Course Title/ Code:

INTRODUCTION TO MANAGEMENT

CLASS XXX

SECTION XXX

Title:

MANAGEMENT PRACTICES

Date:

XXX

Lecturer:

XXX

Name of students:

Name Matrix No.

 ACKNOWLEDGEMENTS

First and foremost, we would like to thank our lecturer, Madam Norazima Md Malia, for helping
and guiding us through the completion of this assignment report. This assignment would not
be completed with success without the abundance of help and encouragement given by our
lecturer.

I would also like to thank my group members, Caemilya binti Julai, Ellinor Nabila binti Jais,
Faizadtul Uzma binti Salleh, Hannah Ruqaiyah binti Azhar, Muhammad Haris Ibrahim bin
Zulkifli and Neeshantini A/P Mathivanan for their hard work and cooperation throughout
completing this assignment. Despite the complications of online learning, we managed to work
together and focus on achieving our goals. Without the contribution and effort obtained from
each group member, this assignment would not be done.

Last but not least, we would also like to thank our friends and family for the endless support
and motivation given throughout the completion of this assignment.
 TABLE OF CONTENTS

Content Page
1.0 Introduction 1
2.0 Plannnig 2
3.0 Organizing 4
4.0 Leading 8
5.0 Controlling 11
6.0 SWOT Analysis 14
7.0 Findings and Recommendation 18
8.0 Conclusion 20
References 21
1.0 Introduction

The name of our company is Beans’ N Cream Café. The history of our company is a lifestyle
café chain that has become a household name following its debut in 2002. Beans’ N Cream
Café has successfully established its brand name in Malaysia, Singapore, and Indonesia by
virtue of its fine quality cakes, the world’s best freshly roasted coffees and any types of teas,
pastas, and distinctive service. A leading and largest café in Malaysia with Halal certification
awarded by Jabatan Kemajuan Islam Malaysia (JAKIM). Bean’s N Cream Café is committed
to continue to adhere to the standards of preparation of all food in the café in accordance with
the regulatory guidelines. Customers can always enjoy in confidence from more than 15 types
of western food, 10 cake creations and pastries, the best freshly roasted coffees and any types
of teas offered in all Bean’s N Cream Café outlets. The type of products are any type of coffee
and tea, pasta, salads, cakes, cupcakes, chicken and beef pie, smoothies. The location is at
53, Jalan Sultan, City Centre, 50000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
There are 6 organization members namely Head of finance, Head of marketing, Head of
human resource Manager, Head of supplies and Head of production

1
2.0 Planning

Definition: Planning is the function of management that involves setting objectives and
determining a course of action for achieving those objectives. Planning requires that managers
be aware of environmental conditions facing their organization and forecast future conditions.

Importance of planning

- Assist in determining the opportunities

- Identify the course of action

- Eliminate risk

- Utilizing resources efficiently and effectively

- Control mechanism

- Reduce random activities

- Effective utilization of available facilities

VISION - We are committed to the excellent quality of our food, service, and entertainment
concepts in our dedicated pursuit of excellence, which enrich the life and experience of our
guests and staff alike.

MISSION - To provide excellent service to our customers with the world's best freshly roasted
coffees and all forms of teas at a price that is fair to producers and our customers. Our
commitment to guidelines for customer service, our employees, and the environment and last
but not least, our mission is to serve everyone better than anyone else.

Types of planning:

1. Strategic planning:

First and foremost, increase revenue for the café, maintain superior product and service
quality standards, establish the Bean’s N Cream Café brand as an ethical and environmentally
responsible company. Next, complete SWOT analysis. SWOT evaluates the company
strengths, weaknesses, opportunities, and threats. Strengths in location, high quality
ingredients and a variety menu. Weaknesses to our new staff lack of training, higher prices of
ingredients and a variety menu. Weaknesses to our new staff lack of training, higher prices of
the products and no food delivery service. The opportunities are international branches.

