Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
To become more efficient in its operations, Tim’s coffee shop should consider changes in its management style, human resource make-up, as well as its marketing and financial strategies. Incorporating technology into these aspects of its operations will greatly improve resource utilization.
Management is a process that enables organizations to achieve objectives through the functions of planning, organizing, staffing, and controlling of their resources (Cole, 1996). In Summary, Tim’s coffee Shoppe has a simple structure of management where overall authority rests with the owner Tim, who is assisted by a Manager and an assistant. Tim’s main duties are the overall running of the business including book keeping as well as staff management. As the lead manager, Tim takes on the role of motivation of employees through the employee of the month scheme. Other staffing roles such as recruitment, selection, and firing are also carried out by Tim. The manager conducts the work of staff appraisal as well as performance management. She is also required to train her subordinates on several issues.
There are several strengths demonstrated in the management structure of the coffee shop. Employees are able to get regular feedback on their performance, as well as acknowledgement on work well done. Performance appraisal helps point out deficiencies and training needs of the employees to management, and enables corrective measures to be taken. Appraisal helps motivate and encourage good performance (Sias, 2009).
Several weaknesses are however presented in the activities of management at Tim’s. There is poor organization by the managers, which has led to low motivation and morale, lack of coordination and control, poor communication, and derisiveness (Cole, 1996). Employees are showing a lack of morale as demonstrated by Michelle who has requested numerous sick days, and...