Costa Coffee: Decision Making, Communication and Knowledge Management

This report provides a comprehensive analysis of Costa Coffee's approach to decision-making, communication, and knowledge management. It begins by outlining the range of decisions taken by the company, including strategic, operational, and tactical levels, and emphasizes the importance of information in effective judgment. The report details both internal and external sources of information used by Costa Coffee, such as sales records, customer data, market trends, and competitor analysis. It also assesses the role of stakeholders in the decision-making process, including customers, shareholders, government, employees, and competitors, and suggests communication channels like emails and websites to engage them. The report further examines Costa Coffee's current communication structure, suggests improvements, and explores strategies for new product development. Finally, it discusses data collection, formatting, storage, and dissemination methods, recommending user-friendly strategies to enhance system accessibility and usage. The report concludes with recommendations for improving customer relationship management (CRM) and staff training to enhance overall performance and competitiveness.

Managing Communication,
Knowledge and Information

Table of Contents
INTRODUCTION............................................................................................................................3
1.1 Range of decisions taken by Costa Coffee............................................................................4
1.2 Information required to ensure effective judgement taking..................................................5
1.3 External as well as internal sources of information and understanding................................5
1.4 Recommendation for improvements ....................................................................................6
TASK 2............................................................................................................................................6
2.1 Various stakeholders for the process of decision making.....................................................6
2.2 Various Channels of communications to invite stakeholders................................................7
2.3 Interest and feedback of stakeholder.....................................................................................8
2.4 Strategy for new product development – Costa Coffee.........................................................8
TASK 3............................................................................................................................................9
3.1 Current communication structure and system- Costa Coffee ...............................................9
3.2 Methods to improve the current communication mediums between Costa Coffee UK and
the local community. ..................................................................................................................9
3.3 implementation plans to improvise the current communication: Costa Coffee..................9
3.4 Personal plan to improve your own communication skills................................................10
TASK 4 .........................................................................................................................................10
4.1 Method of data collection, formatting, storage and dissemination at Costa Coffee UK. ...10
4.2 Changes to improve identified methods used by Costa Coffee..........................................11
4.3 Implement users-friendly strategy that can improve access and usage of systems in Costa
Coffee UK. ...............................................................................................................................11
CONCLUSION .............................................................................................................................11

INTRODUCTION
In today's era of immense competition the success and growth of a firm depends upon
decision making capability and efficiency of business. Gaining information is essential as it acts
as backbone of firm it by analysing this company get the knowledge about the market scenario,
competitor strategies, taste and preference of people etc. which further needs to be effectively
communicated to formulate appropriate and most distinctive strategies to cope up with frequently
achieving market environment (Barak, 2016).
Costa Coffee is world's renowned multinational coffee house company which was
established in 1971with its base in Dunstable, UK. The chain operates more than 3401 stores
throughout 31 countries.
The assignment will discuss how Costa Coffee perfectly blends up information and
knowledge with effective communication network to take business related decisions. It will also
discuss how company identifies it stakeholders and involve them in decision making process to
develop business connections with them. Moreover it will also brief about communication
process Costa Coffee uses along with advising various ways to enhance its effectiveness.
TASK 1
1.1 Range of decisions taken by Costa Coffee
In order to be figurehead in market and to achieve and edge over competitors it is essential for a
business to be very calculative in its decision making by planning out its day to day activities and
setting out targets at various functional levels for achieving a specified outcome within set time
frame to enhance profitability and growth of business. For making its marketing strategies
effective an enterprise divides its business planning decision process into three levels i.e.
strategic decision, operational decision and tactic decisions (Beebe and Masterson, 2014). The
strategic levels decisions are the most important decisions having long term impact on business
and involves major actions to be taken by top management which are related to companies
policies, procedures or operations. For instance Costa Coffee strategic decisions involves the
recent decision taken related to business expansion strategy with particular focus on China and
Asia Pacific regions. The tactic decisions are taken by middle level management to implement
strategic decisions and generally involves planning work flows, finding out problems related to
particular process etc. For instance in Costa Coffee tactic decisions related to exploiting various

