Industry Research Project (Cafe Den): Organization Strategies Report

This industry research project focuses on the development of organization strategies for Cafe Den, addressing its poor management issues, customer dissatisfaction, and employee relations. The research involved literature reviews and data collection through customer questionnaires and employee interviews. Qualitative and quantitative analysis methods, including thematic analysis, correlation coefficients, and chi-square tests, were employed to analyze the collected data. The findings highlight the need for Cafe Den to improve food quality, pricing strategies, and marketing. Additionally, the report recommends implementing an eCRM system for enhanced customer relations and revising HR policies to boost employee satisfaction. These strategic recommendations aim to resolve the identified management issues and improve the overall performance of Cafe Den. The report covers key aspects such as background information, research significance, scope, problem statements, literature reviews, methodology, findings, and recommendations, providing a comprehensive analysis of the cafe's challenges and potential solutions.

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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able to handle harsh and rude clients in effective manner by handling their behaviour
properly.
Feedbacks from customers: Along with the effective skills, it is also important to
know the views of consumers about the cafe. In respect to it, Zurich (2017), as said that
“Customer feedback help an organisation to improve its product or service quality as the
demand and needs shows by the clients”. Cafe can use a feedback form, or can conduct email
survey or can conduct phone survey by making service call. In contrast to it Habib and et.al.,
(2015), has stated that “Feedback of clients on social media results to down the image and
brand value of the company. Negative comments make new users to think twice before
purchasing the product or service”. In this context, cafe should take care that negative
comments of people do not restrict the new users to visit it and enjoy the services.
Effective customer service strategy: According to the Renz, (2016), “Customer
service skills and proper interaction with the clients is not sufficient to please and retain them.
Organisation’s customer service strategy also plays essential role in enhancing the consumer
base and accomplishing its objectives”. In context to this, cafe will have to improve its
strategies of customer services. It should keep in touch with the clients by sending them
emails, contacting them on occasions, informing them about new offers and discounts and
many more. On the other hand, Nishimura\ and Sundt, (2014), have confirmed that
“Companies should provide a way for consumers to reach them for handling any query or
discussing any problem”. With reference to this, cafe should provide online services to the
users and 24*7 availability for resolving their issues.
Electronic Customer Relationship Management: According to the Dellinger and et.al.,
(2013), “eCRM i.e. electronic relationship management includes all the CRM functions along
with use of net environment such as internet, intranet or extranet”. In context to this, cafe will
have to eCRM for improving is customer services and retaining its clients. In favour to this
Goodwin and Wright, (2014), have found that “Implementation of the CRM into the working
environment of the company results to development of effective and strong relationship with
the customers”. With reference to this, cafe will have to implement four steps of eCRM i.e.
developing customer-centric strategies, redesigning workflow management systems, re-
engineering work processes and supporting with the right technology. These steps will lead to
better management of work and customer services.
On the other hand, Montalescot and et.al., (2013), has stated that “Mobile CRM is a
subset of eCRM which offers services for nurturing customer relations, maintaining them,
supporting marketing and uses wireless networks as medium of delivery to the clients”. With
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respect to this, cafe can develop its mobile application for providing easy and fast medium of
communication to the consumers. The main reason behind the development of application
will be building and maintaining customer relations. Cafe can add feature of home delivery,
different offers on using cafe’s mobile application, list of food items, etc to the users. Thus,
both eCRM and mCRM are the best solution for maintaining relations with the people and
retaining them. On the other hand Yancy and et.al., (2013), has demonstrated that “Before
implementing mobile CRM into the workplace, companies need to develop an effective plan
for it which will include the steps like needs analysis phase, mobile design phase, mobile
application testing phase and rollout phase”. As per this, pre-planned strategies of the mobile
CRM will help cafe in understanding its result with respect to sales, profit margin and
customer base.
Similarly, Laudon and Laudon, (2015), have identified that “Use of mobile CRM and
eCRM results to provide different benefits to the companies. These consists of developing
direct connection with the individuals, quick actions using the information, effective query
handling and development of loyalty and trust between the customer and organisation”. With
reference to this, cafe will able to improve its performance and customer relations for
enhancing its profitability and sales.
In contrast to the above statements Zurich, (2017), has argued that “These are many
issues which can result to failure of mobile CRM or eCRM within the company. These issues
can be lack of active senior management sponsorship, poor user acceptance, failure in
identification of business problems and difficulty in measuring the intangible benefits”. Thus,
cafe will have to take care of these factors while using mobile or eCRM for building
customer relations.
