Case Study: Company Analysis Richiamo Coffee Uitm Arau: Name: 1. 2. 3.: 2021834974 4
Case Study: Company Analysis Richiamo Coffee Uitm Arau: Name: 1. 2. 3.: 2021834974 4
Case Study: Company Analysis Richiamo Coffee Uitm Arau: Name: 1. 2. 3.: 2021834974 4
NAME:
PAGE
TITLE PAGE i
ACKNOWLEDGMENT ii
LIST OF FIGURES iv
LIST OF TABLES v
EXECUTIVE SUMMARY vi
2.1 Background
2.2 Organisation Structure
2.3 Products/Services
2.4 Business, Marketing, Operational Strategy
2.5 Financial Achievements
4.1 Findings
4.2 Discussion / Recommendation
5.0 RECOMMENDATIONS 26
6.0 CONCLUSION 27
7.0 REFERENCES 28
iii
LIST OF FIGURES
Page
Figure 6: Situation when The employees are busy making customers order 30
iv
LIST OF TABLE
Page
v
EXECUTIVE SUMMARY
Coffee is one of the world's most famous beverages. For those who are coffee lovers,
there are a few coffee shops that have many flavors for those who are interested. Now, there are
many well-known brands in the market that produce coffee shops. Therefore, we are undertaking
a case study on Richiamo Coffee, a firm in the food and beverage industry, and through it, we
also want to learn more about the Business Model Canvas (BMC).
In March 2021, Richiamo Coffee opened a new branch at UiTM Arau, Perlis and received
a good response from the public such as students, staff, and others. Besides, Richiamo is also
known for its delicious food and drinks, especially caffeinated drinks. All coffee shops in Malaysia
have a mission and vision as well as Richiamo Coffee which has a good mission and vision to
become famous in the eyes of the public and also to achieve goals by having a strong strategy.
The business model canvas shows the customer segment of Richiamo Coffee is mainly university
students who are coffee lovers and value quality coffee and an inviting atmosphere. Richiamo
Coffee offers a wide variety of drinks, including traditional espresso-based drinks, cold brews,
iced coffees and custom combinations because they provide the premium coffee beans that were
imported from Italy. They sell coffee and tea including a variety of quality food and pastries and
advertises their promotion through Facebook and Instagram by posting the feeds.
Richiamo coffee has a problem especially in making coffee which is that each branch has
a different coffee taste. Richiamo Coffee is also lacking in marketing to promote coffee and it will
make it difficult for Richiamo to get new customers and to become one of the famous coffee shops
in Perlis. To cope with these issue, Richiamo Coffee can make improvement by Standardize the
Taste by create a SOP in making their products. Second, improve employees skills because
different skills among employes will effect the taste of the drinks especially coffee. Offer a wide
space also important because a large space can attract more customer to come especially
students or career people for doing their business. Lastly, they need to improve marketing
strategy by collaborate with famous influencer or else.
After going through to the discussion, we came out to create our own company. We
decided to set a coffee shop that offer decaffeinated drinks to our customer. We believe that
decaffeinated options are becoming more popular among coffee drinkers, health-conscious
consumers, and those people who prefer to consume less caffeine. We also give option for
customer to select their cup sizes, including standard, and large cups. As a final alternative to
traditional plastic straws, we decided to use rice straw to make it more environmental friendly.
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1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In this course, students will be required to conduct a case study for any organization or
small company. Students are obliged to conduct interviews with any corporation or business in
order to learn about the challenge that they encountered. As a result, students will be able to
analyze the problem and seek a solution. It must be overcome. It will be able to teach students
about how a business or company works and operates. In this case, we are conducting a case
study on Richiamo coffee, the food and beverage industry and through this case study, we also
want to study about Business Model Canvas (BMC) of the company which is a strategic
management and lean start up template for developing new or documenting existing business
models.
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1.2 PURPOSE OF STUDY
Case studies are a tried and tested technique. A case study's general objective is to
explain an individual scenario, such as a person, business, organization, or institution. A case
study is required in this context to identify the challenge or difficulty faced by the organization or
the client. As a result, case studies are used to explore business challenges and circumstances
and to propose and recommend solutions based on analysis and theory. In some cases,
businesses are already giving answers to their own problems; consequently, case studies can
describe the company's remedy.
Next, case studies are used to better comprehend specific events, such as determining
what happened and why, by summarizing characteristics of the situation and analyzing it in terms
of theoretical categories. Aside from that, case studies might demonstrate the measurable
benefits obtained from using the company's service or product. Case studies are similar to
providing a detailed tale about the company and how it will be able to bring the product to reality.
