MANAGEMENT CONSULTANCY IN A GLOBAL ENVIRONMENT
1. Description of the firm
1.1 Summary of the business
Company A is a leading tea and beverage provider of UK which has enhanced its business with twenty-six cafe outlets all over in Jersey, UK. Company A wants to come up with inspiration for providing the best quality of tea, homemade cakes and coffee to its consumers. Currently, it is expanding its business by providing 6 days open in a week with the entire 26 outlets and having a particular shop manager in each outlet. It has a separate accountancy department for checking all invoices transacted within the outlets (Khilji and Schuler et al. 2017).
A marketing department is engaged with the company to promote market strategies, policies and guidelines when it is required. A human resource department is constantly motivating its workers to do well for the company (Zafeiridou et al. 2018). In 2019, Company A merged with company G and took the ownership of seven cafe outlets in Jersey that tends to Company A in a well dominant position in the market (Koberg and Longonoi, 2019). After gaining ownership of seven outlets, Company a trained those employees for providing interrupters service in all outlets (As per case study). These seven shops consisted with two full time employees in each outlet and a manager in providing proper service to its clients (Johnstone, 2020).
1.2 Assumptions and additional created data presentation
The number of units sold increased to 5,369,414 in 2019 and with an increase of 40,500 more products from 2018 (as per case study). Variable costs of the firm are £ 4,135,704.45 in 2019 which was decreased by 5,000.00 (approx). Thus reduction in total variable cost is seen along with the increase in the number of goods sold. Hence Company A can open another outlet as there is a decrease in variable cost and it can expand its business.
Company A earned £ 21,589,075.87 in 2019 which was two and a half times more than other companies (as per case study). However the rate of average amount per payment made by the customers is very poor in comparison with the other companies. After merging with company G, there is a consistency observed that the customers visited in company G are now coming in the outlets of Company A that tends to increase in the services provided in Company A’s outlets (Zafeiridou et al. 2018).
1.3 Summary of the business problems
Before merging with company G, there are six other companies in Jersey which are Company B, C, D, E, F and G. But there are only five companies fighting with each other for taking the title position in serving teas and beverages in Jersey, UK. Though they are languishing behind in profitability and number of units sold, it can give a tough competition in upcoming years (Johnstone, 2020).
Average rate of payment received is £4.13 per payment where others received greater than £5 from each payment (As per case study). In that part, Company A should take a close look. Another point is Company A’s fixed cost is £ 7,017,957.26 in 2019 which was £ 200,000.00 (approximately) more than average fixed cost in 2018 (as per case study). As number of productions increases, total fixed cost will be minimized. Company A spent more money to maintaining fixed costs; there should a decrease in the value of fixed cost as number of production increases in 2019. Therefore company have to minimize its production costs along with take participation in spending less amount in variable costs. There should be equal distribution between fixed and variable costs. Thus Company A should take a look at these things for being in a dominant position in the Jersey market.
2. Consultancy strategies
2.1. Types of consultancy model
Cafe in Jersey needs to consult a consultancy firm as soon as possible in order to maintain its business stability and sustainability. Due to a lack of proper marketing and consultancy strategies the organisation has been facing severe loss and has been facing difficulties in maintaining its profitability. In this case, the organisation needs to take help from a nicely managed consultancy firm which can help the organisation by suggesting them some better ideas of scopes for their growth (Sturdy, 2018). A consultancy firm that maintains all the strategies and frameworks can help the company to rectify its issues and can also help them to make a profit in their business. The chosen consultancy models for Cafe in Jersey need to be designed mindfully and needs to be effective in the field of the education-based marketing plan.
Figure 1: Consultancy strategies
(Source: Vogelpohl, 2019)
The delegates of the consultancy firm can advise senior managers of the cafe in Jersey to make their presence in social media in a stronger way in order to attract valuable customers. The consultancy firm in the United Kingdom has adopted effective consultancy strategies in order to provide maximum facilities and profits to the organisation. This can be helpful to the Cafe Jersey to improve their business and can increase their productivity. A proper consultancy strategy also helps to enhance the transparency within the business organisation of Cafe Jersey which can provide better understanding of the company to all its employees.
