Café Direct is a trading organization that aims to provide the growers of tea, coffee beans and cocoa with a larger size of the purchase price of the concerned products. The Café Direct has been one of the first brands to bear the Fairtrade Certification mark. The following essay deals with the challenges faced by Café Direct according to the given case study. The essay proceeds further to put forth three recommendations that the concern might need to address in the current scenario. The essay proceeds towards the conclusion with the explanation of the reasons that underlie the suggested recommendations.
According to the SWOT analysis based on the given case study, Café Direct faces challenges due to the increase in the number of the private label products that exist in the market (Please refer to the Appendix I). The brand faces an issue with the major relaunches that it had undergone twice since its inception. This step was undertaken by the concerned company in order to attract more clients to the company by relaunching the brand. The company might also face challenges in the current global market due to the fact that the company deals only in the hot drinks like coffee, tea and other beverages. The competitors of the company in the market are found to have been offering their customers with the variations in the beverages that they have been offering to the clients. The global competitors like Starbucks, Greggs or Costa do have an upper hand in the matters pertaining to the various versions of the beverages that they are capable of providing to the concerned clients. This might lead to the decrease in the client base of the company in discussion, Café Direct. The concerned organization also faces a negativity in the financial position during the end of the year 2016. It faces the challenge of being stuck in the negative equity by the year 2020.
In order to cope with the challenges, the company might need to undertake certain steps. The company might put forth the advertisements of the products that it aims to sale to the potential clients. The clients must be made aware of the various products that the company aims to provide them with. The concerned management must attempt to introduce the various products to the potential consumers of the company. The company is known for the various types of the organic coffee blends that they provide to their consumers. The company is known to have observed the various ethical issues that are involved in the marketing of the same. The criticism concerned management of the organization might invest in the various methods of advertising in order to allow the potential consumers to have a sound knowledge of the products that they offer. The company does not own retail stores wherein the consumers might visit in order to procure the products. The company must focus on establishing partnerships with the other organizations and shops that might help them to increase their potential client base.
The other challenge faced by the company in discussion, Café Direct is the fact that the company provides its customers with only the hot beverages unlike the other competitors of the company. In order to resolve this issue, the company might conduct a survey of the concerned client base. This might help the concerned company to form a better understanding of the demands and the needs of the clients. The understanding of the client needs might help the concerned company to launch the products that would best suit the needs of the clients. The company might try to add value to the various products that they aim to introduce to the existing as well as the potential customers of the company. In order to do so the company might conduct the needed surveys over the various platforms. The concerned management might introduce the creativity in the manufacture of the products that the company might plan on launching in the concerned market. The company might also help the potential clients to have a slight hint on the upcoming products. This might help in building the anticipation of the clients as well as opens an avenue for them to put in their suggestions on the issue.
The third challenge that the company has been facing is the fact that the company has been functioning in the negative financial condition by the end of the year 2016 and might be stuck at the same area till the year 2020. In order to recover from this situation, the concerned management might attempt to consider the reviewing of the measurements of the financial performances of the company. These financial measurements might help the concerned management to gain insight into the facts pertaining to the coverage of the production cost, alignment of the overhead costs with the sales profit, the capability of the concerned company to sustain the operations based on the profits that they earn. The concerned management of the company must tend to focus on the operations of all the departments that has been functioning within the organization. It is advisable to develop the entire system of the organization in a systematic fashion from the initial days of the company. The early investment in the infrastructure might help the concerned organization to deal with the problems that the concern might face in the later stages of its journey. The concerned management of the concern is advised to conduct an assessment of the employees at regular intervals in order to keep them motivated towards the betterment of the company. The concerned management of the concern is also advised to apply the appropriate strategies that might help them in the improvement of the financial performance of the company.
Thus, from the above discussion it might clearly be observed that the company in discussion needs to implement a few changes in the management and the operations of the company in order to recover from the challenges that it is observed to have been facing. The essay puts forth recommendations that might help the management of the company in the recovery of the state of Café Direct.
The company that aims at introducing changes in the operations might face a few challenges during the process of the implementation of the changes. The following essay deals with the various challenges that Café Direct might face during the implementation of the recommendations that are stated above.
The company is recommended to advertise for the products that it might aim to launch in the concerned market. The company might face a number of challenges in the activity of advertisements for the products. The company should take care of the fact that the advertisement that it aims to air for the concerned products reaches the potential target customers during the time that might dedicate to the entertainment media wherein the company might be advertising.
The company might also face challenges in the matters pertaining to the launch of the new products in the market. The challenges in this field might be present in the form of the similar products that are already present in the target market that the concerned organization aims to capture. The already existent products in the market might prove to be a hindrance for the concerned organization in the launch of the new products.
