Managing Communication, Knowledge and Information: A Case Study of Costa Coffee UK

This report examines the importance of managing communication, knowledge, and information within a large organization, using Costa Coffee UK as a case study. It explores the types of decisions required for market development, the information needed for effective strategic decision-making, and the internal and external sources of information available to Costa Coffee. The report also analyzes stakeholder engagement, communication channels, and strategies for a successful product launch. Finally, it discusses methods to improve communication systems within the organization, including the use of technology, and outlines a personal plan for enhancing communication skills.

Managing Communication, Knowledge and Information

Contents
INTRODUCTION................................................................................................................................2
LO 1..................................................................................................................................................3
1.1 TYPES OF DECISIONS TO BE TAKEN BY THE TOP MANAGEMENT OF COSTA COFFEE UK TO
DEVISE THE MARKET DEVELOPMENT PLAN................................................................................3
1.2 INFORMATION AND KNOWLEDGE THAT COSTA COFFEE UK HAS TO CONSIDER IN MAKING
STRATEGIC AND EFFECTIVE DECISIONS.......................................................................................4
1.3 PRESENT INTERNAL AND EXTERNAL SOURCES OF INFORMATION THAT ARE AVAILABLE
FOR COSTA COFFEE UK................................................................................................................5
1.4 RECOMMENDATIONS TO COSTA COFFEE UK TO INCREASE THEIR CURRENT AND
POTENTIAL CUSTOMERS..............................................................................................................7
LO 2..................................................................................................................................................8
STAKEHOLDERS THAT ARE IMPORTANT FOR COSTA COFFEE THAT WILL BE INVITED FOR
LUNCH..........................................................................................................................................8
2.2 APPROPRIATE COMMUNICATION CHANNELS TO INVITE THE STAKEHOLDERS..................10
2.3 STAKEHOLDER’S INTEREST AND FEEDBACK.........................................................................11
2.4 ALL-INCLUSIVE STRATEGY FOR THE LAUNCH OF COSTA COFFEE UK’S NEW PRODUCT TO
BE OUTSTANDING AND UNFORGETTABLE................................................................................12
LO 3................................................................................................................................................13
3.1 CURRENT COSTA COFFEE UK’s COMMUNICATION STRUCTURE AND SYSTEM...................13
3.2 METHODS TO IMPROVISE THE OVERALL COMMUNICATION SYSTEMS AT COSTA COFFEE
UK WITH THE EMPHASIS OF RECENT TECHNOLOGY INVENTION MODERNISATION................14
3.3 IMPLEMENTATION PLANS THAT WILL IMPROVISE THE CURRENT COMMUNICATION
MEDIUMS BETWEEN COSTA COFFEE UK AND THE LOCAL COMMUNITY.................................15
3.4 PERSONAL PLAN TO IMPROVE COMMUNICATION SKILLS..................................................16
1

CONCLUSION.................................................................................................................................17
REFERENCES...................................................................................................................................18
2

INTRODUCTION
As the business expands and establishes in different areas, the flow of information regarding,
policies, financial details also increases. This cast flow of information can sometimes act as a
hurdle in front of the organizational growth. With the technological advancement and
improved and secured IT system, it has been possible to manage such crucial information
effectively, which has rapidly developed the global market. To get a better understanding of
how to manage the organization's information and knowledge a case study of Costa coffee is
conducted in the following assignment.
Initially, methods to assess the information and knowledge is discussed in detail; in addition to
this, strategies are created to increase the personal networking within the organization in order
to improve the decision-making process. Further, the methods that can be used by the Costa
coffee to develop their communication process are developed in detail. Lastly, methods that
can enhance the existing communication process in the organization are explained in detail.
3

