PRINCIPLE OF MANAGEMENT REPORT – GROUP 3

GROUP ASSIGNMENT
COVER SHEET

STUDENT DETAILS

Student name: Tiêu Tâm Như Student ID number: 31221020759

Student name: Lê Nguyễn Như Quỳnh Student ID number: 31221026340

Student name: Trần Bích Ngân Student ID number: 31221021132

Student name: Nguyễn Thanh Ngọc Student ID number: 31221021137

Student name: Lý Nguyễn Tuyết Mai Student ID number: 31221021009

Student name: Phan Ngọc Khánh Linh Student ID number: 31221021120

UNIT AND TUTORIAL DETAILS

Unit name: Principle of Management Unit number: PM-DH48ISB-5

Tutorial/Lecture: Class day and time: Monday, 8AM-10AM
Lecturer or Tutor name: Mr. La Anh Duc
ASSIGNMENT DETAILS

Title: GROUP REPORT – COFFE SHOP

Length: 21 pages Due date: 30/12/2022 Date submitted: 30/12/2022

DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s work
or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs
for the purpose of detecting possible plagiarism (which may retain a copy on its database for future
plagiarism checking).

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Student’s signature: Tieu Tam Nhu

Student’s signature: Nhu Quynh
Student’s signature: Bich Ngan
Student’s signature: Thanh Ngoc
Student’s signature: Tuyet Mai
Student’s signature: Khanh Linh
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has
not been signed.

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PRINCIPLE OF MANAGEMENT REPORT – GROUP 3

PRINCIPLES OF MANAGEMENT
PM-DH48ISB-5

GROUP REPORT:
COFFEE SHOP

Lecturer: Mr. La Anh Duc

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PRINCIPLE OF MANAGEMENT REPORT – GROUP 3

Prepared by:

Tiêu Tâm Như : 31221020759

Lê Nguyễn Như Quỳnh: 31221026340
Trần Bích Ngân: 31221021132
Nguyễn Thanh Ngọc: 31221021137
Lý Nguyễn Tuyết Mai: 31221021009
Phan Ngọc Khánh Linh: 31221021120

RELEASE DATE: August 30th, 2022.

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TABLE OF CONTENTS

I. INTRODUCTION

1.1. Company’s story – mission 6

1.2. Type of business structure 6

1.3. Problem statement 7

1.4. Research objectives 7

II. CONCEPTUAL KNOWLEDGE REVIEW

2.1. Partnership 7

III. SOLUTIONS RESPONSE TO THE MULTIPLE BUSINESS LOCATIONS

3.1. How to keep in touch? 8

3.1.1. CEO’s coordination and control. 11

3.1.2. Draw an updated organization chart and explain. 12

3.2. Issues and problems the company have to deal with through organization structure.15

3.2.1. Draw an organization chart. 16

IV. CONCLUSION AND REFERENCES LIST 19

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I. INTRODUCTION

1.1. Company’s story - mission

“Quán này có ổ điện” was founded in 2022, its roots can be found in this community's love

of Vietnam, coffee, and food. Every Vietnamese person has a strong sense of belonging to their

community.

Our mission has always been to strengthen bonds of attachment and service within the

community to support and contribute to its growth. We provide a place for everyone to connect

and feel like they belong, especially ideal places for students to study and meet their deadlines.

Our coffee shop has evolved into a location devoted to the neighborhood since that time. “Quán

này có ổ điện” is a community gathering spot where people can get to know one another while

sharing a love of delicious food, coffee, and tea. At store, we are always there for customers, and

always as a community.

1.2. Type of business structure

“Quán này có ổ điện” have been organized by partnership structure:

• One founder makes decisions for every work which has been agreed upon by most personnel,

representing a brand to co-operate with the other partners and sponsors.

• One co-founder: who works with the top managers to keep track of the operation of staff and

coffee function.

• Other hired employees with assigned tasks.

1.3. Problem statement

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After many years of establishment and development, there have been many stores located

in Vietnam. Inreasing in the number of stores leading to many managing problems. Different from

the beginning, the more stores do the company have, the more difficulties to maintain the profit as

well as following and controlling each store. The most concerned problem is managing multiple

business locations. Therefore, poor organizational skills within the company may negatively

impact the company as a whole, which diminishes reputation, customer satisfaction, and overall

revenue.

1.4. Research objectives

This paper will primarily analyze the various factors that contribute to this issue and suggest

remedies. As a result, this article presents the information and examples with great care.

