop still faces

serious challenges. The survey also shows that food safety awareness must be influenced

by the external environment. Operators must shape an excellent management team and

create a sound business philosophy and a smooth internal control process. Dharmayanti,

P. D., & Darma, G. S. (2020)..The sophistication of technology such as smartphones that

everyone had, it makes start-up entrepreneurs use it very well. Furthermore, Pomering

(2017) suggested that small business owners who use the marketing mix could benefit by

recalibrating the traditional 4Ps to a changing, sustainable society.

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Chapter III

Research Methodology

The study sought to determine the strategies of selected coffee shop in Lipa City,

Batangas. The researcher used the descriptive and quantitative type of research to

determine the strategies of selected coffee shop in Lipa City. As perceived by the

business owner and managers of selected coffee shop in Lipa City.

Research Design

Descriptive research is scientific research that aims to analyse and interpret the current

status of people, settings, conditions, or events. According to Gay (1992), descriptive

research entails gathering information to test hypotheses or answer questions about the

current status of the study's subject. A descriptive research design can use a wide variety

of research methods to investigate one on more variables which allows the researchers to

answer the questions and purpose of the study and thus yield rich data that will lead to

important recommendations and decisions.

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Quantitative methods emphasize objective measurements and statistical, mathematical, or

numerical analysis of data collected through the use of polls, questionnaires, and surveys,

or by manipulating pre-existing statistical data using computational techniques, with the

goal of determining how many people think, act, or feel in a specific way. This method is

concerned with obtaining numerical data and generalizing it across groups of individuals

or explaining a particular phenomenon.

Questionnaires will be used in collecting the data which can either be conducted online or

offline. Respondents will not be able to make lengthy open-ended responses as they Will

be given a predetermined selection of answers. This solution is significantly more

efficient since it eliminates the time-consuming process of coding large amounts of open-

ended responses. In quantitative research design, the typical approach is for each

respondent to be asked the same questions, so that the entire data sample can be fairly

analysed. These methods mentioned will be used to answer and discuss the objectives and

variables of our research. Descriptive and Quantitative methods will be used in

determining the strategies of selected coffee shop in Lipa City. Data’s will be collected

through questionnaires which will be given out to business owners and manager of

selected coffee shop, response obtained will be recorded.

These methods were the most appropriate and suitable to be used because these could

easily explain the strategies of selected coffee shop in Lipa City, Batangas.

Respondent of the Study

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The Respondents are those individuals who complete a survey or interview for the

researcher, or who provide data to be analyzed for the research study. Respondents can be

any age, but determined by the scope of the study, and must agree to informed consent to

participate.

Sampling Design

The target population of this research is customers who prior experience with selected

coffee shop in Lipa City Probability sampling is a sampling technique in which each

member of population has an equal chance of being selected (Jackson, 2008). There are

several techniques; however, the main three types of probability sampling are: “simple

random sampling” each member of the population has a known and equal probability to

be chosen as part of the sample .Only 92 employees to be used as respondents who would

come from the different Coffee shop in Lipa City Batangas.

Data Gathering Instruments

The researcher conduct a online survey questionnaire to be used in our study,. We use

online platform to ensure the safety of our respondent and also the researchers. . This

online questionnaire is administered through Google form , The questionnaire have a

two parts the first one are the personal information of the respondent then the second

parts The question about the problems encounter by the managers and the employee. Our

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respondents are the managers and employee of the selected coffee shop that the

researcher chooses.

A four-point scale was used to know the level of satisfaction of the customers of the

coffee shop business in terms of services, location, product offerings and its price.

Option Range Verbal Interpretation

4 3.50 - 4.00 Highly Satisfied

3 2.50-2.49 Substantially Satisfied

2 1.50- 2.49 Moderately Satisfied

1 1.00 -1.49 Not satisfied

Data Gathering Procedure

The researchers will be using both the library research and internet research, thus

would give a further knowledge and gain massive information. Gathering many data

can’t be easily analyzed, but through collecting each data and grouping them, it can be

done by processed using the probability sampling. These would be the respondent which

could respond to the objective of our study.

