Lynn's Trifle House : A Business Plan.
TABLE OF CONTENTS
TITLE PAGE…………………………………………………………………………….i
DECLARATION OF ORGINALITY………………………………………………..…ii
FRONT COVER OF THE BUSINESS PLAN………………………………………iii
APPROVAL PAGE……………………………………………………………………iv
TABLE OF CONTENTS……………………………………………………………….v
ABSTRACT……………………………………………………………………………vii
EXECUTIVE SUMMARY……………………………………………………………viii
CHAPTER I. THE BACKGROUND…………………………………………….........1
CHAPTER II. MARKETING ASPECT…………………………………….………….8
CHAPTER III.OPERATIONAL ASPECT………………………………..…………21
CHAPTER IV.HUMAN RESOURCES ASPECT……….…………….…………...29
CHAPTER V.FINANCIAL ASPECT.………….……………………….…………...44
BIBLIOGRAPHY
APPENDICES:
APPENDIX A RECIPE
APPENDIX B “ME, MY TRIFLE, AND I” CALCULATION
APPENDIX C LOGO
APPENDIX D PROMOTIONAL TOOLS
APPENDIX E PRODUCT PICTURE
APPENDIX F BOX, CART, AND FOOD DISPLAY
APPENDIX G QUESTIONNAIRE
APPENDIX H PROCESS AND PICTURES OF MAKING HONEY MINT TRIFLE
ii
ABSTRACT
Industri pariwisata di Bandung berkembang dengan pesat beberapa tahun
terakhir. Seiring perkembangan industri pariwisata, industri lain yang
berhubungan dengan pariwisata pun berkembang. Salah satu industri yang
berkembang pesat adalah industri makanan. Penulis melihat perkembangan
industri makanan sebagai suatu peluang bisnis yang baik. Kesempatan bisnis
dalam industri makanan besar namun persaingan dalam industri ini juga ketat.
Oleh karena itu, penulis memutuskan untuk membuat dan menjual kreasi
makanan unik yang disebut trifle.
Trifle adalah sejenis makanan penutup yang diletakkan dalam gelas. Trifle
tersusun atas beberapa lapis kue, krim atau keju, dan berbagai variasi topping.
Saat ini terdapat beberapa toko kue yang menjual trifle tapi belum ada toko
spesialis trifle di Bandung. Penulis memutuskan untuk mendirikan sebuah toko
kue khusus trifle yang dinamakan “Lynn’s Trifle House” yang berlokasi di
Setiabudhi Supermarket.
Lynn’s Trifle House menjual menu trifle yang diletakkan dalam cup plastik
yaitu Brownie Trifle, Strawberry Trifle, Chocolate Trifle, Mango Trifle, dan
Tiramisu Trifle. Lynn’s Trifle House memiliki menu trifle unik, yaitu Almond
Konyaku Trifle, Melon Oreo Trifle, dan Honey Mint Trifle. Selain itu, ada pula
menu trifle ukuran besar dalam mangkuk kaca yang dinamakan “Me, My Trifle,
and I”. Trifle ini unik karena konsumen dapat memilih sendiri kue, krim, dan
topping yang ia inginkan pada trifle nya.
Business Plan ini dibuat dengan tujuan untuk menarik investor menanamkan
modal pada Lynn’s Trifle House. Dalam business plan ini dijelaskan secara rinci
kekuatan dan kelemahan, peluang dan ancaman, aspek pemasaran, aspek
operasional, aspek sumber daya manusia, dan aspek finansial Lynn’s Trifle
House guna meyakinkan investor untuk menanamkan modalnya.
iii
EXECUTIVE SUMMARY
Lynn’s Trifle House is the only specialty trifle shop in town. It is located in
Setiabudhi Supermarket Basement 1, Bandung. Lynn’s Trifle House offers a
creamy delicious dessert called trifle for people to enjoy. Trifle is a kind of
dessert containing several layers of cake, custard, and cream served in a cup or
a bowl. All trifles at Lynn’s Trifle House are made daily using high-quality fresh
ingredients without any preservatives. Lynn’s Trifle House’s commitment to
customers’ satisfaction is shown through the creation of unique trifle menus, fast
friendly service, and availability of delivery service.
