Business Start-up Report: Analyzing Costa Coffee's HR Strategy

This report analyzes a new business start-up, using Costa Coffee as a case study. It begins with an introduction to start-ups and the coffee industry, emphasizing its global scope and growth potential. The report then details Costa Coffee's business model, including its sole proprietorship and franchising strategies, and its approach to marketing. The core of the report critically evaluates the sustainability of the business within the current environment, discussing the influence of external factors on its model and strategy. It analyzes the human resource requirements and strategies, including recruitment, selection, training, and motivation, and identifies challenges in HR strategy, such as profit calculation and top management involvement. The report concludes with a discussion of risk management strategies, including financial control and top management involvement, and summarizes key findings for establishing a successful new venture.

A NEW BUSINESS START UP

TABLE OF CONTENTS
PART B
Introduction
Implementation of HR Strategy
Challenges in HR Strategy
Possible risk management strategy
CONCLUSION
REFERENCES

INTRODUCTION
The term new business or start-up refers to an organisation which is explained as
the first stage of operations and it is founded by an individual which is totally
new in the market. The main motive for formulating and establishing a new start-
up is to manufacture and offer a product or service for which individual believe
that there is demand for product is present in market. This report is composed
from point view of the Costa coffee which is a British based organisation and
offering its raw coffee materials in local and overseas market (Elder, Lister and
Dauvergne, 2014). Moreover, this report highlights on coffee industry and the
model of business related with business environment. Sustainability of business
and external business environment which influence on business model will also
include in this report. In the last, key success factor for business and HR strategy
to support sustainability of business is focused in upcoming report.

Industry
From the perspective of George, 2017, with existence of globalisation among all over
the world it is identified that each organisation as well as industry is performing their
work at international level. From perspective of global coffee industry it is identified
that private sector is supporting with eight plus rating from ten for entering into coffee
business. More than 70% of over population of world are regular drinker of coffee. So
it refers that the scope among coffee industry is too wide which attracts entrepreneurs
to make investment in coffee business. Moreover, the probability of sustainability in
coffee business among different countries such as Malaysia is more because to survey
results it is identified Malaysian drinks 2.38 coffee cups on daily basis (Heath, 2018).
According to the John lewis, 2014 the industry life-cycle consists of four different
stages that is introduction, growth stage, maturity stage and decline stage.

CONTINUE..
The first insight which is faced by organisation relates with coffee business
relates with low quality of coffee beans. It is also impacting on business due to
which products are not formulated as per customer desire. Another insight that
for new business it is complex for recruiting skilled and potential employees to
establish business in minimum period of time. From perspective of coffee
business it is analysed that introduction for new coffee business is easy to
manage because of its regular demands and another stage relates with growth and
as per this stage new organisation enhance quality of products for grow in
market. Further, as per modern life-cycle it is analysed that product life-cycle is
becoming shorter so for new business maturity stage is complex for organisation
and it is impacting on product sell. So market segmentation is a method to
achieve distinct stage of product. Last stage is decline and for new business
declining of business is a complex stage which is impacting on all operations of
business.

COMPANY
Costa coffee business is selected for the further study related with coffee
business and the respective business is a British coffee house and it was
established in the year 1971 by the Bruno and Sergio Costa (Maye, Kirwan and
Brunori, 2019). The headquarter of costa coffee is situated in Dunstable, England
from where organisation offers its products among all over the world. Coffee,
sweet snacks, tea, sandwiches and many more are the products which are offered
by Costa. Moreover, the current operation and functions of business are
formulated with the motive of formulation of work that satisfies needs of
customers in an appropriate manner and it is controlled by Coca-Cola which
refers now Costa is subsidiary of Coca-Cola from the year 2019.

Business model
Sole proprietorship model is adopted in initial period and after growth of
business franchisee are also provided by company to interested parties. Business
model of Costa is designed according to existing market conditions and it
includes operation of business, sources of revenue and the products in which
organisation deal. In context of Costa management provide it beans to specialist
restaurants, coffee houses and also operates its stores among all over the world to
increase its market share and profits with rapid speed. Costa coffee also delivers
its products with good quality and along with this the time for delivery of
products is also less so it provides better experience to customers. Along with
this it is also identify that marketing strategy implemented by Costa coffee is
more focused to engage technology because it helps to attract customers at
international level.

IMPLEMENTATION OF HR STRATEGY
Human resource requirements perform an important role which is used by
management in making efforts that leads to accomplish desired results. In the
present scenario, employees or individuals are most important asset which is
leading business to complete work in an accurate manner for making right
results. With perspective of organisation HR strategy for the Costa coffee and
also in establishment for new start-up refers to complete work by recruiting
effective workforce (Zhou and et. al, 2019). Recruitment, selection, performance,
training and motivation are the key aspects which are used by organisation for
implementing right business model.

CONTINUE..
Learn Needs and Concern- A fruitful HR office is established in important
associations. Building these associations implies having discussions with all
degrees of staff to find out about their needs and concerns. Meet with the official
group first leads to trained all administrative staff. Approach the executives and
administrators for suggestions on whom to talk with among lower-level workers.
Talking with chiefs and standard workers is critical—they are the ones who truly
comprehend the everyday schedules and can give the knowledge for
manufacturing a compelling HR plan.
Make a Significant and Reasonable HR Plan- In the wake of social occasion
all the relevant data, new start-up develop right outline with a practical
arrangement. Employees are representative of a new plan and adjust the
arrangement to the business' way of life and qualities. All the more critically,
give answers for the worries and issues that pervade the work environment.

CONTINUE…
Recruitment- The process for searching the prospective individuals and
employees that works as an asset for organisation in the future. It also considers
that by encouraging workforce it is easy for management to encourage all
individuals to take participate in Costa coffee selection process. In the context of
recruitment stage HR department provide job related information and human
characteristic that are essential to complete role and responsibilities. Job
description is an effective technique which is used for recruiting right individuals
by analysing specific requirement of job.
Selection- The first process of selecting candidate is to collect curriculum vitae
or the application letter of an individual. It is used by organisation for analysing
about short information related with selection process. Letter of applicant is
another method and it is also used by Costa coffee for selecting right person
which helps to perform job role in an accurate manner by giving job
responsibility to selected candidate.

CHALLENGES IN HR STRATEGY
This is essential for an organisation to work with key success factors that is
leading management to complete all operations in an accurate manner. There are
different challenges faced by management of new venture which generates
complexity in business. The first challenge relates with calculation of profits and
it is because fixed and variable expenses both are managed by organisation due
to which profits are hard to calculate. Another challenges which generates
problems is due to non-involvement of top management. It defines employees
face challenge to manage work for new organisation due to less guidance. For
new venture some key success factor are mention as follow:

RISK MANAGEMENT STRATEGY
 Sophisticated financial control- All entrepreneurs manage and control their
finance in order to ensure profits for business. From perspective of new
venture it is identified by management that the best practice for business is to
implement accounting software that is operated by trained bookkeeper.
Further, it also leads help to overcome from challenge of routine expenses due
to which it is complex to manage profits for business. So with use of software
organisation is able to calculate cost and match both variable and fixed
expenses to analyse total expense.
 Top management involvement- Cash flow problems, employee’s conflicts,
no-interaction with customers, lack of time management and many more are
the problems that are faced by new venture to complete operations. For
overcome from this all problems top management perform an important role
by guiding employees to perform their role in an effective manner.