Employee Motivation: As per the Jauch and Summers, (2013), “Motivation plays
essential role in increasing performance, working capability and overall development of the
employees”. Similarly, Jauch and Summers, 2013 has demonstrated that “Use of motivational
theories within the working environment can make workers to enhance their skills and
knowledge for performing well in accomplishing their objectives regarding the organisation’s
success”. In context to this, cafe will have to use effective motivational theory like Maslow’s
need for Hierarchy for increasing the zeal and enthusiasm of the workers. This theory will
help staff members to improve their living style by fulfilling every need of the life. Fulfilment
of necessary requirements like physiological, safety, love, esteem and self-actualisation will
make workers to perform well and give their best.
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On the other hand, Armstrong and Taylor, 2014, have identified that “Effective
reward management system encourage workers to improve their performance and give their
level best for accomplishing the goals of the companies”. Along with this Konstantinides and
et.al., (2014), have demonstrated that “There are two types of reward i.e. intrinsic and
extrinsic. Both help in motivating the workers and developing an open and friendly working
environment”. With reference to this, cafe needs to implement both the type of reward system
into its workplace for resolving the issues regarding poor performance, poor customer service
and improper food menu.
Unique Selling Point: As per the Vestbo and et.al., (2013), “USP differentiates the
product or service from the competitors with respect to money, quality or innovation”. In this
case, cafe needs to identify what its competitors do not have. By analysing the external
market environment, company will able to generate new ideas regarding food, their price or
quality. Along with this, USP will make customers to visit the cafe and enjoy its
infrastructure, ambience or specialised food items. On the other hand, Stadtler, (2015), have
said that “USP can be different strategies of handling food products like using natural
ingredients, eco-friendly packaging, non-artificial flavoured food items, etc which can make
clients to visit and take advantage of the high-quality food products”. In context to this, cafe
can add USP by doing corporate social responsibility, using eco-friendly products, natural
raw materials, etc for retaining present customers and inviting new.
3. METHODOLOGY
3.1 Introduction
It can be defined as the organized and theoretical assessment of the methods which
are applied over the field of research study. It consists of the theoretical analysis of all the
principles and methods which are related with the branch of knowledge. Furthermore, these
methods and tools provide assistance to the investigator in gathering of information and
doing the analysis of the same in an effective manner (Kumar, 2014). By using the
appropriate research methods, accurate solution of the given research question can be
achieved by the author. Thus, this section of study gives an insight about the methods which
have been used during the research investigation. The present chapter of the research study
includes the suitable philosophy, research technique and approach for carrying out an
investigation regarding the strategies for the Cafe Den. Along with this, the study is
comprised of applicable data collection method and analysis of those data (Brannen, 2017).
Therefore, these techniques are significant because it helps in resolving the research problem
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and obtaining proper findings for reaching to a final conclusion. In addition to this, research
study also emphasizes upon the ethical consideration during the examination. Further, the
detail description of the methods has been given below.
3.2 Research Philosophy
In a general term, research philosophy is described as an appropriate standard of
investigation that provides a proper way for carrying out entire investigation regarding the
development of organizational strategies of a Cafe Den. Further, there are two types of
research philosophies through which investigation could be carried out. One is positivism and
the other is interpretivism (Bhattacharyya, 2009). The former focuses upon the objectivity of
the subject and the later put a light upon the subjectivity of the research’s aims and
objectives. In a broader manner, researcher of positivism philosophy has a belief that reality
is stable and that could be observed and defined from an objective point of view. On the
contrary, the researcher which is having interpretivism philosophy have a string belief that
only by the subjective interpretation and intervention in reality be fully understood (Hislop,
2013).
Thus, for the present study regarding the finding and development of organizational
strategies, researcher has utilized the positivism research philosophy, where author has
emphasized upon the objectivity of the subject. In the present study, researcher resists the fact
that phenomena should be isolated and the observation must be repeatable. In addition, this, it
has been used by the researcher because it is playing an essential role in the attainment of all
the objectives of the research in an efficient way. Moreover, in a present investigation,
positivism philosophy has focused on different factors of hotel industry that can impact the
retention of customers and the recruitment of employees.
3.3 Research Approach
There are basically two types of research approaches and that are inductive approach
and deductive approach (Kerzner, 2013). By using any of the stated approaches, investigator
carry’s out the research in both general and specific manner. The basic difference between
these two approaches is that; inductive approach focuses upon the specific content firstly and
then reaches towards the general data. However, deductive approach is that approach which
goes from general information to the specific data (Bruce, 2009). Furthermore, the logic
behind deductive approach is that when the premises are true then the conclusion drawn must
also be true. Whereas, in inductive approach, premises are used for generating untested
conclusion. Further, data used in deductive approach is for evaluating propositions or
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