A strong financial foundation is one of the keys to building a successful
business. Since Lynn’s Trifle House is a profitable business, shown by the
expected first year profit of Rp116,043,900, Lynn’s Trifle House expects to
further develop the business. Therefore, business partnership in the form of
financial investment is sought to strengthen the financial foundation that
currently is still covered by the owner. Investment can enhance the development
of trifle creations, training of human resources, promotions and advertising. By
having these improvements, the business of Lynn’s Trifle House will be boosted
and gain higher profit.
iv
v
CHAPTER I
THE BACKGROUND
1.1.
Background of Business
In recent years, tourism industry in Bandung has grown significantly. The
data from Bandung City Council shows that until 2005 the number of tourists
visiting Bandung had reached two million a year, and that number has kept on
increasing. This tourism development helps to grow the tourism industry, which
includes hotels, restaurants, malls, and factory outlets in Bandung. The latest
data in 2009 shows that the tourism industry in Bandung has an annual average
income of 78 billion Rupiah (“Bandung Ingin Dikenal sebagai Kota Wisata” par.
7).
The development of tourism industry has a positive impact on the food
industry and I believe there is a business opportunity in the food industry in
Bandung. In order to grab the niche in an already competitive food industry
market, I need to create something new and unique. Only a new and unique
food creation will have its market, as is stated by Herman Rukmanadi, the head
of West Java Travel Bureau Assosiation, “Bandung citizens and tourists love to
try new creation of food” (“Kuliner Jadul Sampai Modern di Bandung” par. 1).
Therefore, I decided to open a specialty trifle shop called “Lynn’s Trifle
House”. Trifle is a “a dessert typically consisting of plain or sponge cake often
1
soaked with wine or spirits and topped with layer of preserves, custard, and
cream” (Merriam-Webster Online Dictionary).Trifle has been sold in a few cake
shops in Bandung but there is no specialty trifle shop in Bandung.
I name my trifle shop “Lynn’s Trifle House” because Lynn is my name and I
want to make a brand recognition with my name. Lynn is a catchy word; it is
only one syllable and does not contain any vowels. People can easily remember
the name “Lynn”. McCarthy and Perreault state that a good brand name should
be “short and simple, easy to spell and read, easy to recognize and remember,
easy to pronounce” (312).
1.2.
USP (Unique Selling Proposition)
A business should have something unique which characterizes and
differentiates the business from the other competitors. The uniqueness is often
called Unique Selling Proposition. Unique Selling Proposition or USP is “a real
or perceived benefit of good or service that differentiates it from the competing
brands” (Businessdictionary.com). USP is very important to give the customers
reasons to prefer a particular product from other products.
Lynn’s Trifle House has a special product called “Me, My Trifle, and I”. “Me,
My Trifle, and I” is trifle put in a glass-bowl that can serve around ten people.
This product is unique because customers can pick the ingredients they want in
the trifle. Customers should pre-order at least two days in advance; Lynn’s Trifle
House custom-makes the trifle and delivers the trifle to the customer’s place.
For the daily menu, Lynn’s Trifle House offers standard cup-size trifle
menus: (i) Brownie Trifle, (ii) Strawberry Trifle, (iii) Chocolate Trifle, (iv) Mango
2
Trifle, and (v) Tiramisu Trifle; as well as Lynn’s Trifle House’s own signature
trifle innovation: (vi) Almond Konyaku Trifle, (vii) Honey Mint Trifle, and (viii)
Melon Oreo Trifle. All trifles are baked using high quality ingredients without
preservatives.
The key components that differentiate Lynn’s Trifle House’s trifles with other
cake shop’s trifles lie in the custard and cheese. The custard used in mango
trifle, strawberry trifle, and melon oreo trifle is home-made. The cheese used for
Tiramisu Trifle is Greek cheese called “ricotta cheese” that has a unique flavor
and works very well with coffee and ladyfinger cookies in Tiramisu Trifle.
1.3.
