B716 Illy Caffè Management Assignment Sample

• Internal Code :
• Subject Code : B716
• University : Open University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Management

Management: Perspectives and Practice

Contents

Introduction.

Stakeholder group for each of the 9 Cs for the Illy Caffè franchise business.

Schein’s iceberg model of culture to describe the organizational culture of Iffy.

Schein’s Model of Organizational Culture levels.

Artefacts and symbols.

Espoused Values.

Basic underlying assumptions.

Onion model

Schein’s Model of Organizational Culture and Iffy Cultural

Prospective investment

Behavioral and psychographic segmentation criteria of the illy online retail business.

Global sourcing alternatives.

Introduction to Illy Caffè Franchise

Through this assignment the purpose is to understand the Iffy Cafe franchise business that is known as one of the high-quality businesses. The company is also characterized as the highest producer, quality premium, and also focuses on supplying high-quality ground coffee under the manufacturing industry. Iffy has firstly set up during 1933 and was the coffee oriented show established in the Francesco Illy, and due to the constant innovation in the 1990s it has helped to outgrow globally. The company has 100000 stores and has hired a workforce of 10000 globally (TRIROJ, 2019). The company sells the blend of coffee preparation and also includes the espresso machines. It has rich premium products ranging from the medium roast, dark roast along with the decaffeinated. Within the industry the company is known as the innovation pioneer, which focuses on coffee perfection and also creates trendy and seductive.

Stakeholder Group for Each of The 9 Cs for The Illy Caffè Franchise Business

The company focuses on building and also collaborating with the senior leaders that can work over with the torture and deprivation. It includes the attributes of the stakeholders identified below. 

Character – The character is the main company values, core assessment, and even helps the stakeholders now what kind of ethics the company promises (Sohi, 2019). The stakeholder is the management who promises the company rich belongings and even show what kind of internal and external workings are structured like.

Courage – It is the courage to obey the duties and the abidance by the rules and the regulation. The investors and the directors are the main faces of the company which promises to show the real picture and understanding of the company. It brings a code of conduct, sustainable practices, and abidance by the core values (Shepherd, et al, 2019).

Commitment – The employees are stakeholders who promise to abide by the company vision and deliver inline to the company's commitment. The company employees face who needs to practice in accordance with the company vision, mission, goals, and objectives (Gong, et al, 2019).

Clarify – The company's consistent obligation to follow the policies is the main representation of the ideas, missions, and the vales (Mkono, 2019). The internal governing body, which comprises of the finance, internal audits, and the compliance body, helps t formulate the perfect policies which can be followed inline to the internal and the external working. The best-sorted clarification can be provided by the policy, and further to communicate with the parties. This helps to streamline and sort the better workings.

Connect – The company senior leaders and the management falls in the main factor that can work in accordance with the defined company goals and also help the employee to connect and follow the paths. The suggestion, direction, and guidance can be given by the company mentor who focuses on the wellbeing of the company and the employees.

Collaborate – The employees and the leaders can collaborate with the internal and the external system with the suppliers, vendors, investors, and the various stakeholders to deliver. The company can focus on the teammates and the knowledge age, which can help to form a close bond and workings. The company leaders can focus on the collaborative leadership aligned with the employees and the other important stakeholders.

Closeout – The company suppliers, vendors, and the customers are the final two ends. While the suppliers and the vendors help to transits the materials, the other is the consumer which gets the final products. In both ways the company has to focus on balancing the two ends and even manage resources and the final deliverables (Meuthia, 2019).

Celebrate – The shareholders, investors, and management are the people who would celebrate as the company grows. But with them even the employees, business vendors, suppliers, and the other investors can also grow as they are closely connected.

Confront – The shareholder's director and the audit people from the compliance can confront and formulate the strategies which can help the company to follow the rules, directional, and the key governance in accordance with the policies outlined. Similarly the company also has to obey the external policies, procedures, and government rules (Gong, et al, 2019).

