Business Decision Making: Analysis and Recommendations for Seven Seeds Cafe

This paper investigates and analyzes the current context of the Seven Seeds—a coffee-shop enterprise situated in Australia, and is essentially looking for business cost containment due to its recent loss of profitability due to changing market conditions. The paper provides a situational analysis using PESTEL and SWOT analyses, and identifies biased and unethical practices in the list of employees provided by the management. The paper recommends a long-term strategy for structural change in business practices rather than sacking employees.

BUSINESS DECISION MAKING

Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Problem Definition......................................................................................................................4
Situational Analysis.....................................................................................................................4
PESTEL Analysis....................................................................................................................4
SWOT Analysis.......................................................................................................................6
Sense Making...............................................................................................................................6
Formulation of Potential Solutions..............................................................................................7
Selection between Solutions........................................................................................................7
Decision making based on solutions............................................................................................7
Implementation of Decisions.......................................................................................................8
Testing, Team-feedback on Decisions.........................................................................................8
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................13
1

Executive Summary
Decision-making is one of the most crucial business-processes that holds a huge responsibility in
the success or failure of a particular organization. In order to thoroughly explore and critically
evaluate the decision-making processes of organizations, a particular business condition has been
chosen for investigation and analysis by a team of three members, who were also in charge of
formulating a relevant solution for the issues discussed. A detailed situational analysis of the
business environment has been conducted to identify the particular political, economic, social,
technological, environmental and legal factors that directly affect the functioning and success of
the organization in the contemporary society. Followed by a PESTLE analysis is a AWOT
analysis that identifies the organization’s particular strengths, weaknesses, opportunities and
threats as derived from comparison against its existing external environment.
The panel of researchers closely investigated the provided information about the list of
employees and identified the particular unethical practices of bias and preference, as many
employees had been listed on the basis of having poor social media presence or some other
insignificant and unnecessary issue. Further the research identified the threats of unethical
business processes, especially in a politically charged up business environment that is trending
towards global political activism, ethical business practices and sustainability of the environment
and society. Therefore, the panel closely works in collaboration to finally reach a conclusive
solution using integrated methods. The research recommended on focusing for a structural
change in business practices for the long-run rather than sacking a large section of employees,
who can be useful and productive for the Company’s operational processes.
Therefore, this paper aims to explore and summarize the various aspects of business decision-
making to formulate an appropriate solution for the chosen business organization.
2

Introduction
Decision making in business processes is one of the most crucial elements that need adequate
knowledge and consideration and can have extremely dire consequences in case of
miscalculations. Since a business process comprises of various level and layers of operations and
managing, decision-making plays a very important role in prioritizing requirements and
altogether is a very complex procedure involving analysis at various levels (Bryman & Bell,
2015). One very important element in decision making, especially when it comes to international
business, is the ability to think beyond the regular structure. Though the Western society is
greatly biased towards individual decision-making, it is being now explored how team-work or
group-participation in decision-making processes allow more scope for creativity, innovation and
creates a particular “creative tension” in the processes of problem-solving and decision-making
(Dobbs, Ippolito & Charner-Laird, 2016).
In order to draw an in-depth analysis of the current position of the chosen business organization,
the Seven Seeds Cafe, it is necessary to consider it from multiple perspectives in order to decide
on an appropriate and relevant solution that serves the purpose of all/maximum shareholders and
also enhances the organization’s sustainability. According to (Sharma, Mithas & Kankanhalli,
2014), decision-making plays a key role in problem-solving processes. In order to understand the
concept of individual and group decision-making, this project would emphasize on engaging
together in a team for high quality decision-making.
Discussion
This paper investigates and analyzes the current context of the Seven Seeds—a coffee-shop
enterprise situated in Australia, and is essentially looking for business cost containment due to its
recent loss of profitability due to changing market conditions (McWilliams, 2016). Seven Seeds
is In order to create an appropriate and relevant solution to the issues experienced, it is necessary
to first understand the issues from perspectives of the various stakeholders of the business. This
research aims to study the current situation issue, from an individual as well as group
perspective, and critically analyze them against the Company objectives to formulate a relevant
solution.
3