SWOT Analysis (Strength-Weakness-Opportunity-Threat)
Sun Tzu, a Chinese military general and strategist, once said, “In a battle, a
person is weak when he has to prepare against others, but he is strong when
he makes others prepare against him” (Henricks 115). The first step for a
person to become strong is to know himself and his enemy inside and out. From
business point of view, this process is called SWOT analysis. SWOT analysis is
characterized by knowing your own Strengths and Weaknesses, as well as the
Opportunities and Threats given by outside sources.
1.3.1. Strengths
A business can survive a competitive market if it has certain strengths within
the business. “Business strengths are the resources and capabilities that can be
used as a basis for developing competitive advantage against other
businesses” (Bradford et al. par. 3).
3
The first strength is the quality of the trifle. Lynn’s Trifle House uses highquality ingredients and eliminates preservatives in baking the trifles. All trifles
are prepared daily to ensure freshness of the product.
The second strength of Lynn’s Trifle House lies in the innovative resources.
Lynn’s Trifle House always generates new ideas to satisfy customers. It is the
only trifle shop in Bandung that can custom-make trifle based on customers’
preferences; it also creates unique menus such as Almond Konyaku Trifle,
Melon Oreo Trifle, and Honey Mint Trifle.
The third strength is the delivery service. For every purchase of “Me, My
Trifle, and I”, Lynn’s Trifle House can deliver the trifle to the customer’s place.
By having a delivery service, Lynn’s Trifle House can increase the orders of
“Me, My Trifle, and I”.
The fourth strength is the availability of physical resources. At the production
site, located at Jalan Hegarmanah 90, close to Setiabudhi Supermarket, all
equipments such as oven, refrigerator, and mixer are available. The nearby
location between the production site and the shop is advantageous because the
trifles can be quickly delivered to the shop and it saves money of transportation
costs.
1.3.2. Weaknesses
When strengths will enhance a business, weaknesses can cause failure in a
business. According to Vadim Kotelnikov, “The weaknesses may be rooted
in the lack of managerial skills, insufficient quality, technological backwardness,
inadequate systems or processes, slow deliveries, or shortage of resources”
4
(par. 9). Therefore, it is essential to reduce or eliminate weaknesses within the
business before it causes any disadvantages.
The first weakness of Lynn’s Trifle House is lack of recognition. Lynn’s Trifle
House is a new business; Bandung’s people and Bandung’s tourists may not
know Lynn’s Trifle House yet. This is why promotion and advertising are
essential to raise the brand recognition in order to attract customers to Lynn’s
Trifle House.
The second weakness is financial resources. Lynn’s Trifle House financial
resource comes from the owner’s personal money. The money is used for
covering initial investment and business operational costs. However, investment
is needed to strengthen the financial foundation of the business. Stronger
financial foundation can inject present and future development of Lynn’s Trifle
House.
The third weakness is the production capacity. Lynn’s Trifle House has a
production capacity of up to 120 cup-size trifles a day and five “Me, My Trifle,
and I” per month. It is predicted that during Chinese New Year, Idul Fitri, and
Christmas period the trifles’ orders will increase significantly and the trifle
production may not be able to fulfill the orders. To overcome this situation
Lynn’s Trifle House will use a scheduling technique for orders of “Me, My Trifle,
and I”. The scheduling means that Lynn’s Trifle House will accept “Me, My
Trifle, and I” order based on the principle “first come first serve”. The person
who orders sooner can choose the date “Me, My Trifle, and I” delivered. The
person who orders later will have to adjust the “Me, My Trifle, and I” delivery
5
based on the available date. Also, the owner will help bake trifles during busy
holidays.
1.3.3. Opportunities
Strength and weakness come from inside the business, but opportunity and
threat come from the external environment. “Opportunity is a condition in the
general environment that helps a company achieve strategic competitiveness”
(A. Hitt, Ireland, and E. Hoskisson 41).
