In performing our assignment, we had to take help and guideline of some respected persons, who deserve our greatest gratitude. We would like to show our gratitude to our supportive lecturer, Sir Firdaus for giving us a good guideline throughout a numerous consultations. We would also like to expand our deepest gratitude to all those who have directly and indirectly guided us in writing this assignment.
Many people, especially our classmates and team members itself, have made a valuable comment and suggestions on this proposal which give us an inspiration to improve our assignment. We thank all the people for their help directly and indirectly to complete our assignment.
1. PRINCIPLES OF ENTREPRENEURSHIP (ENT530)
CASE STUDY
PREPARED BY
FACULTY AND PROGRAMME : FACULTY OF BUSINESS
MANAGEMENT
BACHELOR IN BUSINESS ADMINISTRATION (HONS) FINANCE
(BA242)
TITLE : PASTA PASTA
GROUP MEMBERS :
NAME MATRIC
NUMBER:
AMANI NAJIHA BINTI JASRI 2018263984
DAISY A MANDES ANAK MARIO 2017306525
ERLIN NURUDI 2017995047
SHEREEN ESSY ANAK PETERY 2017510701
SHERLLIECADELORA VERONELLA JAMURI 2018263928
PREPARED FOR : MOHAMMAD FIRDAUS BIN
MOHAMAD
DATE OF SUBMISSION : 23 OCTOBER 2019
2. ACKNOWLEDGEMENT
In performing our assignment, we had to take help and guideline of some respected
persons, who deserve our greatest gratitude. We would like to show our gratitude to our
supportive lecturer, Sir Firdaus for giving us a good guideline throughout a numerous
consultations. We would also like to expand our deepest gratitude to all those who have directly
and indirectly guided us in writing this assignment.
Many people, especially our classmates and team members itself, have made a valuable
comment and suggestions on this proposal which give us an inspiration to improve our
assignment. We thank all the people for their help directly and indirectly to complete our
assignment.
3. EXECUTIVE SUMMARY
Pasta Pasta is an Italian restaurant established on 9th of June 2013. Located at Gaya
Street, where it’s a place for a tourist belt comprising restaurants, shops, banks, hotels and
services spanning 1km in length from City Park at south to Jesselton Point at north. At Pasta
Pasta, they are focusing on a good dining experience to the pasta lovers where its goal is to
introduce affordable and delicious pasta meals in hopes that traditional foods could still be
enjoyed even in today’s hectic lifestyles. Looking at their menu and pricing, they certainly
successful in providing the most affordable pasta in Kota Kinabalu. Customers can choose their
prefer type of pasta, sauce and toppings. Spaghetti sauce and carbonara sauce pasta is or choice
of for the day. They have 4 sauces to choose from, namely tomato sauce, cream sauce, pesto
sauce and curry sauce. The price for a serving of delicious pasta only cost RM6.50. With such a
strong pricing and taste, Pasta Pasta is a must visit shop for your pasta craving.
4. TABLE OF CONTENT
Description Pages
INTRODUCTION
o Background of The Study
o Problem Statement
o Purpose of The Study
1 - 4
COMPANY INFORMATION
o Overview Of Company
o Organizational Structure
o Product/Service Design
o Business Strategy
o Marketing Strategy
o Location Strategy
o Operational Strategy
o Financial Achievement
5 - 18
COMPANY ANALYSIS
o Business Model Canvas (BMC)
19 - 22
FINDINGS AND DISCUSSION 23 - 24
RECOMMENDATION AND IMPROVEMENT 25 - 27
REFERENCES 28
APPENDIX 29 - 31
5. 1.0 INTRODUCTION
1.1 Background of the Study
Principle of Entrepreneurship (ENT530) one of the elective subject need to be taken by all UiTM
students who further their study at Bachelor level. For the purpose of this study, entrepreneurship
education refers to a formalized programed to equip students with entrepreneurship knowledge
and skills to understand customers’ insights, market needs and recognize business opportunities.
It encompasses networking skills, idea creation, developing and implementing a business plan,
running a business and evaluating the internal and external business environment
This course is designed for students who are interested in creating a venture, acquiring an
existing business, or working in start-ups or corporate venture companies. This course focuses on
“learning by doing” whereby the foundation of the entrepreneurial process such as value
creation, opportunity recognition, creativity and mobilizing people and resources are embedded
into the course.