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The researchers gathered data that is essential to the research entitled: Survival Strategies

of Selected Coffee Shop in Lipa City: An Evaluation towards Strategic Operation. The

respondents are the Owner, Manager and Employee. First the researchers will make a

letter for the approval to conduct a survey at the coffee shop near in Lipa City. After

given permission, the researchers will explain the purpose of our study to the selected

respondents and then they made sure each participant corresponds to their defined

criteria. The researchers collected data by means of survey questioner that comprises of

their age, gender and customer status. The researchers aimed to collect the answered

questioners was classified and organized accordingly.

Statistical Treatment of Data

The data gathered will be treated statistically using various formulas. The following

statistical tools were used: Frequency and Percentage. This is used to determine the

distribution of the respondents according to their profile such as age, occupation, gender

Weighted Mean and Composite Mean. This is used to determine the assessment of the

level of satisfaction of the customers of the coffee shop business in terms of services,

location, product offerings and its price.

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REFERENCES:

1. Jackson, E. A., & Jackson, H. F. (2016). The role of corporate social

responsibility in improving firms’ business in directions of sustainable

development, accountability and transparency. Economic Insights – Trends &

Challenges, 68, 39–50. Retrieved fromhttps://doaj.org/toc/2284-8584

2. Kim, C.H.; Jung, Y.S. A Study on the Effects of Experiential Marketing on

Satisfaction, Loyalty and Purchase Intention. Korean J. Bus. Adm. 2018, 31, 603–

624.

3. Vitez, Osmond. (2018). Advantages And Disadvantages Of Starting A Business

from Scratch.https://bit.ly/3f4gEtt

4. Lauren, L. (2018). The Advantages and Disadvantages of Branding and Identity.

http://smallbusiness.chron.com/advantagesdisadvantages-branding/identity-

23586.html

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5. Dineva, D., Breitsohl, J., and GArrod, B. (2017). Corporate conflict

management on social media brand fan pages. Journal of Marketing Management,

DOI: 10.1080/0267257X.2017.1329225

6. Pomering, A. (2017) Marketing for Sustainability: Extending the

Conceptualisation of the Marketing Mix to Drive Value for Individuals and

Society at Large. Australasian Marketing Journal, 25, 157-165.

https://doi.org/10.1016/j.ausmj.2017.04.011

7. Osakwe, C., Anaza N, A.,(2017) Marketing Intelligence & Planning 36(3)

DOI:10.1108/MIP-07-2017-0149

8. Rogério dos Santos Morais, Carlos Roberto Camello Lima, (2018)

"Quantitative tool for market sectorstrategic analysis", Benchmarking: An

International Journal, Vol. 25 Issue: 6, pp.1706-1728

9. DR, R. (2021, March 3). The Potential Effectiveness of the Coffee Shop Business

on Economic Behaviour in South Sulawesi. https://doi.org/10.31219/osf.io/2nybx

10. Directscience, (2017), Investigating preferred coffee consumption contexts using

open-ended questions Food Quality and Preference 61, 63-73, 2017

11. Adeleke, A. (2019). Marketing Strategies of Successful Coffee Shop Owners.

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12. Kim, J. E., & Park, E. S. (2021). The Spatial Design Marketing

Strategy of Global Franchises That Take into Consideration the

Characteristics of Modern Consumers—A Study Involving the

Global Coffee Companies of Starbucks and Blue

Bottle. Land, 10(7), 716.

13. Pramagista, A., & Wandebori, H. (2021). Propose Business Strategy for Coffee

Shop in Indonesia (XYZ Company). European Journal of Business and

Management Research, 6(1), 90-96.

14. Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners'

success rates. International Journal of Applied Management and

Technology, 16(1), 3.

15. Andreevic, H. A. (2020). Types of Strategies and Their Impact for Russian SMEs:

The Case of the Coffeeshop Industry.