The first opportunity for my business is the growing number of middle to
upper economy class in Indonesia. A survey by A.C. Nielsen in 2008 shows that
“people [in Indonesia] with average income per capita between $2,300 and
$2,400 is estimated around 22.5 million people and the number is
growing”(Harinowo par. 7-8). This growing number shows that middle up
Indonesian people in general are capable of spending their money on things
beyond their primary needs. They can afford to buy a cup of trifle for a price
range of Rp10,000 to Rp15,000 or a bowl of trifle for a price range of
Rp100,000 to Rp150,000.
The second opportunity is the growing number of tourists visiting Bandung.
On weekends, tourists from Jakarta flock to Bandung especially in the mall
areas, Setiabudhi area, and Dago area. Lynn’s Trifle House can benefit from
this situation by having a strategic location often visited by tourists to attract
more customers.
The third opportunity is in the development of means of communication and
technology. In the old days, the only way of promoting and advertising a product
6
was in newspapers, in magazines, or on television and these methods could
bye costly. Nowadays, the development of Internet technology has given people
an alternative to advertise a business. Lynn’s Trifle House will place
advertisement in the newspaper, but it will also use Facebook and BlackBerry
Messenger to promote the business. Facebook and BlackBerry Messenger are
effective because they can quickly spread the buzz to friends for free.
1.3.4. Threats
An external environment that is unstable or ambiguous can pose a threat to
a business. “A threat is a condition in the general environment that may hinder a
company’s efforts to achieve strategic competitiveness” (A. Hitt, Ireland, and E.
Hoskisson 41). Detecting any threat early is the first step of any preventing or
eliminating action.
The first threat to my business is Lynn’s Trifle House’s idea will be copied by
others. When a business is successful, there is always a possibility that people
may want to copy the idea. This situation is unavoidable. To deal with this
situation, Lynn’s Trifle House has to create a highly respectable brand
reputation so that customers always come back to shop at Lynn’s Trifle House.
The second threat is the availability of the ingredients. Lynn’s Trifle House
uses fruit in some of the trifle menus. Some of the fruit, such as mango, is not
available throughout the year. The unavailability of the fruit can disrupt the trifle
production. To solve this problem, Lynn’s Trifle House should have a “back-up
plan”, for example if mango is unavailable, Lynn’s Trifle House will produce
different kind of fruit trifle.
7
8
BIBLIOGRAPHY
Printed Sources
Armstrong, Garry, and Phillip Kotler. Principles of Marketing International
Edition 10th Edition. Upper Saddle River: Pearson Education, 2004.
Bohlander, George and Scott Snell, Human Resource Management
International Student Edition. Mason: Thomson Higher Education: 2007.
Chase, Richard B., Robert Jacobs, and Nicholas J. Aquilano. Operational
Management for Competitive Advantage 10th Edition. Singapore: McGraw
Hill, 2004.
Garrison, Ray H. and Eric W. Noreen. Managerial Accounting 10th Edition. New
York: McGraw-Hill Company, 2003.
Henricks, Roger G. Trans Saputra, Alvin. Sun Tzu: The Art of Warfare. Jakarta:
Lucky Publishers, 2002.
Hitt, Michael A., R. Duane Ireland, and Robert E. Hoskisson. Strategic
Management International Student Edition. Mason: South-Western, 2005.
Jackson, Susan E. and Randall S. Schuler. Human Resource Management
International Perspective. Mason: Thomson Southwester,2006.
“Jumat, Gubernur Tetapkan UMK.” Pikiran Rakyat 18 November 2009: 17
Kotler, Phillip. Marketing Management International Edition 11th Edition. Upper
Saddle River: Pearson Education: 2003.
Kotler, Philip and Gary Armstrong. Principles of Marketing 10th Edition. Upper
Saddle River: Pearson Education Inc., 2004
McCarthy, E. Jerome and William D. Perreault, Jr. Basic Marketing 8th Edition.
Madison: Richard D. Irwin Inc., 2000.
Mondy, R. Wayne and Robert M. Noe, Human Resource Management
International Edition 9th Edition. Upper Saddle River: Pearson Education.
2005.
Robbins, Stephen P. Organizational Behavior 10th Edition. Upper Saddle River:
Pearson Education Inc., 2003.
Electronic Sources
“Bandung Ingin Dikenal Sebagai Kota Wisata.” Suara Karya. 17 April 2009. 17
March 2010 .
