This project provides an introduction to the basis of management function which is Planning, Organizing, Leading and Controlling (POLC). In this very project, we have the opportunity to interview any company to understand more about the company. For instance, how the company works, how it implements the four management function and how they manage the whole company so that everything will go smoothly. In conjunction with this project, we took up the opportunity and interviewed The Coffee Bean & Tea Leaf Company which is a worldwide recognized company.
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The Coffee Bean & Tea Leaf was established in 1963 by Herbert B. Hyman in Southern California. The Coffee Bean & Tea Leaf is the oldest and largest privately-held specialty coffee and tea retailer in the United States. The first cafe of The Coffee Bean & Tea Leaf was located in Brentwood, California. There are roughly about 30 varieties of coffee and 20 varieties of tea introduced up to date. The Coffee Bean & Tea Leaves company vision is to be “Simply the Best” roaster and global retailer of specialty coffee and tea. Their mission is to create a spirit within the company that inspires their team members to provide customers with a Total Quality Experience: Quality of Product, Service and Environment.
This company has developed throughout the years and it has grown so rapidly that from one branch, it has developed to more than 800 stores in over 20 countries currently. In short, for nearly 50 years of serving, The Coffee Bean & Tea Leaf Company has demonstrated a great passion for product innovation epitomized by The Original Ice Blended beverage. The patience and efforts made by the organization is very much worth to be learned and practiced by our us in order to be success.
Planning is the fundamental for attaining success. Everything else starts from planning. Planning can be defined as identifying goals for future organizational performance and deciding on the task and use of resources needed to attain them. The mission of The Coffee Bean & Tea Leaf is to develop a spirit within our company that inspires our Team Members to provide our customers with a Total Quality Experience, Quality of Product, Services and Environment. The goal of The Coffee Bean & Tea Leaf is to be Simply The Best roaster and global retailer of specialty coffee and tea.
The Coffee Bean & Tea Leaf put people first to achieve their stated goal. From their coffee and tea origin suppliers to their retail store team Members and loyal customers, they consider everyone as their extended family. They will offer specialized training to each Team members so that they are able to build bond of trust with the customers. They have Core Value which is known as FROTH or Friendly, Request, Ownership, Teamwork and Honesty. “Find Your Flavor” is their slogan that is very important in continuing their good relationship with their customers.
From our interview, we know that The Coffee Bean & Tea Leaf have outstanding quality of input and output by maintaining the quality of their coffee bean and beverages in order to achieve their goal. The Coffee Bean & Tea Leaf only produces and serves only the finest coffees and teas from around the world. Each year The Coffee Bean & Tea Leaf searches out the best harvest from Sumatera to Coata Rica to bring to their tasting room for inspection and sampling and accept only the highest grades of green coffee and full leaf tea. All the beans they import are grown at altitudes of up to 6000 feet as the cooler temperatures at the higher altitudes cause the bean to be more concerned flavor. Once the green coffee reaches the stores, it goes through several quality checks to maintain the quality of coffee bean. After passing the quality check, the green coffee bean are roasted fresh daily. Once the optimal flavor is reaches, the coffee is then packaged using state-of-the-art equipment.
The company’s marketing strategy is managing their foreign franchisees when expanding into Asia includes master franchising and company owned-stores. The marketing approach is vital to gain a competitive advantage for The Coffee Bean & Tea Leaf in the foreign market. The construct included market entry, site location and master positioning. The reason for the company to choose master franchising as its form of franchising is because of that the master franchising was the most popular mode of entry into distant and cultural dissimilar market such as Asia. The master franchisees prefer to own and run the entire unit instead of sub-franchising the units. It entered Singapore, Malaysia, and Taiwan by master franchising while preferring to use company-owned stored in Hong Kong, Australia and United States. Whereas for complex markets such as Japan, Philippines and the Middle East, franchise are more favored.
For the company’s business strategy, branding and images are consistent in host markets with that of home market. Standardization is enforced by The Coffee Bean & Tea Leaf on branding to ensure that the brand image and value is consistent. Adaptation is also applied to their product. The Coffee Bean & Tea Leaf has a limited range of food and beverage item in their outlets. However, The Coffee Bean & Tea Leaf had included a wider range of hot food items in Asia.
In facing competitors such as Starbucks, Dome and Old Town Café, The Coffee Bean & Tea Leaf has develop several plans. They will create new recipes for the coffee, teas, cakes and cookies in order to attract new customers. They will have promotion or happy hours during weekdays. The Coffee Bean & Tea Leaf also releases a special coffee bean card for their customers. The Coffee Bean & Tea Leaf must be aware of competition on all levels and maintains its operational performance if it is to retain its status as the world’s leading specialty coffee retailer.
