CHR assessment activity 1 template
Business strategy development and the role of HR – briefing document
Name: Petra Juricekova
Word count: 2192
Organisation analysis
X Coffee is private, quality and genuinely customer driven coffee company. X Coffee want to be the most preferred choice for customers, while running profitable business. X Coffee offering quality coffee and range of superior hot and cold drinks, patisseries, cakes and gourmet food. Each and every drink is individually made to customers preference, using Fairtrade coffee and Organic milk.
Recently X Coffee is experiencing some operational issues, which is affecting performance of the employees in shops, customers satisfaction and overall results of the company.
1. X Coffee shops performance is affected by high staff turnover and company has difficulties to attract and retain new employees. Increased customer complains due to inconsistent coffee quality, lack of customer service and poor standards.
2. The shops are struggling with equipment (especially outdated coffee machines) which is affecting the daily production and resulting in loss of sales. There are only 2 engineers available in whole company, none of them specialize in technical aspect of coffee machines.
3. Loss of profit in recent period. Company recently lost the supplier for fresh pastries. Pastries are in high demand in shops and covering 30% of morning sales for whole company.
HR department started to develop strategic plan to resolve current problems in X Coffee. Their first step was to identify external and internal factors to understand the issues. At this point PESTLE and SWOT analysis were used.
PESTLE analysis is there to identify and provide summary of external environmental influences on an organisation or policy. Pestle stands for ‘Political, Economic, Social, Technological, Legal and Environmental’ factors. X Coffee has least control over those factors and as the wider environment is ever changing, organization needs to compensate for changes in those factors.
POLITICAL
Brexit had impact on recruitment in X Coffee.
Pressure to increase minimum wage.
ECONOMICS
Pushed cost for imported goods (coffee beans) after Brexit.
Brexit pushing up inflation so prices of products might increase.
SOCIAL
Changes in lifestyle as longer working hours bringing more customers into business.
Opportunity to introduce and expand healthy products to attract health-conscious customers.
TECHNOLOGICAL
Increased availability of special coffee machines for home use can lead to loss of customers.
Outdated technology in X Coffee – no Wi-Fi for customers, no EPOS system, old coffee machines.
Ethically sourced coffee beans adding to cost of raw material.
LEGAL
X Coffee always met standards of the business and employment law.
ENVIRONMENTAL
X coffee bars supporting use of organic milk as standard and Fairtrade coffee. They use natural materials for designing the shops.
SWOT analysis method is helping to identify internal strengths...