The concerned company, Café Direct might also face some challenges in the matters that deal with the improvement in the financial conditions that the concern has been facing. The existing staff of the organization might not accept the changes that the concerned management implements in order to boost the financial performance of the company. The management of the concern might also face opposition from the clients in the matters that pertain to the hike of the prices in the products that have already been present in the market.
Thus, from the above discussion it might be concluded that the concerned company might face issues in the implementation of the afore-mentioned recommendations in the various fields related to the same.
Café Direct Consultancy
Accor Hotels is a French group of multinational hotels that has been operational in over 90 countries all over the world. The chain of hotels is headquartered at Paris, France and is being headed by the current CEO, Sebastien Bazin. Café Direct is recommended to respond to the proposal laid by the Accor Hotels in a positive tone and accept the offer. The following essay aims at viewing the challenges that might be faced by the company in discussion, Accor Hotels. The essay also takes into account the potential suppliers at the Sunshine Co-operative and the River Co-operative. The essay also aims to provide recommendations based on the proposal that has been extended by the multinational hotel chain, Accor Hotels.
The merger of the organizations, Café Direct and Accor Hotels, do at the initial instance seem to be a fruitful one. However, on close introspection it might be found that the concerned merger has some challenges for Café Direct as well. The company in discussion, Café Direct, has currently been facing some limitations in the operational capacity of the concern. The company has been facing a lack sufficient working capital in the recent times. The average unit retail or the AUR has been observed to be increasing over the time period of 2010-2012 which has led to the decrease in the return of sales or the ROS during the same time period. The liquidity of the assets of the concerned company are observed to be continuously fluctuating, however they have not been observed to enter in to the negative realms.
The commitment towards the proposed merger with the Accor Hotels demands a huge time period from the concerned company, Café Direct. The cash reserves and the long term as well as the current assets of the company have been observed to have gone through a huge drop over the last six years. There has also been observed a drop in the investment income of over 90% over the same time period. The merger might also jeopardize the goodwill that has been created by Café Direct over the long duration of time since the inception of the company. The offer that has been extended by the Accor Hotels tend to demand a great amount of organic coffee that might not be possible for Café Direct to produce independently. There might also arise discrepancies between the pricing strategy of both the organizations.
The pricing strategy of Café Direct is based on the minimum pricing strategy while that of Accor Hotels is based on the pressure pricing strategy. The major concern that might be faced by the concerned company is the request on the part of Accor Hotels for the reduction in the prices of the organic coffee that is to be supplied by Café Direct based on the huge volumes of the supply. This might prove to be a hindrance in the merger due to the lowering of the rate of the profit that Café Direct had been expecting from the deal. This would in turn affect the growers of the organic coffee which would be vehemently against the ethical principles that are followed by Café Direct. The merger of Café Direct with Accor Hotels might lead to the loss of the brand uniqueness of the former. This might render Café Direct to lose its own identity as a separate brand and instead be recognized as a mere supplier to an internationally acknowledged chain of multinational hotels.
The company in discussion, Café Direct, is advised to accept the assistance from both the co-operatives for the initial two years in order to meet the demands of the multinational chain of hotels, Accor Hotels. The company in discussion, Café Direct must confirm with the River Co-operative regarding the matters that pertain to the illegal activities that are associated with the procurement of the cocoa leaves and the global issue of child labor. The company should confirm with these details as these pertain to the ethical standards that are maintained by the concerned company. The River Co-operative demonstrates a larger capacity of the production and have been currently involved in the process of the production. However, the quality of the product that is delivered by the company since there have been past cases wherein the delivered products that the company have been rejected. The River Co-operative, despite the shortcomings in the quality of the product, might boast of having good storage facilities. The figures of the co-operative that reveal the productions of the organic coffee demonstrate discrepancies that might lead to risking the reputation that might have been built by Café Direct.
The Sunshine Co-operative might initially need the investments on the part of Café Direct in the core area that might need improvements. The collaboration of Sunshine Co-operative and Café Direct might prove to be beneficial for both the companies in the due course of time. The collaboration with the Sunshine Co-operative might provide with greater scope for the expansion in the organic production of the coffee beans. The collaboration might also help Café Direct to bring about an improvement in the corporate social performance of the organization on the successful restoration of the needed stability in the field of finance. This collaboration might also help Café Direct with the continuation of the investment that the company extends towards the farmers who intend to put forth the efforts that are needed to produce the organic coffee.
