Choc Lounge

7/31/2019 Choc Lounge

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1.0 Introduction

Even though numerous attempts have been made, it cannot be said with absolute certainty that

small enterprises have been properly defined. Bolton Chamber (1971 cited in Carter & Jones-Evans

2006) has endeavoured to define a small business as an enterprise which is autonomous and not

part of bigger firm that is managed in a basic organizational and governance structure and has a

comparatively minor stake of the overall market.

Following such a definition, small businesses are scrutinized in perspective of volume in terms of

employees and the enterprise, style of management and nature of the business. This aspect is

further elaborated by Analoui & Karami (2003) who justifiably add that the size of any given

small business is often geographical. Most European countries classify a small business as any

enterprise comprising of no more than two hundred and fifty [250] employees. Incorporating

such a figure, the aforementioned authors have compiled that approximately 3.7 million

businesses across the UK qualify as small businesses.

Studies carried out by the Council of Europe (1994) indicate that contributions to the

employment growth in any economy are now monopolized by small businesses. In addition, it

has recently been unveiled that most nations are promoting small businesses in light of the fact

after the fall of employment in large firms and entities, small businesses have become the main

source of new careers. However, neither small businesses nor large firms can sustain the market

without each other. Both equally complement each other as small businesses are seen as

innovators and developers of new processes and markets which are later taken on a larger scale

by bigger firms.

Barrow (1998) substantiated with statistics, was of the thought that almost six [6] to fifteen [15]% of the working population in developed economies were small business owners. Illustrations

such as the following fairly indicate the truth in Barrows findings:

ITALY: 90% of the industrial firms are small business and absorb 84% of entire work force;

DENMARK: 92% of all manufacturing firms are small businesses hiring 43% of the total work force

in the nation.

Small businesses numerous contributions to the market include essential functions such as small-

scale retailing, repair facilities, and subcontracting. In this report, the workings of a small

business known as The chocolate lounge with close reference and in relation to the practice of

the business to academic terms will be analysed. Exploring in turn, the start-up, finance, and

marketing strategies the business has used to survive over the years. Moreover, the analysis shall

assess the branding, networking and issues related to management faced by the small business.

In furtherance to the abovementioned, the competition and business cycle of the small business

shall be thoroughly scrutinized so as to reach a sound conclusion to this report.

2.0 Analysis of the business:

To analyse the business and get the necessary information, initially a small and informaltelephonic interview was done with Mr Shafqat Cheema who is the owner and chief manager of


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the Chocolate lounge. In that interview brief description of the information required was

conveyed with the purpose of research and it was agreed that he will answer the asked questions

via e-mail. He was delighted to give information and share his valuable experiences about his

small venture.

3.0 About the small business:

The Chocolate Lounge is a caf which is situated in Islamabad, the capital city of Pakistan. The

venture was started by Mr Shafqat Cheema who is an entrepreneur in Islamabad renowned for

his interests in small businesses and turning them into success by efficiently managing them with

limited resources. Mr Cheema always had this idea in his mind of opening a unique caf as he was

aware that the market of Islamabad lacked places like this one where people could hang out

mainly for the purpose of recreation and socializing. So he decided to make a one of a kind

combination in Islamabad by amalgamating the idea of this kind of caf with purely chocolate

theme, which later on turned out to be a good and profitable idea. However, he waited for thetime to be right to start-up this small venture, which will also be discussed in the start-up

strategy.

The Chocolate Lounge was opened at Blue Area which is a posh location in Islamabad in the year

2010.

It is a unique business concept in the sense that it brings a new idea into the market. This

chocolate caf aims to target a niche market. It is a highly specialized business, offering its

customers a chocolate haven, where they can relax, socialize and fulfil their chocolate dreams, all

at the same time. The caf offers a wide range of luxury chocolates, customized chocolates and

chocolate delicacies to its customers.

Mission statement according to Mr Cheema: Our aim is to provide the customer with the

ultimate chocolate experience. A place where the customer can indulge in all the chocolate

temptation they desire. We want to stimulate the consumers senses through the smell of fresh

cocoa, lighting for a soothing atmosphere and good music.

The interior of the caf is such that it aligns with the targeted concept of the ultimate chocolate

experience. The theme of the caf is based upon a colour scheme of dark hues such as browns,

pinks, maroons and purples. Moreover, ambience of course plays an important role.

The caf is divided into three sections. There is a section displaying the luxury chocolate brands

such as Lindt and Thorntons chocolates. Another section is dedicated to the customized

chocolates. This category is primarily targeting the gift giving market, although it is also expected

that people may purchase these items for their own enjoyment as well.

The third and final section of the lounge comprises of the caf section or the sitting area. There is

a comfortable seating area for the customers, where they can sit, relax and enjoy the wonders of

chocolate. There are smartly dressed waiters which help the customers with anything they

desire. There is a menu in this section from which customers can order according to their choice.


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4.0 Start-up strategy and research:

As the economy and market of Pakistan grows, its people are also emerging with it. People have

become more conscious, and aware of the outside world. Consumers especially in the upper and

upper middle class are gaining awareness and developing sophisticated tastes not only in the

fashion, technological, and media industries but are also gaining sophisticated tastes when it

comes to food.

A successful business not only depends on the right product, marketing, and financing but also

on the right time. Talking about a chocolate caf in Islamabad, ten years ago may not have

seemed feasible. But as the advent of cafes, coffee shops and sophisticated restaurants had

begun all over in Pakistan in recent years and were meeting success, it was believed by Mr

Cheema that the market was then ready for a caf which specializes in chocolate.