II. CONCEPTUAL KNOWLEDGE REVIEW

2.1. Partnership

This term is broadly defined as a legal relationship between more than one person who

each make a contribution to the operation of a legal business with the purpose of making a profit

that will be distributed among the partners in a predetermined way. Therefore, a partnership must

have both a goal or intention to make and earn profit as well as an agreement to engage in a

business activity, such as a trade or a profession, that is conducted under agreed-upon terms for

the benefit of all partners. A partnership business can be distinguished from a political, religious,

or social club by these features. (Needle, Burns, 2010)

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Reasons related to company’s decision:

First of all, it is feasible to obtain big sums of money. The SME Annual Report states that 99.2% of

all business establishments are SMEs, and that they account for over half of all employment and

roughly one-third of GDP. In Malaysia, the only alternatives for operating SMEs are the typical

business structures: sole proprietorships, partnerships, and corporations. (Ali Ghadas, 2012) Second,

there might be less regulations. The corporation is not taxed since, in accordance with the Income

Tax Act of 1967, a partnership is not a tax entity. Each partner is recognized as a lone owner and

evaluated based on his or her proportionate share of the partnership's profits. (Ghadas, Ali, 2012)

III. SOLUTIONS RESPONSE TO THE MULTIPLE BUSINESS LOCATIONS

3.1. How to stay in contact?

Growth can strengthen the business ’ reputation, allow our firm to extend our supply chain,

and increase the company's sustainability and revenues. Nonetheless, for growth to be profitable

and sustainable, it must be carefully planned and occur purposely intended. The following are the

reasons why we decided to expand our coffee business:

• Demanded products: Due to our coffee shop model's novelty and originality in emphasizing

customer satisfaction while studying at a coffee shop over revenue over the course of five

years, there has been an increase in demand for our products. As the demand increased, we

made the decision to expand our operations and build a new store in different city.

• Investigate new markets: After our coffee shop has established itself in its initial position

successfully, it is time to approach a new market location. Our shops' ability to operate in

several markets or product categories enables them to spread their costs across a greater

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number of markets or consumers, which decreases their cost per customer (Barringera &

Greening, 1998).

• Bringing in new clients Another advantage of growing internationally is that it provides the

chance to invest in and launch new goods and services in addition to selling the current ones

to a new clientele. We can boost business and revenue with a significantly larger customer

base (Bäte, 2021).

• Raising revenue potential and amortizing costs: As we buy in bulk to refill our stock, we

frequently receive discounts because we are placing a larger order. Generally speaking, discounts

increase with order size. As a result, there will be reduced expense, which allows you to invest

more money in growing our business (Bäte, 2021). Additionally, because we already had a strong

reputation for our previous shop, we were able to spread the cost of promotion over higher sales,

which allowed us to lower our marketing costs.

Since we operate a coffee shop chain remotely, the managers have extra difficulties

because we do not share a workspace with other employees. Effective communication in various

locations is more important than ever. Promoting cross-functional collaboration is a great way to

support creative solutions and capitalize on staff members' diverse skill sets across regions. 2017

(Cox & Mainiero) Here are a few strategies to properly maintain our staff's communication:

• Hold monthly meeting for employees and managers at different shops: Planing on holding

meetings every month for the branch managers to report their branch status: the number of

customers, the number of orders everyday, which drink is the most popular, customers’ age

range, etc.

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• Establish multiple channels of communication: Another practice to enhance productivity

among the coffee shop employees is to create different communication means. Using different

platforms help the employees communicate more effectively. Thus mediate the differences and

find common ground, result in a more productive work environment and stronger bonds.

Beside having problem with how to keep in touch with all the branches, there are a few

more obstacles.

• Shortage of cash: Larger business requires larger workforce, more facilities and more

investment. Therefore, a larger financial resource is needed. In order to extend our coffee

shop business, managers must ensure that there are enough money to open new facility, as

well as employing more workers and having enough supply. To reduce the possibility our

business run out of cash, we would monitor our expenses carefully and try to earn marginal

revenue by reducing the cost at most.

• Loss of control: The bigger are coffee shop chain enlarges, the harder to keep. That is when

insufficient planning and preparation start to effect the business. Larger businesses require

outsourcing more accountabilities and dispensing workloads across multiple locations. This

may cause lower quality and poorer teamwork, ultimately in higher staff turnover, cause

damage to relationships between firm and customers. To resolve this, managers need to plan

out a throughout working strategy and supervise their employees’ performance to maintain

services quality.

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3.1.1. How do you, as the CEO, organize and manage what is happening?

A CEO needs to be aware of five key things in order to coordinate and manage what is

happening. Additionally, they must know how to retain workers, maintain a sense of teamwork,

and provide well-organized training for their staff. They also need to be knowledgeable about

cross-company communication and location management.

First, cross-company communication helps company by enabling the staff to do three key

tasks (Kleinschmidt, Joe, 2009). A CEO build rapport with the team and foster social interaction,

encouraging them to look up information about their jobs and share that information.

A crucial component of running a business is location management. Making dependable

employees office managers is an efficient way to manage five sites. A manager may assist you in

delegating tasks, keeping an eye on the operation of the establishment as a whole as well as any

issues that may arise (Knight,2016).

