Examine ABC’s strategic position, established corporate goals, and suggest key strategies to achieve the goals. Suggest key directives for the detailed strategic plan. Piero was proud of his coffee which, in his view, was far better thanStarbucks. In fact, his coffee was highly recognized by the public, and alocal press has named it a star restaurant in the 2005 regional survey.After the financial tsunami in late 2000s, Piero looked for a businessopportunity in China. Piero paid a few visits to Hong Kong and Shanghai in2012 and conducted several field research studies. He firmly believed agood prospect in the China market because of high GDP growth and the riseof middle class. The most important message he got was that Chineseyoung generations were curious about Western lifestyle. He thought thiswas his last chance in his lifetime.In 2014, ABC started operations in Hong Kong. Piero replicated theentire operation at home including shop decoration, coffee menu, and giftshops. He believed "the unique Italian taste and lifestyle" was its sellingpoint. He was obsessed by the belief that "if Starbucks could do, I could itbetter." He intentionally set up shops nearby Starbucks with pricecomparable to its rival.In 2 years' time, ABC opened five shops in Hong Kong. Two shopsoffered full product ranges and three provided coffee only. All shops werebreakeven within 6 months. He had a strategic plan to open five moreshops in Hong Kong in the next 2 years. Similarly, he planned to openshops in China from 2016 with a speed of ten shops per year in Shenzhen,Guangzhou, and Shanghai.In view of the huge capital funds and the lack of China marketexperiences, he planned to invite local business partners for this venture. Abbraccio Caffe (ABC) was an Italian coffee bar and restaurant chainwhich had operations in Atlanta, a small tourist city of Italy. ABC used tooperate in good traffic locations such as tourist spots, popular shoppingmalls, and central prime districts. ABC provided comfortable venuedecorated with a theme of Italian lifestyle, relaxed, and friendlyatmosphere. ABC provideda variety of coffee full of Italian culturalsentiments -liquored coffee menu (e.g., caffee corretto, Patriota cocktail) wasparticularly loved by customers. ABC's crispy mini pizza, creamy homemadeice-cream cones, and special chocolate truffle gift sets were the hot items inthe shelves.strong, carefree, and passionate. The specially brewedPiero Aconi, the founder of ABC, has started his coffee career as earlyas his 20s. In more than 30 years of history in coffee making, he developeda very sophisticated, delicious, and unique blended coffee brewed in aspecially designed coffee making machine. Customers were fond of thetaste. He kept the recipe for himself and his three sons. The recipe was theshop's most important intangible asset.He had a very stable crew who were loyal and joyful. Piero loved themand was friendly to his staff and customers. Piero knew the importance of atrustworthy crew in this service industry, whose helpfulness, cheerfulness,and friendliness attributed to customer loyalty and business prosperity. Heliked simple operations. He delegated work and insisted shop managers tobe responsible for profits. He installed an accounting software to keep trackof daily sales, cash on hand, and weekly operating performance of eachshop. This software was employed by his ten shops in the city. In fact, Pierotraveled every week to meet his staff and customers.

According to the case study, ABC became an established coffee brand in Hongkong, as it focussed on…

Answered: Examine ABC’s strategic position,…

Examine ABC’s strategic position, established corporate goals, and suggest key strategies to achieve the goals. Suggest key directives for the detailed strategic plan.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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