The Coffee Bean & Tea Leaf maintains a strong commitment with numerous programs contributing to local and charitable causes. Their Caring Cup initiatives support charities, foundations and schools around the world. Domestic Programs such as The Help Group, Support from Home and Orange Country Adopt-A-School Program. Global Programs include Kidane Mehret Students, Aid Lanka Kids Foundation, CCC Foundation, Shree Dwarika Tea Estate, The Mukengeria Tea Estate and others. The Coffee Bean & Tea Leaf has earned its good reputation by sustaining a strong commitment to the community with numerous programs contributing to local and charitable causes.
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.
The Coffee Bean & Tea Leaf is s an American coffee chain, owned and operated by International Coffee & Tea, LLC, which has its corporate headquarters in Los Angeles, California. The Coffee Bean & Tea Leaf is managed by the highest level of organizational management which is Senior Management who has the day-to-day responsibilities of managing The Coffee Bean & Tea Leaf, they hold specific executive powers conferred onto them with and by authority of the board of directors and/or the shareholders. The following are the structural of Senior Management:
Executive Chairman of the Management Board.
Focus on the development of the company’s strategic business plan.
Chief Executive Officer & President.
Responsible for setting strategy and directing the day-to-day operations of the Company’s global brand and business.
Chief Financial Officer
Responsible for all Accounting, Finance, Treasury, IT and Loss Prevention functions.
Chief Administrative Officer, Chief Legal Officer and Senior Vice President.
Responsible for the Company’s legal, human resource, real estate and global supply chain initiatives and maintains an active role in the Company’s overall leadership.
Vice President of Operations.
Focused on the profitable growth of the Company’s Domestic Operations Division through the development of our people at all levels, while creating a spirit that inspires our Team Members to deliver a Total Quality Experience for every customer in every store.
Vice President of Business Development.
Responsible for domestic and international franchises, in both traditional and non-traditional locations.
Vice President of Supply Chain.
Responsible for all supply chain and manufacturing operations worldwide and the Company’s product development and quality assurance functions.
Vice President of Marketing.
Responsible for brand stewardship, overall marketing strategy as well as specific programs, promotions and category plans that support segment sales (retail operations, business development, specialty sales and ecommerce).
Director of Product Innovation.
Oversaw the development of all new coffees and teas, beverages, and other related products, including food and equipment
Senior Director of Coffee, Roasting and Manufacturing.
Responsible for selecting the best green coffee beans available from the world’s finest growing regions, as well as for all coffee and tea manufacturing, for warehousing and distribution worldwide.
Director of Tea.
Responsible for sourcing, development and internal education on tea.
Other than that, to boost the abilities of the employees, The Coffee Bean & Tea Leaf has designed exceptional recruitment, training and recognition programs that greatly contribute to their valuable investment, Team Member satisfaction. Starting with recruitment, they hold in-store job fairs during normal business hours so applicants have the experience. They have a Team Member Referral Program to reward our Team Members for serving as “ambassadors” as they actively recruit prospective employees to our brand. We provide a detailed Manager in Training (MIT) program for all new Field Operation Managers. As our Team Members advance, The Coffee Bean & Tea Leaf contributes to the professional development of its Team Members through the performance management process with “Stretch Assignments” and Individual Development Programs (IDPs) for high potentials, where they have the opportunity to be mentored and become a mentor. Not only are the Stretch Assignments and IDP Program a benefit to Team Members, it allows Team Members to interact across various departments between the Home Office, Roasting & Distribution Facility (RAD), Bakery and Field Operations.
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To properly recognize the hard work of its Team Members, The Coffee Bean & Tea Leaf annually rewards selected Team Members with a once-in-a-lifetime trip to the coffee farms of Costa Rica, where the company gets a portion of its coffee beans. The trip is the most coveted of the Team Member incentive programs. Team members participate in a harvest, visit the processing mill and host an appreciation dinner for the farmers and growers.
A good organizing structural can be very effective in building up awareness of your business and lending it credibility, but it does involve a lot of effort on the part of the organizer. Besides, it may also boost the satisfaction of the customers. Organizational structure help determine how well its employees make decisions, but it also reflects how well they respond to problems. These responses, over time, can make or break an organization. In addition, the organizational structure influences employees’ attitudes toward their work. A suitable organizational structure can minimize a business’s costs, as well as maximize its efficiency. This shows that organizing is important in increases its ability to compete in a global economy.
Leading is the management function that use of influence to motivate employees to achieve organization goals. Leading means that creating a shared culture and value, communicating goals to employees throughout the organization. Managers are always motivating the employees with the desire to reach the best performance for organization. Managers are the inspiration and as a leader to all employees, employees will follow all the instruction that given by the manager. Employees follow the managers because they believe in what the manager is doing and they are trying to help the company achieve its goals.