Additionally, you will need to retain the staff by ensuring that "Strategic Intent" encourages

a culture where they feel valued and have the opportunity to progress (Cloutier, Felusiak, Hill,

2015). Keeping the team spirit alive is also a key to coordinating the business. When a job creates

three vital psychological states, an employee will feel internally motivated by it (Hackman,

Oldham, 1980). They need to take ownership of their actions and the results; the work needs to be

felt as meaningful, and they need to be conscious of how well they are putting effort into

performance.

A training program is also needed. Creating a training course for staff members at various

levels. The use of outside resources is also crucial if you want to increase staff productivity and

performance (Cloutier, Felusiak, Hill, 2015).

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3.1.2. Updated organization chart and our rationale explanations.

Because when a coffee chain reaches five branches, it is no longer a small coffee shop, the

owner must run the coffee chain as a business. Therefore, they require Managing Director

Department to manage the commercial operations, financial performance, investments, and

endeavors of the organization. They oversaw, directed, and assigned executives' tasks.

Nevertheless, it is important to make sure that corporate and legal policies are stated effectively.

analyzing, controlling, and resolving troublesome circumstances and developments.

The business will have four functions: Office Strategy, Administrative Strategy, Customer

Service, and Sales Department. With Office Strategy including the Planning and Research

Department, they will work together to plan and research the creation of this coffee chain's new

drink recipes. Additionally, it will be split into the Operation Department and Human Resource

Department as a function of the Administrative Strategy. Because the coffee shops will need a

large number of employees to staff its five locations, it is important to ensure that they receive

proper training and care so that they can serve clients and satisfy their demands. Therefore,

Recruiting Team and Training Group are people who do that job. Following that, they will require

a Salary Group to manage their results, earnings, and revenue reporting. Moreover, to guarantee

the quality of the beverage, the coffee chain requires a supply of raw ingredients. Supply Chain

and Quality Control are the ones that examine the source of the goods and validate the quality of

materials from the supplier in the Operation Department. In terms of Technical Service, this

division will oversee the equipment and tools utilized in the stores and provide assistance when a

problem arises. The division with a focus on marketing and brand promotion will be Sales. The

scope of work of Sales will include suggestions for images as well as instructions for spreading

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the word about the brand to a wider audience. Additionally, Customer Service involves hearing

what customers have to say and incorporating their suggestions to make the coffee chain better.

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3.2. Twenty years later, you operate 75 businesses across five nations in Asia. What issues

and difficulties must you resolve through organizational structure?

The main challenge we confront is providing for multiple markets. The trick is to realize that what

works in one Asian country might not necessarily work in another. Because of this, your company

must be aware of the perceptions, wants, preferences, and other factors that affect customers'

decision-making when entering a new market in order to personalize your solutions (Miller, 2018).

One advantage of entering the new market is improved diversification. You might diversify

your sources of revenue to avoid relying just on one product or service. When you enter other

Asian markets, you can profit from recruiting workers from other nations who have specific skill

sets, native languages, and educational backgrounds. Additionally, by expanding internationally,

you can access new technologies, industry ecosystems, and growth opportunities that might not be

accessible in your own country..

Nevertheless, the drawbacks of launching a business in other Asian markets is that it can

be quite expensive to build infrastructure, establish a corporate entity, and pay local employees.

After that, a company must make necessary adjustments and run its operations in accordance with

local laws when entering a new market. These laws might not be at all like those in your country.

Next, employing foreign workers necessitate a higher level of HR administration and support. You

will have to outsource if your company lacks the necessary skills. Finally, language barriers can

also be a concern. (Sinead, 2021).

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Therefore, the measure for this issue is that create a list of goals for your organization based

on the results of a SWOT analysis of your business's strengths, weaknesses, opportunities, and

threats. Next, define immediate rivals in the Asian market, then conduct a competitive study to

determine the advantages and disadvantages of your rivals. Thirdly, make a list of prospective

costs associated with your attempt at international expansion. Moreover, expenditures for

technology, shipping, warehousing, postage, consultants' fees, and other particular costs should all

be considered. Finally, we create a live version of your strategy and track key performance

indicators (KPIs) to track its progress.

For example, in order to fully implement its retail operations in Asian countries, Sumitomo

Corporation also exports its retail expertise. The first Tomod's pharmacy outside of Japan opened

in Taiwan in 2012. The business also made an investment in Simple Mart, a regional supermarket

chain with about 800 locations. (as of June 30, 2021).

In 2018, Sumitomo Corporation opened three stores in the nation's capital, Hanoi, to begin

operating in the Vietnamese retail market (July 31, 2021). There, the retail brand Fuji Mart seeks

to provide Vietnamese consumers with Japanese supermarket quality.

