Strategic Report: Managing Innovation and Improvement at Cafe 65

This report provides an analysis of innovation and continuous improvement strategies for Cafe 65, a restaurant business in Melbourne. It covers key concepts such as innovation in the workplace, continuous improvement systems, creativity and innovation theories, organizational learning principles, and quality management theories. The report includes a role-play meeting with the CEO to establish innovation and continuous improvement activities, focusing on areas like sustainability and cost reduction. It also addresses risk management, supply chain optimization, gap analysis, and emerging trends in the workplace, such as virtual working. The report further details communication strategies with team members to identify improvement needs and opportunities, along with a plan for implementing improvements at Cafe 65.

Manage innovation
and continuous
improvement
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Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
1. Describe the following using your own words.............................................................4
2. Describe how to apply knowledge management systems in a workplace....................5
3. Identify and briefly describe continuous improvement systems and processes............5
4. Identify and describe at least three creativity and innovation theories and concepts.. .5
5. Identify and briefly describe organisational learning principles...................................6
6. Identify and briefly describe at least three quality management and continuous
improvement theories.............................................................................................................6
7. Explain relevant risk management concepts.................................................................7
8. Outline key aspects of supply chains, and operational, product and service systems.. 7
9. Identify and briefly describe method for conducting gap analysis...............................7
10. Identify and briefly explain at least two changing trends and opportunities in workplace.
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TASK 2............................................................................................................................................7
1. Meeting with your CEO................................................................................................7
2. Establishing the following innovation and continuous improvement preparation
activities..................................................................................................................................8
3. Establishment of expectations and desired outcomes of innovation and continuous
improvement.........................................................................................................................10
4. Development of strategies to monitor and evaluate performance of team members..11
5. Gap analysis of operations, service systems and supply chains.................................11
6. Development of a transition plan to move the team member to supervisory position.11
7. Development of a contingency plan to address non-performance of tasks.................11
8. Investigation of the operational situation with suppliers and customer complaints...12
 Department...........................................................................................................................12
TASK 3..........................................................................................................................................13
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Detailed email to communicate with and agree on team members identified improvement
needs and opportunities........................................................................................................13
Plan to implement improvement by following points..........................................................14
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17
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INTRODUCTION
Innovation and continuous improvement are two factors which support long term growth
and survival of an organization as it helps the company improve their business processes and
practices while also introducing unique products and services which help them distinguish from
the rest of their competition. This report focuses on the concept of innovation and continuous
improvement and provides information on innovation learning risk management and knowledge
management in the workplace. The case study selected for this report is carefree 65 which is a
longstanding restaurant business in the heart of Melbourne. The report also includes role play
meeting with CEO of the company to establish innovation and continuous improvement
activities and implementing these activities in order to support continuous improvement
innovation and learning at the company.
MAIN BODY
TASK 1
1. Describe the following using your own words.
a. Innovation in a workplace: The concept of innovation is defined as the practical
application of ideas which provides the outcome of introduction of unique and original goods or
services with improvement in quality offered to the consumers (Kun, 2017).
b. Continuous improvement: Continuous improvement focuses on regular and ongoing
development and enhancement of product services or processes with the help of incremental end
Rick to improvements. In context of the workplace continuous improvement supports better
efficiency quality and working environment.
c. What cost-benefit analysis methods you can use when undertaking above two: The Cost
benefit analysis method which can be utilized for undertaking continuous innovation at the
workplace is payback. Method which involves adding of the benefits of a course of action and
then comparing these with the costs associated with it (Zahedi and et.al, 2018). On the other
hand the cost benefit analysis which is suitable for addressing innovation at the workplace is net
present worth method which can be used to determine the profitability of a specific investment.
In this way the time taken for benefits alpha continuous improvement program to repay its costs
can be determined while the return provided by a specific investment for innovation at the
workplace can also be identified to make informed decision.
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2. Describe how to apply knowledge management systems in a workplace.
The focus of implementing and knowledge management system should be on continuous
improvement (Brem, Bilgram and Marchuk, 2019). The main areas which need to be prioritized
while implementation of our knowledge management system includes security date accuracy and
technological changes including cost of implementation and viability of the technology. In this
way businesses need to create an environment where knowledge sharing and knowledge transfer
is easier so that a knowledge management system can be implemented and institutionalized in
organizational culture.
3. Identify and briefly describe continuous improvement systems and processes.
The primary purpose of a continuous improvement system is to ensure that an ongoing effort is
made for improving product services or practices of the organization. Kaizan is a popular system
used for continuous improvement which states that incremental and continuous positive
modifications provide significant improvement in case of any business product activity or
service. On the other hand the plan do study act continuous improvement process is also popular
and used by many businesses for initiating continuous improvement in their organization. This
includes the stage of plan where change is identified along with improvement opportunities and
the next stages do where the changes are implemented. After this the third stage is checking to
eliminate the change and its desired outcome while the final stage is successful implementation
of the change across organizations.
