A comparative analysis between Franklins Caf and Caffe Nero - Assignment Example

?Organizational Analysis and Behavior Introduction: The aim of this essay paper is to make a comparative analysis between two organizations that havethe same industrial background. In this paper, compare and contrast are being done between the two firms Franklin’s Cafe (a small business) and Caffe Nero (a large multinational business). The analysis is done mainly with respect to the two important topics relevant in the organizations. The topics discussed are done mainly on the basis of the case study that helps to answer question like which one of the two organizations would one prefer to be a customer and an employee. This essay paper not only states which organization one would want to be an employee and a customer, but also states the reasons behind the decision one makes. In order to make a decision it is very important to study the topics relevant to the organizations like the organizational communication, cultures prevalent, power and control, design and structure, politics and resistance, conflict etc. The topics here are discussed according to the various organizational and management theories. Organization analysis and behavior is a very important topic of study in the context of management. Organizational analysis is a process which is used to study the performance and the efficiency of an organization by studying the systems and the functionality that is existent in the organization. Organizational analysis leads to the understanding of the organizational behavior which involves the study of the organizational design and culture that is prevalent in the organization. For this, the first step is a brief introduction to the studying organizations after which the organizations are studied in brief with the study of the organizational design, cultures, power and control, politics and resistance and organizational conflict. Introduction to Studying Organizations: The studying organizations in this context are Caffe Nero and Franklin’s cafe. Caffe Nero: Caffe Nero was founded in 1997 by Gerry Ford, who began as a small business but widened his vision and lead to the establishment of 31 cafe stores as early as year 2000. The present status of the Caffe is as developed as 400 stores in Britain. All the Nero cafes are done on the Italian architectural background. The cafe has a very strong employee base and has around 3000 employees in the firm. The main intention and philosophy behind the establishment of the cafe is to provide a cozy and warm atmosphere towards its customers. The firm considers its linchpin of the brand as its coffee and also states that its highly committed employees are another great strength. One of the main reasons behind the committed employees is that they make the best choice of employees from world over. Similarly, the management of the Caffe takes an interest in the recreational activities of their employees. The Caffe is conscious about the health of its customers and provides the nutritional chart which allows the customer to weight the coffee options available to them. The cafe is also environment conscious which is understood through its efforts to recycle wastes in the cafe. Franklin’s Cafe: Franklin’s Cafe was started in 2006 by Fiona and Henry Owen as a small coffee shop but very soon it was segregated into two business groups with one on the Franklin street and the other on the College street. Fiona and Henry along with the management and leadership skills of their son Ed initiated new, less expensive steps to manage both the cafes. At the present, they serve not only the customers with coffee but under the Franklin brand they also sell to their customers tasty foods like Ciabattas, salt beef, soups, cakes, ice creams etc. Their main tagline is the food, which have the authentic Franklin taste and are affordable by most of the customers. Another main strength of the Franklin’ brand is that they provide both drinks as well as snacks under the single name of Franklin. There are separate staffs, who take care about the food that needs to be supplied and in Franklin’s the customers can actually view their food being cooked. Both the cafes had different timings and Franklin’s customers are mostly international visitors which mainly comprised of students and tourists. The college street cafe’s atmosphere is filled with students and tourists, while the Franklin’s cafe is more filled by customers who prefer a more cozy, quaint and historical atmosphere. The College street premises are smaller than the Franklin Cafe’s premise. Customer’s appeal is more towards the College street cafe. The employees work in shifts in both cafes. The staff and the managers have uniform codes which are also used as a source to promote their cafe. The owners hold regular meetings with their employees especially in between Ed, Fiona and Henry. The Franklin street cafe received great applause from one of its customers in September 2010 for selling the best coffee. Organizational Design (Structure): Organizational decision making involves various decisions to be made with respect to strategic decisions, which are needed for strategy execution. Organizational decisions or organization structure implies the processes by which the tasks are divided inside the organization with respect to