Bradford, Robert W., Peter Duncan, and Brian Tarcy. “SWOT Analysis.” Quick
MBA.com. 2007. Internet Center for Management and Business
Administration, Inc. 15 March 2010.
Buffet, Warren, “Business Quotation.” Quotationspage.com. 2007. Quotation
Page.com. 22 March 2010.
“Cash Inflow.” SuperiorInvestor.net. 2010. SuperiorInvestor. 1 May 2010
.
“Cash Outflow.” SuperiorInvestor.net. 2010. SuperiorInvestor. 1 May 2010
.
Harinowo, Cyrillus. “Economic Growth: The Rise of the Indonesian Middle
Class.” Jakarta Post 16 September 2008. 3 October 2009.
Hill, Napoleon, “Quotations from Napoleon Hill.” Quotationspage.com. 2007.
Quotation Page.com. 22 March 2010.
Kelly, Mark. “Primary and Secondary Data.” Mckinnon.edu. 23 November 2005.
McKinnon Secondary College. 19 March 2010
.
Kotelnikov, Vadim. “Creating SWOT analysisi diagram in five steps of less.
1000Ventures.com. ” 8 January 2005. Ten3Business e-Coach,Inc. 19 March
2010.
“Net Cash Flow.” Business Dictionary. Business Dictionary Online. 1 May
2010.
Peavler, Rosemary. “Initial Investment.” About.com. 2010. The New York Times
Company. 1 May 2010.
“Profitability Index.” Investopedia. Forbes Digital Company. 3 November 2009
.
Radius, Dwi Bayu. “Kuliner Jadul sampai Modern di Bandung.” Kompas
Online 13 April 2009. 3 October 2009.
“Trifle.” Mirriam Webster Online Dictionary. Mirriam Webster. 31 August 2009
.
“Table Data Statistic Jawa Barat.” BPS Statistik Jawa Barat. 2008.
Pemerintah Provinsi Jawa Barat. 3 April 2010
.
“Unique Selling Proposition.” Business Dictionary. Business Dictionary.com. 19
March 2010.
TITLE PAGE…………………………………………………………………………….i
DECLARATION OF ORGINALITY………………………………………………..…ii
FRONT COVER OF THE BUSINESS PLAN………………………………………iii
APPROVAL PAGE……………………………………………………………………iv
TABLE OF CONTENTS……………………………………………………………….v
ABSTRACT……………………………………………………………………………vii
EXECUTIVE SUMMARY……………………………………………………………viii
CHAPTER I. THE BACKGROUND…………………………………………….........1
CHAPTER II. MARKETING ASPECT…………………………………….………….8
CHAPTER III.OPERATIONAL ASPECT………………………………..…………21
CHAPTER IV.HUMAN RESOURCES ASPECT……….…………….…………...29
CHAPTER V.FINANCIAL ASPECT.………….……………………….…………...44
BIBLIOGRAPHY
APPENDICES:
APPENDIX A RECIPE
APPENDIX B “ME, MY TRIFLE, AND I” CALCULATION
APPENDIX C LOGO
APPENDIX D PROMOTIONAL TOOLS
APPENDIX E PRODUCT PICTURE
APPENDIX F BOX, CART, AND FOOD DISPLAY
APPENDIX G QUESTIONNAIRE
APPENDIX H PROCESS AND PICTURES OF MAKING HONEY MINT TRIFLE
ii
ABSTRACT
Industri pariwisata di Bandung berkembang dengan pesat beberapa tahun
terakhir. Seiring perkembangan industri pariwisata, industri lain yang
berhubungan dengan pariwisata pun berkembang. Salah satu industri yang
berkembang pesat adalah industri makanan. Penulis melihat perkembangan
industri makanan sebagai suatu peluang bisnis yang baik. Kesempatan bisnis
dalam industri makanan besar namun persaingan dalam industri ini juga ketat.
Oleh karena itu, penulis memutuskan untuk membuat dan menjual kreasi
makanan unik yang disebut trifle.
