Tim's Coffee Shoppe Business Analysis and Strategy Plan

Executive Summary

Tim's Coffee Shoppe is a locally owned independent coffee business. A comprehensive market analysis and strategic planning exercise was conducted to determine its market position, as well as any internal or external issues that might be affecting the company's growth potential. An overview of the findings is included in this report, which contains several recommendations: adding a modern point-of-sale (POS) system that can handle order management and accept modern forms of payment (credit and debit processing); a system that could also handle employee scheduling would be a useful added function. It is also recommended that Tim invest some capital into remodeling the customer area as well as cleaning up the storage and break areas. Tim's operations has many points of differentiation compared to its larger competitor, but Tim should more effectively highlight these advantages and take advantage of the opportunities this plan outlines.

Tim's adherence to regulations appears to be mixed. One instance noted was that in the break room, the mandatory employee posters on the bulletin board were covered by random pieces of information. Another potential violation was found in the storage room, where coffee beans are being stored on the same shelf as insecticide. At the same time, records regarding the employees and financial information appear to be in relatively good order.

Regulations and Management

Tim's Coffee Shoppe has not modernized its operations in terms of payment processing and order management. Multiple customers have had incorrect bills, and customer feedback clearly reflects this problem. This is a management issue, and the payment processing and accounting systems could be modernized to improve both operations and customer satisfaction.

Tim should work to clean up and organize both the employee break room and the storage room to ensure compliance with human resource laws and regulations, as well as safety and sanitary requirements. Although adequate documentation exists for record keeping, the process could be modernized to make it easier and more accurate — particularly through a POS system that includes credit and debit processing. Federal laws such as the Fair Labor Standards Act, the Occupational Safety and Health Act, the Americans with Disabilities Act, and Title VII of the Civil Rights Act all carry implications for Tim's day-to-day operations. State-level workplace regulations add an additional layer of compliance requirements that Tim must also address.

The coffee shop has two full-time employees and eight part-time employees. Most employees appear to be content with their positions overall. However, a couple of employees are unhappy, and one is even considering leaving for the competition. The employee-of-the-month program seems popular, though some employees feel it may have been awarded to one person more than others. Additional problems include dependability issues and employees switching shifts without notifying management.

HR Analysis

The assistant store manager seems competent overall but has received multiple warnings regarding his conduct with customers. The warnings appear to be improving his performance. However, some of his issues seem related to his compensation, and he has voiced complaints about it.

The assistant manager is perhaps the most significant cause for concern, given that he is a full-time employee in a leadership role who has received multiple warnings regarding his treatment of customers. While he appears to be a valuable employee overall, he likely needs additional training to improve his customer service skills. Another possibility would be to offer managers some form of performance-based incentives, or to negotiate revised salaries, in order to support their continued professional development.

Providing fair and equitable compensation can serve as the backbone of an effective human resources policy that creates high levels of employee satisfaction and reduces turnover. Research has indicated that an equity-based compensation system, a performance appraisal system, effective career planning, and robust employee participation in organizational decisions are among the key strategic HR practices that influence organizational performance (Jimoh and Danlami 2011).