LO 1
1.1 TYPES OF DECISIONS TO BE TAKEN BY THE TOP MANAGEMENT OF COSTA
COFFEE UK TO DEVISE THE MARKET DEVELOPMENT PLAN
In order to establish a business in new market Costa coffee requires a proper market
development plan that will attract the potential customers in the current segment and increase
the profit of the business. To do so, the top management if the Costa coffee has to take several
decisions to ensure the effectiveness of the development plan. For forming an effective
development plan following steps has to be taken by the managers:
STEP 1
Initially, several questions have to be answered by the top management like the readiness of
Costa coffee must be determined, that whether the conditions are in favour of the organization
or not? This will determine if the company requires new development plan (Cummings and
Worley, 2014).
STEP 2
Ones the readiness and conditions are analysed, next decision the managers have to make is to
form an effective team that has to perform tasks like analysing the market and gather all the
respected details based on which the strategies can be formed (Armstrong, et al., 2015).
STEP 3
Here all the relevant information regarding the team formed by the top management of Costa
Coffee gathers the market and business. This information includes organization’s vision, mission
and goals, financial status of the business, previous SWOT analysis, strategic analysis etc.
STEP 4
4

In this step authority of Costa coffee analysis the data collected by the team and evaluates the
trends, strengths and weaknesses etc. These factors help in determining the position of the
company in the new and existing market (Best, 2012).
1.2 INFORMATION AND KNOWLEDGE THAT COSTA COFFEE UK HAS TO
CONSIDER IN MAKING STRATEGIC AND EFFECTIVE DECISIONS
Making a strategic decision requires several steps that have to be followed, which includes
collecting and analysing different information. Information and knowledge play a vital role in
making effective decisions since it gives a chance to analyse any issue from various perspective.
Managers of Costa coffee can follow several steps through which they can gain the necessary
information (Lunenburg, 2011).
 Initially, the issue or opportunity is recognized, and the impact of the decision on the
business and employees are determined
 Then, relevant information is gathered through which decisions can be made; relevancy
of the determined information is also determined (Zsambok, and Klein, 2014)
 Here all the available options are determined and analysed in order to choose the most
effective path (Geier, 2018)
 Pros and cons of each available options are weighed to arrange the alternatives from
most effective to moderate
 Here the most effective alternative is determined, and necessary precautions are made
to tackle the calculated risks
 Lastly, an action is taken and the decision is made and implemented, additionally, the
outcome of an action is reviewed and necessary changes are made (Hussung, 2017)
Since Costa coffee is continuously expanding, there is several information that they will require
to make effective strategic decisions will include the market condition of the respected area or
country, competitor’s strategy and influence on customers. Additionally, response of
customers, current and upcoming trends; analysing and considering this information will
provide a better understanding of the issue or opportunities available in the market (Citroen,
2011).
5

6

1.3 PRESENT INTERNAL AND EXTERNAL SOURCES OF INFORMATION THAT
ARE AVAILABLE FOR COSTA COFFEE UK
As discussed in the above section, several types of information are required to the organization
like Costa coffee to make effective strategic decisions; this information can be regarding market
status, competitor's strategies etc. Costa coffee can obtain this information from the following
ways:
FIELD RESEARCH
This involves gathering information directly from the source or users; here the information
gathered is mostly reliable and companies like Costa coffee uses several methods for obtaining
the information. These method includes conducting surveys, getting frequent feedback from
the customers etc. (Pearlson, et al., 2016).
DESK RESEARCH
This is the secondary form of research, where information is gathered from earlier studies and
researchers. Such information is less reliable and may be outdated. Sources include news
articles, research papers, online articles etc.
The information gathered from the above methods can be categorized into following types
based on their importance and relevance to the company:
INTERNAL INFORMATION
These types of information are private and accurate and are kept within the organization. these
includes personal details of the employees, marketing strategies, financial data etc. such data
are generally obtained by conducting surveys, market research and evaluating financial details
of Costa coffee (Hussung, 2017).
EXTERNAL INFORMATION
7

These are the information about the company that are available to the public, and includes
information regarding the services; quality offers etc. these are generally obtained through
secondary researchers.
8