2
Growing interest in cafes and good reputation. Threats in many competitors located nearby,
rising places if ingredients and economic factors. Then, the mission and vision of the company.
Vision and mission give the company hopes and future. Brighter future ahead if the
organization members like head of finance, head of marketing, head of human resource,
manager, head of supplies and head of productions develop the mission and vision. It also
shows the path and priorities of the company. We need to have specific business goals to
achieve the vision. This specific business goals includes changes to product, offering, sales
and marketing strategies, financial resources, operational efficiency, and financial targets.
Lastly, determining the staff's budget and financing needs. When all departmental needs have
to be identified and quantified. We have to complete the plan so we can manage all the cafe’s
goals to increase the café revenues of the café

2. Tactical planning:

Bean’s N Cream Café must increase revenue for the café through marketing campaigns, the
steps needed are to increase our café revenue. We have to maintain superior product and
service quality standards, so our café has the best service of quality standards and it makes
the café look attractive and interesting to the customers. Our weaknesses are when we have
a new staff that lacks training, higher prices of the products and no food delivery service. In
the future we will train the new staff for one week before they start working. The higher prices
are because the prices of the ingredients keep increasing year by year, but our café will try to
provide more affordable prices for the customers. We will have a food delivery service by the
Grab, Food panda and our own delivery service. We will make sure our café has more
international branches and our next goal is to open a new branch in Thailand. The café must
maintain the deco, the tastiness of the food and customer service so our regular or new
customers will always go to the Bean’s N Cream Café.

3. Operational planning:

The operational planning for the café is to maintain and attract highly trained and motivated
our staff. First, we have to train our staff how to treat customers nicely and not talk to the
customers rudely and insincere. The staff must smile and be friendly to the customers, so that
way customers will like the café’s customer service. Bean’s N Cream Café has to maintain the
cleanliness of the café because the café must have to be clean all the time so that customers
will be more than happy and comfortable when the café is very clean. The head of supplies
must always check the food and beverage stock every minute. They will have a timetable to
check the food every shift, so there will be no work at the last minute. Behave the employees’
attitude over the customers satisfaction and count revenue every shift.

3
 3.0 Organizing

Organizational chart:

3.1 FUNCTIONAL DEPARTMENTALIZATION

According to Beans’ n Cream, the functional departmentalization is an organization organized

into departments based upon the respective functions for the organization as below.

3.1.1. Marketing Department

This department is responsible for marketing information management, setting the prices for
the food items, planning marketing activities such as exciting promotions and deals.

3.1.2 Human Resource Department

They are responsible in utilization of workforce, allocating the shifts timing for the employees,
recruitment of new employees if necessary, conducting training and development
programmes, performance management of employees, and compensation and benefits are to
control the costs, to establish a fair and equitable remuneration to all, to utilize the
compensation and benefits device as an incentive for greater employee productivity and to
establish a satisfactory public image.

4
3.1.3 Finance & Accounting Department

In Beans’ n Creams, this department will document all the financial transactions of the cafe,
keeping track of the inventory, cash flow, and income statements. The information provided
by restaurant accounting allows you to manage your cash more efficiently, predict your profits,
balance your financial books, and plan for your business future.

3.1.4 Customer Support Department

If there are any complaints or feedback, the customers would reach our Customer Support
Department. After lodging their complaints, the Customer Support Department will transfer
those complaints to the Quality Department for further investigation and rectify the issue
immediately.

3.1.5 Food & Kitchen Service Department

Another important department is the Food & Kitchen Service Department, the respective
Manager will check on the stocks and place the order for the necessary materials to the
suppliers.

3.2 GEOGRAPHIC DEPARTMENTALIZATION

Beans’ n Cream involves geographic divisions, which are based on physical location of
operations. The company has established its brand name in Malaysia, Singapore and
Indonesia. Each geographic division has a senior executive. In this way, each local manager
reports to at least two superiors and the functional head. This feature of Beans’ n Cream
enables closer managerial support for geographic needs. Each division head is given flexibility
in adjusting strategies and policies to suit specific market conditions.

3.3 CUSTOMER CLASSIFICATION DEPARTMENT

As Beans’ n Cream is highly recognized among the nation whereby we have a group of
customers who remain loyal to our services in any circumstances, buy from us regularly and
are keen in trying our special dishes on a daily basis.

Hence, these are the customers we are continuously focusing on by offering a membership
with exciting deals and promotions. Such gestures to show appreciation and respect towards
nurturing profitable relationships.

