Analysing Maxim's Organisations, People, and Performance in HK

This report provides a comprehensive analysis of Maxim, a food and beverage group, focusing on its internal and external environments, competitive business strategies, and human resource management approaches. It uses tools such as PESTLE, SWOT, Porter's business strategies, and the Miles and Snow theory to assess Maxim's market position and internal effectiveness. The report identifies key issues and proposes a training program based on Herzberg's two-factor theory to enhance employee effectiveness and foster mutual understanding. The analysis covers Maxim's financial objectives, internal processes, customer relations, and learning and growth initiatives, concluding that a well-implemented training program can significantly improve organizational performance. Desklib offers a variety of similar solved assignments and resources for students.

Running head: ORGANISATIONS, PEOPLE AND PERFORMANCE
ORGANISATIONS, PEOPLE AND PERFORMANCE
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1ORGANISATIONS, PEOPLE AND PERFORMANCE
Executive summary
The aim of this report is to discuss about the internal and external environment of Maxim with
the help of various tools. Moreover, the competitive business strategy of the organization had
been discussed. Accordingly, a certain human resource management approach had been
identified and discussed in order to overcome the identified challenges. Practical examples and
implementation process had been used for the implementation of the chosen approach. This
report concludes that, initiation of the training program will help Maxim to enhance the
effectiveness of the employees, which will in turn help to create mutual understanding and
cooperation among the employees.

2ORGANISATIONS, PEOPLE AND PERFORMANCE
Table of Contents
Introduction.................................................................................................................................. 3
Analysis of the external environment...........................................................................................3
Analysis of the internal environment............................................................................................6
Balanced scorecard................................................................................................................. 6
Porter business strategies........................................................................................................... 8
SWOT analysis............................................................................................................................ 9
Urgency impact matrix.................................................................................................................9
Mile and Snow theory................................................................................................................ 10
Identified issues......................................................................................................................... 10
Competitive business strategy...................................................................................................11
Chosen human resource strategy..............................................................................................11
Training program of Subway..................................................................................................11
Training program of Subway..................................................................................................11
Herzberg’s two factor theory......................................................................................................12
Implementation of the training process......................................................................................13
Conclusion................................................................................................................................. 14
Reference.................................................................................................................................. 15

3ORGANISATIONS, PEOPLE AND PERFORMANCE
Introduction
In the current business state of affairs, issues and challenges in the human resources
are the key barriers being faced by the contemporary business organizations. Thus, it is
important to have effective policy and process of human resource management to overcome the
emerged barriers and to gain competitive advantages in the market (Beardwell & Thompson,
2014).
MAXIM company is a Maxim catering limited (refer to "MAXIM" for the following
paragraphs) is a largest food and beverage group in worldwide gourmet cuisine, coffee, festival
food and snacks in Hong Kong. MAXIM was found in 1956 by Wu's brothers, currently the Milk
International Co. Ltd holds MAXIM's 50%stake, but the final management decision-making is
still owned by the Wu's family (Maxim's, 2017). MAXIM group also got the international brand's
right to operate in the mainland and Hong Kong including Starbucks, Genki Sushi, IPPUDO,
The Cheesecake Factory. MAXIM's core products include a wide range of festival food， mainly
for the New Year cake, Rice dumpling, Cantonese Curing meat and moon cakes, which has
become a priority selection choice for festival gifts by public in Hong Kong. MAXIM moon cakes
quality has been recognized by international HACCP “Food Safety Control” certificate, and for
14 consecutive years to become a sales champion in Hong Kong.
MAXIM's mission is to be “Three Win-Win” company， which refer to the benefits to employees,
customers and shareholder MAXIM's management team emphasized the importance of shaping
an organization culture that focuses on quality, innovation, entrepreneurship， and sustainability.
This report will analyze the internal and external environment of Maxim with the help of
various tools. This will be done in order to identify the internal effectiveness as well as the
shortcomings of the organizations in the market. Moreover, the competitive business strategy of
the organization will also be discussed in the similar context. Accordingly, a certain human
resource management approach will be identified and discussed in order to overcome the
identified challenges. Practical examples and implementation process will also be used for the
implementation of the chosen approach.
Analysis of the external environment
Political Maxim is operating in various countries such as China, Vietnam
and Cambodia. Thus, they face diversified political scenario in