The case study is a good technique to demonstrate the product and assist clients in understanding
how and why the items are used. It will be able to demonstrate how the product has been applied
in a way that truly benefits the readers, who are the customers themselves.
Finally, case studies benefit both customers and the organization. It will be able to illustrate
how the product was successfully employed. Case studies are another method for demonstrating
effectiveness. It demonstrates that a corporation can achieve what it can achieve based on real
results and genuine tales revealed in the case study, rather than just theory. It will be able to
increase the company's credibility. It also demonstrates that the company's product is trustworthy
based on the evidence provided. Not to mention, case studies are frequently utilized in exploratory
research, which can aid in the generation of new ideas for both parties.
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2.0 COMPANY INFORMATION
2.1 BACKGROUND
Richiamo Coffee Arau is a wholly Bumiputera- owned company that was located in Lot 19
& 20, Anjung Siswa, UiTM Perlis, Arau,Perlis . Richiamo Coffee is owned and operated by
Richiamo Coffee Sdn. Bhd. This business started about 2 years ago which will start to be operated
on March 1, 2021 in Arau. Richiamo is known as a coffee shop that serves authentic and excellent
coffee as well as delectable fast gourmet meals. The Company is guided by its firm belief in
assuring consistent supply of quality products and offering great service to its clients, and is led
by a devoted team to realize the organizational Vision and Mission on a continuing basis.
● Mission : To position ourselves as a premier coffee shop chain with a global presence.
Richiamo Coffee's philosophy can be summed up in three words: product, service, and
atmosphere. At Richiamo Coffee, we strive to provide our customers with a one-of-a-kind
experience with every sip of coffee or bite of snack. Customers are made to feel at ease as if they
were sitting at home in their living room, surrounded by a cozy ambiance and served by our
courteous team.
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2.2 ORGANIZATIONAL CHART
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2.3 PRODUCTS/SERVICES
Richiamo Coffee UiTM Arau has been operated since 2021 and has become one of the
favorite places for students, staff of UiTM Arau, and people to eat and drink. However, Richiamo
has also diversified the types of coffee, especially for coffee lovers and beginners. In addition to
selling caffeinated drinks, Richiamo also provides non-coffee-based drinks for non-coffee lovers.
Although Richiamo is focused on coffee first, they also make a range of high-quality products
including pastries and cakes. The high standard of excellence in food is always guaranteed
through the use of fresh ingredients. Besides, they not only sell coffee in their café but also provide
their services by selling online using FoodPanda and GrabFood.
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2.4 BUSINESS, MARKETING AND OPERATIONAL STRATEGY
2.4.1 BUSINESS STRATEGY
The goal of Richiamo Coffee's strategy is to increase its market share while keeping its reputation
for excellent coffee and customer support. The company's business strategy consists of a number
of important components. First of all, Richiamo Coffee seeks to establish additional coffee shops
in prime areas. In order to find locations where there is a significant need for high-end coffee
shops, the business conducts extensive market analysis. Richiamo Coffee chooses its locations
strategically in order to maximize revenue while lowering expenses.
Richiamo Coffee also highlights universities as their primary market since they want to
devote efforts towards becoming the best coffee shop. They frequently engage in coffee
conversations with other students, and students can be reached to provide comments on their
performance. One of their business tactics is to collect feedback to make sure the quality
management is going as planned for future improvement.
Overall, Richiamo Coffee business strategy focuses on growing the company's market
position while upholding its reputation for high-quality coffee and customer service. The company
strives to create a strong and sustainable business that appeals to coffee lovers all around the
world by carefully choosing locations, investing in its workforce, utilising sustainable and ethical
practices, and consistently innovating.
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2.4.2 MARKETING STRATEGY
Richiamo Coffee is a coffee shop chain that has become known for its high-quality coffee and
warm, inviting atmosphere. The company's marketing strategy focuses on several key elements
to attract and retain customers.
First of all, First of all, Richiamo Coffee's shops offer a homely, inviting environment. With
cosy seats and delicate lighting, the decor is meant to be welcoming and comforting. In order to
entice customers to stay and work or communicate, the company also offers free Wi-Fi.
Secondly, Richiamo Coffee emphasizes the high standard of its beans and the
professionalism of its baristas. To bring out its unique flavours, the business carefully roasts
quality beans they get from around the world. The baristas undergo extensive training to ensure
that every cup of coffee is prepared to the highest standards.