Trifle adalah sejenis makanan penutup yang diletakkan dalam gelas. Trifle
tersusun atas beberapa lapis kue, krim atau keju, dan berbagai variasi topping.
Saat ini terdapat beberapa toko kue yang menjual trifle tapi belum ada toko
spesialis trifle di Bandung. Penulis memutuskan untuk mendirikan sebuah toko
kue khusus trifle yang dinamakan “Lynn’s Trifle House” yang berlokasi di
Setiabudhi Supermarket.
Lynn’s Trifle House menjual menu trifle yang diletakkan dalam cup plastik
yaitu Brownie Trifle, Strawberry Trifle, Chocolate Trifle, Mango Trifle, dan
Tiramisu Trifle. Lynn’s Trifle House memiliki menu trifle unik, yaitu Almond
Konyaku Trifle, Melon Oreo Trifle, dan Honey Mint Trifle. Selain itu, ada pula
menu trifle ukuran besar dalam mangkuk kaca yang dinamakan “Me, My Trifle,
and I”. Trifle ini unik karena konsumen dapat memilih sendiri kue, krim, dan
topping yang ia inginkan pada trifle nya.
Business Plan ini dibuat dengan tujuan untuk menarik investor menanamkan
modal pada Lynn’s Trifle House. Dalam business plan ini dijelaskan secara rinci
kekuatan dan kelemahan, peluang dan ancaman, aspek pemasaran, aspek
operasional, aspek sumber daya manusia, dan aspek finansial Lynn’s Trifle
House guna meyakinkan investor untuk menanamkan modalnya.
iii
EXECUTIVE SUMMARY
Lynn’s Trifle House is the only specialty trifle shop in town. It is located in
Setiabudhi Supermarket Basement 1, Bandung. Lynn’s Trifle House offers a
creamy delicious dessert called trifle for people to enjoy. Trifle is a kind of
dessert containing several layers of cake, custard, and cream served in a cup or
a bowl. All trifles at Lynn’s Trifle House are made daily using high-quality fresh
ingredients without any preservatives. Lynn’s Trifle House’s commitment to
customers’ satisfaction is shown through the creation of unique trifle menus, fast
friendly service, and availability of delivery service.
A strong financial foundation is one of the keys to building a successful
business. Since Lynn’s Trifle House is a profitable business, shown by the
expected first year profit of Rp116,043,900, Lynn’s Trifle House expects to
further develop the business. Therefore, business partnership in the form of
financial investment is sought to strengthen the financial foundation that
currently is still covered by the owner. Investment can enhance the development
of trifle creations, training of human resources, promotions and advertising. By
having these improvements, the business of Lynn’s Trifle House will be boosted
and gain higher profit.
iv
v
CHAPTER I
THE BACKGROUND
1.1.
Background of Business
In recent years, tourism industry in Bandung has grown significantly. The
data from Bandung City Council shows that until 2005 the number of tourists
visiting Bandung had reached two million a year, and that number has kept on
increasing. This tourism development helps to grow the tourism industry, which
includes hotels, restaurants, malls, and factory outlets in Bandung. The latest
data in 2009 shows that the tourism industry in Bandung has an annual average
income of 78 billion Rupiah (“Bandung Ingin Dikenal sebagai Kota Wisata” par.
7).
The development of tourism industry has a positive impact on the food
industry and I believe there is a business opportunity in the food industry in
Bandung. In order to grab the niche in an already competitive food industry
market, I need to create something new and unique. Only a new and unique
food creation will have its market, as is stated by Herman Rukmanadi, the head
of West Java Travel Bureau Assosiation, “Bandung citizens and tourists love to
try new creation of food” (“Kuliner Jadul Sampai Modern di Bandung” par. 1).
Therefore, I decided to open a specialty trifle shop called “Lynn’s Trifle
House”. Trifle is a “a dessert typically consisting of plain or sponge cake often
1
soaked with wine or spirits and topped with layer of preserves, custard, and
cream” (Merriam-Webster Online Dictionary).Trifle has been sold in a few cake
shops in Bandung but there is no specialty trifle shop in Bandung.
