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Current Strategic and Operational Plans of CoffeeVille

Introduction

This paper critically examines the strategy and plans of an organization. It is written in the form of business report to the business owners that details the policy and procedure framework proposed for the recruitment, selection and induction program. The business report comprises of the strategies, policies, procedures that are aligned to new strategic direction of the organization. Towards the organization, the policies and procedures to be adopted by the organization are discussed. It also comprises of a communication strategy for sharing information about the new program with managers. The report also highlights the changes and how the new processes align with the new strategy of the organization.

The organization to be selected for the strategic examination is CoffeeVille. This is a local coffee chain operational in Melborune, Australia. CoffeeVille was started in 2009 by Rufus and Emma Belcastran. Their key aim of opening such a coffee restaurant was to provide high quality products to consumers of Melbourne that are made from natural products (Cousins, 2012). The objective of providing high quality products was achieved and it led to the success of the restaurant. As a result, the coffee company has plans to open a second restaurant and planning for further expansion in future. But the siblings are seeking to encourage their employees and provide them a healthy working environment. Hence, they are seeking for ‘Employer of the Choice’ award.

The company has hired a consultant to suggest recommendations to the management of CoffeeVille to achieve EOC status. The aim of this program is to attract and select highly qualified and enthusiastic staff, induct them into this family business in a way that helps them to settle in and feel included while also keeping in mind the goal of becoming an EOC. This needs to be done in a way that supports current and future expansion and takes full advantage of the technology options available. Hence, this report aims at addressing these issues.

 

Current Strategic and Operational Plans of CoffeeVille

The current strategies and operational plans of CoffeeVille are demonstrated by the STP of the company.

Segmentation: CoffeeVille has divided the market into three target segments viz Individual takeaways, Individual sit-down and Groups. Individual takeaways are between age group of 20-60 who have an average income of $40,000 annually (Brooks, 2013). The individuals are from clerical or service jobs. Secondly, the people falling in the segment- Individual sit-down are between age group of 35-60 who have an average income of $60,000 and may be managers. The Groups have people falling in the age group 35-60 and they are highly sensitive towards food quality.

Targeting: CoffeeVille has targeted different consumer segments based on the income level, interests and taste of the customers. Three categories targeted by CoffeeVille include Individual takeaways, Individual sit-down and Groups (Ruiz, 2011).

Positioning: CoffeeVille has uniquely placed itself and has adopted the strategy of product differentiation. The products & price, service and ethics of the coffee restaurant are exclusively placed. High quality coffee beans, freshly manufactured cakes by CoffeeVille are competitively priced but the higher prices shows the superior quality of the product (Brindley, 2009).

The STP of the company provides an overview of the strategies and operational plans of the company. However, in order to analyze the current strategies and operational plans of CoffeeVille, SWOT is an effective tool. As per Taylor (2009), it is a marketing tool used by marketers to assess the strengths, weaknesses, opportunities and threats of an organization.

S (Strengths): CoffeeVille has the best staff and a talented workforce which is one of the reasons for the success of the company. The restaurants of CoffeeVille have a great location followed by a great ambience. Hence, the customers provide a high level of loyalty of the coffee chain since it is able to meet most of their demands (Autopsy, 2007).

W (Weaknesses): CoffeeVille, in spite of being a successful local coffee chain has certain weaknesses which has compelled the management of the company to propose new strategies, policies and procedures. The company has a limited space but the customer base served by CoffeeVille is more. Also, the budget allocated for marketing activities is very less due to which the company is not able to run marketing campaigns at a wider scale (Autopsy, 2007).

O (Opportunities): Although the company might be successful but as per market analysis, it is not able to serve a major portion of consumers. Hence, the company has a great market potential to serve more customers daily (Autopsy, 2007).

T (Threats): CoffeeVille operates in a highly competitive market where the threat from other coffee chains keeps prevailing. Also, there is high level of uncertainty in the world coffee market. Hence, these are major threats for the coffee company (Autopsy, 2007).

The SWOT analysis of CoffeVille demonstrates that although the company is highly successful yet it has various weaknesses and threats. Hence, the management is required to propose new strategies, policies and procedures if it wants to expand in the existing market.