work flows and how the work flow processes are coordinated. Organizational design relates to the creation or the change of the structure of an organization. The organizational design of a company portrays the firm’s efforts on how the firm responds to changes and integrates new elements in order to improve its coordination and communication process and to make its business processes more flexible. Cafe Nero: Cafe Nero has around 3000 employees. In order to make a better delivery service to its customers, the cafe has incorporated various steps like the adoption of snacks with peace and serenity and not playing loud music to ensure that the customer is provided with a very cozy atmosphere. This was a change in the organizational design because previously the cafe concentrated on providing only coffee to its customers. Cafe Nero does not have strict schedules for its staff and are more concentrated on supplying the best ingredients to its customers. As a customer of the cafe if my taste would be to enjoy the world’s best and healthy coffee ignoring the costs, then Cafe Nero would be my choice. As an employee, cafe Nero recruits employees from the world over and also treats the staff with various recreational party events like CN Club parties, Barista of the Year events etc. Therefore it is favorable to be an employee of the firm. Organizational Design Chart of Cafe Nero: Franklin’s Cafe: Franklin’s cafe has made various changes in its organizational design right from its beginning. At first, the firm used to supply branded coffee but realizing the need to develop their business they segregated their business into two heads and started their College Street and Franklin street business. Another important organizational design in the Franklin’s cafe was that at the set up of the cafe it was totally managed by Henry and Fiona Owen, but with the development of the cafe there were a number of managers who played an important role in the decision making. All the decisions were made by the Owens also in consultation with their son Ed. The Owens were daily present at their work and thus they measured employee performance and complaints regularly. Their specific ‘Frin and Frinout’ schemes provide the customers with choices and is also cost friendly. Another organizational change was that at the start of the Cafe biscuits were provided supplementary to tea or coffee, but with the high costs the cafe stopped this proposal. The staff’s especially the college street cafe’s timings were quite harsh that even at first the employees complained, later they understood the situation and decided to stand with the firm. As a customer who is interested in only having a drink without the need for authentic or high taste, then I would prefer Franklin’s college street cafe. As an employee I would not prefer Franklin’s cafe because of the strict work timings and no recreational events. Organizational Design of Franklin’s Cafe: Groups and Teams: Even though teams (groups) have constantly been a central ingredient of the organizations, they are increasing attention as potentially significant organizational benefit. Professionals not often work alone; they normally work with their social group and their work managers. Managers are concerned about creating successful teams which create real offerings to quality products and services and consequently containing achievement of the whole organization. One of the clearest characteristics of any of the group is that they are composed of more than one people in social interaction. Groups also must hold a structure. Even though groups can alter and frequently do, there must be some constant relationships that maintain group members jointly and working as a unit. To be a group, a better level of constancy would be essential. A third distinctive of groups is that members share general interests or aims. Lastly, to be a group, the persons involved must distinguish themselves as a group. But at the same time Groups are composed of citizens who distinguish each other as parts of their group and can differentiate these persons from nonmembers. Requirements of a Team: First: The team members have a mutually dependent connection with one another to achieve the team actions. Second: This interdependence points that group members must interrelate through discussion or work behavior. Third: A team is illustrated by a circumstance of mutual influence among team members. Fourth: Teams have a general purpose such as achieving work, implementation a project, or arranging a report. Difference between Work Group and Work Team within the Organization are below,    Group Work. Team Work. Aim. Share data each other. Combined performance of every team members. Synergy effect. Unbiased. Positive. Answerability. Individual Individual and joint Abilities. Random and diverse. Complementary Organizations in Context: Franklin’s Cafe: The Cafe Franklin’s was established in the year of 2006 by Fiona and Henry Owen primarily in the Street of Franklin and subsequently in the year of 2008 they developed their business into the corner to College Street. Cafe Franklin’s is a small business establishment and attempts to set up a difference from any other coffee shops. At the beginning of the company establishment, Franklin’s provided branded coffee, which they considered will help to attract many