MIS Case I Title: The Broadway Café
FINAL SUBMISSION DEADLINE: March 30, 2016
THE BROADWAY CAFÉ
BROOKLYN, NY 11201
You have recently inherited your grandfather’s coffee shop, The Broadway Café, which is conveniently located on Fulton Mall in downtown Brooklyn, NY. The location of the café is within a block from LIU Brooklyn Campus. The cafe offers many different kinds of specialized coffees, teas, a full service bakery, and homemade sandwiches, soups, and salads. Your grandfather first opened The Broadway Cafe in 1952 and it was a local hotspot for many years.
Unfortunately, business has been steadily declining over the last five years. Although your grandfather was an expert at running the coffee shop, it is outdated. There are no computers in the store and all ordering takes place manually. Your grandfather had a terrific memory and knew all of his customers by name, but unfortunately, none of this information is located anywhere in the store. The family recipes for the baked goods and soups are also stored in your grandfather’s memory. Inventory is tracked in a note pad, along with employee payroll, and marketing coupons. The Cafe does not have a Web site, uses very little marketing except word-of-mouth, and essentially still operates the same as it did in 1952.
As the owner and chief operating officer of The Broadway Café, you will take advantage of business practices discussed in BUS 110 – Foundations of Management Information Systems to increase profits, keep the business running, and bring the cafe into the 21st century.
To survive and thrive, an organization must create a competitive advantage. A competitive advantage is a product or service that an organization’s customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy based on a new competitive advantage.
When an organization is the first to market with a competitive advantage, it gains a first-mover advantage. The first-mover advantage occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. As organizations develop their competitive advantages, they must pay close attention to their competition through environmental scanning. Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization. Technology plays an important role in environmental scanning; see Coffee Shop Industry- A Strategic Analysis by Michaela Altmann’s e-book, 2007 in the References section.
PORTER’S FIVE FORCES MODEL
Michael Porter’s Five Forces Model is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry segment. The Five Forces Model helps determine the relative attractiveness of an industry and includes:
- Buyer Power
- Supplier power
- Threat of substitute products or services
- Threat of new entrants
- Rivalry among existing competitors
MIS CASE I FOCUS QUESTIONS
• Perform a detailed Porter’s Five Forces analysis for The Broadway Cafe. Make sure you indicate how you will lower the forces that are either moderate or high, if possible.
• Be sure to highlight entry barriers, switching costs, and substitute products.
• Determine which of Porter’s Three Generic strategies you will use as you rebuild The Broadway Cafe for the 21st century.
• Make appropriate assumptions about your location and its immediate surroundings as needed.
Diplom-Kauffrau (FH), Master of Business Administration Michaela Altmann, 2007, Coffee Shop Industry – A Strategic Analysis, Munich, GRIN Publishing GmbH, http://www.grin.com/en/e-book/111348/coffee-shop-industry-a-strategic-analysis
Information Systems 2e (Textbook), Paige Baltzan, McGraw-Hill/Irwin