Schein’s Iceberg Model of Culture to Describe the Organizational Culture of Iffy

The Schein model was originated by the great Edgar Schein who has further developed and also oriented with the culture model that can further make the culture attain progress in the organization. The company has to be adaptable and should have a certain cultural change. As per Edgar Schein the model focuses to have the direct and indirect mechanisms which can be catered within the organizations. The organization's culture is focused on direct mechanisms. The Iffy culture is a blend of exemplary behavior; having an independent working along tight he structured uniformity (Gong, et al, 2019). The company direct mechanism is the opinions, status along with appointments. The Indirect mechanisms do not influence the organizational culture and are the prime factor of the determinative. It would be related to the mission statement and vision of and the company has to formulate the formal guidelines, include corporate identity, rituals along with the designing (Ghaderi, et al, 2019).

As per the Schein’s Model of Organizational Culture, the company Iffy has originated with the following set up-:

Schein’s Model of Organizational Culture Levels

The organization has been structure within the three different levels-:

Artefacts and symbols

The Artefacts is defined as the surface linked to the organization. It includes the visible elements and also includes distinguishing logos, architecture, and has a set structure, processes along with corporate clothing. As such the employees are not affected and not are aware of it. It is however seen by the other parties.

The Iffy culture has a formal structure form the top to the lower management hierarchy and it has a diverse cultural orientation. Each of the communication flows in a structured manner, the company is known for its premium products and the best customer service (Meuthia, 2019).

Espoused Values

As per the model, it includes the standards, values and even follows the conduct of the rules. It is based on the organization's express strategies, and it inculcates the objectives and philosophies and workings that can make it public. It is the problem that can be seen and defined based on the managers holding a key basic assumption.

The Iffy coffee business also has standardized services, rich values, and even focuses on the company mission, vision, and the set philosophies (Ghaderi, et al, 2019).

Basic underlying assumptions

As per the model, the basic lying assumption is how the organization has a rich culture and how it can be attributed to the self-evident along with focusing on the unconscious behavior.

Onion Model

The Schein model also recommends that there are structured three levels of Schein’s Model of Organizational Culture which can be presented through the different layers. While the outer layer can be more easily adaptable and can be changed easily, the deeper is more hard and difficult to adjust with. Subsequently the model is based on the core findings of the values and the workings. As per the artifacts and symbols, it is important to focus on the outer layers of the onion that can work inline to the various values and embed in accordance to another layer, that can help to understand what can be admired and how it can be channelized into an experience and perception.

Schein’s Model of Organizational Culture and Iffy Cultural

While the model is more about the organizational Culture Model which has been provided the Iffy has a point of reference which adapts with the cultural change. Within the Iffy business, it is diagnosed as how the employees have a rich blend of personal backgrounds and the organizational culture, which can work collaboratively. The people can focus on bringing a cultural change and it is important to have them (Meuthia, 2019).The transformation process; can transit the employees to change as per the behavior. The company advocates unlearnt the prior learning and focus on the new derived learning that can help in bringing stability to the culture intervention and the blend The company also has the set of the existing culture and the cultural intention that can be defined through the set customer orientation, corporate style and even rewarding the disciplined employees (Janevic, et al, 2019).

Prospective Investment

As a manager of the company, the lucrativeness of the company would be defined as below -:

By background, the company Iffy Caffè has been established in the Trieste and it is catered by the third and fourth generations of Iffy family. Further, the company focuses on the ways it can sell at the global level and focus on the unique blend of the premium quality coffee that consists of the 100% Arabica which can balance with the 9 origins and even further grows with 20 growing areas (Ghaderi, et al, 2019). This company focuses on mixing the beans that have been taken traded by South America, Central America, Asia, and Africa due to which it has a fine flavor and rich aroma. The company is also focused on the premium hospitality channel (which serves largely the high-end hotels and focuses on the restaurants and coffee shops), and serve through the corporate coffee along with the single-brand coffee shops; that are widely available with the home and office consumption (The coffee is distributed to the 144 countries and 100,000 coffee bars and shops and every day saves more than 8 million cups (Gong, et al, 2019).

Business model

Financial Capital

The company uses the economic resources which are used in the regular production processes

Production Capital

It brings the real estate assets along with the infrastructures for the products that can help to bring out the best source of goods and services

Human Capital

The company can focus on the skills, abilities, and expertise and how the employees desire.

Intellectual Capital

Intangible resources that can help the company to desire for the organizational expertise along with focusing on the intellectual property

Relational Capital

To have the corporate ability and building of the relations that can work together with the external stakeholders and shared values that can help to identify the individual along with the collective wellbeing?

