MCGE The Business Case: Café in Jersey Assignment Sample
1. Introduction
1.1 Description of the firm
The company mentioned in this case, Company A, is widely recognised as the leading chain of cafes in Jersey, UK, the firm also has all total of 26 cafes. Company A is famous among their customers because they serve items such as hot and cold beverages, bakery products, cakes and sandwiches. Currently, the firm has 120 employees working in the company, where 104 employees out of them work in 26 different cafes in Jersey, UK. The financial information gathered from the annual report of the company shows that the firm has recorded a steady increase in their revenue from 21 million pounds during the year 2012 to 22.1 million pounds in the year 2019. The company holds top position when it comes to generating revenues in comparison to its competitors such as Company B and C. The annual report of Company A also shows that the firm has recorded the highest amount of unit sales between the year 2012 and 2019 compared to its competitors. As of the year 2019, Company A has sold 5.3 million units of products in the year 2019 which is higher when compared to their competitors B, C and D. The rise in sales and revenue has made the organisation in reducing the average costing of products and services that are sold at 26 cafes of the company. When compared to 2012, in the year 2019 Company A average cost of products sold was 4.13 pounds in comparison to 5.46 pounds in the year 2012. The above performance of Company A shows that the company was focusing on attracting more customers by using competitive pricing, that further benefits the enterprise in achieving competitive advantages in the market segment they operate. The market statistics and business revenues and performance for Company A is a leader in Café chain business in Jersey, UK region.
Figure 1: Revenue graph
Figure 2: Units sold in 2019
| Seniority | Cost per month | Months of activity | Number of Staffs | Total cost |
| Senior manager | £5436.58 | 3 | 1 | £16309.74 |
| Manager | £4149.36 | 5 | 2 | £41493.60 |
| Assistant manager | £3769.47 | 9 | 3 | £101775.69 |
| Total | £159,579.03 |
Examining the current trend of business performance, the owner of Company A has decided to acquire more customers and lead the market while investing in acquisitions within the same segment and become the market leaders. To hold the market competitiveness and remain profitable, the firm has set their focus towards acquiring Company G which is also considered as the competitor in the same market but with the revenue of only 12% of the total of Company A. The pieces of evidence gathered in regards of Company G, shows that the firm sold an average of 200,000 units in the year 2019 alongside earning the revenue of 1.043 million pounds in the year 2019. Furthermore, Company G also has 7 different café shops in the same region that will further aid the firm in adding 7 more to their existing 26 café shops of Company A. The most critical challenge that Company A face is related to acquisition and integration of the existing employees of Company G with Company A. Beside, the current situation of COVID-19 has presented a challenging situation for the managers and the management as to how to effectively plan the stage of acquisition of Company G.
Therefore, considering the present situation, a project was assigned to the management consultancy where a detailed report on the project plan and others will be discussed. Two main aspects will be addressed within the project plan, those are aligning the employees of Company G to Company A and the investigation of business practices of Company A to G. Due to differences in business practices and cultures it will also present a challenge for the managers of Company A to carry out the project report.
1.2 Summary of the business problem
The business problem identified in regards to Company A includes the absence of a proper management system that made it difficult for the company to train its employees adequately. The managers of Company A also failed to implement adequate rules that were necessary for the employees to comply by as a result poor productivity and poor organisation progress has been recorded. The above-identified problems can be minimised by offering proper training facilities to the employees that will aim to develop the skillsets of employees and make them contribute towards the growth of Company A.
2. Consultancy strategy
2.1 The consultancy strategy model
The consultancy strategy model is based upon Company A, as the firm is hiring expert and experienced consultants to produce a new strategy based on the evidence gathered to determine the firm’s current situations and plans. All the operations of 26 cafes are being controlled and managed by the Company A. The strategic model for Company A includes of serving coffee, tea and homemade cakes. Besides, the café also intends to serve cold and hot lunches along with sandwiches (Andriani, et al., 2019). It has also been noticed that Company A also hires employees with the required skills and knowledge that holds the competencies of preparing food items. The internal structure of the cafes includes a small seating area and service counter through which overall operations of the cafes are being regulated and controlled (Gasparin, et al., 2021). All the cafés of Company A are situated in Jersey, UK and are open for six days a week. Furthermore, one shop manager and three employees have been appointed on a full-time basis to manage the shop and serve the clients. The strategic model of Company A also explains that the firm includes of marketing department along with the HR department that focuses on recruiting employees along with performing marketing and promotion of the products. Therefore, the strategic model for Company A, help them in growing their business operations.