consumers. On the other hand, they altered their coffee dealer to a small company in the neighboring province and rapidly began to create their own food in order to stand out as different from other. They have also recently started to sell a variety of teas from another newly created small independent business, which are very accepted by students, equally to drink on the location and as retail packs. Caffe Nero: Caffe Nero was founded by Gerry Ford in the year of 1997. He preferred it to be genuinely Italian; serving best espresso based coffee, new high quality food and to turn out to be a neighborhood gathering spot. In the year of 1997 Gerry bought five retail locations in London and started to create his vision. It took him a year to obtain the brand rightly. And also three more coffee shops started in London in the year of 1998, bringing the whole to eight storerooms and in 1999 they moved exterior of London for the first time, starting in Manchester. As a large multinational business establishment, Caffe Nero, by the end of 2000 have 31 storerooms and it had turn out to be a nationwide brand; they also won a British Design Council award for best corporation identity. Nowadays, it has in excess of 400 stores in Britain and approximately 3,000 workers. Caffe Nero intends to generate a continental coffee house ambiance; a welcoming position to meet up that has something of a ‘buzz’ regarding it. They desire their consumers to feel relaxed and comfortable at each of their stores. Caffe Nero workers have fun at the same time as they work and they like to obtain to be acquainted with their regulars. They desire their storerooms to reflect the neighborhood and be a division of it. On the other hand, every store reflects and is division of the local community. They arrange proceedings throughout the year together with the regular CN Club parties, Barista of the Year measures, sports days of school, Italian wine, softball and food tasting nights and various others. Organizational Communication: Effectual Communication is important for managers in the business establishment so as to carry out the basic jobs of management, i.e., planning, categorizing, leading and scheming. Communication assists managers to carry out their works and tasks. Communication serves up as a basis for planning. All the necessary data should be communicated to the managers of the organization, who in-turn must correspond the plans so as to execute them. Categorizing also needs effectual communication with others regarding their job task. Likewise, leaders as managers must converse efficiently among their subordinates so as to attain the team aims. Scheming is not achievable without oral and written communication. The team works to describe and generate the defined business culture are necessary for the achievement of the organization. The team and groups of the organization also promotes two-way communication in the organization to guarantee worker input on the sequence of command. Organizational communication is a subfield of the bigger area of communication studies. In order to communicate effectively, we have to think the cultural dissimilarities and pre-dominating the various practice of communication. Organizational communication plays a most significant role in overall success of the company. Franklin’s Cafe: When considering employing or promoting an individual to cafe manager, the job arrives with various duties and needs hard work and commitment. One of the most important duties that required possessing is the proper communication ability. Various cafe's are small cafes where they sell various specialty coffee and snacks. Job description of the cafe manager’s consisting of creating major decisions, directing workers towards general objectives and aims and offering leadership, when needed. They are in charge for the fiscal evaluation of the cafe. This consists of the monthly evaluations, planning the budget together with monitoring the price of their merchandise and the sales. Proper communication is necessary for all these things. Advance work plan is also very much significant for the manager. They require to answer the various questions and what they require to achieve, how to accomplish this and when and who must they hand over this to. This preparation engages planning aims and putting them in consistent order. A cafe manager wants great organizational abilities, excellent communication abilities, have the capability and awareness essential to solve the troubles they may face, supervision abilities and teamwork abilities. They also require being particularly knowledgeable about each products they sell. He must communicate with customer, workers and also handled all the necessary things to attract more customers. Caffe Nero: A new position commenced in CAFFE NERO in the year of 2008 June due to the requirement for an internal communications practice in the business to attract more clients. With an increasing store base of 50 storerooms per year in the United Kingdom and a rising number of stores globally, the position supports the requirements of the different parts of the business. Production manager of the company is responsible communicating to 200 HO employees and 3500 remote employees. Managers dedicate a great fraction of their time in communication. They normally devote around 6 hours