Problem Definition
The Seven Seeds, which comprises of 300 employees in total, has recently gone through a loss of
two key products from their product line due to changing governmental policies and regulations.
Falling business profitability is another major reason behind the complete extinction of the
product from the contemporary market. The management of the particular business organization
has identified reducing business costs as one of the chief requirements in order to control the
damages. The Executive Management team of the organization has identified controlling wage-
salary costs as a means to reduce business costs of the enterprise and survive the forth-coming
period (Fairlie & Fossen, 2018). As the most positive way to deal with the issue, the
management team decided reducing their employee base by sacking them on the basis of
redundancies (Rosso, 2014). As appointed by the Executive Management, this research aims to
analyze the provided information and data on the number of people listed for redundancy and
provide recommendations on the list, along with sufficient justifications.
Situational Analysis
A systematic collection of the various external and internal business situational factors that is
crucial for determining the organization’s capabilities, deficiencies, prospects and obstacles
(Smith et al., 2014). There are various tools and methods that have been theorized for the
accuracy of the situational analysis of businesses and organizations. PESTEL and SWOT
Analyses are two such methods that are commonly used to critically analyze external and
internal situations of particular organizations. While PESTEL Analysis emphasizes on the
external conditions of a business environment, the SWOT Analysis determines the particular
strengths, weaknesses, opportunities and threats of the organization, as derived from the
comparison of its external environment and the respective requirements for survival in it.
In order to critically analyze the business conditions of the Seven Seeds Café, a detailed PESTEL
Analysis would be conducted based on which the SWOT Analysis would be formulated.
PESTEL Analysis
A PESTEL Analysis describes the political, economic, social, technological, environmental and
legal factors of the organization’s external environment that directly influences the business
functions (Rastogi & Trivedi, 2016).
Political: The changing political conditions of the external environment of the organization has a
direct influence on the organization’s business processes—for example, the sourcing of the raw
4

materials from all over the world. According to (Baylis, Smith & Owens, 2017), in a dynamic
political atmosphere that is taking a turn towards organic farming and global political activism
and awareness, the Seven Seeds Café faces a stiff challenge of survival and acceptance.
Economic: Australia being one of the powerful first world countries with flourishing business
and economy comprises of a huge consumer base. The demand for various kinds of readymade
coffee and coffee-shops amongst consumers, have multiplied over the years—which can be
beneficial for the Seven Seeds Café.
Social: The current sociological conditions of Australia indicate towards a trend for “ethical
business” and “ethical consumption”, which is being widely accepted by entrepreneurs and
consumers alike. Though the population holds a large section of the elite upper-middle class who
can both afford and hold demand for the products and services, general awareness regarding
sustainability and ethical consumption practices makes it mandatory for the business to adhere to
ethical guidelines (Jones et al., 2015).
Technological: Technological improvements have been one of the most remarkable
advancements in the global business market. Modern technological gadgets and appliances not
only make the production process easy, they enhance the quality, reduce long-term cost and
eliminate excessive manual labor. Online presence of organizations is another revolutionary
factor that directly affects the performance of the organization.
Environmental: Current environmental conditions are worsening worldwide. Over-consumption
of resources, unsustainable business practices are posing major threats to the environment all
over the world (Miller, Lee, Obersky & Edwards, 2015). Recent concern of researchers and
activists over the deteriorating environmental health has directly affected environmental rules
and regulations. Depleting environmental resources also affect the coffee bean farming practices,
thus directly affecting the raw supply materials chain of the organization.
Legal: The rapidly changing laws and policies of the country make it quite complex for a
business organization to perform independently. The reformed laws for caffeine production and
consumption do not only affect the demand of the products offered but also puts the organization
in jeopardy. In order to survive the legal conditions, it is necessary to abide by the respective
laws and regulations.
5

SWOT Analysis
The SWOT Analysis identifies the particular strengths, weaknesses, opportunities and threats of
the organization, as derived from the external organizational analysis.
Strengths: Rising demand for coffee and coffee-shops amongst Australian consumers is one of
the biggest strengths of the organization (Yuan, Chang & Tzeng, 2015). Additionally, the
organization employs a wide range of workers and employees (both directly and indirectly),
creating a diverse workspace with many creative and innovative ideas.
Weaknesses: The major weaknesses of the organization would include the increasing costs of
production and changing social and legal conditions of the country, which have caused the
removal of two of their products for not fulfilling their required criteria.
Opportunities: The organization stands a good opportunity of applying latest technological
developments that would help in replacing human labors with machines, thus enhancing the
accuracy and quality of products at a reduced time and cost (Brynjolfsson & McAfee, 2014).
Additionally, the organization might make optimum utilization of the rich cultural diversity
amongst its employees and strive to create more innovation in its business processes.
Threats: The rising threats to the organization include dire environmental health and resources
that not only make the governmental and environmental laws more stringent, but also harms the
sustainability of the organization. On the other hand, sacking a good number of employees from
the organization to reduce its production costs might have unwanted and dire consequences on
the management authorities, on the basis of unethical business practices.
Sense Making
The list of employee names and information provided to the panel by the Executive Management
team of the organization contains 60 names, from which at least 60% needs to be made
redundant for the cost minimization of organization. However, the panel of researchers working
on the project unanimously agrees that the organization requires a minimum of 275 employees in
order to function properly with its available resources and capabilities. The list of employees
provided by the management exposed biased and unethical decision-making of the management
team of the Company, who has also listed certain people due to personal disagreements,
preferences or even social media presence (Furman, de Branden & Spaller, 2018). Not only is
this problematic because of the biased governance of employees but also poses a huge risk of
violating ethical standards and norms.
6

