The Strategy to Increase Revenue for Sue's Cafe Essay

INCREASING REVENUESTo generate increased revenues from both new and existing customers, the company should increase the average transaction size. Average transaction is mainly important because it assists in measuring success when increasing larger sales from each customer. Ideally, the average transaction size should constantly be increasing because it suggests strongly that the company is not just continued, but increasing success in selling coffee to its consumers. Alternatively, the company could increase the frequency of transactions per customer. Frequency of transactions per customer is critical, for example, if a new consumer comes in once in a month, convincing them to patronize the business every week will increase revenue. DECREASING EXPENSESThe solution that the company chooses will depend on the circumstance of the individual organization. Even though there is a need to purchase high-quality material, there is also a need for a high-quality organization to purchase the products. This way Sue's Caf can choose to minimize purchasing of materials from suppliers. By renegotiating the supplier contract, the company will be able to minimize costs significantly. However, they should try not simply to minimize the spending on resource supply but also to increase their effectiveness more customers, more sales, more transactions processed, more new products, better resources. In addition, if the managers feel that their support spending is higher than the competitors and relative to the benefit being generated, they could set objectives to minimizing, say administrative expenses as a percent of sales or distribution or selling expenses and marketing. However, objectives to decrease expenses and cost levels, should be balanced, on the score cards through other measures, say of consumer representatives, performance, and quality so that the cutting does not have any impact on achieving important clients and internal practice objectives.THE BREW-IT-YOURSELF AT HOME COFFEE TRENDTo deal with the recent emerging brew-it-yourself single cup coffee system, Sue's Caf need to excel through creating unique coffee offerings, improving interior decoration and ambiance, and further developing their menus. The...

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