Thirdly, the business actively engages with its customers based on social media and their
website, and has a significant social media presence. On Facebook and Instagram, Richiamo
Coffee frequently shares photos of its beverages and cafes, inspiring users to add their own
photos and stories of their own experiences. The company also offers promotions and discounts
to its social media followers. Richiamo Coffee also has a loyalty programme that offers free
beverages and other benefits to regular clients. This encourages repeat business and increases
client loyalty.
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2.4.3 OPERATIONAL STRATEGY
Delivering superior coffee and top-notch customer service is the cornerstone of Richiamo
Coffee. Our top priorities are finding the best coffee beans, building solid connections with reliable
suppliers, and assuring a steady supply of fresh beans. To guarantee the caliber and cleanliness
of their stock, the providers have both an ISO and a Halal Certificate. As they look for the best
raw materials, one kilogram of coffee beans, which originates from four different nations, costs
roughly RM100. Also, in order to reduce waste and ensure a constant supply of high-quality
ingredients, we place a strong emphasis on effective inventory management.
Additionally, Richiamo Coffee enforces high brewing standards and give our personnel
thorough instruction on proper brewing processes in order to ensure consistency. Our ability to
reduce wait times and offer a smooth client experience is made possible by streamlining our
operations and improving workflow.
Lastly, Richiamo Coffee also places a high value on a customer-centric strategy that
encourages engagement and fosters a friendly environment. In order to meet changing consumer
interests, we frequently release new blends, specialty beverages, and food options. We work to
go above and beyond consumer expectations and make Richiamo Coffee a top destination for
coffee lovers through excellent supply chain management, technological integration, and a
dedication to continuous improvement
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2.5 FINANCIAL ACHIEVEMENT
Financial success is the successful completion of financial goals and objectives inside a
company. It entails achieving favorable financial results, including escalating revenue, profitability,
effective cash flow management, a favorable return on investment, and general financial stability.
In a given month, Richiamo Coffee earns total sales of about RM60,000, and it must pay
for all its expenses. Richiamo Coffee has currently made a net profit of about RM2,000 – RM6,000
per month. Yet, they often manage the situation professionally and have competent staff. To
enhance the company's profits, they must avoid debt and make expense reductions because
every Ringgit Malaysia saves can be used towards expanding the business. This is required for
the business to operate profitable.
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3.0 COMPANY ANALYSIS
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3.1.1 CUSTOMER SEGMENTS
University Student
According to the Business Model Canvas, Richiamo Coffee’s customer segment is mainly
university students who enjoy a high-quality coffee with a welcoming enviroment. This category
is the one who the company aims targeting because students are more likely to frequent coffee
shops, need quiet places to study, and are willing to pay more for quality coffee. To be more
specific, Richiamo Coffee's target market is university students, who are typically between the
ages of 18 and 25. For some reasons, Students will always looking for a cosy and welcoming
places to study or socialise with friends. Richiamo coffee’s attrach the student’s interest by
providing a space in the coffee shop for them to study and socialize with their friends.
Furthermore, they also believe that university students are often willing to pay more for premium
coffee and value a high-quality experience.
Career People
Other than that, working professionals or those in careers are included in Richiamo
coffee's customer segments. Coffee shops are popular among working people for meetings and
as a place to work away from the office. Working people will look at the value of a quieter
atmosphere, reliable Wi-Fi, and a more professional ambiance. Richiamo Coffee targeted working
people by offering an environment that is suitable for doing business and meetings. This include
a specially set up work area, comfortable chairs, power sources, and High-speed WIFI. The
company can also offer special promotions or packages for business meetings or events to attract
working professionals. Additionally, Richiamo Coffee can provide grab-and-go solutions for busy
business people who require a fast fix of coffee on the run. The company can provide a range of
ready-made coffee drinks and snacks that can be easily taken away by customers.
Coffee Lover
In addition, Richiamo coffee also chooses coffee lovers as their customer segments. As
coffee lovers, they could have a strong taste for superior coffee and feel ready to spend more for
special or artisanal coffee mixes and flavours. Richiamo Coffee can appeal to coffee lovers by
giving a selection of specialty coffee drinks produced from premium beans, utilizing original
brewing methods, and supplying comprehensive details regarding the coffee's origins, flavor
profile, and brewing procedure. The business can also provide discounts, promotions, or loyalty
programs to encourage repeat customers and to cultivate a devoted customer base among coffee
addicts.