per day in communicating. They expend large time on telephonic or face to face communication by way of their superiors, assistants, colleagues, consumers or dealers. Organizational and National Cultures: Franklin’s Cafe and Caffe Nero: In organizational theory, culture is a normally investigated subject issue. A connection is frequently drawn among a strong dominance and organizational culture in the market place. Culture is formed by an organization’s single history and situational development. It can be explained as the beliefs, values and potential less or more shared by the organization’s members. It influences the way an industry does business and creates known relevant customers, employees, competitors and suppliers. Upper level and executives Managers are dependable for instilling the norms and values into workers, so that they not only recognize what is expected from them, but also dying to perform in such a method as to advantage the company. A top-rate manager is able to make sources of meaning and recognition by giving an atmosphere that is rewarding for its customers and employees. A nation’s culture, like that of an organization, is contained of the values, symbols, rituals, and customs living in a specific region. Food, Language, and family traditions are all rooted in national traditions. How people perform in public verse how they act within their own home is also connected with standards and values of their nation. Cultures generally are different in dealings among the society and individual, ways of dealing with conflict, gender, conceptions of class and relationships to authority. All of these things are similar to organizational culture, just on a grander level. Caffe Nero: Caffe Culture completely caters for the coffee bar and UK's cafe industry and is a very determined trade exhibition offering actual commercial profits from a targeted viewer of self-determining coffee shop buyers and owners from the guiding high street chains. Caffe Nero has become division of the coffee culture transformation and has assisted to increase the bar on the coffee quality obtainable to customers through the opening of hand-crafted artisan coffee in hundreds of cities and towns. Through this, Caffe Nero has turn into one of the greatest recognized and the majority admired coffee house brands in the globe. Franklin’s Cafe: Franklin’s proposes continental method cafe culture 7 days a week. From Segafredo coffee to pastries and delicious breakfasts, the Cafe Bar is the place to assemble up with friends. The restaurant over serves a cracking usual menu with a Mediterranean twists. Elegant environs and its important position give stunning views of the bustle and hustle of Exmouth below as enjoying some of the greatest dining in the town. Internationalization and Globalization of Organizations: Globalization is normally used as a shorthand method of describing the connectedness and spread of communication, production and tools across the world. That spread has concerned the interlacing of cultural and economic activity. Rather confusingly, globalization is also utilized by some to mention the efforts of the International Monetary Fund, the World Bank and others to make a global free market for services and goods. This political project, as being important and potentially harmful for a lot of poorer nations is actually a means to develop the larger procedure. Globalization as the meaning of connectivity in cultural and economic life across the world has been rising for centuries. On the other hand, many believe the present situation is of a basically different order to what has gone before. The speed of communication and exchange, the difficulty and size of the systems involved, and the sheer quantity of trade, communication and risk give what we now label as globalization a peculiar power. Even though the terms internationalization and globalization are sometimes utilized interchangeably to explain political, economic and cultural performance all through the world, there are numerous key changes among the two words. The term globalization is constantly utilized to explain the theatrical changes the globe is undergoing, as recent tools and current economics have guided to increasingly interrelated cultures and economies; internationalization often refers to particular economic actions that certain nations are undertaking globally. Franklin’s Cafe: The manufacture of coffee is a procedure influenced a lot of people in the world today. Not only are the drinkers of the coffee influencing their own health, other than the option they create is also formative the quantity of goods purchased by Starbucks at the next trade period. If no one buys a specific brand, Starbucks will not buy it. Therefore, the South American farmers exporting that specific category of coffee will not have any return and will be not capable to feed their plant new crop, families to get better their on the whole quality of life. These poor farmers are outstanding examples of the disaster that happens when coffee is exported and sent through several funnels before the customer enjoys the tasty beverage. The awful dependence of the overseas coffee market is founded on market price. The difficulty with free trade isn't with the closing stages price for US for some cause, customers are happy to pay about $5 per cup