Report Task

Report Task

Introduction

An effective business management process is one of the essential factors that any business Organisation must consider with a lot of concern. This is the process of ensuring that better strategies are in place to control operations of the organisation towards achieving objectives of the company, there is an effective communication within the organisation, better strategies and procedures in place to govern the recruitment of personnel to the organisation and ensuring that there is better coordination and relations among organisational workers as revealed by Nordqvist and Melin (2010). Additionally, organisations must also ensure that they create better communication and relation with their customers through provision of quality and timely products and services. Therefore, in order for the above requirements to be met, having better management team that is able to deal with challenges of the organisation such competitors threats must remain a mandatory to any organisation. Moreover, the management must be a team with persons who are future oriented in terms of development (Meskendahl, 2010).

Objectives of the Report

            Based on various challenges faced by Real Coffee Limited and other organisations globally such as high employees’ turnover, poor recruitment process, lack of better management team, lack of planning towards organisation development and financial problems among others, this report contain internal and external analysis of Real Coffee Limited based on the current situation of the organisation. External analysis focuses on the analysis of the macro environmental factors and the industry analysis based on competitiveness. While internal analysis of this report deals with various issues facing the organisation such as marketing issues, Human Resource issues, operational and financial issues as provided through the case study. Moreover, it finalizes with some of the proposed strategies and implementation process towards solving the faced challenges.

Analysis of the Macro Environment

            Real Coffee Limited, just like any other organisation with the mandate of providing better services to their customers and ensuring that they make profit from the services offered, is also faced by various challenges, one being macro environment challenges. According to Kim and Park (2013), these are considered to be external factors those that organisations are not able to control but to survive with their existence. Some of the commonly known macro environment factors include demographic, political, legal, economic factors, technological factors, natural forces and social conditions. Therefore, in order for organisations to survive towards their objects, through their respective management, organisations must come up with better strategies and approaches to face some of the challenges as a result of macro environment.

Based on the information provided through the case study on the challenges faced by the Real Coffee Limited, the two main macro environmental challenges faced are technological advancement and social factors. One of the ways through which the effect of technological advancement affects Real Coffee Limited is realized due to lack of technologic development in the organisation (Akcura and Avci, 2013). For instance, it is revealed that the coffee shops owned by Adam are traditional as compared to other competitors in the region such as Starbucks and Costa that offer and provide their services based on current technological advancement. Another factor that shows that there is lack of technological changes with Real Coffee Limited is due to lack of plans within the organisations. As complained by Adam’s dynamic management team, no proper decisions are made by the organisational members as all programs and decision relay on Adam’s hands. Therefore, any technological advancement that may be proposed would be put into consideration. In the process, the organisation lack proper development plan as Adam’s desire is based on traditional approaches of management.

Apart from the technological development issues, another macro environmental factor that faces Real Coffee Limited as realized through the case study is social factors. Through the case study, it is revealed that there is lack of communication and coordination within Real Coffee Limited. For instance, despite making many attempts to ensure that all members of the organisation is involved in making decision, workers within Real Coffee Limited continuously complained that they were left out by the owner of the company, Adam. Hence, making any change within the organisation became an issue even when his children, Alice and Rose tried to enforce these changes. Another factor that shows the problem of social factors as a macro environment problem within the organisation is through employees’ turnover (Bamiatzi et al, 2913). Through the statement provided by Alice and Rose concerning the operation of Real Coffee Limited, it is evidenced that the organisation has been faced by high employees’ turnover, which stands at 100%.

This shows that the organisation lack proper social interaction that would trigger effective communication within the organisation. As a result, it leads to misunderstanding among workers and their bosses, forcing workers to resign from their duties at any given time. Moreover, Real Coffee Limited has no regular customers. As revealed by Alice and Rose during the interview, most of their customers are new clients. This shows that the organisation has no proper strategies of ensuring that better social interaction through better relations and effective communication within and outside the organisation premises (Thai and Turkina, 2013). Through the existence of the above two macro environmental factors within Real Coffee Limited, it makes it difficult to proper and effective development to be realized within the organisation.

Industry Analysis

            In order for a coffee industry to survive within United Kingdom, an organisation must be ready to face many challenges during its operations. These challenges faced results due to various factors. For instance, most of the coffee industries in the region operate under the influence of the current technological advancement. Therefore, any technological change is taken into consideration. Hence, this has negative impact on Real Coffee Limited because it operates under the traditional methods of management. This makes it lack better policies and approaches that may be used to overcome some of the challenges brought by their competitors. In the process, Real Coffee Limited has constantly lost customers to other coffee industries in the region that respond to these technological advancements such as Costa and Starbucks. Another competitive force within the United Kingdom that impact coffee industry is cleanliness of the hotels and restaurants that offer coffee services to their clients (Claiborne et al, 2013). As revealed by Alice and Rose during the interview, during their visit to the newly opened coffee restaurants, Costa and Starbucks, the observed that there was high standard of cleanliness and better environment for customers. As a result, many people loved having coffee in such places despite poor relation of the restaurants workers towards their clients.

Therefore, Real Coffee limited being one of the coffee industries with no proper plans and measure that control activities in within the organisation, maintaining cleanliness within the organisation is an issue that drive customers away. However, the organisation also has some of the opportunities that make it able to survive within the competitive market despite the above challenges. For instance, through the interview, Rose and Alice revealed that there is lack of workers to customers’ relation among the two coffee restaurants, Costa and Starbucks. According to Alice, the work of the workers in the restaurants is to provide services needed by customers but they lack proper strategies of ensuring that customers are spoken to lively and are encouraged to enjoy and come back again for more services (Wang et al, 2013). This is an issue that does not exist within Real Coffee limited since the arrival of Alice and Rose from their schooling. They have ensured that they talk to their customers nicely and ensured that they encourage their clients to come back for more coffee.