The Cafe Jersey can be suggested by the consultant firm to implement hybrid consultancy models in their organisation (Lonsdale et al. 2017). The organisation needs a marketing-based consultancy firm which can provide better marketing schemes and plans to the organisation which in turn can improve its business. The hybrid consultancy model has become increasingly popular nowadays as it provides better service delivery methods to organisations which help the organisations to cater more customers. Besides this, by following this model consultancy can provide affirmative approaches to Cafe in Jersey which can help them to serve their global customers.
Figure 2: Hybrid consultancy model
(Source: Anduuru, 2020)
The strong determination and experience of multiple years in marketing have boosted the morale of the consultancy firm which can be beneficial for Cafe in Jersey. This has been caused so that the consultancy firm can provide proper ideas for the issues faced by the cafe based on their past experience. Besides that, the consultancy firm can suggest various tools and techniques to the organisation which can help them to attract more customers globally (Chung et al. 2020).
A hybrid consultancy model is a process that works as a loop which means it works constantly within a loop. It consists of various factors such as plan, measure, engages, and listens, and so on (Anduuru, 2020). It can help organisations of Cafe in Jersey to engage with their customers and other stakeholders in an appropriate way to ensure their healthy growth. For instance, by following this model, the senior managers can encourage the employees of Cafe in Jersey to engage with each other.
Engaging with each other can help them to share and listen to the ideas of all the employees of the organisation to plan better marketing strategies for the welfare of the organisation. This can help to increase profitability and cost margins for the organisation which can be beneficial for them to sustain their business (Nakayama et al. 2017). Cafe in Jersey can adopt a two-fold path as an effective model of consultancy which can help them face various issues such as marketing issues, profitability issues, and others. The food and beverage firm can be advised by the consultancy firm to explore through several management skills which can enhance the skills of their employees which in turn can be beneficial for Cafe.
2.2. Resources
Resources are needed to be managed accurately in order to ensure smooth operations of a business. The Cafe in Jersey needs to manage its resources such as data, human resources, and infrastructure appropriately to ensure its growth in the market. The consultancy firm can suggest various ways by which the cafe can manage its human resources and data as well as its infrastructure properly (Koberg and Longoni, 2019). Direct employment is interconnected with specific competencies and people as well as business skills based on knowledge. It is dependent on marketing skills which operate several activities related to marketing. The consultancy firm can act as a mediator between the Cafe in Jersey and its target market and help the organisation to achieve its objectives. It can help the organisation to manage their resources and make proper use of their resources to attain maximum benefits from it.
Data resources can help the company to access and examine their past history in order to learn from their past mistakes. The consultancy firm on the other hand can analyze the past records of the cafe and can suggest better options to improve their business (Griffin et al. 2019). The cost section of this part is majorly concerned with the targeted information to address cost-related issues within the organisation. In order to increase the efficiency of the organisation and to enhance their productivity, the organisation needs to have clear interaction with its employees as well as with the consultancy firm. This can help Cafe in Jersey to maintain their resources more effectively which can help them to enhance their business activities.
2.3. Timeline
Deliverable engagement of ten months and Gantt chart has been reported to be the reporting criteria that can help the plan and identify the activities and work package.
[Referred to Appendix 1 for details]
2.4. Scopes and targets
Scopes for strategic development of Cafe in Jersey is given below:
- Development of market positioning of Cafe in Jersey within next three years can be considered as the first scope.
- Enhancement of profit can be acquired as another major scope for this organisation by proper stimulation process (NGUYEN et al. 2020).
- Education for clients can be increased with the help of new business strategy incorporation and technical knowledge can be enhanced properly.
- Cost analysis and better stability in the balance sheet can be possible after the incorporation of new rules and legislation in the business process.
2.5. Deliverables
Business development, as well as enhancement in profitability, can be possible for Cafe in Jersey by following the suggestions of consultants. Strategic advancement in business can be possible with the help of tactics given by the consultant.