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3.1.2 VALUE PROPOSITION
Variety of Food and Beverages
To suit different tastes, Richiamo Coffee offers a wide variety of drinks, including traditional
espresso-based drinks, cold brews, iced coffees and custom combinations. Additionally, they
provide teas, hot chocolates, and seasonal specialties for those customers who are not a fan of
coffee. They take into account preferences for non-dairy milk while putting an emphasis on quality
and innovation. Richiamo Coffee also offers mouthwatering meal selections like freshly baked
pastries, sandwiches, wraps, salads, and wonderful sweets like cakes, cookies, and handcrafted
chocolates. Their aim is to provide a delicious and gratifying meal experience that properly
accompanies their beverage menu. Not to be forgotten is the fact that they also provide Malaysian
food, including nasi lemak, curry mee, and other local dishes.
Working Space
Richiamo Coffee wants to give its customers a welcoming and comfortable experience,
which can involve giving them a nice workspace within the shop. It's because the majority of their
customers are professionals and college students. University students may find Richiamo Coffee
to be an ideal location as they offer a comfortable setting for studying, socializing, or having a
break between courses. This may be the cause of why they mostly opened their branches in
universities. With the potential for comfortable seating, Richiamo Coffee can offer a warm
ambience for students to do homework, engage in study sessions, or get together with friends. In
addition, it may be a desirable option for college students seeking a place to study or unwind due
to the availability of services like free Wi-Fi and a laid-back atmosphere.
Affordable Price
Given that the majority of customers are professionals and university students, they will
make sure that their prices are fair and cheap while still using Richiamo Coffee of the highest
caliber. According to the menu, Richiamo Coffee sells coffee for as low as RM7. This is because
customers are more likely to make an impulse purchase of a low-cost, high-quality goods than
they are of a high-priced, low-quality one. Additionally, consumers take about the same amount
of time to decide whether to buy a cheap product as they do to justify buying a more costly one.
Customers are therefore more inclined to make an immediate purchase from them. As a result,
Richiamo Coffee offers products at low, very cheap pricing despite using premium coffee beans.
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3.1.3 CHANNELS
Richiamo Coffee uses a variety of channels to interact with and reach its customer
segments, according to the Business Model Canvas. These channels enable the company to
promote its brand, engage with customers, and sell its products and services. Understanding
these channels is important for developing an effective marketing strategy that can reach the
desired target market.
Physical shop
The primary channel used by Richiamo Coffee is its physical coffee shops, which offer
customers a welcoming and comfortable environment in which to enjoy their coffee. In order to
create Instagram-worthy places, Richiamo Coffee makes sure that its coffee shops have a
wonderful layout, lighting, and decor. This is among the most important to do in order to draw in
its target market, which is primarily made up of university students. The business needs to make
sure that the physical space is secure and appropriate for students to learn and chill in.
Website
Another important channel used by Richiamo Coffee is its website, which provides
customers with information about products, services, and locations. Customers can visit
Richiamocoffee.com to know the latest promotion, products, as well as the price of the products.
This online platform is important in today's digital age. Customers can take a look at the prices
before walk-in to the coffee shop in their area. It will help customers to estimate their spending
too.
Social Media
Richiamo Coffee also uses social media platforms such Facebook and Instagram to
interact with customers and market its brand. Social media is a powerful tool for increasing
company recognition and bringing new clients. To promote client involvement and connection,
Richiamo Coffee publishes all about its products, activities, and promotions on social media.
Customers can take a look at Richiamo Coffee - Uitm Arau on facebook as well as
@richiamo.arau on instagram. By leveraging these channels, Richiamo Coffee is able to promote
its brand and products, attract new customers, and provide convenience to its existing customers.
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3.1.4 CUSTOMER RELATIONSHIP
Customer Feedback
Richiamo Coffee UiTM Arau is concerned about the well-being of its customers. This is
due to their quick service, which means clients do not have to wait long for a cup of coffee or a
meal. Customers' hearts may rejoice because of this. Many consumers laud Richiamo Coffee's
coffee and meals as excellent and gratifying since they sell products at reasonable costs and
provide ample servings. Aside from that, Richiamo Coffee values customer feedback so it may
make modifications if any customers are dissatisfied with its service.
Customers who frequent Richiamo Coffee UiTM Arau to stay in touch with them receive
warm service. Customers may become confused when picking which menu to order from. Some
people have never tried the drink before and are puzzled about which one to select. As a result,
Richiamo Coffee will always be ready to assist its guests by giving recommendations and
discussing the flavors of the cafe's coffee drinks. Therefore, customers will be encouraged to
return in the future because of reduced wait times and nice interactions with personnel.