3.2.1. Create an organizational chart for your company.

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Customer satisfaction is a metric that gauges how happy customers are with a company's

products, services, and abilities. An organization must prioritize customer happiness; as a result,

everyone on staff is responsible for it. The chart below shows our organizational hierarchy.

At the top of this hierarchy is the Chief Executive Officer (CEO), who will interact with

brands in all five Asian countries. Only one of them is represented in the chart because all brands

have the same organizational structure. The CEO reports to a number of positions with roughly

equal levels of power, including the Chief Operating Officer, Chief Customer Officer, Chief

Strategy Officer, Chief Marketing Officer, and the Chief Financial Officer. The Directors in

each department sit below these roles (Operations, Customer Service, Strategy, Marketing and

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Finance). There are several stores in a region, and the area manager is in charge of them. Each

store will have a Store Manager in charge of all the employees working there which includes

the Barista, the guard, the waiter, the cashier, etc.

In an organization, information can move in four different directions: down, up, across,

and diagonally. Downward communication occurs when company managers and executives

speak with employees at lower levels. Senders frequently do not want or expect a response

unless specifically asked for in the communication. Information is transferred from lower-level

employees to high-level staff during upward communication, which takes place when

employees report to a supervisor or when team leaders report to a department manager. Among

the things that are commonly transmitted upstairs are progress reports, project ideas, budget

predictions, complaints and grievances, improvement suggestions, and scheduling concerns. In

the organization, a lot of communication will be vertical. In addition, information might be

shared throughout the chart. Horizontal communication is the sharing of information between

departments at the same organizational level, whereas diagonal communication is cross-

functional communication between personnel at different organizational levels. And lastly,

communication that occurs outside of the organization is called External communication.

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REFERENCES LIST:

Abd Ghadas, Z. A., & Engku Ali, E. R. A. (2012). The Development of Partnership Based

Structure In Comparison To the Concept of MushÉrakah (Sharikah) with Special Reference

to Malaysia. Journal of Islam in Asia (E-ISSN 2289-8077), 8, 293–315.

https://doi.org/10.31436/jia.v8i0.248

Asian Development Bank. (2020, December). Retrieved December 24, 2022, from

https://www.adb.org/sites/default/files/publication/663931/awdo-2020.pdf

Barringera, & Greening. (1998). Small business growth through geographic expansion: A

comparative case study. Journal of Business Venturing.

https://doi.org/https://www.sciencedirect.com/science/article/abs/pii/S088390269700034

Bäte. (2021). What are the advantages and disadvantages of expanding your business? Retrieved

from https://www.allianz-trade.com/en_global/news-insights/business-tips-and-trade-

advice/advantages-and-disadvantages-of-expanding-a-business.html

Becky Abraham (2018) So who's really responsible for the customer experience?, CRM

Magazine. https://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/So-

Whos-Really-Responsible-for-the-Customer-Experience--129045.aspx

Business etiquette and trends in Japan. If you’re planning to expand your business to Japan.

(2022, September 2). 6 strategies for breaking into New Markets. World First UK |

International Foreign Currency Money Transfers. Retrieved December 25, 2022.

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Chen, J. (2022) Organizational chart types, meaning, and how it works, Investopedia.

Investopedia. https://www.investopedia.com/terms/o/organizational-chart.asp.

Cloutier, O., Vie, P., Felusiak, L., & Jean, E. (1970, January 01). [PDF] the importance of

developing strategies for employee retention: Semantic scholar. Retrieved December 25,

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Strategies-for-Cloutier-Vie/92925a37570572fbebe93193358f7fbed27a9605

Cox, L. E., & Mainiero , F. (2017). Perceptions of Communication and Respect Among

Coworkers: A Comparison of Employees with and Without Experience in Long-Term

Care Environments. Journal of Human Rights and Social Work.

https://doi.org/https://link.springer.com/article/10.1007/s41134-017-0041-4

Knight, R. (2017, May 03). Make sure your team's workload is divided fairly. Retrieved

December 25, 2022, from https://hbr.org/2016/11/make-sure-your-teams-workload-is-

divided-fairly

Learning, L. (no date) Principles of Management, Lumen.

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Miller, M. (2018, July 30). Challenges of operating in multiple countries. LinkedIn. Retrieved

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countries-mark-miller

Needle, D., & Burns, J. (2010). Business in context: An introduction to business and its

environment. Boston: South-Western Cengage Learning.

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Retail business in Asian countries. Sumitomo Corporation in East Asia. (2021, November).

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https://www.sumitomocorp.com/en/easia/business/case/group/asia-retail

Sinead. (2021, April 22). The advantages and disadvantages of international expansion. Capital

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and-disadvantages-of-international-expansion/

Sunil Ramlall, P. (2015, November 16). Review of Employee Motivation Theories - Journal of

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0056/full/html?skipTracking=true

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