Industry Research Project - Assignment

Industry Research Project
(Development of Organization
Strategies for Cafe Den)

EXECUTIVE SUMMERY
Appropriate management of business operations is one of the basic need for all organization
by which it can attain their goals and objectives in effective manner. But, most of the
organizations are not able to manage their functions and activities properly. So, the current
study is based on poor management issues of a Cafe Den and due to this reason, it is facing
the issue of low productivity. It has also focused on its customers and employee relations.
Regarding this, it has reviewed the available literatures and afterwards it has applied different
methods for resolving these issues. As per the study, researcher has used primary and
secondary data collection methods for collecting facts and figures. Regarding this, it has
conducted a questionnaire survey of customers of Cafe Den. along with this, it has also
organised and interview session of employees of Cafe Den. In addition, Author has used
qualitative and quantitative analysis methods for analysing facts and figures and these
methods include thematic analysis, correlation coefficient, chi square test, etc. Findings of the
data analysis has reflected that organization needs to focus on food quality, pricing and
marketing strategy of Cafe Den. along with this, company should implement an eCRM
system for developing strong relations with customers. On the other hand, for employees
Cafe Den need to focus on changing HR policies and practices by which employees can
satisfied with their job. Therefore, all these strategies will help in resolving poor management
issues of Cafe Den.

TABLE OF CONTENTS
1. introduction and problem statement.......................................................................................3
1.1 Background information...................................................................................................3
1.2 Significance of the research..............................................................................................4
1.3 Research Scope.................................................................................................................4
1.4 Research Problem statement.............................................................................................5
2. Literature Review...................................................................................................................5
3. Methodology..........................................................................................................................5
3.1 Introduction....................................................................................................................10
3.2 Research Philosophy......................................................................................................11
3.3 Research Approach.........................................................................................................11
3.4 Research Design.............................................................................................................12
3.5 Research Technique........................................................................................................12
3.6 Data collection method...................................................................................................13
3.7 Data collection instrument..............................................................................................13
3.8 Sampling Method...........................................................................................................15
3.9 Data Analysis..................................................................................................................16
3.10 Ethical Consideration...................................................................................................16
4. Findings and Results............................................................................................................17
4.1 Qualitative analysis........................................................................................................17
4.2 Quantitative analysis......................................................................................................22
5. Conclusion and Recommendations......................................................................................24
5.1 Conclusion......................................................................................................................24
5.2 Recommendations..........................................................................................................25
References................................................................................................................................26

1. INTRODUCTION AND PROBLEM STATEMENT
Management is one of the important aspect which is require for attaining mission and
vision in effective manner. Poor management or inappropriate strategies may influence the
organization success and its products and services also. The current study is based on poor
management issue of a Cafe Den (Giaconi, Gunduz and Poor, 2017). Organization is facing
different issues like customer dissatisfaction towards the services due to inappropriate
management of the firm. Along with this, employees of the organization were also facing
various issues. So, the current study has chosen this research subject for conducting whole
investigation. Regarding this, it will focus on the management problems that affect the
business operations of Cafe Den (Sadef and et al, 2016). Along with this, it will also analyse
the Unique Selling proposition of the Cafe Den for attracting the customers. Further it will
describe the number of factors that can influence the productivity of the Cafe Den. For
attaining all these aim research will follow a very systematic structure of the study that will
comprise different chapters Introduction, literature review, research methodology, data
analysis and conclusion and recommendations. In which introduction will be a brief outline
of the whole project. Literature will include the findings and results of the past research
studies that are similar to this project. Including this, research methodology will cover all the
methods that can be used by researcher for conducting this investigation. Using appropriate
tools and techniques author will analyse the collected facts and figures by which research can
make a meaningful conclusion for resolving the research problem (Streitberger and et al,
2017).