Marketing Issues

            Real Coffee limited is also faced with marketing issues that affects its production and sales services. For instance, it is realized that the organisation has no strategies and approaches for marketing its products. Through the interview, we discover that the organisation lacks some of the marketing methods such as advertisement, exhibitions, after sales services and promotions among others. By lacking the above marketing strategies and approaches, Real Coffee limited finds it difficult to attract and maintain its customers as compared to Costa and Starbucks with these strategies in place. Another marketing issue faced by the organisation, Real Coffee limited is realized through its production process (Wang et al, 2013) For instance, the organisation still relay on the traditional methods of preparing coffee while other organisations have advance methods. This makes Real Coffee limited to produce poor quality coffee as compared to its competitors like Costa. Therefore, Real Coffee limited must ensure that they constitute a market team to look at the situation of the organisation in order to come up with better marketing approaches for the organisation.

Human Resource Issues

            Another problem faced by the organisation is human resource issues. Real Coffee limited lacks Human Resource Departments among other departments that are required for an organisation to operate as planned. Therefore, no proper methods are developed towards recruitment of members of the organisation such as manages and workers, no proper plan towards the control and monitoring of the organisational activities and the organisation also lack a team responsible for making decision on the operations and development of the organisation. Thus, the organisation is faced by numerous human resource issues. One of the issues that are faced due to lack of human resource department within Real Coffee limited is the retention management (Claiborne et al, 2013). The organisation has failed to prevent employee’s turnover as experience currently, the organisation has also faced to employ qualified and experienced workers as appointment is done by Adam, who only employ his friends and friend friends. Moreover, due to lack of human resource management department, the organisation is unable to prevent collision of jobs within the organisation, which has also resulted to employees’ turnover. Additionally, lack of human resource department has also resulted to poor communication and relations among workers within Real Coffee limited.

Operations Issues

            Lack of proper coordination and communication among workers within Real Coffee limited has made it difficult for the organisation to develop and maintain teamwork within the organisation (Kures and Ryan, 2012). This has resulted to collision of jobs among workers and other officials of the organisation. It is also through poor coordination within the organisation that has resulted to poor productions and service delivery as experience many a time. Furthermore, due to poor operation management has also forced conflicts among workers leading to employee’s turnover.

Financial Issues

            Financial issue is another problem faced by the organisation. For instance, it is found that all the financial management is under the control of Adam, which makes it difficult for other members of the organisation to come up with better planning of the organisation. This makes the organisational management difficult.

Proposed Strategies

            For the above management issues faced by Real Coffee limited to be realized, certain strategies and management approaches must be put in place. For instance, in dealing with the problem of employee’s turnover, the organisation must ensure that it create various departments within the organisation to control and oversee the operations of the organisation as revealed by Chen et al (2012). For instance, the organisation must ensure that human resource department is constituted to ensure experienced and qualified workers are employed into the organisation to provide quality and timely production. Another proposed strategy for the organisation is for the management to ensure that better relations, coordination and effective communications are enforced within the organisation. It is also important for the organisation for the organisation to ensure that current and future development plans for the organisation is given higher priority (Meskendahl, 2010). Moreover, the organisation must ensure proper financial management and control are in place.

Proposed Implementations

            In the process of amending the above proposed strategies, Real Coffee limited must ensure that they involve all members of the organisation in the proposed development and implementation process, they organisation must also make sure that all the proposed development fall within the financial status of the organisation (Nordqvist and Melin, 2010). Moreover, the organisation must ensure any proposed development is done gradually without affecting the current operations of the organisation.

 

References:

Akcura, M.T. and Avci, S.B. (2013). How to make global cities: Information communication technologies and macro-level variables. Technological Forecasting & Social Change, 1(2013), 1-12.

Bamiatzi, V., Cavusgil, S.T., Jabbour, L. and Sinkovics, R.R. (2013). Does business group affiliation help firms achieve superior performance during industrial downturns: An empirical examination. International Business Review, 23(2013), 195-211.

Chen, C., Shih, H., Shyur, H. and Wu, K. (2012). A business strategy selection of green supply chain management via an analytic network process. Computers and Mathematics with Applications, 64(2012), 2544-2557.

Claiborne, N., Auerbach, C., Lawrence, C. and Schudrich, W.Z. (2013). Organisational change: The role of climate and job satisfaction in child welfare workers’ perception of readiness for change. Children and Youth Services Review, 35(2013), 2013-2019.

Kim, H. and Park, H. (2013). Term structure dynamics with macro-factors using high frequency data. Journal of Empirical Finance, 22(2013), 78-93.

Kures, M.E. and Ryan, W.F. (2012). Challenges of an Organisational approach to applied downtown market analysis. Applied Geography, 32(2012), 80-87.

Meskendahl, S. (2010). The influence of business strategy on project portfolio management and its success- A conceptual framework. International Journal of Project Management, 28(2010), 807-817.

Nordqvist, M. and Melin, L. (2010). The promise of the strategy as practice perspective for family business strategy research. Journal of Family Business Strategy, 1(2010), 15-25.

Thai, M.T.T. and Turkina, E. (2013). Macro-level determinants of formal entrepreneurship versus informal entrepreneurship. Journal of Business Venturing, 1(2013), 1-21.

Wang, Z., Haung, J. and Tan, B. Managing Organisational identity in the e-commerce industry: An ambidexterity perspective. Information & Management, 50(2013), 673-683.

 

 

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