1.4 RECOMMENDATIONS TO COSTA COFFEE UK TO INCREASE THEIR CURRENT
AND POTENTIAL CUSTOMERS
Costa coffee has analysed the market and business and evaluated that there is a requirement of
the improved market development plan to effectively communicate gather and manage all the
necessary information regarding financial and customer details. Moreover, there is a decline in
their business in some areas due to low-cost coffee provided by the competitors. To resolve
both the issues Costa coffee has to make effective decisions. For managing the information
company can link all their data to a centralized IT system, this will help them in communicating
and sharing necessary information within their stores (Kumar, 2010). Additionally, by managing
their financial data by online means will lessen their hassle to maintain their books.
To gain the competitive advantage, and increase their customer base Costa coffee can use the
customer information to establish and maintain relations with them. By providing special
vouchers to their prime customers, the company can attract more customers. Additionally, in
order to make loyal customers, the feedback system can be applied to their coffee houses,
which will help them in determining the flaws in their services that have to be improved. By
considering customer suggestions, they can please more customers, which will eventually make
loyal customers (Osterwalder, et al., 2014).
9

LO 2
STAKEHOLDERS THAT ARE IMPORTANT FOR COSTA COFFEE THAT WILL BE
INVITED FOR LUNCH
Stakeholders are an essential part of the business; their investment is what keeps the business
stable. For launching a new product at Easter, several stakeholders have to be invited to show
company's concern towards them. Five type of stakeholders that are going to attend the
launching are described below:
 Investors that have the right to share their views regarding business and have a say in
the major organizational decisions for instance mergers expansion etc. They heavily
invest in the business and provides necessary funds for the expansion and balancing the
business (Lawrence, and Weber, 2014)
 Partners are the one who is directly connected with the business, for instance,
distributors, suppliers etc.
 Employees are the ones who manage the business in the first place, their efforts are
what creates the brand value. Costa coffee values their efforts and loyalty toward the
business. Therefore, as a gesture of respect and care, they will also attend the launching
event
 Customers are another key factor in their loyalty towards business and their investment
results in the profit. Prime customers of the Costa coffee will be invited to the launching
event.
 Internal Stakeholders are the ones that work within the organization like, manager,
auditors, internal customers (Freeman, 2016)
Maintaining relations with the stakeholders is essential for a business like Costa coffee as they
are one of the leading coffee businesses in the market and are continuously expanding.
Stakeholders are the ones that show concern about the business and work for its betterment.
They guide and provide assistance during the tough roads and builds the credibility of the
business.
10

2.2 APPROPRIATE COMMUNICATION CHANNELS TO INVITE THE
STAKEHOLDERS
In the previous section, the importance of the stakeholders is discussed and necessary
stakeholders are identified that has to be invited to the launching event. Before contacting
stakeholders following things are required to be considered:
 Key information regarding the stakeholder must be noted, for instance, their
preferences like etc.
 Requirement and needs of the stakeholders must also be considered
 Method of communication must be chosen properly based on the stakeholder types, for
instance, for investors, partners well-designed e-mail, and a personal invitation has to
be delivered
 The invitation must contain relevant and all the essential data to avoid
misunderstanding (Král, and Králová, 2016)
Communication channels that can be used to invite the stakeholders are discussed below:
 For all the stakeholders, invitation through email can be used as a primary method; a
well-formatted invitation via email will create a professional image of Costa coffee
 Discussion forms can be provided to the stakeholders to know their point of view and
suggestions regarding the launching event (Bovée, and Thill, 2012).
 Meetings and conference are another communication method that can be used to
personally invite the employees and internal stakeholders
 Advertisement and SMS can be used to contact and invite prime customers of Costa
coffee (Guffey, and Loewy, 2012)
These methods can be used by Costa coffee to invite the identified stakeholders as these
communication channels are both economic and effective.
11