Richiamo Coffee UiTM Arau uses social media platforms such as Facebook and
Instagram. They use this social media for reviews and also to get positive feedback from
customers about their services. Connecting with their target customer can be easy if they are
active on social media that their customer uses most often. So, Richiamo Coffee can expand its
customer base and turn first-time visitors into regulars because they always share its café on
social media because they can get reviews from customers as proof that Richiamo Coffee
provides good service for their customers. By using, this online platform will make it easier for
customers to keep in touch on the Richiamo Coffee’s menu and promotion.
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3.1.5 Revenue Streams
Franchise Holder
Richiamo Coffee Sdn. Bhd. the owner of the Richiamo Coffee chain of premium coffee shops
across the country today announced Muhd Zamry Abu Samah emerged the largest shareholder
in the company. With experience in marketing and sales, he sees the food and beverage industry,
which he has been involved in since 2015, as a bright prospect for growth within and outside the
country.
Daily Sales
Daily sales is a company's profit for a given day that is equal to its average daily sales. These can
change based on a number of variables, such as seasonal promotions. The mean value that
businesses discover when dividing a sales amount by the number of days in a given time period
is known as average daily sales. Richiamo's profit every month can break down as much as
RM5000 to RM6000. Hence, it can be budgeted that Richiamo Kopi's daily sales is RM200 per
day.
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3.1.6 Key Resource
The employees of the company are another valuable resource. They employ a total of five
workers, including two full-time employees and three part-time employees. These five workers
are responsible for being the barista and the cashier. Richiamo's manager there said that he
provided training programs to all these workers before they did their respective parts of the job.
This is because programs for training employees assist them gain the knowledge and skills they
need to keep up with the many changes occurring in the sector. These enhancements will have
a favourable impact on employee productivity, which can boost an organization's profitability and
effectiveness.
Restaurant on a location
The building is a physical asset. Richiamo Arau is in a rather strategic location. This is
because the construction of coffee shops in universities is able to attract the attention of students
especially to purchase. Furthermore, students can easily see the ideal places as they walk or
drive by. When students see the coffee shop, they will become interested in it and make plans to
go.
The use of natural, fresh ingredients ensures the continued high caliber of their products. Certain
primary raw materials, like coffee or tea, will almost likely require premium ingredients. They offer
premium coffee beans.
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3.1.7 KEY ACTIVITIES
Selling
The main activity of Kopi Richiamo UiTM Arau is selling coffee and tea. In fact, it also sells
a variety of quality food and pastries at reasonable prices. For the sale of coffee at Richiamo
Coffee, Mr. Afiq places great emphasis on the quality of his coffee products, especially the
ingredients used to produce coffee. According to Mr. Afiq, Richiamo Coffee provides food that is
ready to be heated from the Richiamo Headquarters. This food will be delivered once a week by
Richiamo Headquarters so that it is always on the menu. This can save time and energy to serve
food to customers.
They also provide non-coffee products like matcha and fruits for non-coffee lovers. This is
because they want to convince the customer to buy the products and get positive feedback from
their customers. According to Mr. Afiq, if there is a problem with the coffee that the customers
received, he will replace it with a new one for them. Therefore, Mr. Afiq's honesty when dealing
with customers can increase the number of customers who come to Richiamo Coffee UiTM Arau
and can satisfy customers.
Advertising
Richiamo Coffee UiTM Arau advertises their promotion through Facebook and Instagram
by posting the feeds that will make customers interested to go to Richiamo Coffee and buy desired
choices of coffee. So, many customers see being able to use social media as part of their overall
dining out experience. It makes things more fun for them because it gives them the chance to
share things with their friends and followers online. According to Mr. Afiq, Richiamo Headquarters
who make advertisements to promote new menus to be released or have the latest promotions
for customers through social media.
Richiamo Coffee also encourages their customers to share messages and images about
their meal and improve the overall customer experience. Regarding to Mr. Afiq, Richiamo Coffee
will do promotions every holiday, for example Chinese New Year, Hari Raya Aidilfitri, and many
more and Mr. Afiq also set up a buy one get one free for Bubble Milk Tea drinks for customers
and has received a good response from them. Even so, Mr. Afiq keeps the promotion forever on
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the menu. Finally, Mr. Afiq stated that he will distribute flyers to customers and paste posters
about the promotions offered by Richiamo Coffee.
