Management of Change: Café de Coral


Executive Summary
Report Summary
It is undeniable the competition in the business arena is very stiff. People in the business world must find the best way in order to be successful. Business, nowadays, have to cut cost to the bone by downsizing, outsourcing, offshore IT development and management. The growth of an organisation now depends on the ability of the businesses to innovate. Innovation is no longer regarded as the exclusive preserve of the research and development department. Instead, many businesses see that innovation must become a part of the core competency of every part of the organisation and its network of business partners (McKie 2004).


Relevance with the Organization
Perhaps, every organisation wants to initiate a management system and strategy that could maintain the organisation’s capability, strength and competitiveness. It is important that the management team and the organisation per se should always open their mind for changes that they might encounter in order to cope and adapt to the latest development that are happening within and outside their environment. With the constant changes in this world and with the tremendous growth of technologies, many people especially those in the working organisation find themselves normally adapting. This is because change can bring many improvement and development in certain aspects. In many ways, change can make work easier, pave the way for future innovations or generally improve people’s lives. Similarly, change has been adapted by various work organisations for varied reasons.
Hence, as a competitive organization, Café de Coral Group must be open- minded to changes so as to have sustainable market ability and maintain the competitive advantage of the company.


Introduction
Company Background
Café de Coral Group is recognised as the largest publicly Chinese Fast food restaurant group. This has 330 outlets all over Asia Pacific and has 200 quick service restaurants in North America. With it 540 outlets, 120 and 75 outlets are operational under the household of Café de Coral and New Asia Dabao respectively. In addition, the company also has 200 outlets operated under the leading brand of Manchu Work and 20 outlets with a name of Oliver’s Super Sandwiches. The group has also specialty restaurants such as Bravo le Café, Spaghetti House, Super Congee and Noodles, Ah Yee Leng Tong and Bistro M and had a well established institutional catering business in the trade name of Asia Pacific Catering.
Café de Coral came from the Chinese ideal which means togetherness and forms three word logo which means that both the shareholders, the staffs and the target market should be “all happy together” at Café de Coral. The company has a motto of “A Hundred Points of Excellence”. This shows the strong commitment of the organization to strive for excellence through their corporate strategies. The mission of the company is to establish the Café de Coral Holdings as a well-known corporation in the food and catering business as the largest Chinese quick service restaurant group which maintains a publicly recognised competitive position in the market place, quick service chain business having a vertical and horizontal diversification to the food services, food processing and distribution, catering and hospitality sectors all over the world.


Brief Description of Change
Each and every industries may it be small or large companies are subject to different factors that affect the firm’s function as a whole. In the light of this, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. One of these is the initiation of changes and innovation within the industrial sector so as to provide quality products and services to the consumers and to ensure that the company will be able to outgrow their rival companies. Known as change management, companies, businesses and working organisations are integrating change into their work system so as to be competitive and be more efficient in satisfying clients or customer needs. According to Carlopio (1998) change may be referred as the implementation of an innovation, in which the vital role is to improve output through an adaptation of practices. As an inevitable competitive leader in the fast food and dining-out business, Café de coral has always try to innovate their products and marketing strategy so as to achieve quality products and services to their customers which is a part of the string commitment with the business. The change process will be in line with redefining the image of the group through the use of Integrated Marketing Communication.


Environmental Analysis
General Analysis
The Café de Coral Group will be analysed using simple analysis approach. The growing and bustling population of today is obviously different from the population of the previous decades in terms of health and nutritional attitudes and behaviors. People today are more concerned with their health and figures than ever before. Obviously, the reason for this increased awareness is because of the fact that information is everywhere and every reports and research about nutrition seem to link fast foods with the growing number of obesity. Furthermore, there is also a number of emerging diet programs that promote and encourage the public to be figure conscious.
This is a problem for the group because it has already gain the reputation of a fast food that continuously provides unhealthy food; whereas competitors have already made measures to reduce fats in their products. The company needs to do something about and shift its positive image back. This calls for a new integrated marketing communication plan that should be appealing to current customers. The campaign should make the Café de Coral Group brand as something that is irresistible, then followed with the information that its products are already health friendly. In this approach, certain changes will be made.
External Analysis: PESTEL
Each and every industries may it be small or large companies are subject to different elements that affect the firm’s function as a whole. These elements are considered as the driving forces for the success or even the downturn of a business. One of the factors that must be considered by any company is the external environment and the underlying aspects that must be given emphasis by any business organisation.
As mentioned, the case was about the changes that must be implemented by Café de Coral and how the company had been able to adjust to the stiff competition of this kind of business. In this regard, the environment of the group will be analysed using the PESTEL model. PESTEL model evaluates the political, economic, socio-cultural, technological, physical (environmental) and the legal factors.
Political Sector
In terms of political sector, the company sees to it that they follow the rules and regulations imposed by the government. In the case of Café de Coral, the company sees to it that they always adhere to the policies imposed and that their organizational goals are achieved without disobeying such policies. In addition, whenever the company is having changes, they make sure that all rules and regulations are set and they are always ready to follow it. In addition, the company also imposed corporate governance to be followed in all levels of the organisation.