In this course, students will conducting case study to any business or company. Students
are required to interview any business or company to get several problem that faced by the
business or company. Therefore, students will analyst the problem and find solution to overcome
the problems. By doing this case study, students will be exposed on how a business or company
to run and operate their business. In this case, we’re conducting case study of Pasta Pasta, which
is a business that provides services for food and beverages. We’re going to get the information
on the problems that faced by them.
Studying entrepreneurship benefits students and learners from different social and
economic backgrounds because it teaches people to cultivate unique skills and think outside the
box. Moreover, it creates opportunity, instills confidence, ensures social justice and stimulates
the economy. Entrepreneurship education also provides budding entrepreneurs with the skills and
knowledge to come up with business ideas and develop their own ventures. And this includes
helping them to learn about core business areas such as finance, sales, marketing, management
and accounting, not to mention, broader ranging skills such as adaptability, effective
communication, and confidence.
6. 1.2 Problem Statement
We live in rapidly changing times, especially for businesses. Consider that, in a single
generation, businesses have had to adapt to entirely new marketing channels (web and social),
decide how to invest in and utilize new technologies, and compete on a global stage, things that
were barely imaginable to our parents’ and grandparents’ generations.
One side effect of these rapid changes and growth is that no single CEO or any employee, for
that matter can be an expert in everything. This was, perhaps, always true, but it has never been
more apparent.
This is why, in our opinion, some of the biggest challenges businesses face today are best
met and addressed with qualified consultants. Bringing on a consultant helps CEOs add the
expertise and skills they need to address particular problems at particular times, and can provide
the best possible outcomes.
Just a few of the challenges I see businesses facing that are best addressed with the help
of a consultant include:
1. Uncertainty about the future
Being able to predict customer trends, market trends, etc. is vital to a changing economic
climate, but not every CEO has Warren Buffett-like predictive powers. Bringing in a
consultant trained in reading and predicting those all-important trends could be the
difference between a bright future and a murky one.
2. Competencies and recruiting the right talent
Again, a small or medium-sized business might not need full-time human resources or
recruiting staff, but during peak growth periods, finding the right people and developing
the right skills and competencies is the key to a sustainable future. Bringing in a
consultant with the expertise to find exactly the workers you need would be a wise
investment.
7. 3. Customer service
In a world of instant gratification, customers expect instant customer service — and can
take to the web to share their displeasure at less than satisfactory service just as quickly.
Consultants can find ways to improve customer service and bring it into the 21st century.
4. Maintaining reputation
In a similar vein, because customers can voice any displeasure so much more publicly
and loudly than ever before, businesses have to monitor and maintain their online
reputations. And while it’s an important task, its one best suited to a third party who can
monitor and mediate with a certain amount of distance.
8. 1.3 Purpose of the Study
Case studies are a marketing staple. Businesses use them to show how their product or service
has been implemented successfully by customers. Instead of simply talking about a product, case
studies allow businesses to show how their product can be used.
The first thing case studies do is tell a story. They illustrate how your product or service
can be used. Without them, you’re stuck with explaining what you do and why it’s beneficial to
customers. But there are only so many ways you can describe yourself.
A case study brings your product to life. It’s a picture that’s worth a thousand words—providing
an illustration of what you do, not just an explanation. Stories are also known to be one of the
best ways to activate people’s brains and to get them to remember what you’re saying (more
about that here). If you find yourself at a loss for getting the explanation of what you do to stick,
try telling a story with a case study.
Case studies also focus on the customer’s perspective. Instead of talking more about
yourself, you focus on how a customer used your product. You get to describe the process and
the results of implementing your product from the customer’s perspective. A lot of businesses
make the mistake of talking about themselves too much, especially on their websites. Case
studies are a great way to take the attention off of yourself and to focus on the experience of one
of your customers. Future prospects will react well to this because they’ll want to get the same
results as the case study example.
Not only do case studies focus on customers, but they also demonstrate how your product
has been used successfully. Prospective customers care more about seeing how your product has
been implemented than they care about hearing you talk about what you can potentially do.
