Fixed vs Growth Mindset Assignment Sample

Introduction of Fixed vs Growth Mindset Assignment

Business environment refers to sum of internal as well as external factors that impact the business. The present report will base on Bistro Café, where the owner Miriam is facing several challenges in smoothly operating its business due to external and internal factors. Miriam concerns that her business is not operating in effective manner correspondingly its near to the close as business is not focusing on remaining-up-to-date such as providing better services like WI-FI, using marketing activities, negotiating to suppliers and so more. The report will outline the improvement area in terms of operation, marketing and people management.

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Internal and external environment impact on the Bistro café

Internal factors refer to the factors that can be controlled by the organization. The main internal factors are human resource, current technology and finance. In Bistro Café, there is high rate of employee turnover means the staff is leave the organization on the short notice as a result business has to face high cost for the recruiting new one and training them. These leads to increase company cost, results in more expenses than revenue impacts its profitability. Another internal factor that impact the Miriam business is lack of use of the current technology in the business. Presently, customer prefer to take services of the business that provides great taste with different services such as WI-FI, effective ambience, interior, plug sockets, open area so that customer can enjoy place or can do their office or other work (Zainuddin, Ridzwan and Ridzwan, 2023). As the owner of the Bistro Café not gives much importance to this factor as a result it negatively impact her business.

In addition according to the PESTLE analysis, there are various external factors that remain outside but impact the business directly and indirectly manner (Casañ, Alier and Llorens, 2021). According to the social factor the needs and preference of the customer change as they require more services such as WI-FI and other digital services to provide services according to the needs and requirement of the customer. The lack of capability of company to adopt such factors leads to negatively impact the business as it unable to retain the customers. Additionally, technological factor is also one of the factors that negatively impact the business. Presently, all organization within the industry focuses on using digital technologies for the purpose of marketing. But, Bistro café is not use any kind of marketing activities to attract the customer, this leads to adversely impact business as other organization in the industry use different marketing tactics.

Action needs to take by Miriam

According to the internal and external factor analysis, Miriam has to take appropriate action to escape its business for negative impacts:

• It is important for the business to effectively manage and lead its employees. Owner of the business café should provide a better working environment and effective salary to the employees, leads to help in decline employee turnover in the business (Ali and Anwar, 2021). It assists in save the cost of the business as well as existing trained employees able to serve customers more better way.
• Miriam must have to make changes in the services and infrastructure of the café as currently customer are attracted to business that offer effective interior with great services. Miriam must offer WI-FI services so that individual can work sitting in the café.
• Miriam must offer services according to the needs and preference of the customer, for example, must offer food items along with coffee. Also, it should start online foods services as various customers wants to get services at their home (Annaraud and Berezina, 2020). This leads to increase company profitability as a result owner should not concern about cost.
• The owner of the business should focus on the using digital technology for the purpose of marketing. Café should use cost-effective marketing such as social media marketing via Instagram, Facebook and other platforms to attract wide range of customers.

Opportunities that benefits business

It is identified that Miriam should grab opportunities of using technology to enhance its business operations. Previously, advertising via newspaper and TV is costlier therefore company should grab opportunities of using social media platform for marketing of its services. To become tech-savy, online tutorials aids to learn doing online marketing. The activity aids in recover and thrive the business (Jamil et al, 2022). In addition, owner need to evaluate about the different suppliers available in the market to get the raw material at the best prices, leads to decline the cost of the business. Presently, the customer preference also change as they prefers to get online services. Therefore it is important for the owner to sign-up with the food delivery services. This will result in helping the company to attract more customers as well as retain the existing one in the high competitive industry.

With the help of grabbing the opportunity company is able to enhance its revenue as well as profitability, therefore company need not concern about the cost related to the commission. Moreover, for better operation and smooth functioning of the company, it is crucial to have a talented and skilled employees within the organization. Business by providing the positive working environment, better wages able to retain the employees with the café, this leads to help in decline cost of further recruitment and training. Thus, grabbing the opportunities of in the effective manner, Miriam will be able to recover and thrive the business in the efficient manner.

Key business function of the Bistro Café

Business functions are the activities that carried out by the organization. Bistro Café business function includes activities such as finance, marketing, business operation and people management (Marr, 2021). With the help of evaluation, it is identified that there are several key issues regarding the business function.

Operation function: The one of the main issue faced by the café is high operating cost for the business. The owner of the business not able to maintain its business cost and this make things challenging within the business. For instance, electricity cost increase, staffing cost increase as several employees leave the café at the short notice as a result business have to recruit more employees and have to incurred cost of the training. Also, the café depends on the supplies of the one supplier as a result unable to negotiate price, this leads to increase cost of the business. It is important to take corrective actions for the solving the issues.

Marketing Function: One of issue related to the marketing function is not using effective promotional and marketing activities for growth of business as well as attracting wide range of customers. For instance, owner not believe in providing additional services of WI-FI, online delivery due to its belief that customer attracts due to taste of the product only. Lack of use of marketing and promotion activities business not able to aware the customer about the company presence and services. It is important for business to remain competitive in the market to use cost-effective marketing tactics and activities.

People management Function: Another issue faced by the Bistro Café is lack of effective management of the people. Human resource is the main asset for the company that is responsible for the successful growth of the business. Inability of company to manage its manpower leads to increase cost for the business which impacts company profitability as well as opportunity to grow in the competitive environment.