5
3.4 Span of control (wide/ narrow)

The span of control by Beans’ n Cream is a wide span of management where there is a single
manager who oversees a number of subordinates hence gives a flat structure. For instance,
under the Food & Kitchen Service Management there will be an appointed Manager who
oversees the subordinates (chef, cleaner, assistant chef) under him. If they have any
suggestions or feedback regarding the kitchen holds / special dishes and many others, the
subordinates will raise them to their respective Manager.

This is clear enough for the customer service department who is responsible for receiving
complaints or suggestions from customers. The subordinates raise those to their Manager.
Thereafter, the Manager will raise those complaints to the Quality Department’s Manager. And
the responsible Manager will delegate the task to subordinates to do further checks.

In this way, there will be fast and clear communication which contributes in making quick
decisions and actions can be taken right away. Not just that subordinates are free from strict
supervision where the Manager may not be too dominating due to the number of subordinates
As Beans’ n Cream focuses on a happy and healthy environment.

3.5 Locus of decision making (centralized/ decentralization)

Here in Beans’ n Cream, we practice the most admirable traits which is decentralization. We
encourage every individual to adapt to change or make decisions quickly, instead of putting
every decision through a rigorous bureaucratic review. Nowadays, change happens too fast
for hierarchical organizations to respond to it.

As have mentioned above, Beans’ n Cream would always come up with exciting deals or
promotions from now and then. Highlighting our recent promotion ‘Love is FOOD’ has gained
utmost positive feedback from the customers as well as the management. Not just that, we
successfully achieved more than our targeted sales during that particular promotion. This idea
was solely proposed by one of our subordinates from the marketing department further to this
we initiated this promotion in every branch on a monthly basis.

Besides, we also have a suggestion box where the employees are free to raise their comments
or suggestions in hopes of improving the internal process. There is a suggestion box for
customers also, mainly to figure their dissatisfactions and satisfaction towards our service and
quality. Not just that, this is also one of ways to show that we respect and value their opinions
and our customers for investing in our café.

6
Another important point, we provide a special menu which will be suggested by our Food &
Kitchen Service Management. Our specialized chef will recommend a special dish on a daily
basis and this helps us to cater varieties of food and eventually attract more customers.

As a whole organization, we strongly believe in these ‘Everyone talks about building a

relationship with your customer. I think you build one with your employees first." Hereafter,
when the environment is happy the outcome would be happier by itself.

7
4.0 Leading

Leading

Leading is the act of the leader in a company serving as a role model. Leaders should also be
able to switch management styles depending on the situation. Besides that, a leader must
also master the art of communicating and motivating. Furthermore, there are different
managerial roles that the leader should play in their company which are the interpersonal,
informational, and decisional role. The interpersonal role is about managing relationships with
employees and fellow managers while also setting a standard example for them. Next, the
informational role is all about the manager receiving and spreading information to various
parties. Then, the decisional role is the role where leaders should make organizational
decisions with the endgame of achieving the organizational goals.

There are also different types of leaders. The top-level management represents CEOs and
presidents who are responsible for the overall management. The middle level management
represents the head of departments and they give directions to the lower level management.
Lastly, the lower level management which represent supervisors are responsible for the work
of non-management employees. After that, there are also several skills that these managers
are required to have. Firstly, technical skills which are the skills relating to knowledge about
tools, techniques, and procedures. For example, the printing software at the office. Next,
human skills, which is the ability to work with other people in the organization. Finally,
conceptual skills which is the ability to analyze and diagnose a situation.

On the other hand, leadership is the ability to influence an individual or group towards the
achievement of certain goals. There are different methods a leader can do so which are the
early leadership theory, behavioural theory, contingency theory and contemporary approach.

Leadership approach by our company

The leadership approach used by the managers at Beans’ n Cream Café is the democratic
style. We find that this style is most suitable for our company. Weekly meetings are held where
managers and employees can share their opinions and find ways to further improve the
business and increase the satisfaction of customers. Furthermore, employees at the lowest
level deal with customers every day so they will know which products are favoured by
customers and which are not. This information is very useful as it can help the management
determine which products to focus on more. Other than that, employees are the ones who
manage the production machines daily so any ideas or opinions for a more efficient and

8
effective production process have more weight to them. Therefore, the democratic style is very
useful in our company which is product driven and depends on customer satisfaction.