Natural Capital

To preserve and also focus on the environmental processes and focus on the resources that can result in the constructive production and for the betterment of Iffy Caffè goods and service

Outcomes

The outcomes would be attributed to the value chain solution and through sustainable agriculture

• To bring and integrate the best model, that can help to improve the knowledge, to channelize the supply chain and even bring out the reliable traceability
• To focus on the development along with the sustainability factors such as the coffee supply chain that can work inline to the research, transfer of know-how along with the local projects
• TO focus on the supporting and the integrated agriculture that can help to sustain and preserve and improve, globally along with providing the quality and sustainability of coffee along with having the uses for the production processes (Gong, et al, 2019).

Happiness and quality of life

• To further promote and share the principle, culture, and needs to be based on the sustainability factor. It can help to derive the best human source of happiness.
• The coffee shop has also been an international debate that has consistently worked over the happiness, well-being along with the quality of life
• To support and build relationships with the global partnerships to foster sustainability (Gong, et al, 2019).

Circular economy and innovation

• The company's focus is on the products and systems that can work inline with the principles of sustainability along with the circular economy (Ghaderi, et al, 2019).
• To work and orient with the energy efficiency and find out the resource consumption, which can help to increase in the overall better practices and innovative solutions
• To promote further with the environment and focus on the fundamental principle for innovation and sustainability.

Financial Growth

Every year the company focuses on highlighting the economic value and which has generated and allocated during 2018. The revenue generated is 439.07 million Euros, and having a significant increase of 0.11% over 2017.

Behavioral and Psychographic Segmentation Criteria of The Illy Online Retail Business

Psychographic segmentation is the process that helps to identify and it would further help in creating similar characteristics, of customers who share similar attributes and they group. For the coffee lovers the mix and the grouping can be based on the below factors which are subsets as below-:

Social Class

The main coffee premium is the Espresso which is priced a way higher and then comes the regular coffee which are the classics and the whole bean (Gong, et al, 2019). The coffee shop can be based on the segmented that would be generalized in terms of the customer’s orientation that can generalize the target audience. Depending on the would-be divided that result products which would be attributes which be based on the richness of the coffee which would upper-class consumer that distinguish the high quality, high prices, and high fashion. The espresso coffee is for the high brands and for the high demanding people who want quality. Further for the regular user’s uses the regular brand such as the roasted classic coffee which is priced lower and also given with different styles (Meuthia, 2019).

Lifestyle

The coffees are segregated concerning the psychographic segmentation and each of the clusters are oriented concerning the requirements, such as for the regular coffee office goers are the classic coffee, for the strong coffee its dark coffee and further for the social parties and the other get together it is the Frappe latte and the other types of the beverages. Each of the coffee is targeted based on the psychological attribution and the product is designed as per the key requirements. It can be further be classified as below-:

The “Yuppie”: Coffee for the young, urban, working-class professional person, who would like a friendly easy carrying packaging and has a high disposable income which can be spending over the utilitarian products. 

The “Digital Nomad”: It is for the everyday social couple, people and the other types of the regular groups such as the couples, working as freelancers or for the other types, which are working in the day-by-day, along with the country-by-country, and they are usually in the age 25-35 years who are active in the social media, and engaged with the latest trends and lifestyles (Ghaderi, et al, 2019).

Interests & Social Status

The coffee can be specifically for the age group who are willing to go as per the psychographic segmentation. It is also attributed to the interest types and the lifestyle orientation that can be part of the subculture. It is also based on the specific kind (Armstrong, 2020). The Frappe can be used to show out the consumer orients such as to leisurely enjoy the coffee, further for the cappuccino for the regular coffee lovers or officer goers and based on the flavor such as strong, premium or more chocolate types, each of the coffee types would be distinguished(Ghaderi, et al, 2019). 