Finance function: Finance is the heart of the business. The issue in the financial operation of the business leads to shrink the profit margin of the business due to growing cost of the supplier. The decline in the markup from 90% to 15% leads to put the company in the financial trouble.

Thus this issues in business function significantly impacts the performance of the business, results in difficulty in survival of the café.

It is crucial for the Miriam to make improvements in the business functional area by taking the corrective action. Following need to be considered:

• Financial Diversification: Miriam has to emphasis on diversified it product range, should minimize its dependence on coffee sales. Café needs to expand its menu by including some other food items, organic coffee beans, pastries, sandwiches and other higher margin items to stabilize income. It leads to help the owner to attract more customer and increase its profitability.
• Cost Analysis: Miriam has to implement cost analysis to recognize potential areas for decline the cost of the business. One of the main improvement done by the supplier is revising contract to get deals of supplies at better price, it is crucial for increasing the profit margin. In addition, to solve the problem of high electricity cost, Miriam has to invest in the energy-saving equipments such as using LED bulbs, solar panels, smart lightening and so more (Degieter et al, 2022). This leads to also attracts eco-conscious customer towards business too.
• Using cost-effective marketing: In the competitive environment, where availability of several options, marketing is important. For enhancing presence of the business in the market, Miriam has to focus on market and communicate its services with the help of social media platforms. Company must post images, videos as well as customer reviews on different social platform to grab attention in the best manner (Social Media Marketing for Businesses, 2024). Also, Miriam must include services of WI-FI and online delivery to remain competitive in the market (Shah and Murthi, 2021). In addition, Miriam must promote its business via conducting a contest for people who follow the Facebook page of Bistro café, this will increase the excitement regarding offerings of the café and aids in highlight the business among various competitive businesses. It helps the business to reconnect with its old customers.
• Offering competitive wages: It is important for the owner of the Bistro Café to improve its people management practices. To retain the employees it is essential to offer those competitive wages as well as better working environment. This improvement will aids in decline the turnover rate. Also, assist the business to manage its increasing cost as this measure will save cost of business regarding recruiting and training of the employees. In addition, for retention of the employees important to use incentive programs, this aids in motivate, influence and retain the employees (Kryscynski, Coff and Campbell, 2021).

Thus, all this improvements should adopt by the Miriam, it will help in recover and make the business profitable one in the short span of time.

Ethical Issue

Ethical issue is a situation in which a moral conflict rise at the workplace, therefore it is a circumstance where moral standard is being challenged. One ethical issue identified in running of the business is retention of 50% staff tip that received by debit card to overcome the increasing expenses of the business. Taking tip is the right of the employees as it paid by the customer due to better services by the staff, therefore it is one of the ethical issue which leads to increase the ethical question about job satisfaction as well as fairness of the business. Tip retention is the ethical problem because on this amount there is right of employees not the business owner, therefore it is an ethical problem.

Miriam has to take corrective action to operate the business in the ethical manner. First, she has to make focus on providing fair wages and additional pay to the employees. She must paid tips and wages to the employees on time, leads to increase job satisfaction as well as employee retention. The practice is not illegal but it is not ethical too.

Conclusion

To sum up, it is articulated that business environment plays a crucial role in growth of the business. In the present study, it is evaluated that Bistro café must focus on factors such as finance, people management, marketing practices to make its business successful one. The findings of the external environment outlined that owner should use technology to provide the better services and enhance the customer experience. The study highlighted improvements that must done by owner such as investment in the marketing activities, energy-saving equipments, revise its supplier contract to overcome the cost and increase revenue a customer acquisition. In addition it is recommended to company to use ethical practices for running business.

References

Books and Journals

• Ali, B.J. and Anwar, G., 2021. Employee turnover intention and job satisfaction. International Journal of Advanced Engineering, Management and Science, 7(6), pp.22-30.
• Annaraud, K. and Berezina, K., 2020. Predicting satisfaction and intentions to use online food delivery: what really makes a difference?. Journal of Foodservice Business Research, 23(4), pp.305-323.
• Casañ, M.J., Alier, M. and Llorens, A., 2021. A collaborative learning activity to analyze the sustainability of an innovation using PESTLE. Sustainability, 13(16), p.8756.
• Degieter, M., Gellynck, X., Goyal, S., Ott, D. and De Steur, H., 2022. Life cycle cost analysis of agri-food products: A systematic review. Science of The Total Environment, 850, p.158012.
• Jamil, K., Dunnan, L., Gul, R.F., Shehzad, M.U., Gillani, S.H.M. and Awan, F.H., 2022. Role of social media marketing activities in influencing customer intentions: a perspective of a new emerging era. Frontiers in Psychology, 12, p.808525.
• Kryscynski, D., Coff, R. and Campbell, B., 2021. Charting a path between firm‐specific incentives and human capital‐based competitive advantage. Strategic management journal, 42(2), pp.386-412.
• Marr, B., 2021. Key Business Analytics: The 60+ business analysis tools every manager needs to know. Pearson Education Limited.
• Shah, D. and Murthi, B.P.S., 2021. Marketing in a data-driven digital world: Implications for the role and scope of marketing. Journal of Business Research, 125, pp.772-779.
• Zainuddin, A., Ridzwan, S.I. and Ridzwan, S.B., 2023. Technology Connectivity and Coffee Enthusiasts. International Journal of Business and Technology Management, 5(2), pp.234-243.

Online

• Social Media Marketing for Businesses. 2024. Online Available through: < https://www.wordstream.com/social-media-marketing >

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