at Starbucks. The difficulty lies at the opening of the market chain. Caffe Nero: Caffe Nero reports consumers are declining to provide up their daily latte, as they still observe a trip to their preferred coffee shop as a reasonable treat. “Annual pre tax profits for 2008 rose 43% to ?13.7m, and Caffe Nero's lower Prices - an average spend per customer is ?3.40 – appear to have contributed to the rise in sales. However, the company is Allegra Strategies are holding a UK Coffee Leader Summit on Tuesday 19th May (the day before the start of Caffe Culture)” (Coffee Shop World 2009 p. 1). Caffe Culture totally caters for the UK's coffee and caffe bar business and is an extremely focused trade display offering actual commercial profits from targeted viewers of self-determining coffee shop buyers and owners from the leading high street chains. Organizational Power and Control: Organizational power is described as the power of the organization’s arrangement to utilize all the mandatory resources for organization growth for instance machine, man and other resources. Power is not regularly distributed to all stages in the organization; however, it is confined to particular departments. The aim of assigning control to these levels is to restructure the under laying actions by designing work structures, policies, circulars and their successful execution for the achievement of the organization. The managerial control procedure within a better business classically needs the use of methods that help a manager in analyzing significant quantity of information about how the business and its workers are functioning so as to make suitable managerial decisions. Caffe Nero: Caffe Nero Group limited is an Italian-style coffee shop series mainly based in the UK. It was established in 1997 in UK as the Caffe Nero Collection by Gerry Ford. Presently, the company runs over 420 shops nationally and has expanded its processes into locations like United Arab Emirates and the Turkey. As the companies are measured the caffe Nero being the presumed company, it has the control of controlling the employs and they have the divide wing for the observing of the conflicts prevailing in the surroundings and in removal the same within the group. As the performance of the Caffe Nero is measured they are the biggest and the important brands in the London, they have kept the position of the guiding brands. Franklin's Cafe: Franklin's Cafe & Wine Bar is situated in Downtown Harrisonburg and given a bright atmosphere for those who love to make. With the wide collection of fresh local foods, it encourages our guests to arrive in future than the menu and make a little unique. Organizational Politics and Resistance: The method of organizing supremacy is the method of politics. Given the strain on power and official organization the politics are which occur when associates of organization perform in ways that are potentially dishonest. The power is fundamental to the strategy method in organizations because choice about what policy to uphold or innovate will forever be political. Such conclusions are likely to pressure the accessible distribution of managerial resources as symbolized in salaries, in supporting prospects, and in managing of tasks, people, information, and latest area of company. These politics are generated by the following: • Structural cleavages in the business among different constituent essentials and identity, and the dissimilar values, emotional, cognitive and discursive approach connected with some affairs. • The complication and the amount of insecurity connecting to the confusion • The salience of the issue for diverse performers and identity in the business • The outside force upcoming from stakeholders or others who are directly and indirectly involved in the organizations environment • The narration of past politics in the organization is always answerable. Accordingly, power and managerial politics are extremely essential to a great deal of what usually go on in organizations. This may have to be the case because, organization politics vitally deal with the management of importance, as central character in the policy request to reasonable the ideas, values, and stress that they support. The organization is an opinionated arena, in which the organization of politics comes into cooperate whenever the system of authority, philosophy, or capability may be challenged in assorted supporting aspects. As the Franklin’s cafe is considered they are the small business groups and the majority of the employees in the company are the family members or the closed knit group of the management and the majority of the employees being the kith and kin of the management, the chances of the organizational politics are comparatively less, and they also have a say in the management for discussing the needs and the reasons for improvement of the firm. The Caffe Nero is the big business industry and the business have good employee strength and there are more chances for the organizational politics from the employees perspective regard to the above discussed approaches. There are many chances of the structural cleavages in the business among different constituent essentials and identity, and the dissimilar values, emotional, cognitive approach connected with the cafe Nero. Resistance is an expression that has