Regardless of whether you work in a small Mom and Pop corner store or a huge multinational conglomerate, your organization is going to have to figure out what it wants to be and how it wants others to see it, after all, business is based on how the world sees you. I’ve worked in a few different industries thus far in my career and the best example I can provide for this question is when I was working at a restaurant and bar. This is a perfect example of how rushing into things without taking the time to really know what you want to be can be harmful. The organization was new; it had just been built and staffed, so it was just starting to create its culture. The owners’ vision for the place was a little confused; they wanted both a good old country bar and at the same time an upscale environment for their wealthier customers. These ideas didn’t really mesh well together and it was a little difficult for people to understand what the place was going for. The identity was clearly aimed at the country bar theme, with the uniforms, menus, decorations, we even had a mechanical bull. However, the upstairs section of the bar was upscale, with private booths and VIP seating, etc. Unfortunately, due to the confusion in what they were going for, the owners didn’t follow through completely one way or the other. Sticking with their upscale idea, prices were high, we didn’t have the more common drinks that people were looking for, cover charges were too high, etc., both upstairs and downstairs. This all caused the place to develop a poor reputation in the community and business took a definite hit. After a few months of revamping, business finally started to turn around, however it never developed as well as it could have if it had started strong from the beginning. If the owners and management had taken the time to really consider the importance of establishing their identity, this problem could have been avoided.
It appears that these entrepreneurs, i.e. new bar owners, could have used our class text and a good long visit with someone to establish a business plan. There are options for people starting new businesses that are usually free or offered at a very low cost that help to clarify some of the minor issues that allow small business to fail. The owner(s) definitely missed the point of consistency being a key identity element in establishing their business reputation with the general public. The book points out that all aspects of the four Ps, product, price, promotion and place are necessary for product advertising. They would appear in your case to need to be agreed upon before attempting to establish an image for an innovative business, also. Possibly combining the floors in a more organized manner would have helped to establish both images consistently, but one will never know now. In this case profit suffered because proper communication did not occur from the very beginning to any of the constituents. Communication of goals and coordination of the customer, community, investor and employee image were definitely lacking in your example. The business is lucky it did not completely fail if there was not a solid business identity to be portrayed to the aforementioned groups that perceive the business image. All of the conflicting information effectively blemished the bar’s reputation due to confusing all clientele from the start.
ReplyDeleteIdentity is extremely important, and I would think more so with businesses that have people coming into an establishment to provide a service (as opposed to just selling products through a retailer). I agree with you that with a bar, it is essential to establish an identity and a definitive crowd that you want to attract. Even if a business has many good ideas, it does not matter if they do not mesh the ideas well. It seems odd that if they were going for a country theme, which I imagine would require a lower to medium price range on drinks, that they would add a VIP element that causes drink prices to shoot through the roof. Maybe they thought they were Culpeppers or something. It is amazing that managers or owners who are in charge of these things were smart and skilled enough to get their hands on a business and have some good ideas about it, and yet not smart enough to make the whole package have at least some appeal to their potential customers. It only takes a little bit of thinking. Stepping back, asking yourself a couple of questions, and examining the situation. This can probably save countless hours and dollars.
ReplyDeleteYou said that they finally got their identity together. I wonder what route they took and what type of bar they are running now?