To successfully perform the leading process, The Coffee Bean & Tea Leaf has find finding ways to inspire the employees, means coaching them and motivating them to succeed as integral parts of the company. Managers always create a climate in order to encourage and motivate their employees to come out with new ideas and inputs. The managers also create a good environment for the employees and let all the employees to voice out their opinion towards their work. The more the employees feel that they have a say in the company, the more they will be willing to share ideas and attempt to find better ways to improve processes.
From the interview with The Coffee Bean & Tea Leaf, we know that there are the target sales for weekdays and weekends, which is 40 cups of drinks on weekdays and 200 cups of drink at weekends. The managers have set the target sales for all shop and this also purposely to motivate the employees to work their best to sell their drinks and beverages to hit the sales target. In addition, managers will reward employees by giving monetary or incentives when they can increase the sales and hit the target. According to the store manager, she stated that this kind of rewards is useful and efficient to motivate the employees for their work. Sales are increasing since the rewards are given out to the employees which had had hit the sales target.
The manager of The Coffee Bean & Tea Leaf also stated that, the leading is the key to effective communication. The managers and employees are always communicate well to avoid any conflict happen to affect the organization. For a manager to be an effective leader, he or she must also be an effective communicator. The manager had always shares the information and the latest news for all the employees in the company. This has shown that the manager is deemed trustworthy by the employees. The good and well communication has built up a loyalty between the managers and employees. As a opposite side, the employees will feel that a little loyalty or trust towards a manager who does not readily give out information.
Besides that, from the interview we know that sometimes there are the conflicts between the employees and this will affect the workforce. According the manager of The Coffee Bean & Tea Leaf, she says that the manager will handle this kind of problems by consult the employees and listen to their think and opinion. The managers also share the experience to the employees in order to consult them and solve the conflict and crisis between the employees. Managers have always lead the employees to positive think and maintain a happy and harmony workplace because this is significantly will affect the performance of the employees during their works. The employees of The Coffee Bean & Tea Leaf are emphasizing the cooperation between each other. So, the relationship between the employees is good and close.
We have learned that, an effective leader inspires employees, which allows those employees to feel like they are making a meaningful contribution to the company. So the role of managers is very important in leading process. The manager of The Coffee Bean & Tea Leaf has perform well as a leader in the leading process, this is the reason that the employees have satisfied and generally work harder and take more ownership in their job positions. This will also motivate the employees perform high level of job and the customers will receive the high level of customer service.
As a conclusion, leading process is very important and significant stage for organisation. We can say that great leaders in an organization affect the employees they supervise, but they also inspire those in other parts of the company. Effective leadership is infectious and should be spread to as many areas of the organization as possible; doing this will result in a highly-coordinated effort to please both customers and employees.
Controlling is the fourth function in the management process. Controlling means monitoring employees’ activities, determining whether the organization is on target towards its goal, and making correction as necessary. In year 2006, when the president of The Coffee Bean & Tea Leaf found the company was facing its worst fiscal performance. He quickly identified one major, underlying issue that The Coffee Bean & Tea Leaf various managers needed to boost their commitment and involvement with their stores and be accountable for performance. After attending the MAP workshop, The Coffee Bean & Tea Leaf decided to bring in the expert consultant to introduce MAP to the entire management team. MAP coached The Coffee Bean & Tea Leaf in setting up its “Vital Factor Dashboard,” which gave the managers a way to establish, monitor and measure individual and group goals. This created the foundation for a collaborative approach that instilled fresh ownership and accountability among the managers and crucial team-building skills. As a group, the managers celebrated achievements and identified opportunities to reach healthier levels of success. This newfound energy motivated and inspired the managers, who started taking greater ownership in store and company performance. Instead of taking a top-down management approach, they addressed responsibilities from the bottom-up which including customer interactions and communications, employee insights and feedback, and a hands-on.
With the MAP system in place, The Coffee Bean & Tea Leaf experienced a complete turnaround in its productivity and profitability. In terms of the workplace culture, the managers’ renewed ownership in their stores, plus their dedication to the welfare of their employees, customers and the company at large. Employees caught the spirit, which has since translated into better service and product. In three years’ time, sales have increased 30 percent, the cost of goods has dropped 3 percent, labor costs have shrunk 5 percent, and personnel turnover has decreased from 236 to 52 percent annually. As to bottom-line profits, The Coffee Bean & Tea Leaf has experienced a 200 percent turnaround from 2006, positioning the company in a positive cash-flow situation, despite a weakened national economy. The improvements from MAP’s structured system, as well as the coach’s ability to create for the managers that important buy-in to the program, which impacted their ability to set and achieve key goals.