Economic Sector
Economically speaking, it can be said that Café de Coral being known as the largest Chinese fast food restaurant has been able to help the economy China as well as in Hong Kong, by providing some financial needs to boost the economy of both countries. In doing so, the company is also benefited to become more economically stable in spite of the challenges it faced. In addition, it can be said that the company has been able to cope with the global competition that it become financially stable.
Social Aspect
Society e is an important factor that must be given emphasis by any business, specifically those who are operating in the global arena. It is important that the company must operate in compliance with the social systems in order to gain good reputation and effective public image. In the case of Café de Coral, the company has been able to consider social aspects by giving emphasis to the international market and the context of globalization. With this ideology, the company has been able to give importance not only with the Chinese market but most especially to stakeholders in the international level.
Technological Sector
The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both the industry and a foreign country to ensure quality products and service(Luftman, Lewis & Oldach, 1993). In line with the technological capacity of the company, it can be said that Café de Coral is using advanced technology to ensure that they provide quality and excellent products and services with their target market. Their technology is built upon the highest quality and functions in order to provide customer’s demands in global market. Herein, the physical resources of the company were being monitored to maintain its efficiency to further enhance the organization’s position to become competitive in the industry. Furthermore, the company has been able to use information technology as part of their strategy in order to be more innovative and gain more in terms of productivity and profit.


Environmental Factors
Café de Coral will also be evaluated in terms of environmental aspects. The environmental resources of the Café de Coral ensure that they would always have a facility and technology that would be able to carry out products and services that would eventually satisfy all their customers. The company has been able to consider all its environmental resources to enhance their competitiveness. Further, the joint ventures and mergers of the group have expanded the resources of the company to become more stable and become one of the leaders in the steel industry.


Legal Aspects
A company will not be able to gain success if they will not consider legal sector as part of their strategy in entering an international marketplace. Legally speaking, Café de Coral has been able to abide laws of the regions where it is operating. In addition, the company has also been able to follow the law in terms of environmental protection, and other health concerned specifically with the field of their business which is food production. The company always sees to it that all the operations locally and internationally would be legal. In addition, the company has seen to it that they abide by the law by paying their taxes annually.


Current Cultural State
Analysing cultural aspects is equally essential, in order to understand the various needs of different individuals that belongs to different cultures (Hofstede 1991). With this ideology, the company has been able to give importance not only with the Chinese and market but most especially to stakeholders in the international level. In addition, Café de Coral management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers because of the reorganization done by Café de Coral management.


Analysis of Issues
Since many customers of fast food chain nowadays are health conscious, different fast food industries are doing its best to become more appealing to their customers in terms of having products which are healthy friendly. However, the problem or issue facing Café de Coral is not on the product per se but on how they would let their customer know that what they have are healthy products. Hence, it can be said that it is important that Café de Coral should consider changes in terms of their campaign for public image and this can be done through the use of Integrated Marketing Communication.


Factors for Changes
Companies, industries and working organisations may implement a change in their management system due to the internal and external forces (Yee 1998). Herein, the chance process may be imposed at different sectors in the structure of firms (Swenson 1997) and that transformations may be universal or restricted (Reigeluth 1994). Internal forces that drive changes include growing business needs, organisation reform, or adjustment and modification of the corporate strategy or business objectives. On the other hand, external drivers may include the improvement of technology, the need for electronic and technical services and the economic trend and development that influence the profitability of the industry.
In initiating changes or innovation within a business sector, there are many factors that must be considered in order to make certain that the changes will enhance business performance and adheres to the vision or goals set. One of these factors is the willingness of the management of the company to initiate innovation. Without the support of the entire management, the innovation of the company will not be possible. In line with Café de Coral it is important that the management of the company will provide its full support for the innovation plan, process and design. Another factor that must be considered is innovation manager. Another factor is having a thriving organisational culture. Organisational culture is the “deeper level of basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously, and that define in a basic ‘taken for granted’ fashion an organisation’s view of it and its environment.” (Schein 1985) A less precise definition is that culture is the way we do things around here. Organisational culture involves symbolic actions and physical settings.


Scope of the Changes
In this innovation, the critical area that must be given attention is the advertising and promotional campaign of Café De Coral. Generally, advertising or promotional campaigns are regarded as an open sponsorship of offering products, services and any ideas through the use of any mediums of communication. In this regard, there are different kinds of media which are use for advertising and promotional campaign purposes. The major advertising media include magazines, newspapers, radio and television, billboards, business publications and circulars which are being sent through mails. However, with the evolution of the modern technology specifically the existence of the World Wide Web had made the internet to be considered as one of the most essential advertising media. Basically, in this new IMC theme, the focus will be heavily on advertising and sales promotion.