In this way, case studies demonstrate success. They prove that you’re able to accomplish what
you say you can do, based on real results and real stories, not just theories. Case studies give
your company more credibility. They show that people are using your product and having
success doing so.
9. 2.0 COMPANY INFORMATION
2.1 Overview of Company
Pasta Pasta restaurant is an Italian restaurant that established on 9th of June 2019. Located at
Gaya Street, Pasta Pasta caters to locals and tourists looking for a cheap and affordable meal.
Pasta is a type of food typically made from an unleavened dough of pasta wheat flour kneaded
with water or eggs- all simple components that have been around for centuries and formed into
sheets or various shapes, then cooked by boiling or baking. Different pastas have different
names, many based on the different shapes the dough is molded into. The production process is
simple, but the uses the finished product are put to are dizzyingly varied. The different shapes
of pasta—cut into squares, rolled into tubes, pulled into long strings, and twisted into spirals—
stretch to at least 200 types, any one of which might be used in a huge array of sauces and
accompaniments, all with their regional variations. Pasta is, for all intents and purposes, a
comfort food. One of its most comforting qualities is how little it has changed over the centuries.
It is still made with the same essential ingredients and preparations that it has been since
antiquity.
The first pasta dish that comes to your mind is likely some kind of noodles with traditional red
sauce, but pasta can do a whole lot more than spaghetti and meatballs. Each type of pasta has
unique qualities that make it better suited to certain sauces, cooking methods, or accompanying
ingredients.
The concept of Pasta pasta is to provide fresh and affordable pasta where the customer can
choose type of pasta, sauce and toppings. First step, choose the type of pasta, Spaghetti, Penne
Rigate, Rotini, Macaroni, Linguini and Farfalle. Next, pair with sauce, they have 4 sauces to
choose from, namely tomato sauce, cream sauce, pesto sauce and curry sauce. Then finish it with
the toppings which are sliced chicken, minced beef, beef bacon and mushroom, meatball, Italian
sausage, seafood and vegetarian to choose from.
Their goal is to introduce affordable and delicious pasta meals to food lovers everywhere in
hopes that traditional foods could still be enjoyed even in today's hectic lifestyles. As the price
for a serving of delicious pasta only cost RM6.80. With such a strong pricing and taste, Pasta
Pasta is a must visit shop for your pasta craving.
10. 2.2 Organizational Structure
An organizational structure defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims. Organizational structure
affects organizational action and provides the foundation on which standard operating
procedures and routines rest. It determines which individuals get to participate in which decision-
making processes, and thus to what extent their views shape the organization’s actions.
Organizational structure can also be considered as the viewing glass or perspective through
which individuals see their organization and its environment.
DIRECTOROF
FOOD AND
BEVERAGES
FOOD AND
BEVERAGES
MANAGER
FOOD AND
BEVERAGES
SUPERVISOR
FOOD AND
BEVERAGES
ATTENDANTS
RESTAURANT
MANAGER
CASHIER
16. 2.4 Business Strategy
Business strategy can be understood as the course of action or set of decisions which assist the
entrepreneurs in achieving specific business objectives. It is nothing but a master plan that the
management of a company implements to secure a competitive position in the market,
carry on its operations, please customers and achieve the desired ends of the business. A
business strategy is a set of competitive moves and actions that a business uses to attract
customers, compete successfully, strengthening performance, and achieve organizational goals.
It outlines how business should be carried out to reach the desired ends, to sense and meet
potential threats, to make optimum use of resources and strengths, to counterbalance weakness.
Pasta Pasta had implemented a few of business strategies so that their business are run smoothly.
• Identify target market
Pasta Pasta are target their customer of all gender which is includes young children, teenagers
and adults that the age range around from 10 years old until 45 years old. This is because they
know their customers were had high demand on purchasing their foods and beverages. So, this
business will identify the most potential customers who are demand and fit on their business as
well to target a higher of sales.
• Branding and online presence
Pasta Pasta also had their own “Brand” which was be inspired from the founder of the business
itself. It is shows that this business had their own image and trademark that other business didn’t
have. This business also had revealed their brand through online application so that customers
out there knows their business existence.