Motivation

Motivation is the force acting upon or within a person that causes them to expend and behave
in a specific, goal directed manner. It is very important for every person at a company to be
motivated as it drives them to achieve the organizational goals. In a company, it is common
that managers should be the ones to motivate their employees so that they reach their full
potential. In management, there are several theories of how managers can provide motivation.
Firstly, there are the need-based models which emphasize the specific needs or factors within
a person. Next, the process models which focus on understanding the thinking process that
occurs in the individuals mind that influence behaviour. Lastly, the reinforcement models which
focus on the desired work behaviours of employees.

Motivation approach by our company

The motivation approach practiced at Beans’ n Cream Café is the reinforcement model. Here
at Beans’ n Cream Café, we believe that reinforcement is the most effective way to motivate
employees. If an employee demonstrates good work ethics, they will be rewarded accordingly.
For example, overtime is returned with bonus pay. There is also the award and title of
employee of the month where the employee will receive a bonus and also their photo will be
posted on the notice board. This award was implemented to encourage a little healthy
competition among employees and furthermore fuel their desire to work. On the other hand,
bad behaviour is met with negative reinforcement to ensure it is not repeated or becomes a
habit of the employee. Examples of bad behaviour are failing to meet deadlines, coming to
work late repeatedly with no good reason and not attending important company meetings.
Employees who commit these bad work ethics are met with warnings for the first offence. If
they continue to repeat the same mistakes, managers will directly get involved and set a
meeting with the employee to get to the root issue on why they are acting that way. After that,
if they still continue with their bad behaviour, they might be laid off from the company.

Communication

Is defined as the process that managers use to interact with subordinates, peers, customers,
suppliers, owners, the general public and more. There are several forms of communication.
Oral communication is the form of spoken communication such as talking and is usually the
most preferred form of communication among managers. Next, written communication which
represents all written media such as memos, letters etc. Then, there is also non-verbal

9
communication which is the body language exhibited when a person is in the communicating
process. Lastly, technological communication which is the method of communicating through
technology such emails, video conferences etc.

Communicating approach by our company

In our business, we use multiple forms of communication. Firstly, as the managers are
practicing democratic leadership, upward and downward communication exists because
managers will communicate with employees and vice versa. On a daily basis, we use oral
communication when we have to pass information quickly such as when supplies are running
low or if any accidents have happened in the office. Besides that, we also hold weekly
meetings to discuss the company’s performance and mostly just communicate on what can
be improved or what needs to be removed. Other than that, managers also communicate with
employees when they are performing very poorly to really understand why they are acting so.
Here at Beans’ n Cream Café, we believe that communication is the best method to solve
problems.

Other than that, we also use written communication as another form of media to spread
information. This method is mostly used when there is information that affects everyone like
schedule changes or menu changes so that the managers do not need to tell every single
individual. Furthermore, memos for calls for meetings are pinned to the company notice board
for everyone to see. There is also a suggestion box at our store so that customers who have
something to say about the café can write it down on a piece of paper and submit their
response.

Lastly, we also use technological communication as it is probably the second most convenient
way to communicate with each other. The media mainly used is e-mail for when the employees
or managers need to share information that is not needed to converse about. Also, all
paperwork in the company is sent through email as an effort to reduce the amount of paper
used by the office. We think this method is much more eco-friendly and even saves cost and
time because paperwork is not needed to be printed before it is finalised and we save money
on printer ink, pen ink and paper. Furthermore, memos are also sent through e-mails so that
those who were not able to see the notice board can stay informed, this is mostly as a safe
measure so that the spread of information is definite. There is also a separate email where
customers can send their feedback on the café.

10
5.0 Controlling

Controlling is a vital part in the management process as it involves the quality of products and
services. Controlling is the process of comparing business performance to the standards set
by the company. It is also a process of monitoring activities to ensure all goals and objectives
are accomplished according to plan.

