Coffee Day Xpress Internship Report-dinesh Kumar
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Transcript of Coffee Day Xpress Internship Report-dinesh Kumar
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 1
Internship Report
An Organizational Study
At
COFFEE DAY XPRESS
BANGALORE
Submitted in partial fulfillment of the requirement of the
Bangalore University for the forward of degree in
Master of Business Administration
Submitted by
DINESH KUMAR KARNAM
REGISTRATION NUMBER- 10XQCMA032
Under the guidance of
PROF. VIJAYALAKSHMI S
No 43, Race Course Road
Bangalore 560001
August, 2011
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 2
DECLARATION
I, Dinesh Kumar Karnam (Reg. No - 10XQCMA032) hereby
declare that the Internship Report, an organizational study conducted
at COFFEE DAY XPRESS, Bangalore submitted in partial fulfillment
of the requirement of the Bangalore University for the award of degree
in Master of Business Administration, is a bonafide work carried out by
me under the guidance of Prof Vijayalakshmi S, MPBIM, Bangalore.
This report has not been submitted earlier to any other university
or institution for the award of any degree/ diploma.
The contents of this report are based on the data collected by me
at COFFEE DAY XPRESS, Bangalore under the guidance of Major
(Retd.) Allwyn Roshan D‟ Souza, Manager (SCM).
Place: Bangalore Dinesh Kumar Karnam
Date: Reg. No. 10XQCMA032
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 3
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 4
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 5
ACKNOWLEDGEMENT
Me, the undersigned IInd semester student of MBA, M P Birla
Institute of Management, Bangalore, is glad to express my deep sense of
gratitude to all those people connected with the successful completion of
this organizational study. This report is obviously not the result of my
work alone. Many persons are directly or indirectly involved, without
whom this work would not have been completed.
I am grateful to Mrs. Vijayashree Gilganchi for giving me an
opportunity to do my training and organizational study in COFEE DAY
XPRESS, Bangalore. I am thankful to my external guide Major (Retd.)
Allwyn Roshan D‟ Souza, Manager (SCM) for his guidance and
support. I am also thankful to my faculty guide – Prof. Vijayalakshmi
S, MPBIM for her guidance and support. I would also like to express
my sincere gratitude to my Principal – Dr N. S. Malavalli for all the
support provided.
Dinesh Kumar Karnam
(10XQCMA032)
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 6
CHAPTER NO.
TITLE
PAGE NO.
1
INTRODUCTION:
1.1 Background of the Study
8
1.2 Industry Profile
10
1.3 Company Profile
12
1.4 Company Divisions
15
1.5 About Coffee Day Xpress
25
1.6 Vision, Mission and Objectives
27
2
ORGANIZATIONAL STRUCTURE:
2.1 Corporate Organizational Structure
29
2.2 Department Organization Structure
30
2.3 Authority and Responsibility Relationship
52
2.4 Business Cycle
54
2.5 Rebranding of Coffee Day Xpress
55
2.6 Business Model of Outlets at CDX
56
3
CORE STUDY AREA - S C M
3.1 What is Value Chain
60
3.2 SCM Process
63
3.3 Hierarchy
69
3.4 SCM Structure
70
3.5 Vendor Specifications
71
3.6 Product Category
72
4
SWOT ANALYSIS:
4.1 Strengths and Weakness
79
4.2 Opportunities and Threats
82
5
FINDINGS, SUGGESTIONS & CONCLUSIONS
86
BIBLIOGRAPHY
89
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 7
CHAPTER 1
INTRODUCTION
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 8
(1.1) BACKGROUND OF THE STUDY
Retailing consists of the sale of goods or merchandise from a fixed location,
such as department store, boutique or kiosk, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individual or businesses. The retail industry is a sector
of the economy that is comprised of individuals and companies engaged in the
selling of finished products to end users in the general public.
In the year 2003, ABCTCL came up with a new concept to bridge the gap
between the leisurely coffee experiences that Café Coffee Day provides and that of
serving a quick cuppa from a vending point, to offer the very best in every segment
for the diverse Coffee Day patrons, and this concept was called Coffee Day Xpress
an idea that feeds a world that is in transit.