market segments in China and Asia Pacific so as to penetrate the market by identifying most
appropriate target audience to enhance brand growth. The operational decisions requires less
business judgement and is related to day to day working in accordance with nature of events.
For instance, in Costa Coffee in reference to their business expansion plan the lower level
managers formulates strategies like exploring information related to various methods that could
be adopted using technology (Caballero, Honeywell International Inc., 2015). These includes
adapting various mobile apps for promoting their brand in selected target audience to enhance
their sales.
1.2 Information required to ensure effective judgement taking
Information forms the key factor which helps an organisation to gain knowledge of actual
market situation that facilitates efficient and effective decision making by a firm. In case of
Costa Coffee requires mentioned below information for plan out decisions on its various
strategies and issues:-
 Competitors:- Firms in this industry are prone to entry and exit barriers as huge
infrastructure and branding cost are involves to set up operations. With presence of a
number of local, national and international competitors like Starbucks it impacts the
average revenue per customer for the firm. Also, as coffee culture is still a new trend in
developing countries Costa Coffee have to carefully take decisions related to its market
strategies ( Clegg, Kornberger and Pitsis, 2015).
 Customer Inclination:- It determine analysing the needs and wants of customers so that
market could be captured and served by catering customers demands. In a country like
UK which earlier used to have tea culture Costa Coffee manges to reverse tendency of
customers resulting in people now preference both tea and coffee.
 Market:- Information related to market reveals current trends prevailing in business
environment related to taste and preferences, quality and distinctiveness of products and
services offered by a firm. Along with its target audience. Costa Coffee target age group
of 15-45 years who likes to experiment with new and innovative blended beverages
offered by company.

1.3 External as well as internal sources of information and understanding
Internal Sources:- The most prominent internal source of information is sales records
of Costa Coffee in various markets which help in analysing customer response to various new
and existing coffee flavour variations offered by company (Coombs and Holladay, 2011). It also
includes customer related records having information related to various demographic factors of
consumers group and their feedbacks, balance sheets and employee's details and behaviour etc.
that can be utilized for making decisions related to various business operations like4 marketing
strategies, new product development etc.
External sources:- These are the sources which are related to outside business but have a
great impact on firms operations. It constitutes data related to government webs portals that can
be used to generate information related to regulatory norms including taxes rates, social media
statistics specific to UK that can give a brief about customers experiences, competitors services
and offers and market, various research papers and journals revealing market conditions and
scope of expansion etc.
1.4 Recommendation for improvements
Although Costa Coffee is one of the leading coffee shop brand but with emergence of
many competitors like Starbucks it sales has been affected significantly as its sales fallen out by
1.5% in UK,2018. Thus, there are certain areas that company is advised and recommended to
improve its profitability and performance. One of the most prominent thing analysed through
various customers surveys is that company's relation management is considered as the strategic
requirement that needs to improves to enhance its performance, growth, competitiveness and
ultimately to improves customer loyalty for the organization (Coombs, 2014). CRM also
requires reliance over the high technology and stalking consumers. Moreover company is in
urgent need to provide training to its staff to be well versed with company's menu and to
improve their skills required to deal with customers so as to provide them with delight. It is seen
that customers are shifting towards competitors products as they are having various shops and
franchises and thus company requires to develop effective strategies like opening more outlets in
drive through and other travelled locations which will definitely attract more people .