Richiamo Coffee UiTM Arau makes coffee according to the Standard Operating Procedure
(SOP) that has been set. This can preserve the taste and quality of the coffee made by the barista.
In addition, Encik Afiq stated that Richiamo Coffee is very concerned about the quality of premium
coffee beans. Richiamo Coffee also offers more than 20 different types of coffee, hot or cold, such
as Espresso, Americano, Cappuccino, Caffe Latte, Caramello Latte, Cafe Mochaccino,
Chocolate, Hazelnut Chocolate, Caffe Vanilla, Matcha ( Green Tea), English Breakfast Tea, Earl
Grey, Cardamom Tea, even a variety of delicious desserts such as pastries, cakes, muffins, and
sandwiches are also sold. Customers can also enjoy breakfast dishes such as nasi lemak,
chicken porridge, and mushroom soup at a reasonable price. Besides, According to Mr. Afiq,
Richiamo Coffee also provides coffee for people on a diet such as replacing fresh milk with quality
oat milk that has a premium taste.
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3.1.8 Key Partners
To facilitate student affairs, Richiamo Coffee provides online payments such as touch n go,
eWallet. The Touch 'n Go eWallet offers services including reloads, payments, and cash transfers
via your smartphone, wherever you are in Malaysia and whenever you want. Therefore, by using
eWallet, people do not need to carry cash or a credit card with them. It makes it possible for
people to buy things more conveniently. Moreover, there is also a study that examines the
variables that influence university students' intent to use an e-wallet.
Delivery Service
Richiamo and Foodpanda and GrcaFood worked together to deliver their product anywhere, at
any time, using the Foodpanda app. Foodpanda and GrabFood is a platform for online food and
shopping delivery . By increasing the company's visibility and client base, Foodpanda's service
enables it to grow its customer base. Foodpanda and Grabfood also promote time and energy
savings. To place an order, the consumer is not required to visit the cafe. They can utilize that
time to do other things instead, like work or spend time with friends and family. So, Richiamo
Coffee has made it easy for its customers where they don't have to waste their energy and time
to organize because of the online services.
According to the Malaysian system, halal goods must be created using substances or
components that are permitted by Sharia law. Additionally, foods marked with the halal emblem
have been certified by a body to be devoid of any ingredients or components that are prohibited.
Thus, Richiamo coffee has been recognised as halal since its inception and has been issued a
halal certification by the Department of Islamic Development Malaysia (JAKIM). So, this proves
that the food and drinks in Richiamo Coffee is clean, uncontaminated and safe to eat.
Richiamo Coffee was registered with Suruhanjaya Syarikat Malaysia (SSM) or also known as the
Companies Commission of Malaysia (CCM) in 2020. Once the registration had done, it shows
that, Richiamo Coffee provide company and business information to the public. More importantly,
SSM is in charge of overseeing corporate and business activities in Malaysia. This simply implies
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that SSM is the Malaysian body that oversees enterprises to verify that they are in conformity with
Malaysian rules and laws. Thus, Richiamo Coffee become a legally registered entity. From this,
it will boost the customer’s confidence level to purchase Richiamo Coffee products also makes it
easier for users to check business information.
Employee’s Salary
Every business must need employees to help them. This will not only facilitate their
business but will also benefit the employees. Richiamo Coffee workers prepare and sell food and
beverages at the café and will ensure that the café is neat and that all the money and goods are
present and correct. As for salary or commission, this cost is considered fixed as they do not
fluctuate much each month and is easy to calculate. So far, Richiamo Coffee has paid three
workers, a cashier, a barista and a cook at each outlet. They pay their employees a monthly wage
of RM 1,500 based on the number of hours they put in, which comes to a total of RM 12,000 every
month.
Raw Materials
They need to buy the best raw materials in order to make a high-standard and high-quality
product. The use of natural and fresh ingredients ensures the consistently high standard of
excellence in their cuisine. The company provided the premium coffee beans that were imported
from Italy and sold them for RM100 per kilogram, which is what is used to create coffee.
Additionally, they purchase all the raw materials such as syrup, fresh milk, whipping cream and
frappe base powder for their blended drinks from Richiamo Headquarters itself. They invest
RM10,000 to RM25,000 each month to make delectable goods.
Rental
Rental or mortgage payment is the cost of leasing or owning the physical space where the
business operates. A chain of high-end coffee shops is called Richiamo Coffee. Richiamo Coffee
has been successful in opening storefronts at numerous universities, including UiTM Arau,
because of their focus on becoming a coffee café in universities to draw in students. Richiamo
Coffee spent RM1,200 on rent for the place of business. Due to their more advantageous locations
and growing popularity among students, they will now be able to boost their income.
