Assignment 4: Written Business Plan and Presentation

Running Head: STRATEGIC ASSESSMENT 1

STRATEGIC ASSESSMENT 3

Assignment 3: Business Plan Part 3- Business Initiative and Technology

BUS 521

Shaquinna Wilson

Anthony Campo

November 30, 2019

Organizational structure and management philosophy to be incorporated for hiring and unity

To maintain a high level of competitiveness, smooth flow of the workforce, and to ensure that the objectives of The Modern Café are not compromised, the café will adopt a hierarchy organization structure. The corporate owners are ultimately in control of the café and are responsible for hiring the management team. They will incorporate the culture-based philosophy of management in the hiring process. The philosophy requires hiring people who have the right mindset and value base along with necessary knowledge and expertise. The café business is a tiresome one considering the number of hours the employees have to work and the number of customers that are expected. Incorporating this culture is a guarantee that the company will hire A-plus employees who cannot tolerate a B grade outcome. The hierarchical organizational structure ensures that every employee knows their primary responsibilities, whom they are supposed to report to, and how the communication channels should be (Mullins & Schoar 2016). Unity among the employees will, therefore, prevail since every employee's contribution will be essential in making the business reach its ultimate objectives.

The key employees include the general manager whose responsibility is to make day-to-day decisions of the café according to the current state of business and the corporate owners. The executive chef will be the manager of the entire kitchen and how the beverages are made. There will be a front of the house manager who is in charge of customer relations and is supposed to report to the general manager. There will also be a café shift leader who handles how waiters and waitresses working shift is organized. Finally, there are the cooks, the waiters, waitresses, the cashiers, cleaners, and security team who see to the smooth running of the café.

Key elements of the corporate culture

The Modern Café has a clear mission and purpose, as revealed by the strategic position “the Modern Café! For new, unique and tasty coffee, tea, and other beverages” and the marketing statement: “Want a refreshing and unique blend of coffee, tea, or any other beverages, Modern Café is the only option in the market that gives you a new and exciting experience. Try us today”. They both show a sign of the potentially strong culture, which will propel it in a clear direction that will clearly depict the café's uniqueness, which will enable it to stand competition. Respect is also a key element of the café's corporate culture. The upper management, the owners, and the general manager will treat the lower-level employees with respect by making the working environment conducive. As a result, their productivity will be voluminous, and there will be minimal or no turnover.

Besides, the café is banking on solid communication up, down, and across the hierarchical organization structure. The culture will, therefore, allow transparency, easy and fast solutions to conflicts, and easier decision making (Guiso et al. 2015) Another key element is a superior performance that will be contributed to by the explicit mission statement, respect, and the solid communication. Customers will, therefore, be homely and uniquely served, thus depicting the superior results of the café.

To develop a proper work environment, the café will incorporate motivational strategies such as recognizing commendable efforts of the employees, such as excellent customer service, as praised by the customers and cultivating the culture of positivism among employees even in hard times. The café's management will also ensure that the employees work in moderate shifts so that they can take breaks to reenergize. The employees will also be motivated through employee wellness benefits such as medical benefits. The management will also always remind the employees of the café's bigger picture to boost motivation and to encourage transparency.

The operational strategy

The strategy will be geared towards preparing tea, coffee, and other beverages and serving them according to the customers' specifications and to make the service and payment process as flowy as possible. It includes the following components.

Strategic location- The location of the café in Idaho is key to reaching the café's target and determining the future stability of The Modern Café. Idaho has a high potential for economic growth, and the growing influx of students in the university means that the market will stabilize.

The capacity of the café- It will hold approximately 30 seats on the premises. Each table will accommodate three persons, and if extra arrangements are made, the tables can be joined to accommodate more customers

Type of customers to be served- The café’s target customers are office workers and students who normally have tiring and demanding days, and they need time to relax and socialize. The café’s premises will offer them an environment to do so.

Layout- The café premises provide a perfect environment for socializing with friends, office workers, students. There will be vibrant décor and natural light flooding the café from a large front window.

Competitive features- The café will offer coffee; flat, white, cappuccino, latte and tea, black, milk tea and sugarless tea, and other beverages that have been prepared with the explicitness of expert chefs. The beverages will be unique and will have a taste that is unique as compared to other cafes. The décor, wallpaper, and the furniture will be attractive and spell "class" to the customers. The customers will, therefore, enjoy their time in the café.

Inventory management- Th café will adopt inventory management that will set par levels to ensure the café does not run out of ingredients. There will also be a contingency plan to keep the café prepared for future problems that may be risky to business (Bolivar Cruz et al. 2008). Since it will use the software an inventory, there will be regular auditing to make sure facts match up.

Technology strategy to maintain a competitive advantage

By hiring a Virtual Chief Information Officer in charge of technology, the café will achieve a superior level strategic mindset that will protect the café’s software from cyber attacks, enhance its capabilities in serving the customers and facilitate innovation in terms of what should be improved and how (Rothaermel, 2017). As a result, the competitive advantage will be upheld. The strategy will also be automated to ensure there is a back-up for disaster recovery and to ensure the continuity of business operations in case of a disaster such as a fire that may interfere with the café’s software database. The strategy will also promote security awareness through the incorporation of CCTV surveillance cameras and protection of the inventory items from cases of theft. In addition, the technology strategy will allow for an innovative time by partnering with the IT personnel with the employees to identify ways of leading the competition by conducting research on the prevailing café trends. The café will also understand the integration of technology in communication, receiving customers' feedback, and improving the flexibility of the café in the future.

References

Bolivar Cruz, A. M., & Espino Rodriguez, T. F. (2008). An analysis of operations strategy in the food and beverage sector. International Journal of Services and Operations Management, 4(1), 102-124.

Guiso, L., Sapienza, P., & Zingales, L. (2015). The value of corporate culture. Journal of Financial Economics, 117(1), 60-76.

Mullins, W., & Schoar, A. (2016). How do CEOs see their roles? Management philosophies and styles in family and non-family firms. Journal of Financial Economics, 119(1), 24-43.

Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.