4ORGANISATIONS, PEOPLE AND PERFORMANCE
different countries. This is due to the reason that, China is having
different political structure and government regulations compared
to the countries (Gilpin 2016). Thus, it is a challenge to adhere
with different regulations in different countries.
Economical The economical environment of Maxim is favorable due to the
positive trend of the economy of their targeted countries. However,
the economy in different countries is different and it is a challenge
to adhere to the different economical perspective. This is due to
the reason that, each country is having different economical
standard and accordingly Maxim has to offer their products and
service (Hoskisson et al., 2013). Moreover, rate of employees is
also depends on the economy of the countries.
Social The social environment for Maxim is also favorable due to the
reason that they offer Chinese and Vietnamese cuisines among
others. Thus, offering domestic cuisines will help them to attract
more customers. Moreover, the product portfolio of Maxim is
diversified and it can able to meet the diversified requirements of
the customers (Smith, Gonin & Besharov, 2013). However, due to
the reason that they operates in different countries, the social
perception of the employees will be different. Thus, it will be a
challenge for the organization to manage all the employees from
different social scenario.
Technological Technology is one of the key areas, which is witnessing a rapid
growth in the last few years in the food and beverage sectors. In
this case, maxim is having various involvements of technologies.
According to their official website, they are having bakery and take
away outlets apart from the restaurants (Hujits, Molin & Steg,
2012). They have involved updated technologies in minimizing the
waiting time of the customers. In addition, customer feedback
mechanism is being initiated by them in order to gain feedback
and opinion from the customers. Thus, involvement of the updated

5ORGANISATIONS, PEOPLE AND PERFORMANCE
technologies will help them to gather the information of the
customers effectively. On the other hand, in their internal
management, they have also involved updated technologies to
gather the feedback and opinions of the employees. This is due to
the reason that, employees from the different countries are having
different issues and perception, which is important to determine.
Therefore, use of up gradation of the technologies will help them
to effectively manage the employees across all the facilities
around the world.
Legal The legal framework in different countries is different and it is
important for Maxim to adhere to all the legal regulations in order
to operate in these countries. For instance, there are some
specific rules and regulations for the business organizations to
operate in China (Weiss, 2014). Accordingly, other countries are
also having different regulations. One of the key regulations to be
followed by the business organizations is the employee
management. This is due to the reason that, legal policies
regarding the management of the employees in the workplace are
different and it is important for Maxim to have effective policy of
human resource management.
Environmental This factor is having the least impact on the business operation of
Maxim. This is due to the reason that, food and beverage sector is
having negligible impact on the environment. However, maxim
being a food sector organization can have environment friendly
service such as reducing the carbon footprint and using of eco-
friendly and recycled products (Guang Shi et al., 2012). Moreover,
it is important for the business organization to motivate and train
their employees in order to aware them regarding the green
policies.

6ORGANISATIONS, PEOPLE AND PERFORMANCE
Analysis of the internal environment
Apart from analyzing the external environment of Maxim, various issues and areas of
improvement are being identified. However, the internal environment of Maxim should also be
determined due to identify their effectiveness and capability along with their issues.
Balanced scorecard
Figure: 1
 The key objective of Maxim can be divided in four key aspects including financial,
internal business process, customer and learning and growth. The first aspect is the
financial (Hoque, 2014). According to this aspect, the key motive of Maxim is to
maximization of their sales and revenue. According to them, external stakeholders
should be effectively catered by offering them products and services according to their
taste and preferences.
 The next aspect is internal business process, which refers to the initiatives to enhance
the satisfaction level of the customers. In doing so, Maxim is having effective decision
making process to determine the unit cost of their products according to the trend of
their target market (Amado, Santos & Marques, 2012). Moreover, the less waiting time
for the customers also helps them to enhance the value of the shareholder. Along with
these, Maxim introduces new products frequently in order to cater to the change in the