- Implementation of a proper marketing strategy can help the above-mentioned organisation to increase market share. Public awareness can be increased after fulfilling all the recommendations given by the consultant. All the marketing departments can be run together by following new activities in the business process (Nemkova, 2017). Business objectives and the mission of the cafe can be enhanced in a suitable way with the help of such practice.
- Optimization in the balance sheet can be possible by implementing advice from consultants in a sustainable way. There is a probability to increase key production equity within an organisation with the help of a new system. As Cafe in Jersey has suffered due to an inaccurate sales process, this new system can help them to gain economic profit. Besides that, client communication process can be increased with high relevancy and better indication in business process can be possible through this practice (Gabrielsson and Hasan, 2019).
2.6 Risks
Adaptation of new management schemes is not easy for any organisation and proper monitoring of rules as well as regulations are necessary for implementing this. The Cafe in Jersey can face a number of challenges during the introduction of new advice given by the consultant (Kleibert, 2017). Major risks can be acquired for the above-mentioned organisation due to the high number of workers. In addition, risks related to technology can be greater in the case of Cafe in Jersey due to minimum knowledge about skills. Market division can be considered as another risk that has to be reduced in the near future to provide stability in business. Financial risk and time-related constraints can be a greater challenge for this organisation to slow down the business modification process.
| Risks | Probability | Remarks |
| Financial | High | Due to financial risk, development of new business system can be ceased |
| Time-related | Medium | It will not be possible for implementing a new business process without a proper time frame |
| Employee dissatisfaction | Low | High dissatisfaction level of employees can provide negativity in business sustainability process |
| Market diversification | High | Market development perspectives can be reduced if suitable positioning will not be acquired |
Table 1: Risks
(Source: Created by the learner)
3. Conclusion
The development of marketing strategies for Cafe in Jersey requires almost three meetings with its clients in order to discuss various marketing factors and implement the strategies. The clients and other people within the organisation have different mindsets and are different from one another as given in the table below. As per the needs of the organisation, the initial meeting needs to be organised within a few days to discuss marketing strategies of the company. Risk mitigation is required for this firm to make their business process relevant and overall business sustainability can be acquired. In order to implement suggestions from the consultant, the business structure of Cafe in Jersey has to be modified that in turn can provide sustainability in the business process.
4. Self-reflection
Cafe in Jersey is a popular beverage provider in UK which is running its business in international market. The company is providing best quality tea, coffee, and homemade cakes for its customers; moreover, it has more than 26 outlets in UK. Variable cost of the company is reducing day by day; hence, it is necessary for the company to make proper decisions for the firm’s success. Customer service quality of the company is inferior as it does not offer any discount to its customers (Budur et al. 2019). In order to overcome this situation, it has collaborated with company G; in this way, it is running its bruises. From my perspective, Cafe in Jersey needs to reconstruct their consultancy for and organizational culture.
It needs to provide different flavor cakes to customers by which it can enhance its overall revenue. Other types of management techniques need to be used by the company; moreover, CEO of the company has to follow contingency theory of leadership. Employees are misusing their resources and reducing profitability. Hence, the company needs to recruit skilled employees that can easily track resources and its area of usage (Lozano, 2018). The coffee shop needs to communicate with international clients through which they can expand their business in global market. Currently, the company is facing financial and time-related problems which need to be mitigated by implementing time management strategies in workplace.
In my point of view, managers of the company need to support their employees by which they can meet organizational goals. Managers have to provide authentic training to their employees. Technological implementation needs to be improved by the company; moreover, it has to maintain proper rules and regulations of business. Business code of ethics is another part of a trade by which a company can reconstruct their business model. Client and stakeholder communication model needs to be improved. Furthermore, Cafe needs to enhance its market share by maintaining all marketing mix activities (Nosratabadi et al. 2019). I have gathered a considerable knowledge about the company, which helps me to start a new business. I understood the balance sheet optimization process and client communication process. It can be said that overall activities of the company are considerable and it has to improve its marketing strategy.
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