Formulation of Potential Solutions
In order to create potential solution for the issues is discussion it is necessary to look at the
scenario from the perspectives of the consumers, the entrepreneur as well as the employees.
Employees are one of the most vital resources of a business organization and need to be
protected in order to ensure survival and sustainability. A relevant solution would be a long-term
process of strategizing and utilizing the available resources in more creative and innovative ways
to meet the requirements. The various solutions provided by the panel are:
Since the organization is currently going through a low-tide economically, it is advisable to not
declare 36 employees “redundant” without a valid cause, as most of these employees belong to
the middle-age group and would fail at re-employment programs (Hu & Liden, 2015).
Since the organization has already been facing issues related to legal and sustainability issues, it
would be better to consider alternative options to meet the requirements.
Until the replacement of human labors with technological machines, the loss of 36 labors at once
would be a stiff challenge for the smooth functioning of the operational processes of the
organization.
Finally, the organization must take care not to get involved in unethical organizational practices
and behaviors like holding personal discomforts against colleagues, reservations for preferred
members, bias on the basis of class/caste/age/gender or appearance, and more.
Selection between Solutions
In order to strike the most relevant solution for the current issue it is important to consider the
advantages and disadvantages of all the stakeholders involved in the process. The functioning of
a business organization is essentially a team work and therefore requires better judgment in
decision-making processes, so as to protect the rights and benefits of the stakeholders and ensure
sustainability (Susanty & Kenny, 2015). The selection of employees who need to be made
redundant must follow a systematic process based on specific professional criteria.
Decision making based on solutions
Based on the various potential solutions identified by the research panel, it is identified that not
more than 25 employees can be declared “redundant” by the organization at the moment. Not
does the organization need more resources to meet the expected requirements, but also aims to
steer clear of any new issues regarding unethical exploitation of employees and fraud (Costa,
Passos & Bakker, 2015). Therefore, in order to ensure sustainability of processes, the decision
7

would be to limit the redundancy list to only the ones who have exposed signs of unprofessional
or unethical workplace behaviors, like absenteeism, negative working relations with colleagues,
failing to meet quarterly targets and more (Iphofen, 2016).
Implementation of Decisions
The implementation of the decisions would include the following steps:
 Close scrutiny of work processes of the listed employees to measure their efficiency and
justify their employment.
 Close adherence to legal and environmental policies pertaining to the business processes,
in order to avoid further chaos and expenditure.
 Sacking redundant employees.
 Apply more cross-cultural communication theories in order to make the most use of
available diversity of human resources and create a creative tension leading to innovative
ideas and solutions (Seeman, 2015).
Testing, Team-feedback on Decisions
Followed by continuous discussions and critical analysis of the given situation by all three
members of the panel team, a unanimous decision was finally reached (Nemiro, 2016). Though
there were differences in opinion amongst the panelists, the intense discussion sessions resulted
in re-consideration of several suggestions to agree on specific decisions.
Recommendations
After the successful analysis of the business situation faced by the Seven Seeds Café, a number
of recommendations were finalized for the organization, as listed below:
 Enhance employee engagement and efficiency in order to extract their complete potential
(Taskov & Mitreva, 2015).
 Eliminate the unnecessary elements that add to the expenditures of the organization
without retrieving desirable results.
 Conduct workshops on organizational behaviors and cross-cultural work-ethics in order
to avoid unnecessary clashes based on personal/religious reservations (Maalouf &
Gammelgaard, 2016).
 Adapt to new technologies and modern appliances that reduce consumption of time and
resources.
8