1. 1Background information
Management of employees and work plays essential role for organisation in
accomplishing its objectives. Competition in the food industry of Australia is enhancing with
time and it needs innovation and uniqueness in making a good market position and brand
image. Nowadays, USP has become one of the necessary part of the companies for making
customers to visit and purchase their products or services (Goodwin and Wright, 2014). In
context to the food sector, Cafe den was founded in 2008 and located in the outskirts of the
Sydney, Australia. The cafe is offering light foods and non-alcoholic beverages to the
customers by considering their health aspects. It is a small-scale food firm with an employee
base on 10. The respected firm is facing issues in offering innovative and specialised food
items to the customers. Along with this, Food Company is unable to offer quality and
appropriate customer services to the clients which is increasing the level of dissatisfaction.
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The cafe is searching for a USP for adding a specialised food item to its menu so that people
can have a reason to visit it. On the other hand, cafe does not have effective and suitable
recruitment process which leads to selection of non-desirable and unskilled candidates. This
improper process results to affect the quality of customer service and food items which
directly create dissatisfaction among the individuals. Thus, it is necessary for the cafe to
identify appropriate solutions and strategies for handling its present situation. With the help
of proper analysis, the report will able to help cafe in retaining and maintaining its customer
base (Laudon and Laudon, 2015).
1.2 Significance of the research
The current study is based on a contemporary issue of the hospitality industry of
Australia. The selected Cafe Den is facing the poor management issue that can affect the
satisfaction level of customers as well as employees of the organization. So, the current study
will be significant for resolving this issue in effective manner. It is very important and
beneficial because it will discuss some general management theories and models which will
provide a clear insight to different restaurant and hotels that are facing similar issues. Along
with this, it will be providing appropriate strategy about the USP of a Cafe Den and this
strategy can be used by that particular Cafe Den for resolving their issue (Nel, Hafisa and
Dlamini, 2016). This study will be beneficial for recommendation different strategies by
which Cafe Den can increase the satisfaction of customers and employees as well. Further it
will increase the scope of the future research. After completing this assignment researcher
can conduct the same research study on different hotels of other country also. Therefore, it is
significant for the future research study also.
1.3 Research Scope
Identifying the research scope is the major aspect for every investigation. Scope of the
current study includes the customer service activities of the Cafe Den. Employee
management strategies will also be focused by the study because after analysing this strategy
researcher can identifying the issues associated with the employee. It will play important role
in developing appropriate strategy for resolving issue. Further it will analyse the Unique
selling point, customer relationship management strategies and general management of a
Cafe Den (Madon and Krishna, 2017). Therefore, there is a huge scope of applying number
of customer oriented, motivational and management theories and model.
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1.4 Research Problem statement
Poor management, weak customer relations and employee management issues are
considered as major issues of the current issue. It is an issue because due to these reasons
company are facing problem in developing strong relations with employees and customers.
Along with this, these issues are decreasing the productivity and profitability of the
organization. Overall performance of the Cafe Den is hammered because of all these
problems. So, author has selected this issues as a research problem for the current study. For
resolving these issue author will focus on customer relationship management, USP and
different management strategies (Schabenberger and Gotway, 2017).
2. LITERATURE REVIEW
Management: According to the Armstrong and Taylor, (2014), “Management refers
to the process of handling and controlling the business processes or people properly and
effectively for accomplishing the desired objectives”. In context to this Dellinger and et.al.,
(2013), have identified that “There are different activities included in the management such
as setting the strategy, coordinating the efforts of employees, managing resources and many
other aspects” With reference to this, cafe is facing issue in managing its workers and
customer services, results to decline in clients.
Principles of Management:
As per the problem of cafe, it needs to follow principles of management for
improving quality of its services and enhancing productivity. As per the January and et.al.,
2014., “14 principles of the management are depended upon the fundamental truth for
guiding companies in their decision-making process and management actions” Those
principles which are affective for handling the problem of cafe are as follows:
Division of work: Konstantinides and et.al., (2014), have demonstrated that “Different
employees possess different knowledge, skills and area of expertise which distinct them from
each other”. With reference to this, cafe needs to delegate work and responsibilities as per the
skills and expertise of the workers. This will enhance the quality of work along with
performance of the organisation.
Authority and Responsibility: Beardwell and Thompson (2014), have found that “In
an organisation management has the authority to give orders to their workers. This authority
brings responsibility to monitor the work and performance of the staff”. In context to this,
senior management of the cafe is only ordering their employees to work well instead of
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monitoring their work. Proper guidance and feedbacks will also need for motivating the
workers and improving their work quality.