2.2 Resources
The key resources for Company A for carrying out the consultancy work include arranging raw materials that are mostly being used to prepare the food items. One of the key resources that Company A requires comprise of skilled employees who will be serving the customers along with focusing on building positive and long term relationship with them (Bland & Osterwalder, 2019). Employees interaction with the customers helps them in understanding the needs and preferences of the customers that aid Company A in offering best in quality of services and food items to them that help in building their trust towards the organisation. Company A also focuses on establishing the accountancy department that helps the company in maintaining its invoices along with talking control over their financial activities. Besides, the marketing department has also been established by the company that focuses on performing the promotional and advertisements for Company A (Geissdoerfer, et al., 2018). Strategic partnership for Company A is also considered as an important resource for the organisation as it will help them in understanding the business market along with offering unique value of food items that aim towards suffering the needs of customers and keep their loyalties towards the organisation. Key resources for Company A also includes maintaining revenue sheets, fixed costs and variable cost for the firm. Analysing the revenue sheets help the organisation in gathering information based on which future strategies for the firm are being designed. Therefore, the above-mentioned resources help Company A to perform their activities successfully.
2.3 Timeline
The timeline benefits the organisation in setting up the activities based on their priority and their importance within the firm. The total time duration for performing the activities includes 10 months.
Cost analysis for Company A
Company A undertakes a checklist of data that is being collected during the first two months, once the data are being collected they are then processed and organised systematically. During the third and fourth month, the data are then analysed in regards to the fixed cost. Then in the time duration of 3-6 months analysis in regards to variable cost are also being performed. Data insight are also being performed during 7-9 months. Furthermore, Company A also carries out detailed analysis regarding client agreement that is done in the 7 and 9-10th months.
Marketing strategies
The marketing strategies help Company A in determining the activities that the firm need to carry out to perform their activities systematically. Company A, in the first two months, will be interviewing the employees and will also divide them according to their marketing job roles and responsibilities. Company A in the next 2 and 3 months, a framework will be set up for designing the process that is related to create workshops. Total of three workshops will be conducted in the 3rd and 4th months that will help Company A to grow and develop the skill sets of the employees. During the 7th and 8th months meetings as marketing strategies will be performed where important decisions will be undertaken. Feedback in regards to the overall operations of the business will be conducted in the 9th month and the delivery of documents will be performed on the 10th month.
2.4 Scopes and Targets
Company A has two scopes that are as follows.
- The first scope for Company A includes offering an adequate amount of training and workshops to the employees that benefit the organisation in improving the skill sets of the employees. The training will also help the Company A in decreasing the challenges that the firm face while integrating the employees of Company G to Company A. Proper training and workshops will be helping the employees to understand their job roles and responsibilities that make it easier for them to perform their activities with higher accountability. Therefore, the scope for Company A will be helping them in developing a competitive workforce that contributes to the growth of the company.
- The second scope for Company A comprises gathering data and analysing them to draw interpretations in regards to determining future growth strategies for the firm. Analysing the data will also benefit the firm in identifying the challenges that the firm face and undertake different actions that help in eliminating the challenges and restore better organisational effectiveness.
2.5 Deliverables
The deliverables for Company A are as follows.
- Company A will be aiming towards developing a culture of cooperativeness among the employees of Company A and Company B through the help of cross-cultural training and workshops. Cross-cultural training will be helping Company A in helping the employees to share their thoughts and ideas that make it easier for them to perform their activities within highest accountability and integrity(Taghizadeh, et al., 2019). Company A will also aim towards building team development activities along with promoting best practices that will help the employees in Company A in establishing integration in between the employees of Company G. Therefore, cross-cultural training for the employees help them in growing their skill-sets.
- The strategic partnership between Company A and Company G will be aiming towards undertaking to homogenise business practices that will help the organisation in focusing on understanding the changing needs and traits of the customers. Customisation of food items will be delivered to the customers that will grow their experiences and will be helping them in showing their trust towards the organisation(Sarvaiya, et al., 2018). Homoginise business practices for the organisation also help them in making their business processes standardised as a result of which it increases the capability of the firm to offer the best in the class of services to their customers.