16. Lombardi, C. V., Chidiac, N. T., & Record, B. C. (2021). Starbucks coffee

corporation’s marketing response to the COVID-19 pandemic. Obtenido de

Innovative Marketing, 17(2), 177-188.

17. Jang, H. W., & Lee, S. B. (2019). Applying effective sensory marketing to

sustainable coffee shop business management. Sustainability, 11(22), 6430.

18. Dharmayanti, P. D., & Darma, G. S. (2020). The use of instagram in coffee

shop. International Research Journal of Management, IT and Social Sciences, 7(4),

48-56.

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19. Bunyamin, B., Hadidu, A., & Manda, H. M. (2021). THE INFLUENCE OF

EXPERIENTIAL MARKETING, BRAND IMAGE, AND QUALITY OF

SERVICE ON CUSTOMER LOYALTY ON THE COFFEE BUSINESS (Case

Study of the Janji Jiwa Coffee Shop). Jurnal Inovasi Penelitian, 2(5), 1519-1526.

20. Pan, H. Y. (2020). Preliminary Study on Key Success Factors of Independent Cafe

Operation in Taiwan. Advances in Management and Applied Economics, 10(3), 1-

11.

21. Chiang, W. Y. (2020). Using a data-driven marketing strategy on customer

relationship management: an empirical case of urban coffee shops in

Taiwan. British Food Journal.

22. Prayogo, A., Diza, T., Prasetyaningtyas, S. W., & Maharani, A. (2020). A

Qualitative Study Exploring the Effects of Job Analysis and Organizational

Culture toward Job Satisfaction in a Coffee Shop. Open Journal of Business and

Management, 8(06), 2687.

23. Igbinakhase, I. (2021). Determinants for SMEs and Entrepreneurship Success

Post-Pandemic. In Handbook of Research on Strategies and Interventions to

Mitigate COVID-19 Impact on SMEs (pp. 168-185). IGI Global.

24. YJ Y. 2017 .The Journal of the Korea Contents Association 

25. U Suhud, M Allan, SF Wibowo, E Sabrina, G (2020) Journal of Foodservice

Business Research 

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Survival Strategies of Selected Coffee Shop in Lipa City

: An Evaluation towards Strategic Operation

I. Personal information:

Name:

Age :

Occupation:

Gender:

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Questionnaire

Part I. Problems encounter in the operation of the coffee shop business as Assed by the

managers.

General Instruction: In answering the question below you must Put a check mark ( / )

according to the level of assessment on the following statements below.

A four-point scale was used to know the level of satisfaction of the customers of the coffee shop

business in terms of services, location, product offerings and its price.

Option Range Verbal Interpretation

4 3.50 - 4.00 Highly Satisfied

3 2.50-2.49 Substantially Satisfied

2 1.50- 2.49 Moderately Satisfied

Managers and employee 1 2 3 4

1. Malfunctioning of equipment

2. Shortage of equipment / facilities

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3. Shortage of food stocks

4. Shortage of water supply

5. Lack of replacement

6. Lack of ingredients

7. Substandard preparation of food quality

1 1.00 -1.49 Not satisfied

1 2 3 4
Problems encounter in the operation of coffee

shop business as Assed by the managers

Problems Encounter by the ( managers)

1. Tardiness of the employee’s

2. Absences without leave among employees

3. Lack of cooperation of employee

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4. Duplication duties

5. High turnover of employee

6. Lack of skilled manpower

Operation 1 2 3 4

1. Late arrivals of guest with the respect to their


conversation.
2. Guest who made reservation but do not showing up

3. Delayed delivery of service

4. Shortage of equipment and facilities

5. High cost commodities

6. Breakages and losses

7. Inadequate parking space

8. Inadequate promotion

II. Target Outcome

For Inputs the staff ,ingredients ,equipment are the first step of target outcome

using this process and having activities we produce coffee .The Output which contribute

to outcomes including the customer satisfaction , market share and also increased profit .

- The goal sustains the stock and materials needed during the process.

- The outcome increased the loyalty and satisfaction of the customer.

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The target 100% of the employee and owner use the standard process and maintaining the

goal of the business.

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