The controlling process is important in order to achieve organizational goals and objectives.
With an effective control system, the organization is highly more likely to be successful. Other
than that, controlling is key to making sure resources of the organization are used in the most
effective and efficient manner. This enables the organization to plan forward for further
availability of supplies. The controlling process can also increase the quality of products and
services. An effective control system can create faster cycles in the management process,
directly improving the quality of products. It also assists the management process. The
controlling process helps the managers or supervisors to detect undesired quality of products.

To ensure customers are constantly satisfied with the products and services offered by Beans
‘n Cream Cafe, the business will perform the controlling process step by step. Our business
will set our performance standards, measure and compare with our actual performance and
take the corrective action for any dissatisfaction of our customers.

5.1 Performance standards

Our business aims to become a five-star cafe and the best restaurant in town. Beans ‘n
Cream’s ultimate goal is to become a five-star rated cafe in and at every branch. Since the
coffee shop has already branched out to Singapore and Indonesia, Beans ‘n Cream would like
to expand the cafe to more places to be internationally recognized as one of the finest cafes
around the globe.

Next, Beans ‘n Cream sets a high standard in the business, which is to accomplish a zero-
complaint approach. To compete with other coffee shops and restaurants in the market, the
business must reach 100% customer satisfaction rate. Our business strives to make our vision
and mission come to life in order to create a highly successful and prosperous business.

Furthermore, Beans ‘n Cream Cafe aspires to reach excellent performance by executing

speedy services to our customers consistently. In terms of speedy services, this includes the
prompt action of the management, operational activities, waiting services and preparation of
dishes. We believe that swift services can increase customer satisfaction and happiness, other
than improving the quality of services offered.

11
Other than that, our cafe sets to attain efficiency in the preparation of food and drinks. The
preparation of our high-quality products must be done in an efficient manner to ensure the
availability of ingredients and supplies in the future. Efficiency ensures the business to reduce
the amount of wastage obtained from preparing our food as it is one of our principles to be
committed to the better of the environment.

Last but not least, the epitome of the business is to reach an 80% increase in profits from
selling our products. This can be determined by the business’s operating margin, gross profit
margin, net profit margin, and return on capital.

5.2 Measuring actual performance

To measure our business performance, we will perform benchmarking and compare our
business with other growing businesses around the world. For instance, Starbucks
Corporation, Dunkin Brands Group.

Other than that, customer satisfaction is a vital component in our performance standards.
Beans ‘n Cream Cafe will evaluate customer satisfaction by obtaining feedback from
customers. For example, any complaints or praises from the customers can be obtained from
the customer service department.

To evaluate our employee performance in the business, our company will be using one of the
employee performance measurement methods, which is the 360-degree feedback. This is
done by obtaining feedback from all staff including peers, subordinates, customers, and
managers. This method is often accurate and represents a multi-perspective view of employee
skills and performance during business operations.

To evaluate the profitability of our cafe, we will be measuring data from the financial
statements. The finance department will analyze our financial performance from the
business’s operating margin, gross profit margin, net profit margin and return on capital. This
allows the business to measure the efficiency and profitability of Beans ‘n Cream Cafe.

5.3 Comparing standards to actual performance

In order to reach the standards of our cafe, we must compare our standards to the actual
performance of the business in a timely manner. The comparison of our actual business
performance and our high standards will reveal if the business is on the right direction. There
will be deviations, but at some point, these deviations may be acceptable. Therefore, our
managers from all levels will ensure that these deviations are constantly at an acceptable
level. By executing this vital step of the controlling process, the business will be able to identify

12
if there are any undesired results, or if the business is improving. From the comparison, our
managers will analyze the business performance and determine if our performance is
corresponding with our standards in order to control and improve the quality of our products
and services.

5.4 Taking corrective action

The process of controlling will not be complete without the final step, which is taking the
corrective action when there is negative deviation or results. When a positive deviation is found
during the comparison process, there will be no corrective action needed. Our managers will
continue to monitor our managers and employees to maintain good results. Meanwhile, when
there is a negative deviation in the business performance, our managers will conduct a
managerial meeting to discuss different ways to take corrective action and improve the
business. There are several effective ways in correcting unsatisfactory activities.