I name my trifle shop “Lynn’s Trifle House” because Lynn is my name and I
want to make a brand recognition with my name. Lynn is a catchy word; it is
only one syllable and does not contain any vowels. People can easily remember
the name “Lynn”. McCarthy and Perreault state that a good brand name should
be “short and simple, easy to spell and read, easy to recognize and remember,
easy to pronounce” (312).
1.2.
USP (Unique Selling Proposition)
A business should have something unique which characterizes and
differentiates the business from the other competitors. The uniqueness is often
called Unique Selling Proposition. Unique Selling Proposition or USP is “a real
or perceived benefit of good or service that differentiates it from the competing
brands” (Businessdictionary.com). USP is very important to give the customers
reasons to prefer a particular product from other products.
Lynn’s Trifle House has a special product called “Me, My Trifle, and I”. “Me,
My Trifle, and I” is trifle put in a glass-bowl that can serve around ten people.
This product is unique because customers can pick the ingredients they want in
the trifle. Customers should pre-order at least two days in advance; Lynn’s Trifle
House custom-makes the trifle and delivers the trifle to the customer’s place.
For the daily menu, Lynn’s Trifle House offers standard cup-size trifle
menus: (i) Brownie Trifle, (ii) Strawberry Trifle, (iii) Chocolate Trifle, (iv) Mango
2
Trifle, and (v) Tiramisu Trifle; as well as Lynn’s Trifle House’s own signature
trifle innovation: (vi) Almond Konyaku Trifle, (vii) Honey Mint Trifle, and (viii)
Melon Oreo Trifle. All trifles are baked using high quality ingredients without
preservatives.
The key components that differentiate Lynn’s Trifle House’s trifles with other
cake shop’s trifles lie in the custard and cheese. The custard used in mango
trifle, strawberry trifle, and melon oreo trifle is home-made. The cheese used for
Tiramisu Trifle is Greek cheese called “ricotta cheese” that has a unique flavor
and works very well with coffee and ladyfinger cookies in Tiramisu Trifle.
1.3.
SWOT Analysis (Strength-Weakness-Opportunity-Threat)
Sun Tzu, a Chinese military general and strategist, once said, “In a battle, a
person is weak when he has to prepare against others, but he is strong when
he makes others prepare against him” (Henricks 115). The first step for a
person to become strong is to know himself and his enemy inside and out. From
business point of view, this process is called SWOT analysis. SWOT analysis is
characterized by knowing your own Strengths and Weaknesses, as well as the
Opportunities and Threats given by outside sources.
1.3.1. Strengths
A business can survive a competitive market if it has certain strengths within
the business. “Business strengths are the resources and capabilities that can be
used as a basis for developing competitive advantage against other
businesses” (Bradford et al. par. 3).
3
The first strength is the quality of the trifle. Lynn’s Trifle House uses highquality ingredients and eliminates preservatives in baking the trifles. All trifles
are prepared daily to ensure freshness of the product.
The second strength of Lynn’s Trifle House lies in the innovative resources.
Lynn’s Trifle House always generates new ideas to satisfy customers. It is the
only trifle shop in Bandung that can custom-make trifle based on customers’
preferences; it also creates unique menus such as Almond Konyaku Trifle,
Melon Oreo Trifle, and Honey Mint Trifle.
The third strength is the delivery service. For every purchase of “Me, My
Trifle, and I”, Lynn’s Trifle House can deliver the trifle to the customer’s place.
By having a delivery service, Lynn’s Trifle House can increase the orders of
“Me, My Trifle, and I”.
The fourth strength is the availability of physical resources. At the production
site, located at Jalan Hegarmanah 90, close to Setiabudhi Supermarket, all
equipments such as oven, refrigerator, and mixer are available. The nearby
location between the production site and the shop is advantageous because the
trifles can be quickly delivered to the shop and it saves money of transportation
costs.
1.3.2. Weaknesses
When strengths will enhance a business, weaknesses can cause failure in a
business. According to Vadim Kotelnikov, “The weaknesses may be rooted
in the lack of managerial skills, insufficient quality, technological backwardness,
inadequate systems or processes, slow deliveries, or shortage of resources”
4
(par. 9). Therefore, it is essential to reduce or eliminate weaknesses within the
business before it causes any disadvantages.
