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In this unit, you learned about Random Acts of Coffee, a fictional fair trade, pay-it-forward coffee cafe. When starting a business there are many options to choose from, and each type of business has distinct advantages and challenges. In this activity, you will investigate how different business types impact an organization’s operations, risks, and leadership responsibilities and determine which type of business would be best for Random Acts of Coffee.

Step 1: Research
Think about the different types of businesses and some examples of each. Then, choose one business from two of the following categories to research:

Service
Merchandising
Manufacturing
Hybrid
You will compile all your research in a table like the following:

Characteristics of Businesses
Type of Business Core Function Meeting Customer Needs Example Advantages Challenges
Service
Merchandising
Manufacturing
Hybrid
Step 2: Analysis
Research each of the businesses that you chose in Step 1 and create the chart from Step 1 in a spreadsheet software of your choice to summarize each of the following:

The core function of each business type
How each business meets its customer needs
Examples of local or well-known businesses that fit each category
Each business type’s advantages and challenges in today’s market
Be sure to note three to five reliable sources that you used in your research.

Step 3: Reflection
Now that you have a deeper understanding of each type of business, consider the Random Acts of Coffee (RAC) business profile from your unit and identify which type of business RAC is. In a well-developed paragraph, explain why RAC is the type of business that you identified, and reflect on the specific advantages and challenges this type of business might encounter.

Step 4: What to Submit
Please submit your research information from Steps 1 and 2, including your sources, and your reflection paragraph from Step 3.

1 answer

Sure! I can help you formulate a comprehensive research exercise for your fictional café, Random Acts of Coffee (RAC). Below is an example of how to fill out the table in Step 1, followed by your analysis and reflection.

Characteristics of Businesses

| Type of Business | Core Function | Meeting Customer Needs | Example | Advantages | Challenges | |-------------------|---------------------------------------------|-------------------------------------------|--------------------------|----------------------------------------------------------|---------------------------------------------------------| | Service | Provides intangible offerings (e.g., coffee shop services, customer interaction) | Engages customers through service experience | Starbucks, local cafes | Direct interaction with customers; flexibility in services | High competition; quality of service must be maintained | | Merchandising | Sells finished products (e.g., coffee beans, mugs) | Provides products that enhance the café experience | Community merchandise shops | Tangible goods lead to customer satisfaction; can boost revenue | Inventory management; requires retail space setup | | Manufacturing | Produces goods for sale (e.g., coffee production) | Offers quality products that consumers want | Coffee roasters | Control over production; ability to innovate | High initial costs; maintaining quality control | | Hybrid | Combines elements of service and product sales | Offers both services (coffee/space) and products (food, branded items) | ARC Coffee Shop | Diverse revenue streams; can adapt to customer feedback | Need to manage diverse operations; complexity in logistics |

Step 2: Analysis

To summarize the research, I recommend using reliable sources and organizing your findings in spreadsheet software like Microsoft Excel or Google Sheets. Below are some suggested sources for your research along with a brief summary for each type of business.

  1. Service Business: Research on the café industry and how local coffee shops operate.

    • Source: National Coffee Association (NCA)
    • Summary: Provides insights into consumer coffee trends, service styles, and customer engagement strategies.

  2. Merchandising Business: Look into how retail operations work within cafés.

    • Source: Retail Industry Report by IBISWorld
    • Summary: Discusses challenges and advantages of merchandise sales in local businesses.

  3. Manufacturing Business: Explore coffee production and the role of manufacturers in supplying cafés.

    • Source: Specialty Coffee Association (SCA)
    • Summary: Focuses on production methods, sustainability practices, and quality control in coffee manufacturing.

  4. Hybrid Business: Investigate businesses that serve coffee while selling merchandise.

    • Source: Forbes on trends in hybrid business models
    • Summary: Examines the success factors for hybrid cafes that blend services with product sales.

Step 3: Reflection

Random Acts of Coffee (RAC) is best categorized as a hybrid business because it combines the service of providing high-quality coffee with the sale of merchandise, such as branded cups, food items, and ethically sourced coffee beans. This dual approach enables RAC to create a unique customer experience that promotes both service satisfaction and product ownership. The advantages of this model include diverse revenue streams and flexibility to adapt to consumer demands—customers can enjoy their coffee while purchasing related products, making the venue a one-stop-shop for their needs. However, RAC may face challenges such as managing inventory across different product lines and ensuring consistent quality in both its service and merchandise offerings. Additionally, given the competitive nature of the coffee market, maintaining an edge through exceptional service and unique products will require ongoing innovation and customer engagement strategies.

Step 4: Submission

Compile your table from Step 1, along with the analysis from Step 2 and your reflection from Step 3. Be sure to include the sources with properly formatted citations.

Sources:

  1. National Coffee Association. (Year). Title of the report. URL
  2. IBISWorld. (Year). Title of the report. URL
  3. Specialty Coffee Association. (Year). Title of the report. URL
  4. Forbes. (Year). Title of the article. URL

Make adjustments to the sources as per your research findings and format them according to your assignment requirements. Good luck with your project!