Recently before the start of the venture, Karachi and Lahore had already been introduced to

chocolate related cafes. Mr Cheema believed that at that time, when there was no direct

competition in the market, Islamabad was the next perfect place for setting up a chocolate caf.

According to Mr. Cheemas vision, Customers who love chocolates need a place where they can

go enjoy and fulfil their love for chocolate. This is a caf where the customer can experience all

types of chocolates combined with a perfect atmosphere. It is a place where the customer can

socialize or just sit back and relax.

Mr Cheema decided to open a sole proprietorship firm in which he was to be the sole owner ofthe firm. A sole proprietor is a company or a firm where the owner of the business is an individual

person. This is the simplest form of an organization. The business is operated by the individual

solely and for the purpose of making profit. Often small businesses start with this type of

organizational structure. It is beneficial in the sense that it is simple to set up and there are not

many formalities involved in setting up a sole proprietorship.

MANAGEMENT:

When it comes to the management procedure, two basic theories of management come to the

mind i.e.:

1. The Ford theory of management2. The Mayo theory of management

In the Ford theory of management the focus is getting maximum work done. Work is done in a

standard assembly line format and employees are treated as a resource rather than people. This

theory of management is not wrong in any manner it just gives less regard to the employees.

However, due to the assembly line standard work format work is done quicker. Since employees

are just a resource here they might end up getting dissatisfied and their morale may become low.

This can lead to poor performance in their work.


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Then comes the Mayo theory of management which is a softer management theory. Mayo

believed in the importance of individual employees rather than the importance of monetary

incentives. Mayos theory is based around the idea that employees need to belong to a group. If

they are working in standard assembly line formats they should be given breaks during their

work. By doing so their performance would increase and they would be more productive and

valuable to the firm.

Mayo also believed that employees should be treated as people rather than a resource and their

needs should be catered to rather than being ignored. If this is done the employees become

more loyal to the firm and work better. They start associating with their organization and feel like

their contribution is valued. This should be the goal as loyalty in employees is extremely

important.

After discussing both options Mr Cheema then thought not go to with either of it and go for an

hybrid approach He said that In the kitchen he needed a standard assembly line procedure to

ensure that his products always remain the same and there is no compromise on the qualitystandard. However, this does not mean that employees are treated as a resource. According to

Mr. Cheema they are valuable assets to the form and should not be treated like manufacturing

machines. For this breaks between work hours should be allowed.

When asked about the Management functions, Mr Cheema told us that the basic functions and

the tasks assigned to them are as under:

1. Controlling: This function is taken care of by the CEO of the firm. He ensures that alloperations are being carried out as planned.

2. Leading: This is the most integral role especially in a small enterprise such as TheChocolate Lounge. A good leader is one who motivates his employees, makes them loyaland brings about a passion in them to do the best of their ability. Moreover, he can

enhance their potential and bring forward their hidden qualities and talents.

3. Staffing: Human resource is an asset to the firm therefore a good workforce is extremelyimportant

4. Organizing: In every form of work a well-organized structure keeps processes runningsmoothly. In order to do that the upper management that in this case is considered as the

CEO needs to be very firm and competent to make sure that all things are being done on

time, books of accounts are being maintained properly and all employees are working

according to their assigned tasks.5. Planning: One of the most important functions is planning. Again in this case the CEO is

responsible in planning and forecasting for future but help is also taken from employees

as they also work closely with the customers and are able to observe consumer buying

patterns and behavior.

Mr.cheema told us that the management team works integrated with all areas of the business.

Being a small setup some main tasks are assigned to the kitchen helpers, chef, accountant and

waiters but at the same time a waiter can be asked to deliver the goods if required. Small

additional tasks can be added along with the assigned ones. Since the setup is small the

management team is trained to be work as one team and such small tasks are not to cause any

trouble.


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COMPETITORS:

Mr. Cheema talking about the competitors said that before opening the chocolate lounge, while

he was looking out for a business to conduct, he found out that so such caf exists in the entire

market. He also told us that he wanted to open a business which no one else in the area is

carrying out.

Talking about the competitors of chocolate lounge, Mr. Cheema said, since initials up to the date,

there is no such direct competitor as there is no one carrying out a business of the same attire.

There are certain cafes such as Gelato and Gloria Jeans that are serving the consumers in an

exquisite style yet there isnt any caf that has solely dedicated itself to chocolates only

Bibliography:

Analoui, F. & Karami, A. (2003), Strategic Management in Small and Medium Enterprises. London:

Thomson.

Barrow, C. (1998), The Essence of Small Business. 2nd ed. Hertfordshire: Prentice Hall.

Bolton Committee (1971), Report of the Committee of Enquiry of Small Firms In Carter, S. &

Jones-Evans, D. (2006). Enterprise and Small Business: Principles, Practice and Policy. 2nd ed. Essex:

Pearson Education.

Council of Europe (1994), The Promotion of Small and Medium-sized Enterprises in Europe. pp.

98. Available at;

http://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-

58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage

&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=false [Accessed 20th April

2012]
http://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=falsehttp://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises+can+be+defined&hl=en&ei=5_C2Tf2RJc-58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage&q=small%20and%20medium%20enterprises%20can%20be%20defined&f=false

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Choc Lounge