TM603- Strategic Management, ID: 21702912
Taylors of Harrogate currently have 70% of their coffee is produced by suppliers who are in long term contracts with Taylors of Harrogate (Taylors of Harrogate, 2022). Because of the nature of these contracts, this percentage is likely to stay at a similar level or increase in the coming years.
Taylors have also stated that they paid suppliers in 2018 "$7 million USD" higher than the market price (Taylors of Harrogate, 2022). It is not stated sue to confidentiality, but this could be monitored by periodically checking the average market prices. Each quarter, prices may be measured, and through communication with the supplier a price will be negotiated which is above market price.
With regards to rebranding, as stated in the video, this has been done to increase customer understanding of core values of this company. This change had been implemented by the director and followed through by a marketing team. This is an efficient way to carry out the task so that there are multiple perspectives. The communication and teamwork used will have helped them to gain an understanding of the consumer and their needs.
To implement the kiosk, firstly Taylors of Harrogate would need to decide whether they would want to rent, lease, buy or build a space. For this, the recommendation would be to rent initially as the cost may be too high with anything else. Also, it would depend on profitability; if profitability is low, renting gives flexibility (Prime Office Space, 2022). The next step would be similar in that they would need to decide on whether to buy or lease the equipment (assets). Buying overall would be cheaper and could be used as liquidity. However, if this venture is less profitable than planned, leasing gives the option to downgrade equipment to reduce costs (similarly if it is more profitable, it can be upgraded) (Clydesdale Bank, 2017).
The addition of a Director of Kiosks would be recommended. Although the name seems quirky, this venture would need to be managed and monitored by the director. Over time, there may be a need for a team (dependant on how many kiosks are needed). Monitoring would be done by using hourly figures. Every hour, number of customers served, revenue and average spend would be recorded. This would highlight peak hours for trade which opens doors to optimise profits.
With the idea of the kiosk being a seasonal fixture, research into the busiest months or weeks of the year for the local area would be needed. For example, if a kiosk was to be erected in the town of Knaresborough (4.6 miles away from Harrogate)(GoogleMaps,2022) a suitable time would be from the beginning of June to the Beginning of September. June brings exam season for students at local schools (a time where coffee will be greatly appreciated), the Great Knaresborough Bed Race (a local sporting event), and of course school holidays which will attract many tourists (Knaresborough Lions, 2022).