Proposed Strategies, Policies and Procedures

The proposed strategies, policies and procedures of the CoffeeVille are:

1.      Adopting product differentiation to uniquely place products which are able to cope with intensively competitive market

2.      Providing healthy working environment to employees so that they get engaged to work more intensively and help the company achieve their targets

3.      Providing health and medical insurances to employees to make them feel secure

4.      Conducting training programs and staff retention workshops more frequently to make employees compete in the market

The policy to be laid down by the management of CoffeeVille will underline the importance of employees for the company. The policy will encourage healthy organizational culture and teamwork tradition to boost the engagement of employees and get rid of unwanted employee concerns. This will enable the managers to develop a joyful and happy working environment at the company and thereby offering its clients quick services with a smile (Frankson, 2013). Ultimately, it will boost the sales of the company considerably. The crux of the policy will be that employees of CoffeeVille have to love coffee and must be eager to communicate with clients. One of the best parts about developing a healthy working environment is that executives and management of CoffeeVille must visit the restaurants once a while to see how the employees are interacting with end-consumers and listening to any of their concerns (Burrage, 1998). The policy will have a motto, ‘A healthy client must be served by a healthy employee’. The policy is backed with some objectives.

The objectives of these strategies are:

·         Positioning CoffeeVille as provider of superior coffee experience to consumers

·         To Increase the daily customers from 250 to 300

·         To increase the brand recognition so that at least eight people in a distance of 500 m knows about the brand and take active part in the surveys conducted by the company

·         To increase the good will of the company so that people recognize CoffeeVille as a socially responsible company

·         To achieve the status of EOC i.e. Employer of the Choice award

·         To increase the reputation of the company as to make it a top choice of candidates

As per the proposed strategies, policies and procedures, the marketing mix of the CoffeeVille is:

P (Price): The newly formulated ‘Menu pricing’ will boost the prices of the products offered by CoffeeVille. The pricing strategy will build up an image of ‘high quality’ for the company.

P (Product): CoffeeVille will continue to offer high-quality coffee, pastries, and cakes to consumers.

P (Place): CoffeeVille has more sit-down clientele. Hence, the restaurants are required to be cleaner and stylish to entice consumers.

P (Promotion): In order to appeal consumers, CoffeeVille will advertise in local magazines and newspapers. It will also include emailing to consumers, connecting with them on social media etc.

This is the marketing mix of the CoffeeVille as per proposed strategies and plans.

Covering Letter

The covering letter will be outlining the proposal of these policies & strategies to the management of CoffeeVille. It will include an overview of new policy, strategy to be adopted by the CoffeeVille in order to enhance the engagement of the employees and take the company towards expansion in future.

Communication Strategy of CoffeeVille

Communication strategy is one of the crucial strategies in any company where employees are considered an asset. Although employees plays a vital role for every organization but many don’t consider giving their employees a better organizational culture (Lovell, 2012). However, communication strategy of CoffeeVille is as under:

Recruitment options: Candidates to be selected for the organization will be recruited either by word-by-mouth i.e. existing employees referring their friends & family or through online recruitment websites. This will limit the recruitment options and also screening of candidates will become easier.

Training programs: These programs form an active platform to communicate with employees, to listen their concerns and effectively addressing them. Hence, there will be frequent training programs conducted by the management to ensure new candidates are trained as per the standards of the company and old ones get up to date with latest trends. These programs will highlight the methods and strategies to be adopted for coffee & food preparation and customer service (Lovell, 2012).

Skill retention strategies: There will be a monitoring policy laid down by the management which will form base for the staff performance. The performance of the employees will be continually evaluated and monitored so that it is as per requisite standards of the company.

Monitoring & Evaluation of Processes

In order to ensure that policies and strategies are effective, monitoring & evaluation is indeed crucial (Lovell, 2012). Hence, the management of CoffeeVille can conduct surveys and feedback rounds to evaluate the performance of the policies. An ideal ‘feedback form’ which can be circulated to employees can look like:

Question 1: How will you rate CoffeeVille on a scale of 10 as an ‘employer’?

Below 5

6-9

10

Question 2: Do you enjoy a healthy working environment at CoffeeVille?

Yes

No

I don’t know

Question 3: How do you rate CoffeeVille in terms of remuneration?

Below 5

6-9

10

Question 4: Will you refer CoffeeVille to your friends?

Yes

No

I don’t know

Question 5: Do you think CoffeeVille deserves an ‘EOC’ status?

Yes

No

Might Be

Fig 1: Feedback form

This form can be circulated to employees and their feedback will help the management to measure the performance of employee related strategies.

Conclusion

CoffeeVille has the potential to gain the status of ‘EOC’. The policy discussed above will be able to help the management develop a healthy organizational culture and encourage employees to be engaged to their work actively. This report has critically examines the strategy and plans of CoffeeVille and includes the new policy and procedure framework proposed for the recruitment, selection and induction program. It also includes a communication strategy and feedback form to be used for evaluation and monitoring of the policy.

 

 


 

References

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Ruiz, J. (2011). 6 reasons starbucks marketing communications strategy is so effective. Strategic Marketing Solutions. Retrieved from http://www.strategicdriven.com/marketing-insights-blog/6-reasons-starbucks-marketing-communications-strategy-is-so-effective/. Accessed on 18th Apr, 2015.

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