4. Identify and describe at least three creativity and innovation theories and concepts.
Diffusion of innovation is a popular theory which states that primary components which affect
the circulation of a new idea or innovation our time communication and social systems. In this
theory of innovation specific adopter categories are identified which signify the stages of
adoption of a specific innovation in the market. These adopted categories are innovators early
adopters early majority late majority and laggards (Altaf, Hassan and Batool, 2019).
According to the disruptive innovation theory a disruptive innovation is defined as a
simple product or service which is firstly adopted by niche market sections because of its
accessibility and then it moves upwards resulting in displacement of industry incumbents. It is an
important theory to understand the rise of businesses and innovations which change the shape of
industries and develop new markets suggest Smart phones.
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Dual innovation is another theory which states that the primary area which needs to be
prioritized for building successful innovative products is integration of new innovation into the
business without negatively influencing core business activities (Akhundjanov and et. al., 2020).
According to the components theory of creativity highest creativity is achieved through
intrinsic motivation high domain expertise high skill in creative thinking and working in an
environment which supports creativity.
Brainstorming is a concept used for improving creativity as it helps individuals to come
up with thoughts and ideas which have practical applications by solving problems with the help
of lateral thinking.
A mind map is defined as a diagram which helps individuals visualize and organize
information in a hierarchal manner which showcases relationship between different pieces of
information and the relations about the overall information so that the resulting diagram can be
used for generating ideas and problem solving.
5. Identify and briefly describe organisational learning principles.
The five principles of organizational learning our systems thinking personal mastery mental
models shared vision and team learning. These five principles or disciplines support attainment
of organizational objectives and help initiate continuous improvement at the company.
6. Identify and briefly describe at least three quality management and continuous
improvement theories.
Just in time is a popular quality management theory which focuses on demand pull bias so that
production is initiated only when orders are received. Deming theory of total quality
management is another important story which consists of food elements which are systems
appreciation variation knowledge, knowledge theory and psychology knowledge. Dimming
theory of total quality management focuses on improving quality by tweaking processes using
knowledge (Snihur and Wiklund, 2018). Crosby’s total quality management theory focuses on
defining quality in relation to adhering to requirements preventing As the way for quality
improvement minimalizing defects and measuring quality but the price of nonconformity
Plan do check act is an important continuous improvement theory alongside lean theory of
continuous improvement which provides in principles for supporting continuous improvement at
an organization. In addition to this Kaizen methodology is another important story for supporting
continuous improvement.
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7. Explain relevant risk management concepts.
Some of the most common methods for mitigating risk involve transferring, sharing avoiding or
accepting risk (Cohen, 2017). Transferring risk involved taking risk away from the company
with the help of insurance avoidance of risk involves ignoring the risk because of low
consequences sharing risk involves dividing the responsibility of risk with individuals while
acceptance of risk involved identifying and accepting the risk to take sufficient measures.
8. Outline key aspects of supply chains, and operational, product and service systems.
Supply chain operational product and service system require collaborative working and
continuous improvement so that different parties including external as well as internal
stakeholders are able to collaborate with each other effectively and provide better reserves to the
company.
9. Identify and briefly describe method for conducting gap analysis.
Gap analysis is conducted by analyzing the current state of the company and identifying the ideal
future state for the organization. After this the gap between current an ideal state of the company
is evaluated which possible solutions and the plan is created for implementing the most suitable
solution to bridge this gap (Sexton and Ligler, 2018)
10. Identify and briefly explain at least two changing trends and opportunities in workplace.
The primary changing trend in the workplace is rise of virtual working and remote working. This
involves many individuals working from home or other remote area and not attending the
workplace daily many businesses have adopted this trained with data is of coronavirus.
TASK 2
1. Meeting with your CEO
CEO: Good evening I have been looking forward to meet you to discuss actions for innovation
and continuous development at cafe 65.
Consultant: Good evening Sir I am excited to work with the company so that innovation and
continuous improvement at the organization can be initiated.
CEO: Café 65 focuses on providing consumers exceptional consumer service with relaxing
atmosphere and high quality food and beverages. The company has a talented and hard working
workforce who will be delighted to work for you in order to support innovation and continuous
improvement at the organization.
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Consultant: I understand that there are emerging trends in the restaurant and food industry such
as sustainability and supporting local businesses which provide opportunity for growth
innovation and improvement.
CEO: I believe that you need to start working as soon as possible in order to initiate
improvement in various areas of the organization.
Consultant: I will give it my maximum effort to Exploit the current trends in the industry and
support the company in improving different areas so that it is able to reach a deal position in the
Melbourne food and beverage industry.
2. Establishing the following innovation and continuous improvement preparation activities
a. Identification of innovation and continuous improvement trends and opportunities
for work area.