Behavioral

The coffee is classified largely with the behavioral types and it would be as per the marketing and it would be bead on how the coffee is desired (Meuthia, 2019). The behavioral strategy would help the iffy coffee shops to look forward and check for the data points, track further, to analyses, and further has to check over the real-time system. The system of the research would help to check what the customer desire and how much a consumer would be willing to spend in comparison to the competitors. Further, it would be how the consumer desire, it is a need, want and the regular user, can help to define the social grub and target them accordingly. It is also estimated with the power of the predictable intent that can further help in the coffee selection. For this the company should have a holistic approach and needs to focus on the consumer self-discover attributes, enjoy the regular coffee, and also intend the cup of coffee for all sorts of consumers. For example Iffy Company is aware of how the people can project the negative attribute of the coffee-based frank and the consequences of it. Still the company projects and advertises the positives of the caffeine-free drinks which they can further offer (Akyuz, 2019). This would help to covert the company's intends to sell its product with the consumer orientation to desire. This would further help to stream the products as to what is desired and how much would be willing to be demanded.

Global Sourcing Alternatives

Iffy's franchise business has always expanded due to the backward and forward integration. The company so far, has to manage with the current industry and have to obligate with the production in the niche markets for fair-trade and also to secure the organic coffee. The company also has the fair level of the chain that helps to identify and even identify how the coffee roasters can source their suppliers which would be interrelated with the upstream suppliers and further with the downstream retail distributors. This has further helped to streamline the suppliers within the system and even has helped in the expansion of the supply control that can be handled with care. The problem of the Illy coffee set up is to scout out for the supplier-managed inventory systems (SMI) along with the oversupply. Further there is a lack of business reasons which can orient towards the roasters’ sourcing choices. Due to this, the coffee company has to face the vast differences in the determinants of the roasters’ sourcing strategies.

Iffy Coffee supply chains have gone through a deep transformation since the beginning of the 1990 and since then the company has faced a major crisis due to the regulation which has further resulted in the breakdown of the International Coffee Agreement (Meuthia, 2019) It is important to channelize the deregulation of the coffee industry which was done as interference to the government exporting authorities which was seen in the many producing countries. It has resulted in the dramatic price fluctuations which were observed over some time within the market and there were power shift problems that were experienced due to the chain. Further, the role of the coffee roasters has also obligated with the ‘channel captains’ that have shaped up the supply chain which cannot be recognized. It is important to look out for the raw product quality and how it would originate with the origin, variety, growing, and further can differ due to the conditions and handling (Akyuz, 2019).

Due to the coffee supply chain, which would cater to the majority of the roaster, the problem of the uncertainty can happen as a result of the asymmetries of information that have become invasive. It is also important to note how the commodities would lead to the variable characteristics; it can also lead to the quality concerns which would need to have a quick resolution (Akyuz, 2019). The coffee when reaches to the consumer, it goes through the various techniques, obligates under the new techniques, channelizes it into new technique that can further help to access the psychical complete and actual characteristics that can be done through the taste. The sourcing of the coffee also happens with the help of the technology and special equipment helps, and further, it is worked with the help of the quality assurance that engages the human skills within the quality control depending on the tacit knowledge and common language which can help to find out the communicate product attributes (Meuthia, 2019). The coffee tastes are also checked with the help of the international traders who would advocate using the standardized broad descriptors which can identify the coffee types and how the quality of each coffee bean would differ.

It would orate as per the size of the beans and would channelize into the production process that can further help in the organoleptic characteristics (Mkono, 2019). The attributes which signify and specialize further look for the specified flavors and the aromas and (e.g. special flavors or aromas) which cannot be specialized. Further, the company also invests in identifying the farms and collaborating with the markets, which can offer the exporters some of the enriching experience that can be differentiated due to the premium quality products as during the trading system, as in-depth labels and the identification of the coffee tricks is missing (Heenan, 2019). The alternatives to sourcing apart from tying hands with the farmers, with the traders and after scouting for the niche markets are also company in-house organic coffee production which has helped for the overall set up. The decisions to arrive are out on the quality and the premium products which they sell in the market, upon which they distinguish the product (Gong, et al, 2019).

Conclusion on Management: Perspectives and Practice

To conclude, Iffy business is the company which has been adaptable and change as per the organization culture. The direct mechanism are the opinions, status along with appointments while the indirect mechanisms do not influence the organizational culture and are the prime factor of the determinative. It would be related to the mission statement and vision of and the company has to formulate the formal guidelines, include corporate identity, rituals along with the designing.

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