2.3 STAKEHOLDER’S INTEREST AND FEEDBACK
For every major decision, a company like Costa coffee analyse and understand stakeholder's
point of view. Since stakeholders are the part of Costa coffee and have concerns regarding the
growth of the organization. Their interest and feedbacks are essential for the improvement of
the plan, their suggestion may be considered by the company to make the launching event
successful (Bryson, et al., 2011).
Regarding the launch of new product, it was analysed that all the identified stakeholders
showed positive response and provided several suggestions based on their experience and
knowledge. For instance, internal stakeholders suggested that the along with the new product,
the special discount can be offered to the customers to attract potential customers.
Additionally, the employees of Costa coffee suggested that, for Easter, to make the atmosphere
more positive they could wear special costumes. In addition, special services as if Easter based
items can be provided to the children like coffee flavoured Easter eggs.
The investors gave a positive response to the administration by offering additional funding to
expand this new product to different Costa coffee houses. They also suggested that crowded
places like parks, colleges etc. can be chosen for advertisement purposes to attract new
customers, additionally, to free samples of the products can be provided to the customers at
malls, parks to initiate a relationship by attracting them (Ackermann, and Eden, 2011.).
12

2.4 ALL-INCLUSIVE STRATEGY FOR THE LAUNCH OF COSTA COFFEE UK’S NEW
PRODUCT TO BE OUTSTANDING AND UNFORGETTABLE
Once all the identified stakeholders are listed invited and their suggestion is obtained, the next
step is to analyse their suggestions and form an effective strategy to make the launching event
successful. Based on the initial plan and their suggestions, following factors has to be kept in
mind to make the product launch unforgettable:
 Initially, as per the feedback from the stakeholders, the market must be analysed and
potential customers must be targeted, after targeting, samples of Costa coffee must be
provided to them to gain their attention and initiate a relationship (De Brentani, et al.,
2010)
 The properly formatted invitation must be designed by Costa coffee which includes all
the relevant information regarding the launch such as, venue, timing, offers on current
products etc. Additionally, special discounts coupons can be provided to the prime
customers to increase the chances of their arrival
 As per the suggestion was given by the employees, special costumes and coffee
flavoured Easter eggs can be provided to the guests to provide them with the new
experience (Cui, et al.,2012).
 Crowded places can be selected for the advertisement of the product launch such as
parks, colleges etc. effective advertisement channels may include newspapers, social
media etc.
 By conducting small fun games before at the venue before the launch will keep the
guests entertained, small shows can also be conducted for entertaining the stakeholders
(Cui, et al.,2012)
By focussing on the small details like invitation layout, communication channel, a suggestion by
the stakeholders, Costa coffee can successfully conduct an extraordinary launching event where
the stakeholders and customers will get an unforgettable experience.
13

LO 3
3.1 CURRENT COSTA COFFEE UK’s COMMUNICATION STRUCTURE AND SYSTEM
Communication within the different chains of the company is a major task for Costa Coffee
since effective communication helps in making and executing major decisions regarding the
growth of the business. The company has vertical structure; therefore, the decisions taken by
the top management is delivered through various levels. It makes it easier to share the
decisions among the coffee chains since each manager knows the manger that they have to
share information with. On the other hand, the workers at the Costa coffee chain do not have
the authority to directly communicate with the higher authority. Instead, they have to go
through different levels to make their voice hear. In addition, sometimes due to internal
conflicts this act as a drawback (Elmore, et al.,2010).
Apart from this, Costa coffee uses several systems to share information within the departments
and coffee chain. The managers have the facility to communicate with each other via e-mails
and telephones. Formal means of communication is used in Costa coffee, employees are given
the training to blend into the culture of the organization and practice the defined format of
communication. Apart from emails and telephones, the distributors are also contacted with
some informal means of communication such as Whatsapp messages.
For communicating with the customers, Costa coffee is using several methods like social media,
feedback mechanism at the coffee houses and emails to the potential and prime customers.
The effectiveness of the current method of communication can be improved by establishing a
strong IT database that controls and stores all the relevant information regarding the business
(Bodnar, and Hopwood, 2012).
14