Coffee day Xpress is a unique concept of convenient café. The CDX kiosk is a
sanctuary where the harried urbanite can pause for refreshment before getting on
with life. Retail, custom - made for the 21st century. Catering to a world that needs a
coffee on the go, especially at high – traffic locations, with hot and cold beverages
and a variety of ready-to-eat snacks.
It is a unique food retailing concept addressed to provide fast, hygienic,
convenient-to-eat and affordable food & beverages. With its speed of service,
convenient location, freshness, superior quality of coffee, high hygienic standards
and affordability. Xpress has quickly reached more than 900 outlets over 20 cities
and plans 1000 franchises by the year 2010.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 9
OBJECTIVES OF STUDY
The purpose of the Internship was to study Coffee Day Xpress in
detail.
To study the Corporate organizational structure and Department
structure at Coffee Day Xpress.
To study the functioning of various departments and the
interdependency of each towards achieving organizational goals.
To study the roles and responsibilities of Supply Chain Management
Department.
To study the product categories and the various products that Supply
Chain Management Department deals in.
SCOPE OF THE STUDY
This organizational study is restricted to Coffee Day Xpress Division only,
and not the entire ABCTCL.
The study is undertaken in Bangalore.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 10
(1.2) INDUSTRY PROFILE
The history and development of the beverage that we know as coffee is varied
and interesting involving the chance of occurrence, political intrigue and the pursuit
of wealth and power.
Accordingly to the story, the effect of coffee beans on behaviour was noticed by a
sheep herder from Caffa. Ethiopian named Khalid as he tended his sheep. He
noticed that the sheep‟s became hyperactive after eating the red “cherries” from a
certain plant when they changed the pastures. He tried a few and was soon
overactive as his herd. The story relates that a monk happened to pass by and
scolded him for “partaking the devil‟s fruit”. However the monks soon discovered
that these fruit from the shiny green plant could help them stay awake for their
prayers.
Originally the coffee plant grew naturally in Ethiopia, but once transplanted
in Arabia was monopolized by them. Earlier use of coffee would have little appeal
than today. The Galla tribe from Ethiopia used coffee, but not as beverage drink.
They would wrap the beans in animal fat as their only source of nutrition on raiding
parties. The Turks were the first country to adopt it as a drink, often adding spices
such as clove, cinnamon, cardamom and anise to the brew.
Coffee was introduced much later to the other countries beyond Arabia
whose inhabitants believed it to be a delicacy and guarded its secret as if they were
top secret military plans. Transportation of the plant out of Muslim nations was
forbidden by the government. Legend has it that a man named Babu Budan bound
seven coffee seeds to his belly and smuggled it out of Arabia into India. He found a
cave in the hills near the Western Ghats where he planted the coffee beans. Later he
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 11
planted the beans in the Baba Budangiri hills. Early in this century, the descendants
of those original plants were still growing fruitfully in the region. In the current
scenario, coffee is grown and consumed worldwide and is one of the few crops that
small farmers in the third- world countries can profitably export.
Coffee is the second largest trade commodity in the world and is extremely
important foreign exchange earnings. Brazil and Columbia are the top two coffee
producers in the world. They account for more than 40 % of the total world
produce and while India‟s contribution is just 4.1%.
India is the sixth largest producer of coffee in the world. India accounts for
over 4% of the world‟s coffee production with the bulk of all production taking
place in its southern states. India is most noted for its Monsoonal Malabar variety.
It is believed that coffee has been cultivated in India longer than anywhere outside
Arabian Peninsula. Indian coffee is rated amongst the world‟s best in the
International market and is exported to countries like Australia, Belgium, USA,
United Kingdom, Russia, Europe, Sweden, Norway, Yugoslavia, Japan, and the
Gulf countries.
In Indian coffee cultivation is largely confined to the hilly regions of the
southern states of Karnataka, Tamil Nadu, and Kerala. Karnataka accounts for
53% of the planted area (59% planted is Arabica and 41% planted is Robusta) and
Kerala is being dominated by Robusta about 28% of the plant area. In Tamil Nadu
the crop is mostly Arabica which has 11% of planted area. About 1, 33, 049 small
planters and 2, 948 large planters cultivate coffee during the year. Among the coffee
growing states Karnataka holds about 70% of the country‟s total coffee production
followed by Kerala by about 22% and Tamil Nadu by about 7%. Europe accounts
for about 70% of India‟s coffee exports.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 12
India produces 260 million Kg of coffee per year and its coffee production
has a yield of 800- 900 kg per hectare. This is low compared to the world‟s average
of 1,100 kg. The area under coffee cultivation is approximately 3.1 hectare. India
produces an average of nearly 2 lakh tons of coffee per year, valued at Rs 460 crore.