• Privacy policy
In this business they also didn’t forget to provide their business policies to secure their business
operations and also for the customers. Policies such as collected information, Pasta Pasta collect
the information that is needed for the registration procedure at their website. The information
that they were collected are voluntarily submitted by the customers to them. .
17. 2.5 Marketing Strategy
Marketing strategy is the comprehensive plan formulated particularly for Pasta Pasta achieve their
marketing objectives as they used 4 P’s strategies:
• Product.
The first of the Four P’s of marketing in Pasta Pasta is the product itself. A product that they use
is tangible products such the type pasta the use such as spaghetti, vermicelli, fettuccine, linguine,
and macaroni. The sauce for the pasta such as tomato sauce, cream sauce and pesto sauce. Next,
the topping for the pasta such as seafood, minced beef and meat ball. This market strategy is
important that Pasta Pasta’s imperative that they have a clear grasp of exactly what their product
is and what makes it unique before they can successfully market it.
• Price.
Pasta Pasta were started making their pricing decisions with an affordable price that all of
customers can grab it. Their price determinations will impact of their profit margins, supply,
demand and also the marketing strategy.
• Promotion.
Promotion that Pasta Pasta looks at the many ways disseminate relevant product
information to consumers and differentiate a particular product. Promotion that they had done
includes elements like: using application of social media (facebook, instagram and website),
advertisement (television and radio), business card, catalogues and more. Each touch point must
be supported by this own business so that together they can gain more customers and achieve sales
target.
• Place.
Pasta Pasta always remember that marketing is about putting the right product, at the right
price, at the right place, at the right time. It’s critical for them then, to evaluate what the ideal
locations are to convert potential customer into actual (regular) customer. So, Pasta Pasta widen
their marketing strategies by placing their shop at Gaya Street Kota Kinabalu, a location that is
strategic for their business as the tendency to get customers is greater.
18. 2.6 Location Strategy
Address : 108, Jalan Gaya, Pusat Bandar Kota Kinabalu, 88000 Kota Kinabalu,
Sabah
Hour : Open 9 am - Closes 9PM
Phone : 088-280 790
19. 2.7 Operational Strategy
Output Process
a) Input
●The owner of the Pasta Pasta obtain stock and raw material from suppliers and check all the
stock to make sure the stock is in good condition.
●The owner will pay the deposit to the supplier and the employee will transfer all the stock into a
store of raw materials.
b) The Transformation Process
● Customers come to the restaurant whether to dine in or take away while have a discussion to
pick what menu they are going to order at the table.
●The worker will take an order from the customer and go to the counter to deliver the menu that
ordered by the customer.
.
c) Output
●The worker will send the food and drink that customer order to the customer at the table.
● Customer will make a payment at the cashier after they receive the order for the take away one
and after they finished dine in
20. Customer come to the restaurant
Customer decide to dine in
Customer make an order
A worker take the order and bring
to the counter
The chef will cook and put the
food inside a polistrene
A worker will bring the take away
order to the customer
The customer make a paymentat
the cashier and walk away
Customer decide to take away
Customer make an order
A worker take the order and bring
to the counter
The chef will cook and serve on
the plate and drink into a glass
A worker will deliver the food and
drink to the table
The customer enjoy the food and
make a payment at the cashier
after finished enjoy the meal
21. Operational strategy is really important for Pasta Pasta to ensure that the process of their
business of production are efficient and run smoothly.
Quality and Cleanliness
Pasta Pasta emphasizes on assuring the quality of the product to be sold to the customers to ensure
that the product being produced is clean and lawful. As such, the operator has obtained on-premises
hygiene checks to obtain the premises cleanliness certificate to assure the customer that every
process involved in producing the product is clean and safe to eat. A halal certificate is also
obtained from JAKIM to ensure that the materials used are halal so that Muslim customers feel
more confident in the products released by this business.
Premis Layout
This business layout is a product layout where all production inputs such as labor, machinery, raw
materials and equipment are arranged in the order of production of a product. Therefore, the
production of the product is systematic and the quantity of product that can be produced is high.