TASK 2
2.1 Various stakeholders for the process of decision making
The decision making process of Costa Coffee involves a detailed study related to number of
stakeholders so that essential information and understanding can be achieved to sustain in market
or to enhance the business processing.
1. Customers: Customers forms the key stakeholders on the basis of which the success and
failure of a firm depends. Costa Coffee before launching or introducing its new beverages
or menu needs to analysed its target audience, their needs and preferences so as to
provide them with better and quality services (Gailloux and et. al., 2012).
2. Shareholders: The company is strongly advocate for CSR movements. In context for
same company needs to have an account about interest of its shareholders as they are
major contributor in investments and new ventures of organizationals. By involving its
shareholders in its strategies formation and decision making process company ensure that
there is no mismatch ideas and principles of shareholders with business which may
affects its operations.
3. Government: Various laws and legislations of UK government incorporated for business
processes and employee welfare greatly affect the decision making of firm. Costa Coffee
has to make its local policies related to specific product and marketing strategies on basis
of various government legislations (Harvey and Allard, 2015).
4. Employees: Employees are ultimate ambassadors of a brand that represents company's
values and culture. Thus, management of firm put special focus on are finally
accomplished with employees. Therefore, the management of Costa Coffee put special
emphasis on its employees encouraging even small sustainable success and motivating
them to give their best efforts for providing consumer a satisfactory service experience.
5. Competitors:- Various approach and marketing plans and strategies adopted by business
rivals can be analysed for planning out a unique pricing , product and other marketing
strategies that can provide an edge over them (Keller, Parameswaran and Jacob, 2011).

2.2 Various Channels of communications to invite stakeholders
In order to maintain contact with stakeholders in business, Costa Coffee can make us two most
cost effective communication medium which are reliable and faster than traditional
approaches:-
Mails:- With the emergence of new and fast technology rather than posting mails that was
time consuming and expensive, business can opt for sharing information through emails that is
cost effective and fast mode to invite stakeholders personally. Emails forms a good medium as
through it company can reach out specific stakeholders within short duration for sharing
information related to new product specifications such as its pricing, features and so on. It forms
a good choice as it also help in maintaining confidentiality (Morgan, Pritchard and Pride, 2011).
Website: Official websites in addition to many other social media can be utilized to
reach out various stakeholders of firm. It forms a good source to provide full description to
stakeholders about new product that is to be launched along with making a personal
communication with them. It also helps in building and improving customer relationship in
business by asking their reviews and feedbacks. Moreover employees and customers can be
encouraged to attend an event by inviting them through public advertisements.
2.3 Interest and feedback of stakeholder
To maintain a regular connection and to gather information related to interests different
stakeholders Costa Coffee can make use of various advance and popular online tools such as
video conferencing, mailing, social web communication, messaging to reach out its stakeholders
like consumers, employees and other business partners. With the popularity of social media it has
emerged as an effective way to get opinion about new and exciting products and services given,
feedbacks for areas of improvements and so on. Online applications along with various websites
can be used to have an overview of interests and feedbacks of stakeholders in particular.
The internal resources comprising employees and shareholders can be involved in
decision making process by organizing meetings and events where they can share their ideas and
give suggestions. Costa Coffee should also develop its public relations for disseminating
information related to business to its stakeholders.

2.4 Strategy for new product development – Costa Coffee
For a business to maintain effective and close connections with its stakeholders it is of vital
significance to develop appropriate strategies for the success of business and its products and
services in the long run. To make an new product development launch success is it essential to
make it interesting for customers and other participants by engaging them in event. Costa coffee
can adopt for digital advertising on internet which one of the most attractive ways to reach out
target audience and market. By posting videos and audio to publicise the brand a company
should strives to spread message to every corner of UK market. This will be help in building up
first impression to be massive and impactful leading to initialling wining confidence of UK
customers groups. The company can also organize a musical performance by some legendary
singer to draw the attention of media as well which will give a hike to brand image (Norman,
and et. al., 2013)
TASK 3
3.1 Current communication structure and system- Costa Coffee
Currently Costa Coffee UK follow a vertical control system for controlling an decision
making process. It has a formal communication system which ensures that information flows
smoothly, timely and accurately. Company mainly make use of emails and bulletin boards fro
communicating important information related top product and services. Costa Coffee UK
maintains a centralized information system where all details regarding product is uploaded and
feed for easy and quick reference by anyone who requires it. Top management make use of video
conferencing and other video chat apps like Skype for conversing and sharing information to it
various officials and stakeholders presented at various different locations worldwide. For
intimating its employees for meeting and conference sin advance firm use telephonic calls or
emails. Company also make use of various security measure like firewall and jammers to remove
any scope of leakage of internal information to outside firm. Employees make use of apps like
whtsapp having encryption feature for exchanging short text messages (Paterson-Jones and et.
al., 2012) .

