Bus 501

Business essential simulation: Coffee Shop Inc.

1. What made you select this scenario for simulation? The primary situation and what the story is
all about.

The decision to go with the Coffee Shop Inc. simulation was driven by how closely it relates to
problems that many new food and beverage entrepreneurs face. I oversaw all aspects of running
a coffee shop, making choices about what to serve, how much to charge, advertising, staffing,
and the best place to set it up. Running a profitable business involves controlling costs, pleasing
customers, and striving ahead of the competitors for multiple business periods.

2. The issue or obstacle you faced and what your solution was.

In the second quarter, I found it challenging to keep customer satisfaction levels up. The delays
and poor behavior of the staff were the reason for this. Since it became clear that we needed the
extra skills, I decided to invest more in employee training and add new staff. As a consequence,
customers became more pleased, service quality increased, and profits grew in the next quarter.
Training is a kind of specialized education that aims to equip people with the information,
abilities, and attitudes necessary to perform well in a particular role. A research was carried out
to determine the different training models that private company management use, evaluate the
impact of training on the provision of high-quality services, and evaluate management
commitment to staff training and orientation. The results demonstrated that the majority of
private businesses conduct internal-supervised, recurring job training sessions for their
employees. The survey also discovered that complaints are handled properly and that customers
have a positive opinion of the company's goods. The researchers advise extending the time and
scope of training, including all departments, and guaranteeing quality customer service
(Timothy, 2020).

3. Two main ideas or concepts are used.

I applied the 4Ps by making changes to the Product, adjusting Prices, choosing an ideal Place,
and promoting the company. As a result of these changes, the company gained more market
share.I based my pricing and cost-control decisions on break-even analysis because it showed
how much sale I needed to cover all my expenses and start making a profit When promoting a
product or service to the general public, the four Ps—product, pricing, location, and promotion—
are crucial components. Neil Borden first proposed these marketing mix ideas in the 1950s, and
they have since changed. Physical proof, people, and procedure are additional Ps. E. Jerome
McCarthy improved Borden's concepts and helped popularize the notion by co-writing the book
Basic Marketing: A Managerial Approach. Businesses still use similar marketing strategies today
to interact with customers and sell their goods and services (Twin, 2024).

4. Applications of course knowledge in the real world.

It demonstrated how one business decision can impact many others. For instance, changes in
marketing meant that different amounts of stock and personnel were necessary. It was made clear
that the decisions made during operations, such as staffing, are extremely important for customer
satisfaction—more so than many realize. I gained a greater sense of why marketing and
operations must be in sync. In the fast-paced business environment of today, corporate managers
need to be able to make strategic decisions. It enables managers to keep ahead of the
competition, predict market trends, and weigh risks and benefits. Long-term success, flexibility,
and agility are guaranteed by this talent. Additionally, it enables managers to prioritize tasks and
distribute resources effectively, lowering the possibility of squandering funds on projects that
don't support the objectives of the company. Making strategic decisions also makes it possible to
proactively manage risks and challenges in the future, which promotes innovation and allows for
long-term success and development (Deep, 2023).

5. If I were to do something similar again, how I would manage it differently.

Another change I would make is investing more time in market research at the outset to adapt
our offerings to what people want. I would also include scenario planning when seeing changes
in demand and preparing my personnel and stock in advance. I plan to focus increasingly on data
analysis to cut back on guesswork and improve my results. Businesses and organizations use
marketing research as a vital technique to get important data about their target market and sector.
Businesses may learn more about market trends, the competitive environment, and consumer
demands, preferences, and behavior by doing research (Kantar, 2023).

New Venture simulation: Food truck challange

Why did you choose this simulation? Main scenario and objective.

I selected the Ice Cream Shop Simulation because it offered a fun yet realistic opportunity to
explore the complexities of product innovation, demand forecasting, and customer satisfaction
within a seasonal food business. The main scenario involves running an ice cream shop, where I
was responsible for managing flavours, pricing, marketing, inventory, and staffing. The objective
is to maximize profitability while adapting to seasonal customer preferences and operational
constraints.

2. Specific challenge or decision point and how you addressed it.

A critical decision point occurred during the summer peak season when demand surged
unexpectedly. I faced a supply shortage due to underestimating inventory needs. To address this,
I immediately adjusted supplier contracts for faster restocking and offered discounts on less
popular flavours to divert customer attention. This helped balance inventory levels and maintain
sales momentum without losing customer trust. With divisions for supply chain, planning &
logistics, quality assurance, technology & innovation, HRBP, and finance, the corporation has a
distinctive organizational structure. The business keeps an eye on key performance indicators
(KPIs) related to the creation of ice cream. However, there are notable discrepancies between the
financial forecast's actual values and its predicted values. These discrepancies have the potential
to impact the budget and boost the supply chain's efficiency. Significant discrepancies in labor
productivity, biodigester consumption, and utility use are found by the finance department (Ömer
Avci, 2019).
3. Two key theories or concepts applied.

 Demand Forecasting: I applied this concept to anticipate customer demand across

different seasons. By analyzing sales data trends, I was able to prepare more accurately
for high-demand periods like summer, which improved sales and reduced stockouts.

 SWOT Analysis: I used SWOT to evaluate the shop’s strengths (unique flavours),
weaknesses (high production costs), opportunities (seasonal promotions), and threats
(weather dependency). This helped guide my marketing and pricing strategies.

4. Insights about real-world applications of course content.

The simulation emphasized the importance of agility in decision-making, especially in industries

affected by external variables like weather. I learned how crucial supply chain coordination and
accurate demand estimation are in perishable goods businesses. It reshaped my understanding of
inventory management—not just as a logistical function but as a strategic tool that directly
impacts customer satisfaction and revenue.

5. How you would approach a similar scenario differently.

Based on this experience, I would implement a more robust seasonal planning model with built-
in flexibility for sudden changes in demand. I’d also explore diversifying product offerings—
such as hot desserts in colder months—to reduce off-season risk. Additionally, investing in
customer feedback loops would help me innovate flavours and services based on actual
preferences, rather than assumptions.