 Adhere to environmental and other legal policies and regulations to emerge as an ethical
and sustainable business force in international market (Costanzo & Di Domenico, 2015).
Conclusion
To conclude, decision-making is a complex process that extensively uses investigation, research
and analysis to conclusively reach an agreeable point that is beneficial for all. An efficient
decision-making process avoids being reckless and impulsive and rather focuses on the in-depth
understanding of the current situation in order to reflect the particular areas that are in need of
amendments. PESTLE and SWOT Analyses of the Seven Seeds Café exposed the particular
external and internal conditions of the organization, reflecting the pros and cons of various
potential solutions to the emerging issue. However, with the help of sufficient knowledge
gathered from previous experiences, theorized business literature and current Company
conditions, a relevant solution has been provided, focusing on a structural change of work
practices.
9

Grading Matrix
Member Name/ ID Maximum Teamwork
Mark (%)
Average Participation
Score (1-5)
1. Self 15 5
2. Other1 15 4
3. Other2 15 5
10

Personal Reflection
As one of the three members of the research panel assigned to provide relevant solutions for the
issue faced by the Seven Seeds Café, I have gained a significant amount of insight regarding
practical experiences of working in a closely-knit team. Not only did I learn to apply the business
theories in practical scenarios to produce worthwhile solutions to given problems, but also
gathered enough experience regarding the basic essence of working as a team, rather than as an
individual. During the research process we had to look at various business factors from the
perspective of a multicultural employee base and explored the areas of learning to work in a
team, in collaboration with others. A team work essentially requires providing sufficient space to
all the respective team members so that they can put in their best creative minds. This project
particularly helped me to connect the theories with my practical experiences as I was working as
a part of a team, which came with its own share of disagreements and displeasures. However, the
ability to refocus our attention towards the issue in concern and being more flexible to accepting
and trying out new, innovative ideas did not only infuse a great sense of thrill and
encouragement, but also helped us to successfully provide a relevant solution, appropriate for the
current issue in concern.
Challenged with the complex issue of the Seven Seeds Café, which is looking at sacking its
employees to increase the chances of survival in the current business environment, it led us to
conducting a thorough investigation of its various external and internal conditions that directly
affect the performance of the organization. By conducting an in-depth situational analysis of the
organization, we were more aware regarding its position in the contemporary business market.
Situated at the heart of Melbourne, the external business environment of the Seven Seeds Café is
characterized by a dynamic socio-political scenario trending towards ethical consumption,
organic farming and global political activism. By investigating the Company’s internal
operational processes we identified how this political situation affects the sourcing of its raw
materials, for example coffee beans, from all around the world. We practically identified how
political scenarios affect the functioning and performance of a business organization. The
implementation of business tools like the PESTLE and SWOT on practical issues of
contemporary businesses helped in solidifying our critical understanding of each of the processes
and their importance in decision-making processes of the same.
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As a team of three researchers coming from different mindsets and understandings, we face a
number of challenges regarding differences in opinion, successful communication of ideas and
skilful handling of stressful situations of deadlock. However, the patience and understanding that
I received from my colleagues in hearing out my ideas and notions encouraged me further to
listen to what they have to add to it, or even readily acknowledge positive criticisms. The
synchronization that developed between the three members of the panel helped us to understand
the spirit of working in a team and being open and tolerant with differences in opinions, beliefs
and ideas. Not only that, the research project helped us understand the complexities of decision-
making process and the particular differences in decision-making, when it comes to individual
and/or group performance. In case of the Seven Seeds Café we had to make a very crucial
decision as the Executive Management’s circular was to sack 60% of the listed employees in
order to stabilize its salary-wage costs and survive the recent financial losses. However, the
detailed analysis exposed threats of further legal difficulties that could spring up due to unethical
sacking of employees, without any valid reason. Adding to its already doubtful reputation of
unsustainable business practices, the burden of unethical sacking of employees could be off
limits for the organization right now. We strongly felt that the organization needs to further look
into its incompetence and rectify their management strategies in order to have a better grasp at
the business market, for example by adapting environment-friendly initiatives of sustainability.
Adapting to modern technological advancements of the society was another crucial factor that
we explored through the research. As a means to cut down production costs, implementing new
technologies and equipments could perform a huge boost. Replacing human labour with
machines not only drastically brings down the wage-salary costs but also conserves time and
produces better quality products with more consistency. The huge benefits that technological
developments have bestowed on business organizations could be explored not only in theory but
also practice, as the panellists were virtually connected to each other while working in
collaboration for the project. The implementation of modern technological innovations in direct
business processes and enjoying its benefits directly as we work together was a great experience
of connecting theory in practice.
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