Principles Of Management – Student Kit Page 6

Principles of Management (BCBS001) – STUDENT KIT Page 6

Design a comprehensive management report based on starting a business, covering aspects such as business description, mission statement, environmental influences, planning strategies including SMART goals and competitive forces, growth strategies, organizational structure, leadership skills, control methods, ethics and social responsibility, and report formatting requirements.

Paper For Above instruction

Starting a new business involves careful planning, strategic management, and ethical considerations to ensure its success and sustainability. As an aspiring entrepreneur, I have decided to establish a café that offers healthy, organic food and beverages tailored to health-conscious consumers. The business will be named "Pure Bliss Café," strategically located in a suburban shopping mall with high foot traffic, catering primarily to young professionals, students, and families seeking nutritious dining options.

Introduction

The core offerings of Pure Bliss Café will include organic smoothies, salads, wraps, and coffee brewed with organic beans. The ambiance will be modern yet cozy, emphasizing health and wellness. The location in a bustling mall will provide visibility and accessibility, attracting a diverse customer base eager for wholesome food options. The target market includes health-conscious individuals and those with dietary restrictions seeking quality and convenience.

Mission Statement

Pure Bliss Café’s mission is to provide delicious, healthy, and organic food options in a welcoming environment, promoting wellness and sustainable lifestyles for our community. We aim to set new standards in nutritious dining while maintaining exceptional customer service and environmental responsibility.

Environmental Dimensions Affecting the Business

Two general environmental dimensions that could influence Pure Bliss Café are:

  • Economic Environment: Fluctuations in disposable income levels or economic downturns can impact customer spending on dining out. For example, during a recession, consumers may cut back on discretionary spending, including eating out at cafes.
  • Legal and Regulatory Environment: Food safety regulations, health standards, and labeling laws directly affect operations. An example would be compliance with the local health department’s standards for organic food labeling, which ensures trust and legal compliance.

Planning

SMART Goals

The SMART framework guides effective goal setting by ensuring objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, our goal could be: "Increase daily customer visits by 20% within six months through targeted marketing efforts."

Competitive Forces from Porter’s Five Forces

  • Threat of New Entrants: The food industry has low barriers to entry, which can lead to increased competition. For example, new organic cafes opening nearby could attract potential customers, challenging our market share.
  • Bargaining Power of Suppliers: Suppliers of organic produce may exert influence on prices and availability. For example, limited providers of certified organic ingredients may result in higher procurement costs, impacting profit margins.

Growth Strategy

An example growth strategy suitable for Pure Bliss Café is Market Penetration, aiming to increase market share within the existing geographical area. This could be achieved through promotional discounts, loyalty programs, and partnerships with local gyms and wellness centers. Two supportive examples include offering a loyalty card to encourage repeat customers and collaborating with fitness centers to attract health-conscious patrons.

Organizing

Departmentalization Approach

Functional departmentalization will be adopted, dividing the business into departments such as Kitchen, Customer Service, Marketing, and Purchasing. This approach allows specialization, efficiency, and clearer accountability. For example, the Kitchen team will focus solely on food preparation, ensuring consistency and quality, while Marketing manages promotional activities to increase brand awareness.

Organizational Chart

[A diagram illustrating the organizational structure: Owner at the top; beneath, departmental managers for Kitchen, Marketing, Customer Service, and Purchasing, each with relevant staff under them.]

Leading Skills

  1. Effective Communication: Managers should clearly convey expectations, listen actively, and provide constructive feedback. For instance, during staff meetings, transparent communication about promotions or operational changes keeps the team aligned and motivated.
  2. Motivational Leadership: Inspiring staff through recognition and encouragement fosters a positive work environment. An example would be rewarding employee of the month to boost morale and productivity.

Controlling

Scope of Control

The scope chosen is Inventory Management. Controlling this area ensures the freshness of ingredients, minimizes wastage, and maintains profitability. Food spoilage or overstocking can significantly impact costs; hence, monitoring stock levels and quality is critical.

Control Methods (Timing Controls)

  1. Pre-Control: Conducting supplier audits before procurement to ensure ingredient quality and adherence to organic standards. Example: Reviewing supplier certifications prior to purchase.
  2. Concurrent Control: Monitoring daily stock usage to detect wastage early. Example: Daily inventory checks during closing hours to address spoilage issues.
  3. Feedback Control: Evaluating monthly sales and wastage reports to adjust采购计划 and menu offerings accordingly. Example: Reducing ingredient orders for underperforming menu items based on sales data.

Ethics & Social Responsibility

One critical CSR area for Pure Bliss Café is Environmental Sustainability. This includes sourcing organic ingredients ethically, reducing plastic waste, and implementing recycling programs. An example would be using biodegradable takeout containers and partnering with local organic farmers to support sustainable agriculture.

Report Formatting

The report will be structured with a cover page, table of contents, properly numbered pages, headings, and well-organized paragraphs. The presentation reflects professionalism and adherence to academic standards, ensuring clarity and coherence throughout.

Conclusion

Launching Pure Bliss Café involves strategic planning in all management functions—planning, organizing, leading, controlling, and embracing social responsibility. By aligning business goals with environmental awareness and operational excellence, the venture can achieve sustainable growth, meet customer expectations, and contribute positively to society.

References

  • Chong, S., & Lee, T. (2020). Principles of Management. Singapore: Temasek Polytechnic Publishing.
  • Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78-93.
  • Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
  • Robinson, P., & Dechant, K. (2021). Sustainable Business and Ethical Management. Journal of Business Ethics, 164, 743-757.
  • Investopedia. (2022). Organic Food: Everything You Need to Know. Retrieved from https://www.investopedia.com/terms/o/organic-food.asp
  • Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman Publishing.
  • Yukl, G. (2010). Leadership in Organizations (7th Edition). Pearson Education.
  • Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
  • European Food Safety Authority. (2020). Organic Food and Farming in the EU. EFSA Journal, 18, 6253.
  • World Resources Institute. (2019). Sustainable Food Systems: A Guide for Business. WRI Publications.

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