7ORGANISATIONS, PEOPLE AND PERFORMANCE
Vision and
strategy of
Maxim
Financial
Maximization of
the sales and
revenue.
Offering
diversified
products
Return on equity
Internal business
process
Determining unit
cost according to
the economy of the
target market.
Reducing the
waiting time for the
customers.
Frequent up
gradation of the
product.
Learning and
growth
Initiation of
innovation.
Continuous
introduction of new
products.
Customers
Feedback
mechanism.
Data base
management.
Customer loyalty
programs.
taste and preference pattern of the customers. Thus, it will also enhance the value of
the customers.
 As discussed earlier, Maxim involves frequent up gradation of their product portfolio in
order to effectively cater to the change in the need of the customers. The next aspect
of balanced scorecard is learning and growth (Kaplan, 2012). This element refers to
the concentration of the organization towards their innovation to introduce new
products in the market. Maxim continuously introduce new product in the market
according to the market trend and life cycle of their existing products.
 The last element is the customer. For the food and beverage organization such as
Maxim, determination of the customers is important in order to identify their feedback
and requirement (Norreklit et al., 2012). Maxim maintains effective data base
management system in order to store and analyze the customer trend towards their
new and existing products. Moreover, customer loyalty programs are being initiated by
them in order to enhance the retention ratio of the customers.

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Porter business strategy of Maxim
Cost leadership Differentiation Focus
Cost leadership refers to the reduction of the cost in order to offer the product and services in competitive prices (Ta
Maxim opted for local sourcing of their raw materials, which reduce their cost of sourcing. Thus, this is one of their s
Differentiation refers to the initiation of the unique and distinctive products in the
Moreover, some of their products such as mooncake are unique and distinctive,
Focus refers to the targeting strategy spec
The target group for Maxim is the higher e
According to their target market, they offer
However, some of their products especially
Porter business strategies

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SWOT analysis
Strengths  One of the key strengths identified for Maxim is the diverse
product and service portfolio (Kang & Montoya, 2014).
 Frequent up gradation of the products.
 Coverage of customers across various income groups.
 Local sourcing of raw materials helps in reducing the price.
Weaknesses  Not having specific target market strategy (Kim & Mauborgne,
2014).
 Presence in limited market.
 Have to adhere to diversified environment in different countries.
Opportunities  Entering in more countries will enhance their market share and
presence (Raff, Ryan & Stahler, 2012).
 Entering in related business line will help them to enhance their
market opportunities such as fast food sector.
 Having goodwill and reputation in the existing market.
Threats  Issues among the employees from the host and home countries
(Shields et al., 2015).
 Rapid change in the taste and preference pattern of the
customers.
 Threat of new entrants in the market.
Urgency impact matrix
Impact
Urgency
High Medium Low
High 2
Medium 3 1
Low 4 5
1 Limited market coverage
2 Different operating environment
3 Employee issues

10ORGANISATIONS, PEOPLE AND PERFORMANCE
4 Threats of new entrant
5 Rapid change in taste and preference pattern of the customers.
Mile and Snow theory
Prospector Maxim involves the prospector strategy by introducing new products in
the market (Bentley, Omer & Sharp, 2013). This concept refers to the
initiation of innovation in developing new products and markets.
However maxim is only concentrated on developing new products rather
than new market.
Defender Defender strategy is also being initiated by Maxim by enhancing the
satisfaction level of their existing customer. They initiate various
customer loyalty programs in order to retain their existing customers.
Analyzer Currently, Maxim is not following the analyzer strategy. This is due to the
reason that, Maxim is concentrating on their existing market and
developing the existing market rather than penetrating in the new
market.
Reactor They involve reactor strategy to have flexible organizational structure in
order to cater to the change in the business and market scenario. Thus,
they involve no clear strategy and design their strategy according to the
current market situation.
Identified issues
Thus, from the above analysis of the organization, various issues have been identified.
One of the key issues being identified is the cultural differences between the employees in the
home and host country. This is due to the reason that, maxim is having their operational
facilities in various countries. Thus, the organizational culture will be different in different
locations. Therefore, it is important for the human resource managers to manage all the
employees effectively. Moreover, Mile and Snow analysis helped to determine that they are not
opting for new market development, which is important for the future potential. Threat of new
entrants is another challenge for them. Thus, it is also important for Maxim to initiate effective
internal strategies in order to overcome these challenges.

11ORGANISATIONS, PEOPLE AND PERFORMANCE
Competitive business strategy
 Maxim should initiate the strategy of analyzer in order to overcome the issue of having
limited market share (McGrath, 2013). This is due to the reason that, with the initiation of
this strategy, they will be able to determine the new market opportunities along with
retaining the existing market.
 Another competitive strategy will be the focus strategy. This is due to the reason that,
with the help of the focus strategy, Maxim can target their segmented market more
effectively. Accordingly various initiatives should be considered by them to attract their
target customers. This will enhance the loyalty and satisfaction level of the customers.