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Utilities
A company renting a store is responsible for both the rent and the utility costs. The water
and power costs of Richiamo Coffee must be paid. Their monthly energy bill and water bill is
RM3,000 per month. This is because air conditioning is utilized during each of their daily operating
hour.
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4.0 FINDINGS AND DISCUSSION
4.1 FINDINGS
Richiamo Coffee's main problem is that different branches' drinks can vary greatly in flavor, even
when the same menu items are ordered. It is due to their quality control and consistency. While
attempts are made to preserve consistency throughout chain branches, there may still be
differences in how well standardized recipes are followed and quality control procedures are
followed. While others may have less stringent protocols that could lead to differences in the
finished product, some branches may have stricter quality control measures in place to ensure
consistent taste. It's also important to keep in mind that human factors, such as unique barista
tastes or variances in how a recipe is interpreted, might affect how the beverages taste. There
may be differences in taste between branches because of the individual touches or personal
styles that each barista may apply to the drinks they create. Even when ordering the same menu
items at several branches of this organization, changes in the tastiness of drinks can occur due
to a variety of factors, including human factors and quality control and consistency in preparing
drinks.
Another problem that Richiamo Coffee faces is their employee lack of skills especially in making
coffee. Employees at a branch may struggle with crucial facets of coffee preparation, such as
accurately measuring and grinding coffee beans, correctly extracting espresso shots, steaming
milk to the desired consistency, or precisely following recipes, if they haven't received thorough
training or ongoing skill development. These abilities are essential for maintaining consistency
and providing beverages that are tasty and well-balanced. The quality of beverages can also be
impacted by a lack of understanding regarding various coffee kinds and brewing techniques. In
order to suggest relevant options to consumers, baristas should be knowledgeable with the
properties of various coffee beans, such as flavor profiles, acidity levels, and scent notes. They
should also be aware of the subtle differences between various brewing techniques and know
how to optimize flavor by adjusting elements like water temperature, brew time, and grind size.
Lack of expertise in these areas may produce drinks that lack complexity or fail to fully express
the coffee's potential
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Narrow Space
Because this cafe primarily serves students and workers, it has a small, constrained space that
is unsuitable for accommodating a gathering of people. The total customer experience may be
impacted by a branch's somewhat tiny and narrow area. Depending on personal preferences and
working methods, a small, cramped room may have a different effect on students who wish to
complete their task. Distractions could have an impact, since a crowded room may result in noise
and disruptions that make it challenging for students to focus. Furthermore, a lack of comfortable
seating alternatives and uncomfortable furnishings can have a negative impact on students'
physical well-being, which can reduce their productivity and contentment. Some students may be
concerned about the lack of privacy in a tiny area if they prefer a quiet, private setting for
concentrated work.
Additionally, the branch may find it difficult to establish a warm and inviting atmosphere due to
space limitations, which may make it difficult to add desirable décor, seating configurations, or
other atmosphere-enhancing components. These elements may work together to lessen the
overall customer experience.
Lack of Marketing
As we know, Richiamo Coffee in UiTM Arau only advertise their marketing on FaceBook and
Instagram, however they rarely update their promotion and new menus in their cafe. This branch's
failure to consistently advertise or publish about its offerings, along with its lack of marketing
expertise and it can have a number of negative effects on the company. First, limited knowledge
is a serious problem because potential customers might not be aware of the coffee options
available at the location. Furthermore, as social media presence and consistent promotion are
critical to developing a devoted following, the branch's customer involvement may suffer. The
branch loses opportunities to interact with clients, generate buzz, and promote return visits by not
actively advertising their coffee and giving updates.
Additionally, a lack of marketing may prevent the branch's value proposition from being effectively
communicated. Marketing aids in communicating to potential customers the special selling
characteristics, flavor, and quality of the coffee offers. As a result, the branch may have a harder
time luring in new consumers who may view the coffee as just one more option among many,
which could have an adverse effect on overall growth and income potential
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4.2 DISCUSSION
Secondly, to overcome the issue about worker skill, all employees need to attend training
before entering the kitchen. This is to make sure all employees are expert in skills needed to work
in that field. Therefore, making a coffee art requires skill, so a professional barista is needed in
order to make the drinks taste better.
Next Hire the right people. Qualified staff is the Achilles heel of every coffee business. It is not
easy to find professionals who enjoy their job and do it at the very best level. In order to do that,
a comfortable environment for staff to work in is needed to help then become a top notch team.