Sources of Resistance
Although there are different factors that support innovation, there are also some aspects which inhibits or restrain innovation. The following are the possible resistance that inhibits the success of innovation; these are the perception or reaction of stakeholder, organisational culture and absence of support. One of the resistances that may occur is the reactions of the employees or the members of the working organisation. Although there are employees who will be in favour in the changes for example in advancing the technological facilities of their offices, some may not be in favour or such implementation. Some would say that the improvement should not be done for these facilities due to the tendency that to malfunctions. In addition, the people that implement such technological advancement might not have enough knowledge to resolve the malfunctioning of the facilities.
Inability of the management to provide support on the implementation of the innovation will hinder the transformation in achieving the set goals. Furthermore, it is also important to note that communication skills are also a factor that must be considered. Lack of communication among management and mangers who will implement the innovation may lead to conflict which may affect the overall progress of the innovation. The cultural differences of the stakeholders may have the tendency to create inner conflicts. Due to cultural differences, the employees may not function harmoniously thus making the implementation of change be more complicated. In addition cultural differences may lead to another conflict within the organisation due to arguments and other conflicts that might be created. When assessing the interaction between culture and empowerment, the company must be able to identify and understand those subcultures that might engender a work environment more or less empowering than the larger organisational system (Wilkins & Dyer, 1988).


Contingency Plan
The management should be able to develop a thriving organizational culture and a stronger organization by good management of the stakeholders, providing their needs and the things that they deserve in order for them to be motivated for their sake and for the organization’s sake as well. In addition, Elements such as work processes, organization design, career path, performance management and a compensation program are part of human capital management strategy and a plan to ensure continuing success. The change management process imposed by the company must have been seen that they may also encounter problem with some of their stakeholders like employees, customers and others.
Also, in managing people with different culture, the human capital management should also incorporate a governance process to ensure equality among employees. Hence, even though managing people in organization is the most difficult responsibility to be taken, it is also the most challenging part that if given enough attention, focus and consideration, this would enhance the employees loyalty and hard work that may not only benefit them but as well as the organization may it be a non-profit or a profit oriented organization. In general, people can give more than what is expected if the management were able to provide them extra hand and minds and if the management give them extra time, extra information and extra people in order to do their job properly.
One of the conflicts that may arise in the implementation of change in an organization is the absence of support in sustaining the success that can be achieved in the process. Change is a social process that should be undertaken in a continuing phases and not just a decision event (Carlopio 1998). Thus, those involved in the change process must undergo learning experiences in order to appreciate the objectives of the change.
In order to solve such conflicts, the management of the working organization must be able to see to it that the objectives and the purpose of the change have been disseminated properly and that all the employees and stakeholder must know that they are important in making such change successful. Hence, the management must have the ability to foresee all the possible problems that might be encountered that would hinder the employees and other involved authorities to support the change that would be implemented.


Leadership
Leadership comprises the aptitude and ability to inspire and influence the thinking, attitudes, and behavior of other people (Adler 1991). Leadership is a process of social influence in which one person is able to enlist the aid and support of other individuals in the achievement of a common task (Chemers 1997). The current leadership style of Café de Coral is the authoritative or democratic style of leadership. In this type of leadership, the leader and the selected subordinates are involved in the process of the decision making. Herein, the subordinates have the right to voice out their ideas and thought which they think would be helpful for the leader in making the final decision. On the other hand, in this style of leadership the leader is in control or has the authority for the final decision. This kind of leadership style is very suitable for implementing the said change for the organization. Through this, the leader of the company may be able to know the opinion of the subordinates in order to effectively impose the changes within Café de Coral.


Scenario
No Change Scenario
In this no change scenario, the company is assured that they still do not need the changes of their marketing strategy or marketing communication campaign. In this manner, Café de Coral believes that having a new campaign strategy using IMC is not yet advisable for the company because of the ongoing support of their customers to the products and services that they offer. The company also believe that changes in this aspect are not necessary because the products and services are healthy friendly.


Change Scenario
The change is needed so that the customers will be aware that Café de Coral adheres to the needs and demands of the customers for having a health friendly food products and services. The change will be implemented as soon as the organization had strategically plan the changes and all the concepts needed to make the change successful. The change is needed so that the company will be able to have a more comprehensive campaign through Integrated Marketing Communication focusing on advertisement and sales.


Conclusion
According to Beverage (2003) the management leaders must be willing to keep their fingers on the pulse of the organization, by monitoring what is working and not working in the process of the organization change. In order to implement the strategy of change effectively and successfully, the management must create s safe environment for changes, reassure, support, and commitment on the organization.
Therefore, it is concluded that, changes of management is not bad as long as the changes made can really enhance the competitiveness and strength of an organisation. It is effective, if and only if, a thorough investigation and evaluation of the organization’s performance has made. And if the study suggests that there is a need for change, then that is the only time, the organisation should imposed required changes to be done. Because, change of management system is very critical or crucial, one wrong move, the company, might faced its biggest downturn instead of strengthen and expand its business portfolio and survive to the stiff competition in the business arena.
It is recommended that Café de Coral Group must see to it that the changes are well planned and implemented carefully, because these will the basis for the success and/or failure of any organisation.
 




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