In conclusion to the above essay it might be said that the proposal extended by the Accor Hotels towards Café Direct should be accepted by the concerned organization. the organization might also consider the collaboration with the River Co-operative and the Sunshine Co-operative in order to be able to deliver to the needs and demands of the multinational chain of hotels in the matters pertaining to the sale of organic coffee. The company in discussion is observe to have a bright prospective in the matters that pertain to the worldwide supply and recognition of the organic coffee that the company provides to its client base. Thus, considering all aspects of the situation, it is recommendable for Café Direct to accept the proposal extended by Accor Hotels.
The following essay deals with the various advantages and disadvantages of the use of the case studies in the exploration of the management issues that are faced by the organizations discussed in the concerned case studies.
The advantages of using the case studies in the exploration of the management issues in the concerned company is the fact that the case studies might involve the narrative techniques that might help the concerned reader to understand the scenario in a better manner even in the cases where the concerned reader might not have sound knowledge on the given topic. The case studies put forth the problems faced by the concerned company in a descriptive manner which helps the reader to understand the current situation of the company in a better manner. The case study approach helps the concerned company to put forth the various types of information regarding the problems that it might have been facing. This helps the readers of the concerned case study to explore the ideas that are presented within the case study and build on the theories on the given programs or the given dynamics involved in the project.
The case study approaches towards the exploration of the various management issues in the organizations have several disadvantages too. The experts in the field suggest that the case studies often tend to be unreliable and qualitative. The case studies generally relate to the various single projects or a small group of projects. The results of the case studies, however, might not reflect the overall performance of the concerned organization. The case study approach has another great disadvantage. The case study approach loses in on the external validity and gains in the internal validity as the findings of the case study might only be valid in the cases that are similar to the case study in discussion.
Thus, from the above discussion it might clearly be pointed out that the case study approach towards the exploration of the management issues might display a huge range of the disadvantages despite being advantageous in certain contexts.
The ALE activities comprise of the composition of a series of essays that might help the readers to form a better understanding of the case studies based on the trading organization, Café Direct. The following essay aims at pointing out the ways in which the ALE activities have assisted the researchers in examining the various theories, models and the concepts that have been dealt with in the duration of the course. The essay proceeds further to explain the ways in which I might be able to apply the acquired knowledge in the context of the work that I might take up in the future days to come. The essay finally nears its conclusion with the areas in the module that I might require to improve in prior to taking the exams. The essay also puts forth the ways in which I aim to approach these needs.
The ALE activities comprising of the essay series based on a certain condition that arose in the trading company of Café Direct has helped me to study the major functionalities of the organization based on the various organizations and the employees who have been working in the concerned organization. The case study approach towards the solutions of the various problems faced by the concerned organization might help the readers of the case study to develop a better understanding of the major areas wherein the concerned organization might face the problems. The identification of the problems plays a major role in the solution to the given problem that has been identified in the given case study. The case study approaches also help the students and the other researchers to put forth a clear understanding of the management of the financial performance of the organization as well as the financial resources that have been available to the concerned organization. The case study approach has also helped me to form a clear understanding of the concepts of marketing that have been put forth in the given case study. In the composition of this assignment, the activities that I had undertaken deal with the understanding of the present scenario at the trading company of Café Direct and providing recommendations as to whether the concerned trading company, Café Direct, should accept the proposal that was put forth by the French multinational chain of hotels, Accor Hotels.
The ALE activities might help me in my future work career in the analysis of the situations that might arise within an organization. The activities that I had undertaken in order to provide a complete solution to the given case study might help me in solving the various real-life situations that I might face in the future. The ALE activities have also helped me to integrate the matters that I have studied during the course and thus incorporate the matters of the study into the understanding that I have developed. The ALE activities have also helped me to develop a clear understanding of the ways to solve a given problem and to draw upon the creative thinking regarding a situation in order to develop a solution to the incurred problem. The activities have also helped me to hone the abilities to explore and recognize the various ethical dilemmas and the challenges that are associated with the choice, situations and the values that are associated with the organization that is being discussed in the given case study. The case study that had been considered in the composition of the above document deals with the current financial condition of the trading company, Café Direct. The case study also deals with providing recommendations to the company on the proposed collaboration with the Accor Hotels as a supplier of organic coffee.
The area that I need to prioritize before taking the exams in the concerned subject is the area that pertains to the understanding of the ways that might help in the analysis of the financial condition of the organizations and the development of the ability to put forth the suggestions and recommendations regarding the same. I would like to take the help of my tutor and the other fellow students in order to improve my skills in the concerned field. I would like to consult the concerned educator on the area where I might not be competent enough, thereby developing the needed skills in the given fields.
In conclusion to the above essay I would like to point out the fact that the ALE activities have helped me to learn a lot about the key areas of the functionality in the various organizations and the management of the situations that might arise in the given organizations. The ALE activities have also helped me to obtain a clear understanding of the management of the financial resources of the organization and the financial resources of the concerned organization.
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