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Improve Marketing strategy.
Hire a marketing professional. If you can afford it, consider hiring a marketing professional to help
you develop a marketing strategy and execute it. This can be a cost effective way to ensure that
your marketing efforts are effective. Another option is to collaborate with influencers. Find
influencers who are relevant to your brand and reach out to them. Collaborating with influencers
can help you reach a wider audience and promote your brand more effectively.
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5.0 RECOMMENDATION
Based on the findings and discussion above, we came out to set up our own company. The
company name is TGG Coffee. Our signature drinks would be “TGG Americano”, “TGG
decaffeinated latte”, and “TGG Dreamy Latte”. Our tagline is TGG Coffee, Where Decaf Dreams
Come True!". Our concept is to use decaf coffee in making our drinks product. Decaf coffee is
Non-caffeine Coffee that targets health-conscious people, and others who choose to consume
less caffeine. We believe that although many people appreciate the flavor and ritual of coffee,
some of them may prefer to avoid or consume little to no caffeine. It is different from previous
company that offer caffeine drinks to their customer segments. In order to prevent different
tasteness for our products, we decided to set a Standard Operating Procedures (SOP) in making
drinks. Also, to make sure it really gives the same taste every time even from different baristas,
we decided to make a training program. This baristas will get certification and approval once he
completely can make a drink taste exactly based on expectation to the panelist during the training
program. The baristas who do not successfully meet expectations during the training program are
not allowed to make drinks for customers until they pass the evaluation.
To bring uniqueness to our company, we also come out by adding various cup sizes such as
regular and large cups according to customer preference that are different from previous company
that offer one size of cup only. Additionally, Customers also have different preferences for the
size of their beverages. For a quick pick-me-up, some people might prefer a smaller cup, while
others might choose a larger cup for a leisurely experience.
We also decided to use rice straw rather than plastic straw. Using rice straws is a more
environmentally friendly choice. The natural and renewable elements used to make rice straws,
such as tapioca starch and rice flour, make them compostable and biodegradable. We can
drastically minimize the contribution to waste made of plastic and show our dedication to
environmental sustainability by adopting rice straws.
After all, We decided to set up an outlet for our company. The outlet will have a wide space for
customers to enjoy their coffee. Engage with the community is our plan in order to promote our
company. Foster a sense of community by organizing events, workshops, or coffee tasting
sessions. We also plan to create a culture to encourage customer feedback and actively respond
to reviews and suggestions to build customer loyalty.
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6.0 CONCLUSION
By using the case study approach, students can analyze authentic challenges that
businesses encounter and develop theoretical-based solutions. As a favourite among students
and coffee lovers, Richiamo Coffee offers high-quality food and a diverse range of coffee and
non-coffee-based drinks. Online services via platforms like FoodPanda and GrabFood are also
accessible from them.
The dynamics and interactions among individuals, groups, and the organization are key
drivers for improvements within a company. Acknowledging that any organization faces its own
distinct challenges, either internally or externally. Managers who are effective should have the
capability to recognize and resolve all issues to maintain the company's proper direction. They
must also guarantee that the enterprise attains its goals and objectives.
Managers must actively pursue alternative solutions when issues arise within the
organization to avoid further escalation in the future. Recognizing that problems may not only
come from external factors is crucial. Perhaps, managerial decisions or actions resulted in them.
Managing the company properly could be the crucial factor in such scenarios. The importance of
maintaining a healthy organizational environment lies in practicing effective management. Any
successful and harmonious company requires effective management practices and prompt,
efficient problem-solving abilities
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7.0 REFERENCES
coffee-good-or-bad
Oakley, D. (2018, February 10). What Are The Key Resources Needed To Deliver The Value
Rice Straw Management. (2018, August 23). International Rice Research Institute.
https://www.irri.org/rice-straw-
management#:~:text=Rice%20straw%20is%20produced%20as
What Is Business Model Canvas and Why You Need One (with templates). (n.d.).
https://femaleswitch.com/playbook/tpost/zxaenku0h1-what-is-business-model-canvas-
and-why-
yo?gad=1&gclid=CjwKCAjwm4ukBhAuEiwA0zQxk6awSSGurpEWj3davNMLjN8uM
YyK9ERYYGC9MYYtnPfbgY4nWrYGFBoCGNIQAvD_BwE
https://www.nescafe.com/mena/en-ae/understanding-coffee/what-decaf-coffee
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8.0 APPENDICES
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