Corrective actions could be in terms of amending or revising some standards that could appear
to be too low or too high. When the business performance does not meet the business
standards, it could mean that the standards set by the organization is ineffective. Our
standards show that the Beans ‘n Cream Cafe is an ambitious and determined organization.
Therefore, our managers will identify standards that need to be improved and revised to
establish a more successful and profitable business. This can be done by making meetings
for brainstorming sessions about how to improve standards of the company.

Next, one of our standards is to reach a zero-complaint approach offered by our employees.
If data from the customer service department only showed that our customers are only 95%
satisfied, we will surely take corrective action in order to reach our organizational goals of
100% customer satisfaction. This can be done by providing incentives to enhance the
performance of our employees so that they will become more motivated and determined to
work effectively. By taking this corrective action, Beans ‘n Cream Cafe will receive happy
customers leading to an improvement of service quality.

Other than that, to ensure the effectiveness of the speedy services by our employees, the
management will offer proper training and sharpen their skills. We need to make sure that
each and every one of our employees are up to bar to complete tasks in order to meet Beans
‘n Cream Cafe’s organizational standards. For example, we will send our staff to attend
training programs, coaching sessions, and interactive methods. The performance of our
employees is vital as it addresses employee weakness and how to improve them. This will
indirectly boost the company profile and attract more customers in the future.

13
6.0 SWOT Analysis

Strengths Weaknesses

 Location  New staff lack training

 High quality ingredients  Higher prices

 A variety of menu

Opportunities Threats

 International branches  Many competitors located nearby

 Growing interests of cafes  Rising prices of ingredients

 Good reputation  Economical factors

Strengths

Location

Beans ‘n Cream Cafe is located in a tourist attraction area. The area is also known for the
numerous coffee shops and unique restaurants around the area. This indirectly causes our
cafe to easily attract more customers on a daily basis and during seasonal holiday time.
People will always visit our coffee shop after a long day of holiday trips for a cup of coffee and
meals.

High quality ingredients

Our coffee shop sells a variety of food such as western food, coffee and tea, pasta, salads,
cakes, cupcakes, chicken and beef pie, and smoothies. Therefore, we will choose the best
quality of ingredients to ensure our customers enjoy high quality meals and beverages. Our
top-notch choice of ingredients is one of the best aspects of our cafe.

14
A variety of menu

Beans ‘n Cream Cafe does not only sell typical recipes and products that can be easily found
at nearby cafes. Our dishes are prepared by highly experienced chefs, added with personal
touches, and assembled in different compelling ways. Therefore, our wide range of menu
attracts people from all over the world.

Weakness

New staff lack training

Our staff is one of the most important components in the business. Some of our employees
have worked with us for years, and some are new to the cafe as they have just been employed.
Compared to our employees who worked longer, our new staff are highly inexperienced as
they lack the common knowledge and skills that need to be applied in order to make our
business a success. New staff often make mistakes and can slow down our process and
operations.

Higher prices

Beans ‘n Cream Cafe offers higher prices compared to the prices set from other cafes and
restaurants. This is due to the fact that our food and beverages are made from high quality
ingredients and prepared by highly experienced chefs. Our prices are calculated accurately,
and the high prices still offer good quality dishes for our customer satisfaction. Hence, other
businesses may offer lower prices and attract more customers as the prices are more
affordable. This clearly shows a weakness for our cafe.

Opportunities

International branches

Beans ‘n Cream Cafe has branched out internationally to Singapore and Indonesia. Therefore,
our cafe has gained a name and created a brand image so that we can be recognized
worldwide. Because of this, it creates more opportunities for our cafe to climb further and reach
to more customers from all over the world. International branches enable us to improve our
operations and menu to suit the taste of our customers locally and internationally besides
gaining profit.

15
Growing interests of cafe

Cafes or pastry shops have been getting attention for the past few years. Cafes are frequently
visited by people of all ages, as these types of coffee shops are always in trend. Because of
this, there are growing interests of cafes not just in Malaysia but all over the world as well. As
stated by CNBC; “the ready-to-drink coffee market is forecast to show 67 percent sales growth
from 2017-2022, according to Mintel. It also said the ready-to-drink coffee market is the fastest
growing segment within the retail coffee market.” Hence, this growing interest is a direct
opportunity for the growth of coffee shops.