The primary area which can be utilized for innovation in respect to cafe 65 is the market trend of
sustainability. Many consumers these days prefer sustainable options for purchasing their daily
the relax including food items so that they are able to achieve responsible shopping (Wieland,
2021). This increases pressure to make supply chain sustainable/ Innovative approaches can be
applied to improve sustainability of café 65. The area which requires continuous improvement is
cost reduction and improvement in multi skilled consumer service so that the future direction of
the company for expansion and diversification provides successful results.
b. Learning opportunities for team members
The primary opportunity for team members to improve their learning is to develop skills
including culinary and consumer service skills so that innovation and continuous improvement
can be initiated at the organization. Employee learning and development is essential for ensuring
effective supply chain management and improving business processes (Saberi and et. al., 2019).
The kitchen staff and service staff are the primary members of the organization which require
continuous improvement in order to support attainment of its future direction and exploiting the
continuous improvement opportunities in the work area.
c. Identification the team members who need support and determining mentoring for
skill development .
Kitchen staff and consumers of the staff primarily require mentoring for skill development. This
includes the position of restaurant manager executive chef and waiting staff. It can be completed
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with the help of internal and external training to improve their multi skilled consumer services
and support innovation of new products at the enterprise.
d. Stakeholders consultation plan
Stakeholder Internal/External Information
required
Method of
consultation
Consultation
timeframe
Restaurant
Manager
Internal Current skill and
experience
Meetings 2 hours
Executive Chef Internal Innovative
attitude and
background
qualification
Workshop 1 hour
Waiting Staff Internal Experiences and
strengths
Workshop 1 hour
e. Data collection and identification of supply chain gaps
Supply chain failure is highly likely in context of cafe 65 and the primary supply chain gaps for
the specific enterprise include Lack of communication with suppliers and lack of diversification
of suppliers. Supply chain gap have significant impact on profits of a firm (Pettit, Croxton and
Fiksel, 2019).
f. Sustainability requirements of key systems and processes
The main sustainability requirements are reducing energy consumption and supporting green
energy along with the cycling an effective waste management.
g. Objectives for the work team for innovation and continuous improvement
 To support sustainability
 To develop multiskilled consumer service
 To offer consumers fusion cuisines and new flavors
h. Motivation and Continuous improvement Options
Rewards can be used for motivating employees to participate in continuous improvement
options. Providing employees rewards is essential for creating united effort for accomplishment
of a project (Shivakumar and 2018).
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i. Cost Benefit analysis
j. Risk identification and risk management plan
Risk Likelihood
Highly likely
Likely
unlikely
Impact/
consequence
Major
Moderate
minor
Risk
management/risk
control
Supply chain failure/delays Highly
Likely
Major Better
Communication
with suppliers
Usage of digital
technology for
supplier tracking
Diversification of
suppliers
Health and safety Highly
Likely
Major Improved health
and safety policy
Daily inspection
and monitoring
Aggressive competition Highly
Likely
Major Innovation
Digital consumer
service
3. Establishment of expectations and desired outcomes of innovation and continuous
improvement.
The expected role of each employees to participate in improvement activities with her motivation
with the desired outcome of introducing a successful new addition to product portfolio of the
company while also improving consumer service to increase profitability. Each employee must
collaborate with each other to accomplish the tasks of the project because collaboration and
coordination is important (Rasch, 2019).
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4. Development of strategies to monitor and evaluate performance of team members.
Different key performance indicators such as consumer response and feedback on consumer
service will be used for evaluating performance of team members. KPI play an important role in
evaluating success of a specific project or activity (Orgut and et. al., 2020).
5. Gap analysis of operations, service systems and supply chains
The current state of operation service system and supply chain at the company lacks digital
technology and usage of advanced technology for improving efficiency and results. The ideal
state can be reached by introducing digital an advanced technology at café 65 but improving
operation services demand supply chain of the organization.
6. Development of a transition plan to move the team member to supervisory position.
Employee Current situation Desired
transition
Transition
method
Timeframe
Executive Chef Executive Chef Assistant
Restaurant
manager
Internal
training
6 months
Waiting Staff Waiting Staff Consumer
Service
Manager
External
training
3 months
The waiting staff and executive chef will be provide internal and external training options
including remote training to develop their skills and ensure continuous improvement. Transition
period will improve their skills and knowledge of the job and builds their confidence in their
abilities. This will improve their performance and make them work more efficiently and
effectively.
7. Development of a contingency plan to address non-performance of tasks.
Contingency Contingency
action
Resources
required
Timeframe Responsible
person
High Cost of
Innovation
Outsourcing
preparation of
several low
Financial
Resources
3 months Restaurant
manager
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cost high
demand
products
Health risk Connecting
with high
quality food
suppliers
Financial
Resources
2 months Executive
Chef
8. Investigation of the operational situation with suppliers and customer complaints
 Department Kitchen Department
Situation/issue Health Risk
Type of investigation Consumer Complaint
Name of employee/s subject
to investigate
Restaurant manager
Name of complainant/s
(If appropriate)
XYZ
Investigator/s Name ABC
Date of investigation 15/6/22
Background
Health Hazards in Kitchen causing delay in serving, lower quality of food or hygiene.
Remis of the investigation
Delay in service
Investigation process
Interview with the staff
Witness
Waiting Staff
Findings
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