Group 8 - TEAm Lyfe:

Eric Bagaoisan
Ryan Duong
Alan Gouig
Priscila Lopez
Samuel Wu

BUS5 140 - Section 16

 Table of Contents
- Description of Business
- Strategy for Competitive
Advantage
- TQM Concepts & Tools
- Method to evaluate location
alternatives
- Layout Type
- Forecasting Methods
- Capacity Planning over a Time
Horizon
- Supply Chain Management
 Description of
Business
Founded:
- January 2015
Location:
- Grand Century Plaza in Vietnam
Town, San Jose
Mission:
- Tea Lyfe serves as a milk
tea/boba cafe offering quality drinks
and pastries to customers, made
with nothing but the best premium
ingredients around
 Strategy for Competitive
Advantage
Cost Leadership
- Buying cheaper ingredients in bulk
- “Gipson’s Golden Honey” from Costco
- Straus Family Creamery
- Azure standard
- Decreases overall cost of food

Response
- Responsive to trends in the market
- Holidays and local events

Differentiation:
- Organic and all natural products
- Innovation & Fusion Style
- Branding
 TQM Concepts
Continuous Improvement

- People - Materials
- Equipment - Procedures
- Suppliers

Customer feedback is very valuable for

improvement within the business

Employee Empowerment

- Supportive supervisor
- Employee Responsibility
- Build high-morale
 TQM Tools
Most useful:
- Check sheet
- Cause -and- Effect Diagram
- Flowcharts
 Method to evaluate
Location Alternatives
Current Location:

- Hotspot in Vietnam town

- Vicinity of where the owner lives → Easy
access
- Nearby schools

Expansion Locations:

- San Jose, Milpitas, Cupertino, Santa Clara

- Active boba market hotspots
- Marketing exposure
- Expanding market shares
 Market / Consumer
Requirements

Target Market:
- Local residents / Geographical
convenience
- Consumers of Asian heritage
- Rising popularity of milk tea/boba →
focus on millennials
- Student appeal (nearby schools)
- Calm, rustic, natural and classy
ambiance
- More health conscious market
- Higher demand for all natural,
organic, and non-GMO products
 Layout Type
FOTH:
- Booths, high tables, round
tables, tree stumps, wooden
benches, etc.
- Outside seating
- Single and group setting
seating
BOTH:
- Prep desserts and
pastries
- Tools used to make teas
and create waffle batters
- Front counter placed to
help create efficient flow
of taking orders

Ambiance
- Rustic, nature-esque succulent vibe
- Classy, clean, and modern ambiance
- Appealing to students as the perfect study spot with a
faint music background
 Forecasting
Short range forecasting:

- Covers abrupt weather changes,

sudden schedule changes, and
upcoming holidays

Medium range forecasting:

- Includes creation of seasonal and

promotional drinks

Long range forecast:

- Will be the start of another

establishment
Forecasting Methods
Qualitative Methods

- Sentiment mining - seeing what our

customers are saying on social media
- Offer discounts and promotions if they take
surveys on how we can improve our shop

Quantitative Methods

- Naive method - useful for planning out our

budget with prior year’s information
- POS (point-of sale) system tells us how
many of each drinks are sold a day
 Capacity Planning
- The biggest constraint of Tea Lyfe is
available funds to pay additional
workers
- Two employees on deck during
weekdays, three on Friday to Sunday
weekends, with up to five (maximum)
during holidays
- Making specialty drinks requires high
process time
- No quota system as opposed to more
corporate boba chains
Supply Chain Management
Make-or-Buy Decisions
- We make our horchata and
waffles in house
- We decided to buy our Mille
Crepes
Supply Chain Risks
- Supplier failure to deliver and
quality failures
Few Suppliers
- We’ve only been open for 3 years
and we’ve built strong
relationships
Supply Chain Management
Suppliers:

- The owner handles supply inventory

management herself
- Straus’ Family Creamery
○ Local Distributor
- Gipson’s Golden Honey
○ Costco
- Mille Crepes
○ Anton SV Pâtisserie
- Tea leaves
○ Taiwan
- Matcha
○ Japan
 Thank You!

Any Questions?