Tim’s Coffee Shoppe, which is a business entity conducting its operations in Illinois is, as far as is observable, highly compliant with the wide variety of both federal and state regulations that govern the operations of restaurants within the state. Compliance with the relevant laws governing an industry is fundamental to any entity’s operations since it ensures that the business does not have run-ins with law enforcement while also helping to protect the consumers since they have an assurance that whatever is consumed at the establishment is safe because no shortcuts have been used during preparation. One state law affecting the establishment’s operations is the Food Handling Regulation Enforcement Act, which necessitates that the operational supervisor of any establishment dealing in food service be an individual trained and certified in food service sanitation. This requirement means that Tim, who supervises operations at the Shoppe must possess these requirements or else he may be stopped from doing business.
The OSHA is one federal law that may affect the entity’s operations and one example of a provision affecting operations would be the one barring the operation of heavy machinery like forklifts by individuals aged below 18. Consequently, Tim must be careful with his recruitment to avoid the occurrence of such an issue. Another relevant federal law is the Fair Labor Standards Act, which relates to employee working conditions relating to financial issues like tips, overtimes, and minimum wages. The third federal legislation is the FICA, which relates to the reporting of tax obligations for tipped staff. Tim may need to be conversant with the provisions of this law since accurate following of reporting rules may entitle him to claim Tax Credits for tips. Finally, the RICO (Racketeer Influenced Corrupt Organizations) Act is another law that a restaurateur such as Tim should be aware of since he may be sued for employing illegal immigrants who have been trafficked into the country by criminal entities. Illegal immigrant employment in the hospitality industry is rather rampant.
Management area
Management is a term used to refer to the process that facilitates the achievement of organizational objectives through the performance of the planning, staffing, controlling, and organizing functions. The managerial structure of Tim’s Shoppe is highly simplified with overall authority being in the hands of the owner, Tim with an assistant manager named Darrryl and a supervisor, Elena, ranking below Tim. How
One strength of the managerial element of the business is that the lean structure enables faster decision-making because there is less bureaucracy. The faster decision-making also makes it much easier to implement changes in the organization thus making the entity highly flexible in this regard. Another strength of Tim’s Shoppe is that the entity provides its clients with live entertainment, which helps to draw clients to the place and is thus a source of competitive advantage.
However, the business has some significant weaknesses with perhaps the most apparent being the low uptake of technology, which makes the entity less efficient. The second weakness is that there is the absence of alternative payment options for the clients, which may potentially discourage clients who prefer not to carry cash.
Action items
The introduction of a vision statement for the entity is a necessary measure for the entity. A vision statement usually provides a description of the entity’s future goals and basically states where the organization seeks to be in the future. A suggested vision statement for Tim’s should be “To establish ourselves as the coffee shop of choice in Illinois region, offering a place to connect with premium service and offerings.”
Short-term goals
1. Adopt technology in both the management and operations segments of the workplace
2. Conduct employee training to improve performance
3. Introduction of free Wi-Fi as an additional benefit for customers at they enjoy their coffee
Long-term goals
1. Expand operations by opening up new branches
2. Improving the environmental friendliness of the entity by going completely paperless
3. Making the workforce more diverse by employing physically challenged individuals
HR Analysis
Summary
From the observations and employee feedback, it is evident that the work environment at Tim’s Shoppe is generally satisfying although several improvements are possible. The organization’s workforce, while sufficient at present may need improvement in terms of diversity since at present it does not include persons with disabilities. Besides this, there may be potential problems with employee motivation as evidenced by the complaint raised by the assistant manager about her remuneration and another staff member about opportunities for career advancement. The management of HR records, which is done manually at present, is another key area of concern that may require an improvement.
Action items
Digitization of HR functions- In the modern day, digitization, which refers to the conversion of information from manual records to digital forms is a critical function in any organization. At present, Tim’s Shoppe employs manual record keeping with regard to HR functions such as clocking in of employees while employee records are also kept in physical files. However, the maintenance of manual records is very expensive and time consuming, which is why it is imperative for Tim’s to move to digitized records. HR digitization enables the faster data processing and quicker retrieval of records thus boosting the operational effectiveness of the entity (Larkin, 2017). Thus, by adopting digitized record keeping Tim can make the café more efficient which improving organizational performance. Besides this, digitization will reduce storage costs for HR data thus reducing organizational expenses and contributing to higher profits.
Job responsibility and customer service training- According to the feedback from customer surveys, it is evident that Tim’s Shoppe has an inconsistent service level with ratings varying from terrific to poor. Service quality is integral to the creation of customer loyalty, which is regarded as the integral factor in the development of competitive advantage and the achievement of long-term success and profitability (Yap, Ramayah, " Shahidan, 2012). Hence, by investing in staff responsibility and customer service training, Tim can ensure the provision of consistently excellent service that will ensure customers keep returning.
Marketing Analysis
Summary
Tim’s primary advertising strategy is via word of mouth, which is characterized by a reliance on satisfied customers to spread the word. However, the business could benefit from internet, radio, and flyer advertising media. Additionally, Tim can offer monthly or daily specials, which would help to complement the external advertisement. The establishment of a monthly talent show, advertised using fliers, whereby upcoming artistes would be given a chance to perform may also help to draw an audience thus increasing the client base and marketing the entity even further.
Action items
Strengths: The business is already rather well-known in the community and is thus established. The entity’s partnership with other local businesses like Jenna’s bakery from which it sources freshly baked products also boosts Tim’s popularity. Another strength is the provision of live entertainment, which helps to distinguish Tim’s from the competitors.
Weaknesses: Outdated technology is the biggest weakness as evidenced by the use of obsolete computers plus the absence of Wi-Fi, electronic cash registers, and alterative payment platforms. Sticking to traditional methods reduces organizational effectiveness and drives away potential clients who do not prefer cash payments.
Opportunities: The availability of a coffee shop that has been put up for sale provides a chance for expansion, which could help to boost market share.
Threats: The low entry barriers in this industry mean that large franchises, food stores, and even internet cafés may prove to be potential competitors. Increased rivalry would eat into Tim’s market share thus reducing profitability.
Economic Environment
Summary: At present, Tim’s is doing quite well and is operating profitably albeit with very high operating expenses, which eat significantly into business profits. From the customer surveys, it is evident that Tim’s pricing is fair, which is vital to survival in the prevailing economic downturn.
Action Items
The reduction of the operating expenses through the implementation of technology is the first measure Tim should take. Besides this, the company balance sheet shows that Tim’s is holding a very large amount in cash, which he should use to settle the long-term loan thus eliminating the interest payments which are eating into his profits.
