Case study â Unit one: Small business (answering using PINCC)
The case study
Sarmaâs CafĂ© is a small cafĂ© that specialises in exotic coffees sourced from around the world. The cafĂ© business has one shop located near a busy town centre. There are several other cafĂ©s in the area. However, none shares the same unique selling point.
At the moment, Sarma does not have a website and has only just started taking payment by card. However, all orders have to be taken at the till in the shop before they can be processed, and customers have no option for delivery.
Sarma has recently decided that due to an increase in demand and promising financial performance, she would like to grow the café business. She is currently considering opening new premises, opening a website and online app, starting a delivery service and starting to sell food. Sarma has been conducting some market research and is trying to decide the best option to grow her business.
Example answers
One method of analysing a case study is called PINCC: product, industry, customers and competitors.
In the above case study, we can see that:
- the product is exotic coffee
- the industry is the café and coffee industry
- the customers are most likely people of all ages above 16
- the competitors are the several other cafés in the area
Question
Outline one method Sarmaâs CafĂ© uses to add value to the business.
A (low mark): It uses card payments to add value to the business.
A (high mark): Sarma uses the unique selling point of âexotic coffeeâ to add value to her cafĂ© business.
The second response above is a high-mark response because the respondent has answered the question accurately, with context and a relevant example.
Question
Explain how Sarmaâs CafĂ© could benefit from opening a website and online app.
A (low mark - 1): Sarmaâs could benefit from opening a website and online app by getting more customers, because more people would see the business. This would bring more customers.
A (middle mark - 2): Sarmaâs CafĂ© would benefit by having increased customer awareness. This is because more potential customers would know about the business and it would be easier to order. This would lead to the business gaining more customers and profit.
A (high mark - 3): Sarmaâs CafĂ© would benefit by providing customers of all ages with an easier method of ordering exotic coffees. This is because it would be more convenient, providing customers with a service that would mean they no longer had to queue at the till when in the busy town centre. This would lead to more customers choosing to purchase refreshments from Sarmaâs CafĂ©, and therefore Sarma would gain a competitive advantage over several local competitors.