extensively been a part of the organization behavior and the changes in the Organization. The resistance to change is a usual process, as powers in organization are seldom run fluently as pure power, because its authenticity is often challenged. The power is classically not open of resistance. And where there is uneasiness, there must be resistance. Often, resistance has been explored in expressions of industrial relations, inconsistency at work involving management and workers, particularly where the second are communally structured in unions .In recent times, researchers have been paying attention on subjectivities of resistance as these are composed throughout memories of a fairer time or improved work, possibly, or through social organization, such as family or local area network, or solidaristic organizations including the trade unions. A number of researches offer illustrations of how resistance may be erratically prearranged. Resistance is certainly part of politics, at times the resistance to the changes in the organization can be a decision by the group of the members and they have the direct influence of the internal politics of the organization. The organizational resistance can be considered as the big issue within the organization; there resistance is widely discussed topic in the management. As per the two cafes are considered, the resistance to the change is widely seen in the big business namely the Caffe Nero, the employee strength in the organization is much high and the more probable chances for the politics which can lead to the resistance within the organizations. As per the smaller business Franklin cafe is considered, the resistance chances are much less and the Franklin’s is a family business. The employees feel that they have a good team working for them and they take pride in keeping the staff informed, to help them feel involved in the business. This is a reason for swapping staff over the two cafes as they feel that two separate staff groups would lead to a ‘them and us’ division causing conflict. Occasionally notices are put up to remind staff of ‘do’s and don'ts’. Organizational Conflict: Organizations are generally prone for the conflicts, the organizational conflicts is the widely discussed topic in the organizational behavior. Scholars are analyzing in the organizational behavior field (OB) regularly in regard with the inconsistency in organizations as common, though they from time to time have a moderately inadequate conception. In public ltd companies, there are various parties to governance, each of them has been related with membership. The dimension and variety is a limitation when it comes to calculating a big company, and this group has had declining influence. The organizational conflict depends on the performance of the companies, the less the organizational conflict more is the performance of the company. The performance is the biggest factor that has to be clubbed and the supervision of them has to take place well. As the companies are considered the caffe Nero being the reputed company, it has the power of controlling the employees and they have separate wing for the monitoring of the conflicts prevailing in the environment and in discarding the same within the organization. As per the performance of the Caffe Nero is considered, they are the largest and the leading brands in the UK, they have been maintain the position of the leading brands. “The performance of the business is impressive: Turnover has risen from ?26.6m in 2002 to ?70.1m in 2005. The business generates a strong cash flow and high operating profit which in turn allows it to finance the opening of new stores without having to borrow money. Caffe Nero is achieving like for like sales growth faster than its major competitors in the market and it serves over 750,000 ABC1 customers every week, and has a strong brand reputation in highly competitive market place” (Riley 2006). Allegra Consumer Report 2005 - Major Coffee Brands Rank Coffee Quality Atmosphere Service Quality Food Quality Price/Value 1. Caffe Nero Caffe Nero Caffe Nero Caffe Nero Caffe Nero 2. Costa Coffee Starbucks Starbucks Starbucks Costa Coffee 3. Starbucks Costa Coffee Costa Coffee Costa Coffee Starbucks As per the other company Franklin is considered, they are also the one doing well in the business and as they being the small class business with the small unit in the operation, the conflicts are also very less in the organization. The company has the methods of monitoring the employees and the opportunities to conduct the discussion on every possible time of the employees, as the employees are the relatives or the closed group of the management, they have the feeling of the unity in them and they work for the best of the organization. Conclusion: From the above discussions conducted on the organization behavior and the various approaches within the organizations, it is much clear that which organization is the best choosy one for becoming the employee and the customer. It is much clear that the organizational behavior has a major role in contributing for the success of the organization. Reference List Coffee Shop World. 2009. Vol. 1. T Beaney Publishing. Available at [Accessed on 02, January 2012]. Riley, G 2006. A2 Markets & Market Systems. Tutor2u. Available at [Accessed on 02, January 2012]. Read More