Production Strategy
Pasta Pasta will open their restaurant every school holiday. During that season, Pasta Pasta will
produce more because they receive a lot of foreigner customer as this restaurant have been
promoted at TripAdvisor which is one of the medium for a tourist to look for a restaurant to eat.
This is because, the location of this restaurant is strategic as it located at the tourist popular place.
Besides, Pasta Pasta can gain more profit when a tourist promote this restaurant to their friend.
22. 2.8 Financial Achievement
Year Net Sales
RM’000
Operating Profit
RM’000
Profit Before Tax
RM’000
Net Profit
RM’00
2013 216 312 330 235
2014 278 360 398 290
2015 292 415 434 330
2016 335 476 493 365
2017 367 498 512 423
2018 390 525 547 478
Awards achievement
Blast out at Sabaheats Social Media Channels and live liver announcement of ERA FM, MY FM
and Hitz FM. Voters have 3 votes for Local Kopitiam & Restaurant Category and 2 votes for
Western foods, Fast foods, Japanese foods and Cafe Category. On the 2015, Pasta Pasta restaurant
has been voted by Kota Kinabalu citizens as the 20 most popular Foods in Kota Kinabalu City.
Pasta Pasta restaurant has made it that far as one of the most popular western food in Kota Kinabalu
City.
23. 3.0 COMPANY ANALYSIS
3.1 Business Model Canvas (BMC)
Business model canvas is a great tool to aid you understand a business model in a
straightforward way. Using this canvas will lead to insights about the customer you serve, what
value propositions are offered through what channels, and how your company makes money.
You can use the business model canvas to understand your own business model or that of
competitor.
Key Partners
Key Partners are the relationships that you have with other business, governmental, or non-
consumer entities that help your business model work. These can be the relationships that your
company has with your suppliers, your manufacturers, business partners. These partnerships that
you will undoubtedly create will be forces that help your business succeed in areas that would be
inefficient for you to do yourself. Key partners for Pasta Pasta is Pasta Manufacturer
Salespersons Designer and set up Architects, Builders, Groceries and Delivery providers
Key Activities
The most important activities in executing a company's value proposition. An example for Bic,
the pen manufacturer, would be creating an efficient supply chain to drive down costs. Pasta
Pasta key activities are focusing on taking orders from customers, payment, development of
recipes to create variety of product line. As Pasta Pasta is a fast cooking meals, they cooked it as
ordered by customers. Lastly packaging frozen meals such as sauce, meatballs and etc.
24. Key Resources
The resources that are necessary to create value for the customer. They are considered assets to a
company that are needed to sustain and support the business. These resources could be human,
financial, physical and intellectual. Pasta Pasta restaurant key resources are Social Media, Sales
people, Company website, Cooks, servers, Administrative staff, Retail staff, Patent/Brand,
Machines and Utensils.
Value Propositions
A value proposition makes a case for why a customer should pick one product over another,
citing the unique value the product provides over its contenders. It provides a unique
combination of products and services which provide value to the customer by resulting in the
solution of a problem the customer is facing or providing value to the customer. This is the point
of intersection between the product you make and the reason behind the customer’s impulse to
buy it. A product can have a single value proposition or multiple value propositions. Pasta Pasta
highlights it propositions such as convenience of takeout, easily accessible stored, fast quality
service, consistent high quality food, variety of toppings and sauce and lastly a quality brand.
Relationship, Channel and Customer segmented
For customer relationship, it is to ensure the survival and success of any businesses, companies
must identify the type of relationship they want to create with their customer segments. Various
forms of customer relationships include; personal contacts, high level customer service,
innovative recipes, friendly service and a quick service, as for the customer channel, a company
can deliver its value proposition to its targeted customers through different channels. Effective
channels will distribute a company's value proposition in ways that are fast, efficient and cost-
effective. An organization can reach its clients through its own channels (store front), partner
channels (major distributors), or a combination of both. For Pasta Pasta restaurant, it channels
through the company website, social media, flyers, advertisement and referrals.
25. Cost Structure and Revenue Streams
Cost structure describes the most important monetary consequences while operating under
different business models. While revenue is the way a company makes income from each
customer segment. Several ways to generate a revenue stream. Cost of production that they have
to spend to is from the equipment, ingredients, transportation. Rent is approximately RM3000
and paid a rent RM3000 monthly. Their sales per day is 50 cups per day with a fixed price
rm6.80 per bowl.