2.6 Risk
The risk that has been identified with Company A comprises of shortages of employees recruited in each of the cafes, as Company A only has recruited one manager and three employees for each of the café. The company is expected to remain open 6days in a week and considering the situation that only one manager and three employees are working for all the working days it becomes challenging for them to operate the business. Company A at least needs to recruit 5 employees for each of the cafes as it will help the employees to work in alternative shifts that will reduce pressure from them. Besides, lack of homogenise practices also makes it challenging for Company A to offer standardised food items to the employees. The growing competition for the organisation is also making it challenging for the firm to grow its business market along with earning higher revenues (Watson & McGowan, 2019). The risk for Company A can ve managed through offering collaborative working condition among the employees. Besides, risk raising due to the clash of personality among the employees increases disruption within the business practices of the organisation.
3. Conclusion
The overall case has briefly discussed the consultancy strategic model where Company A has decided to open 26 cafes in different location of Jersey, UK. The strategic model for Company A comprises of recruiting managers and employees who will be working towards providing training to the employees along with maintaining the relationship with them. Importance of resources has also been discussed within the report such as arranging raw materials and recruiting skilled manpower who will be contributing towards the development of the organisation. Scope for the firm followed by deliverables has also been explained within the that benefits the Company A to grow its business operations.
4. Self-reflection report
Examining the assignment has helped me in learning about different aspects of business and consultancy along with integrating different aspects of the project management such as developing timeline, deliverables and understanding the scope of the project. One of the best thing that I have learned through the module was developing my understanding towards the project management, where I learnt about analysing the information, gathering data and drawing interpretations that have helped me in developing a project plan and implementing them (Kerzner & Kerzner, 2017). I have also learned about the importance of strategic relationship, as it helps in growing the overall competencies of the firm to eliminate the concern of competition along with growing the overall productivity of the business organisations. I have also developed my knowledge towards understanding the importance of training and workshops as it has benefited me in knowing how it helps in developing the skillsets of the employees (Larson & Gray, 2018). Furthermore, evaluating the above case has also helped me in knowing about the different business practices such as maintaining homogenise business practices as it helps the companies in maintaining standardisation within their products that they offer to their customers and their partners that contribute towards the development of the organisation and their brand reputation (Johnston, 2017). I have also learned about prioritising the task based on their importance and assigned time for each specific activities that help me in achieving the desired results while maintaining high operational efficiencies. I have also learned about analysing past data to draw interpretations and make decisions that contribute to the business enterprise.
References
Andriani, M., Samadhi, T., Siswanto, J. & Suryadi, K., 2019. Knowledge management strategy: an organisational development approach. Business process management journal, 2(7), p. 6.
Bland, D. & Osterwalder, A., 2019. Testing business ideas: A field guide for rapid experimentation. London: John Wiley & Sons.
Gasparin, M. et al., 2021. Business as unusual: A business model for social innovation. Journal of Business Research, 125(6), pp. 698-709.
Geissdoerfer, M., Vladimirova, D. & Evans, S., 2018. Sustainable business model innovation: A review. Journal of cleaner production, 198(9), pp. 401-416.
Johnston, C., 2017. Teaching Business & Economics. Reflective practice, 21(1), pp. 19-21.
Kerzner, H. & Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and controlling. London: John Wiley & Sons.
Larson, E. & Gray, C., 2018. Project management: The managerial process. London: McGraw-Hill Education.
Sarvaiya, H., Eweje, G. & Arrowsmith, J., 2018. The roles of HRM in CSR: strategic partnership or operational support?. Journal of Business Ethics, 153(3), pp. 825-837.
Taghizadeh, S., Rahman, S., Hossain, M. & Haque, M., 2019. Characteristics of organizational culture in stimulating service innovation and performance. Marketing Intelligence & Planning, 2(4), p. 9.
Watson, K. & McGowan, P., 2019. Emergent perspectives toward the business plan among nascent entrepreneur start-up competition participants. Journal of Small Business and Enterprise Development, 1(8), p. 5.
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