Good cafe reputation

Beans ‘n Cream Cafe has gained attention in Malaysia, Singapore and Indonesia. Our cafe
has been known for our good quality products and services. Because of our high standards of
zero complaint approach and menu with localized tastes enjoyed by customers, Beans ‘n
Cream Cafe becomes a recognized cafe in major countries in southeast Asia. We are an
admired cafe locally and internationally. Hence, this leads to more good opportunities in the
future as we have a good cafe reputation and good image from the community.

Threats

Many competitors located nearby

Beans ‘n Cream Cafe is located in a tourist attraction spot. Therefore, there are many other
cafes and restaurants open in the same area to gain profit and attract customers. This leads
to a high competition as many competitors are located nearby. With high competition, it makes
it harder for our cafe to compete and monopoly the market and the overall customers.
Therefore, we consider this as a threat to our cafe in terms of making more profit and gaining
customers.

Rising prices of ingredients

Another threat to the business is the rising prices of ingredients. With our wide variety of foods
and beverages, a rise in prices will cause a significant rise in cost of production and selling
prices. Indirectly, this will create pricing competitions between Beans ‘n Cream Cafe and other
nearby competitors. This is because, customers are more likely to choose a cafe or restaurant
with cheaper prices instead of higher prices. On the other hand, rising ingredient prices will
cause us to lose customers to other cafes nearby.

16
Economical factors

Economical factors can threaten the performance of our business. When the economy is
facing a boom or upturn, food related industries will experience high profits and good
performance. However, when the economy is facing recession or economic downturn, cafes
and restaurants find deterioration more than other food industry related businesses. This is
because cafes and restaurants are considered to be a luxury. Customers will go for more
healthier or money saving choices during troubling times. Therefore, economical factors can
pose a threat to the performance and profit of the business.

17
7.0 Findings and Recommendation

Planning

For strategic planning, the cafe needs to take a look at their marketing strategy. We live in an
era, where technology is at our fingertips. Thus, we should take that advantage to improve our
business. As a recommendation, Beans’ n Cream cafe should create social media accounts
on platforms such as Instagram, Twitter, and Facebook to gain recognition from social media
users. The cafe can also advertise on social media and track the effectiveness of the paid
advertisement by seeing an increase in the number of followers and reservations made.

Next for tactical planning, as a recommendation to attract customers of various ages, the cafe
can take action by providing free Wi-fi for the use of customers. By putting up a Wi-fi sign at
the entrance, it will let people passing by know that the cafe accepts people coming in and
working and that the cafe has enough space for customers to stay for a while. This increases
regular customers because they will come back once they realize it is a good spot for them.

Organizing

Since the cafe implements decentralized organization, it may lead to struggling with multiple
individuals having different opinions when it comes to making decisions related to the
business. This factor can cause the cafe to face difficulties in trying to get everyone on the
same page when making decisions. It is important that the CEO is on the same page as the
managers and keeps track of the decision-making process. This is because the managers
might have a different agenda, which may create a division between the goals the CEO has
to advance and the goals the manager has. As a recommendation, the CEO must not let loose
and give full authority for decisions to the managers and employees as that could backfire.
The CEO must be involved in the decision-making process to ensure that the business does
not deviate from achieving its goals.

Leadership

The leadership approach that is used by managers at the Beans’ n Cream Café is democratic
leadership. Although this is the most suitable leadership style for the company it has its
disadvantages. Democratic leadership often leads to procrastination because they have to get
together to get ideas and it takes time for them to reach a consensus. In cases where there is
an urgency to make a decision, the managers should implement autocratic leadership style.
As autocratic leadership style allows for fast decisions to be made and helps deal with a crisis

18
in the most effective way. The managers will rely on specific rules, policies, and procedures
to make the right decisions.

As for communication, horizontal communication must also be practiced within the

organization. Horizontal communication is the flow of sending information across individuals
and departments on the same level of an organization. By using this communication, it
decreases misunderstanding between departments and allows all the departments to be kept
up to date with current issues within the business. Horizontal communication encourages
teamwork and may increase job satisfaction and motivation through employee empowerment
in communication.

