Case Analysis of Custom Coffee and Chocolate

Case Analysis of

Custom Coffee and Chocolate

By

October 11, 2011

Professor Ellison

BBS 313

Management Theory and Practice

Custom Coffee and Chocolate is a small café that offers exceptional coffee blends and fine chocolates. Owners Bonnie Brewer and Stacy Kim were college roommates in Seattle. They dreamed of opening their own business one day and took business courses in marketing and management to prepare. After graduating and working for other companies, they decided to open a business together. The company’s mission is to provide their customers with the opportunity to purchase and indulge their love for coffee and fine chocolate while providing exceptional service. Bonnie and Kim considered two locations, one which offered a lot of foot traffic from tourist and businesspeople and the other one near the university campus, which would attract students, faculty, and local residents. They chose the campus location because they knew the area and understood the clientele.

The company’s business plan consists of only purchasing fair trade coffee and chocolates made by local suppliers. While the majority of their business was carryout, the café provided an environment where customers could meet, talk or have a cup of coffee while on campus. Initially business was slow, but within five months, it increased tremendously. Customers loved the café, were loyal and often brought their friends. Bonnie and Kim immediately focused on long-term planning and discussed the future of Custom Coffee and Chocolate. They needed to address the company’s existing problems, its strengths, weaknesses, threats and opportunities for growth. If they were to continue with the business, it was necessary to create a tactical plan in order to be successful.

The owners of Custom Coffee & Chocolate café are facing several problems; they had exhausted their savings and their initial small-business loan; the six months lease was up and they...