3.2 METHODS TO IMPROVISE THE OVERALL COMMUNICATION SYSTEMS AT
COSTA COFFEE UK WITH THE EMPHASIS OF RECENT TECHNOLOGY INVENTION
MODERNISATION
As discussed in the previous section, Costa Coffee uses several methods of communication that
includes formal and some informal methods. With the expanding business, the company
required to improve their communication system to effectively operate all the coffee chain.
Interdepartmental communication can be improved by mailing through a dedicated software,
minimize the complications, additionally, by hiring a third-party IT service provider all the
services can be handled by them that will ease the work of the managers and workers. Since
for any complications, the third-party vendor can be asked for a fix. Moreover, by saving the
emails to a dedicated server will minimize their issues regarding managing old important e-
mails (Bodnar, and Hopwood, 2010).
Communication with employees can be improved by forming a system that contacts prime
customers in every specific period via email. This email can conduct information regarding new
offers or feedbacks containing simple questions that do not take much time for the customers.
Additionally, by installing booths at public events company can increase its customer base and
can conduct surveys to determine the requirements of the potential customers.
To improve communication with the distributors, telephonic and email system can be used,
moreover by introducing some form of informal communication like messaging details via a
third part messaging system such as Whatsapp; more surety can be obtained that message is
delivered and has been read; this will help in maintaining the stock requirement.
15

3.3 IMPLEMENTATION PLANS THAT WILL IMPROVISE THE CURRENT
COMMUNICATION MEDIUMS BETWEEN COSTA COFFEE UK AND THE LOCAL
COMMUNITY
Costa coffee can implement several methods to improve their communication with their
customers and distributors. By advertising in local newspaper and channels about the discounts
and offers provided by the local coffee chain, they can successfully attract more customers and
influence them to prefer Costa Coffee over any other brand. The company to maintain the
relations with the local community can use web forums. Moreover, by sponsoring events and
games Costa coffee can maintain an image in the market and will be heavily recognized by the
potential customers (Osterwalder, et al., 2011).
For improving the communication within the company, conference and meeting can be
conducted among managers to communicate the necessary information. By installing IT
services and forming a centralized system all the coffee chains can be connected, which will
provide them with the freedom to communicate irrespective of the demographic condition.
Additionally, video conferencing can help in better explaining the strategies since new
technology allows to share graphs and financial data in real time through a secure line
(Osterwalder, et al., 2011).
16

3.4 PERSONAL PLAN TO IMPROVE COMMUNICATION SKILLS
It is essential for every employee in the company to have good communication skills that
include verbal, gesture and written. This is helpful to convey the information and avoid
misunderstanding and miscommunication. Since the primary language in the Costa coffee is
English therefore, special attention is required while having written communication.
Grammatical mistakes did in email cast a bad impression of the organization and affect its
brand name. Therefore, it is must to improve grammatical skills while writing an email (Robbins,
and Hunsaker, 2011).
Gesture speaks louder than words; the proper gesture is all that require influencing the
customers or the stakeholders to pay attention to the words spoken. Gesture skills are required
to learn and control which can be done by volunteering in public speaking and debate. This will
not only improve my gesture skills but also help in overcoming my fear of public speaking,
which will be useful for public meetings and explaining the concepts and idea to the
stakeholders. Lastly, a balance is required to switch between the formal and informal method
of communication. This can be done by understanding the difference between both the
methods (Robbins, and Hunsaker, 2011).
17

CONCLUSION
Information sharing is a crucial task to handle an expanding business like Costa coffee; it
requires several changes in the existing strategies and involves fusion of existing methods with
the technological advancement. From the given report it can be concluded that Costa coffee
several decision has to be made by the top management for making and implementing the
market development plan. Additionally, essential stakeholders are determined that has to be
invited to the launching event of the new product of Costa coffee. In addition to this, an
inclusive strategy is designed to make the launch unforgettable. Lastly, the communication
structure of the Costa coffee is explained along with the drawbacks and methods to overcome
those. A personal plan is also designed to improve the communication skills since it is essential
in an expanding business like Costa coffee to effectively explain the ideas to the stakeholders.
18

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