The first weakness of Lynn’s Trifle House is lack of recognition. Lynn’s Trifle
House is a new business; Bandung’s people and Bandung’s tourists may not
know Lynn’s Trifle House yet. This is why promotion and advertising are
essential to raise the brand recognition in order to attract customers to Lynn’s
Trifle House.
The second weakness is financial resources. Lynn’s Trifle House financial
resource comes from the owner’s personal money. The money is used for
covering initial investment and business operational costs. However, investment
is needed to strengthen the financial foundation of the business. Stronger
financial foundation can inject present and future development of Lynn’s Trifle
House.
The third weakness is the production capacity. Lynn’s Trifle House has a
production capacity of up to 120 cup-size trifles a day and five “Me, My Trifle,
and I” per month. It is predicted that during Chinese New Year, Idul Fitri, and
Christmas period the trifles’ orders will increase significantly and the trifle
production may not be able to fulfill the orders. To overcome this situation
Lynn’s Trifle House will use a scheduling technique for orders of “Me, My Trifle,
and I”. The scheduling means that Lynn’s Trifle House will accept “Me, My
Trifle, and I” order based on the principle “first come first serve”. The person
who orders sooner can choose the date “Me, My Trifle, and I” delivered. The
person who orders later will have to adjust the “Me, My Trifle, and I” delivery
5
based on the available date. Also, the owner will help bake trifles during busy
holidays.
1.3.3. Opportunities
Strength and weakness come from inside the business, but opportunity and
threat come from the external environment. “Opportunity is a condition in the
general environment that helps a company achieve strategic competitiveness”
(A. Hitt, Ireland, and E. Hoskisson 41).
The first opportunity for my business is the growing number of middle to
upper economy class in Indonesia. A survey by A.C. Nielsen in 2008 shows that
“people [in Indonesia] with average income per capita between $2,300 and
$2,400 is estimated around 22.5 million people and the number is
growing”(Harinowo par. 7-8). This growing number shows that middle up
Indonesian people in general are capable of spending their money on things
beyond their primary needs. They can afford to buy a cup of trifle for a price
range of Rp10,000 to Rp15,000 or a bowl of trifle for a price range of
Rp100,000 to Rp150,000.
The second opportunity is the growing number of tourists visiting Bandung.
On weekends, tourists from Jakarta flock to Bandung especially in the mall
areas, Setiabudhi area, and Dago area. Lynn’s Trifle House can benefit from
this situation by having a strategic location often visited by tourists to attract
more customers.
The third opportunity is in the development of means of communication and
technology. In the old days, the only way of promoting and advertising a product
6
was in newspapers, in magazines, or on television and these methods could
bye costly. Nowadays, the development of Internet technology has given people
an alternative to advertise a business. Lynn’s Trifle House will place
advertisement in the newspaper, but it will also use Facebook and BlackBerry
Messenger to promote the business. Facebook and BlackBerry Messenger are
effective because they can quickly spread the buzz to friends for free.
1.3.4. Threats
An external environment that is unstable or ambiguous can pose a threat to
a business. “A threat is a condition in the general environment that may hinder a
company’s efforts to achieve strategic competitiveness” (A. Hitt, Ireland, and E.
Hoskisson 41). Detecting any threat early is the first step of any preventing or
eliminating action.
The first threat to my business is Lynn’s Trifle House’s idea will be copied by
others. When a business is successful, there is always a possibility that people
may want to copy the idea. This situation is unavoidable. To deal with this
situation, Lynn’s Trifle House has to create a highly respectable brand
reputation so that customers always come back to shop at Lynn’s Trifle House.
The second threat is the availability of the ingredients. Lynn’s Trifle House
uses fruit in some of the trifle menus. Some of the fruit, such as mango, is not
available throughout the year. The unavailability of the fruit can disrupt the trifle
production. To solve this problem, Lynn’s Trifle House should have a “back-up
plan”, for example if mango is unavailable, Lynn’s Trifle House will produce
different kind of fruit trifle.
7
8
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