One thing that could put me in a better position to launch my own business one day would be continuing my education in Business Management. I am currently in UG entrepreneurship but I would want to take more classes that lean more towards what it would actually be like to open a business oppose to just managing one. Another thing to keep in mind would be to save what I can so I can have start up money.
Two things I can do to improve my Entrepreneur skills would be: networking and reading more into being an Entrepreneur. Networking would definately be the hardest thing to do because I am not a big social person. Reading more into entrepreneurship would be beneficial though. I understand that my text book for Entrepreneurship is an important resource but at the same time I would like to read more on other entrepreneurs and how they started off and what they had to do.
Sunday, November 29, 2009
Improving Financial Standing
The most important thing to remember in improving your business is saving. Saving more is sometimes a hard task, especially when your business doesn't make a huge profit. It is important to save during the peak season, in my case the summer, so when off season, the winter months, come around you will have money to prevent yourself from going in the hole. In able to do this, you must keep up with your businesses Balance sheet. There is not a really extra work that can be done to improve Baskin Robbins financial standing. The key point is to save as much as I can and then invest back into the business whenever it is needed.
Saturday, November 7, 2009
Pricing Strategy
I would have to say that there hasn't really been any pricing differences since the downturn in the economy. The only thing that has been on sale and has stayed on sale are pre-pack half-gallons. Original costs are about $6.50 but they have been on sale for the past year for $4.50 or 2 for $8.99. They were originally 2 for $8.00 but they were marked up. Either way they are still a good deal and a big sale. Also, you can find coupons in the mail or paper that give good deals as well. Such as a 2 scoop cone or cup for $1.99 opposed to the original price of $2.99. That is a whole $1.00 off 2 scoops of ice cream. That's a lot for something so small.
Suppliers
Baskin Robbins doesn't really have much of a choice at all on where they get their products and supplies. There is two main suppliers- ice cream and paper goods, such as cups, napkins, etc. The ice cream is generally made local, like the Memphis Baskin Robbins get their ice cream from Klinke Brothers. Although, it would be cheaper to get their ice cream from Nashville, they are not allowed to order from there. Paper products come from a main source as well. Since Baskin Robbins is known for pink spoons and their "BR31" logo there is only one place to get these products. Things such as napkins and spoons would be a lot cheaper if the owner could just go down to Sam's and buy them in bulk, but franchises owners have strict rules they follow.
Suppliers are not always reliable either. For example, a manager might place an order for 65 3-gallon ice cream tubs, thinking they are going to get everything they order. A week later when the truck comes, there might only be 60 tubs, causing problems with that particular store for the week because now they do not have the correct amount of ice cream to serve customers and make cakes. Paper product suppliers are the same way. Recently, all Baskin Robbins have been forced to remodel their stores. During this transition, corporate has changed the design on the napkins, along with the shape and size. This caused a problem because for about a month stores weren't able to order any napkins. In this case, they used store bought napkins.
Also, for the off season months, which are during the winter, the ice cream truck will only come every other week. This will cut back on the supplier cost as well as gas. For Baskin Robbins stores this could have a negative impact. Now instead of ordering for one week, managers are having to plan out what they are going to need for 2 weeks. It is possible to run out of ice cream and if that happens, stores are having to wait even longer to get their supplies. Meaning unsatisfied customers. It is easy to say "Well how come mangers just don't order more ice cream so that they don't run out," but it is not always as easy as it sounds. Sales very from week to week and day to day. Sometimes certain stores might not have enough money in their accounts to order double the amount plus more on supplies. Depending on sales they might only have enough to order 1 weeks worth of supplies at a time and doubling the cost makes it harder.
Suppliers are not always reliable either. For example, a manager might place an order for 65 3-gallon ice cream tubs, thinking they are going to get everything they order. A week later when the truck comes, there might only be 60 tubs, causing problems with that particular store for the week because now they do not have the correct amount of ice cream to serve customers and make cakes. Paper product suppliers are the same way. Recently, all Baskin Robbins have been forced to remodel their stores. During this transition, corporate has changed the design on the napkins, along with the shape and size. This caused a problem because for about a month stores weren't able to order any napkins. In this case, they used store bought napkins.
Also, for the off season months, which are during the winter, the ice cream truck will only come every other week. This will cut back on the supplier cost as well as gas. For Baskin Robbins stores this could have a negative impact. Now instead of ordering for one week, managers are having to plan out what they are going to need for 2 weeks. It is possible to run out of ice cream and if that happens, stores are having to wait even longer to get their supplies. Meaning unsatisfied customers. It is easy to say "Well how come mangers just don't order more ice cream so that they don't run out," but it is not always as easy as it sounds. Sales very from week to week and day to day. Sometimes certain stores might not have enough money in their accounts to order double the amount plus more on supplies. Depending on sales they might only have enough to order 1 weeks worth of supplies at a time and doubling the cost makes it harder.
Conducting a Feasibility Analysis
Owned by Dunkin Brands and is 100% franchised. Total global systemwide sales of $1.4billion with 2,692 U.S. shops in 46 states and District of Columbia and 3,321 international shops in 35 countries. Industry as a whole has high profit margins. Trends that are shaping the future include continually coming up with new ice cream flavors. Opportunities to spread include healthier ice cream such as, reduced fat, sugar free, etc. The industry is somewhere in between young and mature.
Key Factors
Location is important. The more convenient the location is the more people are going to come and buy products from you. Exterior signs, the physical condition of your store, and parking lot also can affect sells of the store. All new Baskin Robbins now are required to be at the ends of a shopping center, so that they can draw more business.
Strenghts, Weaknesses, Opportunities& Threats
Strengths- Baskin Robbins ice cream is overall a good product. Corporate uses excellent marketing strategies to promote all new products, along with cakes. Baskin Robbins offers cakes for all events and holiday's.
Weaknesses- Owning a franchise can be difficult to maintain. It is your responsibility to keep up with your stores constant upgrades and remodeling. It is very possible to have a new store that has only been open for 3 or 4 years, that corporate can make you remodel. Unlike corporate stores, remodeling cost will come directly out of your pocket.
Opportunities- You are able to open multiple stores.
Threats- The major threat to owning an ice cream store is off season. Customer's want ice cream when it is hot outside, not in the freezing cold winters. Although, in the winter month's in order to keep sales up it is important to sell many cakes.
Weaknesses- Owning a franchise can be difficult to maintain. It is your responsibility to keep up with your stores constant upgrades and remodeling. It is very possible to have a new store that has only been open for 3 or 4 years, that corporate can make you remodel. Unlike corporate stores, remodeling cost will come directly out of your pocket.
Opportunities- You are able to open multiple stores.
Threats- The major threat to owning an ice cream store is off season. Customer's want ice cream when it is hot outside, not in the freezing cold winters. Although, in the winter month's in order to keep sales up it is important to sell many cakes.
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