26. Key Partners Key Activity Value Propositions Customer
Relationship
Customer Segments
Pasta
Manufacturer
Salespersons
Designer and set
up
Architects
Builders
Groceries
Delivery
providers
Take Order
Payment
Development of
recipes
Cooking meals
Packaging frozen
meals
Convenience of
takeout
Easily accessible
stored
Fast quality service
Consistent high
quality food
Variety of toppings
and sauce
Quality brand
Personalcontacts
High level
customer service
Innovative recipes-
Chicken Pesto
Rotini, Sausage
carbonara linguine
Friendly service
Quick service
Eat-ins, walk-ins
Local Communities
Office workers
Companies
University students
Kids
Key Resources
Social Media
Sales people
Company website
Cooks, servers
Administrative
staff
Retail staff
Patent/Brand
Machines
Utensils
Channel
Social Media
Flyers
Advertisement
Referrals
Through the
company website
27. 4.0 FINDING AND DISCUSSION
The purpose of the discussion is to interpret and describe the significance of your findings in
light of what was already known about the research problem being investigated, and to explain
any new understanding or insights about the problem after you've taken the findings into
consideration. The discussion will always connect to the introduction by way of the research
questions or hypotheses you posed and the literature you reviewed, but it does not simply repeat
or rearrange the introduction; the discussion should always explain how your study has moved
the reader's understanding of the research problem forward from where you left them at the end
of the introduction. In this case, we have analyzed what is the main problem in the restaurant
Pasta Pasta. In a research that we do, we found three main problem in Pasta Pasta. The problem
is:
i. higher cost in operations
ii. Decrease in consumer purchasing power
iii. Tough of business competition
There are three major problems that faced by Pasta Pasta. First problem that faced by
Pasta Pasta is cost in operations became high. Cost operations are the expenses which are related
to the operation of a business, to the operation of a device, component, and piece of equipment or
facility. Cost in operations became higher because more quantity of products needs to be
produced. The raw material is also too many and of course it will lead to a high cost in
operations. They also need to display their product and shelves. To overcome this problem, Pasta
Pasta need to telecommute to cut down on cost by leasing office space, utilities and managing a
physical office can be drain on your financial sources. Besides, identify inefficiencies to decrease
costs, Pasta Pasta should always be looking for ways to make their business more efficient by
tightening up their processes and procedures, they can reduce waste for both material and times)
and therefore it can decrease cost. In addition, Pasta Pasta should consider the costs spent on
getting to gross profit, the COGS, as well as operating expenses, so that Pasta Pasta can manage
to avoid the cost in production become higher.
Other than that, Pasta Pasta also facing the problem of decrease in consumer purchasing power.
Consumer lose purchasing power when prices increase and gain purchasing power when prices
28. decrease. Cause of purchasing power loss include government regulations, inflation and natural
manmade disasters. In case of Pasta Pasta, the faced decreases in consumer purchasing power
due to the way there promote their products. Even they have their own way on promoting but it’s
seems that the frequency of posting their product is lack. So, its makes the consumer cannot
reach their products. Besides, it’s because of the price, there are more other shop that selling the
same products in a bit lower prices, so customer tend to buy at others stall. Monitoring the
performance of their content will help them to determine whether it is helping them to meet their
goals. Pasta Pasta need to improve their social media engagement in order to promote their
products. They did not very active on posting about their product on social media to attract
customer. That’s mean Pasta Pasta need to start networking and exchanging professional insight.
The last problem that faced by Pasta Pasta is tough of business competition. A business
competition is the rivalry between companies selling similar products and services with the goal
of achieving revenue, profit, and market share growth. Pasta Pasta faced three types of
competitor which are direct competitor, indirect competitor and replacement competitor. In term
of direct competitor, Pasta Pasta competitor are targeting the same audience as them, selling the
same product and similar distribution model. There are many businesses that selling the product
as Pasta Pasta even not in a same brand. Besides, for indirect competitor, the ends are different.