Controlling

Controlling wise, to maintain the cafe’s performance standards, it is recommended that the
organization takes into consideration the most strategic place to expand the cafe’s business.
The cafe’s goal is to expand in other countries. Before opening a new cafe, the organization
must make sure that there is high demand for the cafe to open at that place. A high demand
ensures that there will be consistent customer flow. Not only that, a population base is
important as well. There needs to be enough people in the area to support the business and
to regularly keep the business busy. This leads to a higher revenue for the cafe and gives
more opportunities in the future.

Another recommendation that should be taken into account is a proper and systematic way of
accounting for inventory allocation. An increment of recurrent expenditures could be because
employees misuse stock items. As a cafe manager, always look at past invoices to determine
how often the stock items are being bought. With the information gathered, develop an
automatic ordering system that reorders stock items when they fall below a certain level. This
results in time to focus on other aspects of the business and determines the most popular
dishes and beverages. The cafe can now optimize best-selling products and increase profits
while reducing business costs.

19
8.0 Conclusions

In conclusion, we have learned that management is a process of using the organizational

resources to achieve the organization’s goals by preparing the company's planning,
organizing, leading, and controlling. Through the planning process, we manage to create our
own company vision, mission, and type of planning. Next is the organizing process. In this
process, we determine our company organizational structure, which is the flat organizations
or in other word, flat hierarchy, and separate the units based on functional departmentalization.
Other than that, it is leading process. Through this process, our company is able to identify
the leadership, motivation, and communication approach by the managers towards the
employees, firm and public respectively. Besides, we also apply the wide span of management
control and practice the decentralization locus of decision making throughout the organization.
Last but not least is controlling process. In this process, we can ensure that the monitoring
activities are being accomplished as planned and correcting any significant difference.
Furthermore, we also describe how to control the products or services of our organization such
as performance standards and measuring actual performance. In addition, we also compare
the standards with the actual performance and take a corrective action. Therefore, the process
of planning, organizing, leading, and controlling is needed to be performed in order for the
business to reach the organizational goals.

20
References

 Sven. (2016, December 9). 21 Customer Service Standards That Will Take You
Higher.

Retrieved from https://www.userlike.com/en/blog/customer-service-standards

 RAND Corporation. (2013). Performance Standards for Restaurants: A New

Approach to Addressing the Obesity Epidemic.

Retrieved from
https://www.rand.org/content/dam/rand/pubs/conf_proceedings/CF300/CF313/RAND
_CF313.pdf

 Kappel, M. (2017, March 8). 6 Ways To Measure Small Business Success.

Retrieved from https://www.forbes.com/sites/mikekappel/2017/03/08/6-ways-to-

measure-small-business-success/?sh=15a9ae7d18f4

 FreshBooks. (n.d). How to Measure Business Performance in 3 Steps.

Retrieved from

https://www.freshbooks.com/hub/reports/measure-business-performance

 Vulpen, E.V. (n.d.). 21 Employee Performance Metrics.

Retrieved from https://www.analyticsinhr.com/blog/employee-performance-metrics/

 Corporate Finance Institute. (n.d.). Employee Training and Development.

Retrieved from

https://corporatefinanceinstitute.com/resources/careers/soft-skills/employee-training-
and-development/

 SinglePlatform. (n.d.). The Coffee Industry is Changing: How Will Your Business
Adapt?

Retrieved from https://www.singleplatform.com/blog/restaurant-

industry/trends/coffee-industry-changing-how-will-your-business-adapt/

21
 Brand My Cafe. (n.d.). 4 Tips for Managing a Coffee Shop.
Retrieved from https://blog.brandmycafe.com/4-tips-for-managing-a-coffee-shop/

 Mealey, L. (2019, February 17). 4 Important Factors When Choosing a Location to

Open a Restaurant.
Retrieved from https://www.thebalancesmb.com/choosing-a-location-for-your-
restaurant-2888635

 Staron, L. (n.d.). Strategic Planning Tips for Restaurant Owners and Managers.
Retrieved from
https://www.singleplatform.com/blog/restaurant-marketing-and-advertising/strategic-
planning-tips-for-restaurant-owners-and-managers/

22