Chapter I

INTRODUCTION

Numerous cafes have been trending in the Philippines nowadays. Each cafe has

its own style of presenting products and services to the customers. One reason is that food

in the cafe brings the consumers delightful experience and brings satisfaction. Such

business must focus on good ambience of cafe, quality of food and services, and good

relationship with the customers. Just like any other business, there is competition.

According to Euromonitor's International (2018), the latest market trends should

be discovered and sources of future market growth for the cafe industry in Philippines

should be uncovered. The strengths of cafes and bars include keeping appearance,

ambiance, and the range of offerings and products being offered, as most stores shortly

adapt to altering client tastes and practices. The food service enterprise recognizes

millennial as a rising purchaser crew and cafes and bars have been addressing their

wishes for some time.

Cafes are often what people refer to as a third place. It is a place to be when not

home or at work. The cafe businesses have perform well. Each of them makes different

competencies explored by researches in terms of leadership effectiveness, workforce

capability, organizational structure, operational performance, customer satisfaction, and

innovation. Learning those topics can be simply obtained. Business improvement should
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be proposed as an output. In any case, knowing the core competencies is not easy to

acquire because they are within the mind of the business.

Background of the Study.

Butter and Coffee Cafe with the tagline “all day breakfast” was founded on

October 15,2016 by sole proprietor. It is located at Enverga Corner Osmeña St. Barangay

3, Lucena City. The cafe was established two years ago. This business is a head turner

because of its classy design and relaxing atmosphere. Good interior make the cafe looks

expensive and it is all day breakfast inspired an oasis of quality when it comes to food.

Staffs are friendly and accommodating. They do great coffee and desserts. Chefs and

crews are coming from the best schools in the country the outcome of their services are

worth to trying. They serve truly delicious clean menus.

The researchers chose the Butter and Coffee Cafe because one of the researchers

has a friend who works as a chef in the cafe. Also the researchers think it was an ideal

subject for their research, which aimed to get into details regarding the core competencies

and sales performance of the cafe for the past two years of operation. With this, the

researchers tried knowing how to achieve core competencies and increase the sales

performance by minimizing or totally avoiding problems that hinder these processes.

Objectives of the study

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The main objective of the study was to know the core competencies and

management growth of Butter and Coffee Cafe in Lucena City. Specifically, it aimed to

achieve the following:

1. To determine the business profile of Butter and Coffee Cafe in terms of:

1.1 Historical Background

1.2 Organizational Structure

1.3 Technical Structure

2 To determine the profile of the respondents in Butter and Coffee Cafe in terms of:

2.1 Employees Demography

2.2 Customer Demography

3. To determine the core competencies of Butter and Coffee Cafe as perceived by the

employees in terms of:

3.1 Leadership Effectiveness

3.2 Workforce Capability

3.3 Organizational Structure

4. To determine the core competencies of Butter and Coffee Cafe as perceived by the

customers in terms of:

4.1 Operational Performance

4.2 Customer Satisfaction

4.3 Innovation

5. To determine the management growth of Butter and Coffee Cafe in terms of:

5.1 Sales Performance

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5.2 Varieties of Product Offerings

5.3 Number of Customers

6. To propose enhancement on the core competencies and management growth of Butter

and Coffee Café.

Significance of the Study

The documented study of core competencies and management growth of Butter

and Coffee Cafe in Lucena City is beneficial to the following:

To the researchers, this study has been essential because of the knowledge they

obtained. They were able to provide information to the owner and management to help

them in evaluate aspects of their business to be improved.

To Butter and Coffee Cafe owners, the study will serve as a source of

information about the cafe’s leadership effectiveness, workforce capability,

organizational structure, operational performance, customer satisfaction, sales

performance, varieties of product offerings and number of customers as perceived by the

employees and the customers. This may determine areas of improvement to attain

competitive advantage.

To Butter and Coffee Cafe employees, this will further encourage them improve

the competence of the cafe through their performance.

To future entrepreneurs, the study will also serve as a guide for them who will be

venture in the same kind of business.

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To future researchers, the result of the study can help them conduct parallel and

further studies.

Scope and Limitation

The study focused on the core competencies and management growth of Butter

and Coffee Cafe. It was determined using the business profile of the company which

helped the researchers become familiar to the business and to the customers. The study

also proposed an enhancement on the core competencies and management growth of

Butter and Coffee Cafe.

Specifically, the researchers used a structured questionnaire that focused on

classifying the profile of the respondents in Butter and Coffee Cafe, including the

perceived leadership effectiveness, workforce capability, organizational structure,

operational performance, customer satisfaction, sales performance, varieties of product

offerings and number of customers.

Definition of Terms

The following terms are operationally and conceptually defined to provide

readers better understanding of the study.

Cafe is a coffee house that serves foods and beverages.

Competence is an activity that Butter and Coffee Cafe perform well.

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Competitive advantage refers to the method of company focused on goal setting and

decision making that leads them to success.

Competitor is the one that competes and offers the same products as Butter and Coffee

Cafe.

Consumer buying behavior refers to the ultimate consumers’ characteristics and the

factors that influence them in decision making process.

Core competencies are defined as set of skills, talents and activities in which Butter and

Coffee Cafe is particularly strong.

Customer is a person who buys and the recipient of the product rational attainment,

occupation.

Customer satisfaction indicates the fulfillment that customers derive from doing

business with a firm. In other words, it is how happy the customers are with their

transaction and overall experience in the company.

Innovate means to have new ideas how something can be done.

Innovation refers to the overall process whereby an invention is transformed into a

profitable product that can be sold profitably.

Leadership effectiveness is required at every level of business and the leaders is the one

who possesses outstanding skills.

Operational performance is Butter and Coffee Cafe’s performance measured against

prescribed standard of effectiveness, efficiency, and environmental responsibility

such as compliance with productivity, regulations, etc.

Operational Performance Management (OPM) is the alignment of all business units

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within an organization to ensure that they are working together to achieve core

business goals.

Organizational structures is a formal system of task and authority relationships that

controls how people cooperate and use resources to achieve goals.

Sales performance is the practice of monitoring and guiding personnel to improve the

ability to sell products or services of Butter and Coffee Cafe.

Technical structure refers to company’s location itself and the buildings including

layouts.

Variety of product refers to the assortment of products being offered to satisfy various

customer desires.

Workforce capability is the ability to accomplish a company’s work processes through

the knowledge, skills, abilities, and competencies of its people.