Pasta Pasta competitors are seeking to grow revenue with different strategy. Both of Pasta Pasta
and their competitors aimed at satisfying the customer needs and desires, but they use different
marketing mix and have different methods of generating revenue. The last type of competitor is
replacement competitor, replacement competitor is another company that is offering a product
that consumer could use instead of choosing their product. The important concept with
replacement competitors is that they used the same resources to purchase the replacement
product that could have been used to buy by offering. To solve this problem, Pasta Pasta need to
recognize where they have potential competition is a key factor in determining the strongest
markets for business solutions in term of direct competitor. For indirect competitor is by
outlining all the potentials ways the customers’ need can be met, so Pasta Pasta can generate an
advantage for their products. Pasta Pasta also need to highlight the business different to meet its
specialty to avoid replacement competitor.
29. 5.0 RECOMMENDATION AND IMPROVEMENT
From the problems that Pasta Pasta had faced, there are a few solutions or an alternative that should
be adopted to cope each of the major problems.
(Problem 1: Higher cost of operations)
• Reduces Cost operations with ‘outsourcing’.
One area that Pasta Pasta seems to derive the benefits mostly by outsourcing such as advertising
and marketing. This business should keep on working hard to do a tough advertising and marketing
plus find the amount of time they spend on advertising and marketing does will correlate to the
returns (profit) later. So, rather than relying on the technology, since it is costly it is better to do as
be mentioned above so that the cost of operation can be reduced.
• Identify inefficiencies to decrease costs.
Pasta Pasta should always be looking for the ways to make their business more efficient. By
tightening up their processes and procedures, their business can reduce waste (raw materials and
time) and therefore, decrease the costs. Besides, the supervisor at Pasta Pasta also should empower
their restaurant assistants to look for inefficiencies and identify ways to save time and money.
(Problem 2: Decrease of consumer purchasing power)
• Engage customers offline and online.
This is the suggestion from Pasta Pasta that social media doesn’t function in a vacuum. If they
want to influence customer, they will engage them with both online and offline. Be consistent in
find the customer engagement depends largely on how well their business aligns all of its touch
points. While it’s easier for Pasta Pasta to leverage both offline and online customer engagement,
the key is to understand their business connection with customers and act upon it. If they don’t
know what the business connection is, the best thing to do is ask their customer directly so that the
purchasing power can be improved well.
30. • Be Available at all times.
Because social media is 24 hours, Pasta Pasta will expect the customers have come to expect
immediate responses from the business even nights and weekends. Pasta Pasta can scale their
customer’s purchasing power with social media. Another option is to launch an online community
to enable customers to help each other. Within that community, this business can find some
members who are more engaged and helpful than others and they consistently go the extra mile to
help other customers solve their problems. Besides, help customers by offering how to articles on
their business website and also the social media. Make the information easy to find with links on
their social profiles and other marketing materials.
Finally, this business probably monitoring social mentions already. Continue to do that and
customers are a key source of your business as they are most important that you can achieve your
target sales.
(Tough of business competition)
• Know the customers.
By knowing many of customer especially customers who love western food, Pasta Pasta can build
a relationship between them and their business too, extending the customer’s lifecycle beyond only
a couple of purchase so that it can attract them to come to their stores and keep on purchase their
sales. Hence, there is higher of competition occurs between Pasta Pasta and other business out
there that also provide a product from pasta.
• Highlight the business differences.
Pasta Pasta also can use their differences of how to handle competition in business. After
completing about market research, they must understand what makes their business different from
the other competitors. Maybe they have more ethical sourcing for their sales products or maybe
the prices are cheaper. Perhaps that Pasta Pasta have an angle that could attract their customers to
them above than the other competitors, for example, Pasta Pasta is well known for their choices of
pastas that form a range of about 160 pastas. This is done by the customers who choose their
favourite pasta type, sauce, and toppings; all rounding up to that huge amount.
31. Overall, the suitable alternatives solutions that should be adopted are identify inefficiencies to
decrease costs, be available at all times and highlight the business differences. All of these
solutions can solve the major problems that Pasta Pasta faced along of their business. Perhaps that
with these alternatives, their business will more develop in the future while they can achieve more
sales and profits.