Discipline: Cafe is suffering from improper customer service which is due to lack of
interaction between the workers. Discipline is a part of the core values which some company
possess which results to good conduct and respectful interaction. With the help of this
principle, cafe will able to make good relations with the clients by communicating them well
and offering them food with full etiquettes and respect.
Unity of command: Lehmann and Joseph, (2015), have said that “Unity of command
is receiving orders by an employee from a manager and providing answers to him”. In
reference to this, only one manager should order workers instead of many as it can create
situation of confusion which may lead to conflicts or misunderstandings.
Unity of Direction: According to the Yancy and et.al., (2013), “Working as a team
results to better decision making and strategy selection process. It also leads to effective
management of work which helps in achieving the organisational goals”. In this context, cafe
needs to create team for creating specialised food or ambience for retaining the customers.
Group discussion in a team can develop new and innovative ideas for handling the current
situation of cafe.
Subordination of individual interest: Cafe should use individual interest of workers
for achieving its objectives. It is necessary to subordinate the personal interest of the staff to
the interest of the organisation.
Remuneration: As per the Montalescot and et.al., (2013), “Performance and
motivation are directly propositional to each other and the main reason behind their
enhancement if monetary and non-monetary remuneration”. As per this, cafe should
complement and trust the work of staff along with offering them bonus, compensation,
vacation, etc for increasing their motivation. Performance and productivity of the cafe will
directly enhance if workers start working with extra zeal and enthusiasm.
Degree of Centralisation: It is necessary to have proper balance between the
decision-making process and management. It is responsibility of top –level management to
concentrate on the decision making with respect to the ideas provided by the team of the cafe
for improving cafe’s menu card and enhancing its number of customers.
Scalar chain: Nishimura and et.al., (2014), have stated that “Area of authority in an
organisation should be from top management to the bottom for per monitoring of work” In
respect to this, cafe should follow the hierarchy for better management of its work and
services.
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Order: On the other hand, Vestbo and et.al., (2013), have said that “Along with
proper employee management, it is also important to have proper resource management. Lack
of right resources for proper functioning of a company can result to poor performance and
productivity”. Thus, cafe should provide safe, clean and tidy working environment to the
workers along with required resources. Use of decorative items, music, comfortable
infrastructure, etc will make clients to visit the cafe.
Initiative: Haugen and Schuff, (2016), found that, “Companies should allow their
workers to take initiative for taking new work, expressing their ideas, developing their
interest in other fields, handling challenges, etc. Employee initiatives work as source of
strength of the firms for achieving their goals”. In this context, cafe should allow its staff to
give new ideas for adding new food list, specialised food item, attractive offers, discounts,
quality ambience, etc to it.
Stability of tenure or personnel: Frequent change of the positions, training and
development programs, proper organisational policies and procedures can help cafe in
minimising the employee turnover.
Esprity de Corps: In contrast to the above principles, cafe should focus on
development of the morale in the workplace. This will lead to provide quality work and
services to the customers.
Equity: Similar to the Esprity de corps, this principle suggest cafe to treat its
employees equally and kindly. This will motivate workers and make them to perform well for
handling the problem of poor customer services (Stadtler, 2015).
Improvement in customer service: Cafe is suffering from poor customer service
which is leading to decrease its number of clients along with profit margin. With respect to
this problem, it is necessary for the firm to improve its customer services with the help of
following methods:
Strengthen the customer service skills: According to the Haimes, (2015), “Right
skills and knowledge is required for managing the customers and fulfilling their needs and
demands”. In context to this, cafe should develop adaptability, clear communication, patience
and empathy skills in its staff members. Polite interaction with a smile and use of words like
thank you and sorry will result to place a good impression over the clients. Along with this,
proper knowledge regarding the food items, their ingredients, quality, etc will also help in
handling the queries of the people. On the other hand, Jauch and Summers, (2013), have
argued that “Employee should have enough patience and control over him to swallow the
pride of customer and accept their blame or negative feedbacks”. In context to this, cafe will
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