3.2 Methods to improve the current communication mediums between Costa Coffee UK and the
local community.
The company could make use of various cost effective channels of communication to
get in touch with its customers to know about their taste and preferences. can provide facilities
like chat services to know the interests and feedbacks from customers. Also with emerging
popularity of social media apps like Facebook company can make use of it for sending
promotional offers and information related to upcoming new products, outlets etc. to its
consumers. Company can keep record of its consumers email address and could use it for
sending newsletters launched in markets time to time. All this will add on to building a positive
image and relationship between company and its consumers (Whetten and Cameron, 2014).
3.3 implementation plans to improvise the current communication: Costa Coffee
In order to maintain close relationship with local community people company should hold
interactive sessions with customers groups so that they can get opinions about there existing
products and what would they will like to try next. Costa Coffee should provide special training
to its staff to cater needs and aspirations of its customers. Moreover company could launch
nation wide points based programme where cardholders will receive tactical communication
throughout year. The firm should also adhere by its CSR by sponsoring local high colleges so
that younger generations of consumers could be encouraged in joining in management giving
innovative and creative ideas for better customer services. Thus, a good communication channel
helps in promoting brand image and work done by Costa Coffee throughout across world
leading to building up of positive brand image of Costa.
3.4 Personal plan to improve your own communication skills.
` To be proficient in interpersonal and communication skills I have been attending various
workshops related to p[personality development and vocational training that would assist me in
interacting with customers in efficient manner. I am also working upon enhancing my listening
skills so that I could catch up quickly with customers requirements without wasting time and
mincing words (Wirtz and et. al., 2013). Besides I am also working over to develop British
accent in m English to make local dialects more clear and understandable to consumers. As there
is lot of written communication involved in communicating with various stakeholders through

emails I am also polishing my writing skills besides working on my grammar as well to avoid
any grammatical error. I know the importance of tone modulation while speaking to convey
various emotions an state of mind and learning to develop it as well (Yoder-Wise, 2014).
TASK 4
Covered in PPT
CONCLUSION
The above report undertaken concludes that how efficient and cost effective
communication is of vital importance for the success of firm. It also discuss different types of
decision to be taken by a firm along with effectiveness and sources. It also determine the
organizational communication structure followed by Costa Coffee and suggest methods to
improve and enhance it with proper implementation. Moreover it analysis improvement stratgies
that should be implemented for information management in organization.

REFERENCES
Books and journals
Barak, M. E. M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Beebe, S. A. and Masterson, J. T., 2014. Communicating in small groups: Principles and
practices. Pearson Higher Ed.
Caballero, A., Honeywell International Inc., 2015. Managing data communication between a
peripheral device and a host. U.S. Patent 9,047,420.
Clegg, S. R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction
to theory and practice. Sage.
Coombs, W. T. and Holladay, S. J., 2011. Managing corporate social responsibility: A
communication approach. John Wiley & Sons.
Coombs, W. T., 2014. Ongoing crisis communication: Planning, managing, and responding.
Sage Publications.
Gailloux, M. A. and et. al., 2012. Managing communication network capacity. U.S. Patent
8,135,388.
Harvey, C. P. and Allard, M., 2015. Understanding and managing diversity: Readings, cases,
and exercises. Pearson.
Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Norman, D. A. and et. al., 2013. Managing communications between robots and controllers. U.S.
Patent 8,505,086.
Paterson-Jones, R. and et. al., 2012. Managing execution of programs by multiple computing
systems. U.S. Patent 8,190,682.
Whetten, D. and Cameron, K., 2014. Developing Management Skills: Global Edition. Pearson
Higher Ed.
Wirtz, J. and et. al., 2013. Managing brands and customer engagement in online brand
communities. Journal of Service Management. 24(3). pp.223-244.
Yoder-Wise, P. S., 2014. Leading and Managing in Nursing-E-Book. Elsevier Health Sciences.

Online
How to make decisions. 2017. [Online]. Available through:
<https://www.mindtools.com/pages/article/newTED_00.htm>.
Sources of information. 2015. [Online]. Available through:
<https://www.skillsyouneed.com/learn/sources-info.html>.