From the interview with The Coffee Bean & Tea Leaf, we found that they monitor their employees’ activities by their performance. The manager will try to solve their problem whenever she found that their performances have dropped. She will try to help them in order to raise their performance up. The manager also prepared duty schedule for the employees’ so that all employees’ have equality working hour. Manager stated that for the new employees, she will assigned them with the cleaning job first before they can proceed to become barista. Their working duty will change every week and depends on the situation and how fast the employees could master the task. For the cashier task, it is reserve for the staff that worked long period and has more experience. The companies differentiate the new staff and old staffs in order to prevent the problem happen. It is very easy for the new staff to make some mistake. This differentiation could be easier for the manager to monitor them.
The main product of The Coffee Bean & Tea Leaf is tea leaves. The company needs to make sure that those products are on target toward its goal. When the company found that those products do not on target, they need to make corrections in this area. The manager said, this could happen probably that they did not take out the dry bean that in the process when the time is ready for the dry bean to take out. When there is short of employees this could happen but they are tried to avoid this from happen. Quality of the bean is very important to them and they would take this seriously because this would affect their company sales target. The other problem could be the clean environment of the place. The manager will make sure that the surrounding area must be clean because clean environment could easily attract customer to dine in. A clean environment is also an effect that cause a company sales targets to drop. The manager make correction of this problem by assign that cleaning job must be done twice time in a day that is once in morning and once in night when the shop close.
The day that we went for interview, we found that the shop air condition is not in well-being. The manager told us somehow this air conditioning would also affect the customer to dine in. The manager had called for the technician to fix the air conditioning as well. For the conclusion, there are many problems that could affect the target of the company and monitoring employee’s activities is not an easy job for the manager too.
As the summary of what we discussed, The Coffee Bean & Tea Leaf can be conclude as a worldwide café all over the world. Not only is it paramount that they can provide with the highest quality products, but it’s equally important that the ingredients for these products come from growers who pay fair wages and treat workers respectfully. The mission of The Coffee Bean & Tea Leaf is to create a spirit within company that inspires team members to provide the customers with the total Quality Experience which are Quality of Product, Service and Environment. Moreover, The Coffee Bean & Tea Leaf’s vision is to serve its community and provide the destination and lifestyle quality experience.
Every corporation needs the management functions which are Planning, Organizing, Leading and Controlling to manage their business. Same goes to The Coffee Bean & Tea Leaf, they need those function in order to continue their business. Planning means defining the goals of an organization for future organizational performance and deciding on the task and the use of resources to attain them. The Coffee Bean & Tea Leaf usually gives priority to their customers. The marketing approach is essential to gain a competitive advantage for The Coffee Bean & Tea Leaf in the foreign market. The Coffee Bean & Tea Leaf maintains the quality of their coffee bean and beverages in order to achieve their goal.
The second management function is organizing. Organizing involves assigning task, group task to departments, delegating authority and allocating the resources across the organization. This organizational function helps in achievement of results which in fact is important for the functioning of a concern. As what we have been discuss in Organizing part, The Coffee Bean & Tea Leaf is managed by the highest level of organizational management which is Senior Management who has the day-to-day responsibilities of managing the corporation. A company can be very effective in building up awareness and lending it credibility if there is a good organizing structural. It also can maximize a company’s profit and minimize the cost.
Leading is the third management function right after organization. Leading can be derive as the use of influence to motivate the employees to attain the organizational goals. According to The Coffee Bean & Tea Leaf’s manager, they will reward employees by giving monetary or incentives to motivate employees where they can increase the sales and hit the target that they had set. As we know that, The Coffee Bean & Tea Leaf has the target sales for weekdays and weekends, which is 40 cups of drinks on weekdays and 200 cups of drink at weekends. Besides, employees are given opportunity to voice out their problem as well as opinion in order to have a harmony environment. The one who is working in harmony environment will be more There are always a good communication occur between employers and employees to avoid any conflict among them.
Lastly, controlling is the final process of management function. Controlling means monitoring the employee’s performance and always made sure the organization is on track towards goal and making correction as necessary. The Coffee Bean & Tea Leaf has decided to bring in the expert consultant to introduce MAP to the entire management team so that the manager can monitor and measure individual and group goals. This MAP Management System TM is a cornerstone of the program. It can increase effectiveness of the management team. In terms of the workplace culture, the managers’ renewed ownership in their stores, plus their dedication to the welfare of their employees, customers and the company at large.
In conclusion, in order to be a successful organization, it must have good management functions which are planning, organizing, leading and controlling. Since The Coffee Bean & Tea Leaf has all this management function, it can be say that is a success organization.
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