The problem between cost and business efficiency

Starbucks is a major coffee brand with a high-end customer segment in Vietnam with unique features that bring value to sophisticated and special coffee products. Despite having a great brand advantage, why did the first Starbucks store in Vietnam on Han Thuyen Street (District 1, HCMC) decide to close? Even though the store is very crowded and located right in the city center? If it is not a force majeure event, then perhaps the problem here is whether the business performance of the store can offset the cost of operating the store here, because after all, business is to generate income.

  • Rental costs
  • Labor costs
  • Public management costs
  • Electricity, water, internet, parking costs
  • Cost of finished products
  • Opportunity cost
  • Fixed asset depreciation costs
  • Tool Allocation Cost
  • Inventory costs
  • Other contingency costs
https://www.youtube.com/watch?v=0LxXjittpqQ

The cost of production of products at each store will be different based on the cost of production and business.

01

The problem of costs and revenue is unreasonable, when the profit margin is thin but the costs are too high, it no longer brings business efficiency. The costs are not enough to offset the revenue that the store brings, leading to business losses.

02

Is it necessary to maintain a store just for marketing when the brand has established its position in Vietnam? While the cost of renting space is too high compared to the profit margin that the store can achieve?

03

The situation and business environment of the coffee industry are changing, is it still reasonable to maintain the old way and formula of doing business? Even if your product may be very good, everything becomes meaningless if we cannot sell it.

To answer the above questions, it is very necessary for a business to have a management system, one is to build a reasonable process to serve the disciplined operation and master the current situation, two is to make necessary decisions when it is necessary to act based on information. Let's study with us the overall business management solution (ERP software) to support businesses in operating and managing costs. We have more than 15 years of experience providing and implementing ERP software of major companies in the world such as Infor, Epicor, Azentio, Sap, .. Please contact us for advice and demo of the right software solution for your business.

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