Out of total production, only 20% is consumed in the domestic market and the rest
is exported. Thus India has to depend heavily on the foreign markets. Indian coffee
is typically mild and not too acidic and yet it possesses an exotic full- bodied taste
and a fine aroma.
(1.3) COMPANY PROFILE
Coffee has come a long way since the 1600‟s. it has travelled out of the reach
of the Arab‟s who were protective about their coffee beans, to being smuggled into
India by a man known by the name Baba Budan and to have found a place in the
rich soil of Chikmaglur. A traditional family who started owning a few acres of
coffee estates soon ended up in formation of a new legacy. The AMALGAMATED
BEAN COFFEE TRADING COMPANY LIMITED (ABCTCL) was established in
the year 1992. In no time it gained its popularity as “COFFEE DAY”. Seizing the
moment, it took advantage of the deregulation of the coffee board in 1990‟s and
expanded its operations in exporting to countries across Europe, USA, and Japan.
Today it has taken the stand of being the largest and the biggest coffee
conglomerate. It is a Rs 700 crore+ company with over 10,000 acres of own estates.
Leading retailer and Beverages Company to coffee lover the world over- the young
and the old, the company has come a long way since its inception 1992. Today the
company provides a full range of coffee products through a robust and transparent
system of farming and social responsibility. Designing, developing and delivering
coffee products requires thought leadership, well integrated suite of capabilities and
a strong set of processes. To meet these challenges, and to continue with the
company innovation, the company maintains major practices in Advisory,
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 13
Sustainable Farming, Retail, Products, Technology, Solutions, Corporate Social
Responsibility and Operations.
Innovation, Tradition and Coffee day are synonymous with each other as far
as everything and anything to d with coffee is concerned. The origin of Coffee Day
began over 140 years ago, with the humble beans. Decades later and across 10,000
acres of coffee grown wild, the focus remains clear. The humble is pivot of the whole
enterprises. The products and brands, innovations, ideas and knowledge are backed
by unmatched technical and qualitative expertise.
Some of the salient features are:
First consolidated and pure coffee outlet to find it‟s footprint across the
globe
Backed by ISO 9002 Certification, and a heritage of over 140 years
Asia‟s largest integrated coffee company with second largest network of
coffee estates
One of the top coffee exporters in India- to United States, Europe and
Japan.
First company in India to get an UTZ certification
Today Coffee Day is at the forefront of the Coffee revolution- co riding with
coffee growers, suppliers, corporations and planters. We are on this constant
journey! Always trying to grow and help sustain growth and raise the bar
continuously.
“ABCTCL” AT A GLANCE
AMALGAMATED BEAN COFFEE TRADING COMPANY LIMITED
(ABCTCL), located in Bangalore, a city that has grown from a pensioner‟s paradise
to the country‟s Silicon Valley. Coffee Day has become an icon for a good coffee.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 14
Strategies, researchers, subject matter experts, marketing and sales professionals,
farmers, coffee growers, retailers and sales force comprise Coffee Day workforce.
The heritage concept of coffee, dating from over 140 years has been nurtured
with care by Mr. V G Siddhartha, Chairman of the Coffee Day Company. Launched
in 1994, the group is now a 700 crore + company, ISO 9002 certified company,
making its mark in the coffee value chain. The offshoots include over 1000 Café
Coffee day joints, around 400 Fresh & Ground stores, over 900+ Coffee Day Xpress
kiosks, and a sizeable 10,000 vending machines from Coffee Day Beverages.
ABCTCL is a fully integrated coffee company it has a very rich heritage that
stretches over a century. It has developed innovative retailing concepts to maintain
a dominant position in the coffee sector. It ensures a prominent force in the coffee
industry by maintaining quality coffee blends through extensive Research and
Development.
It was the traditionally owned family acres of coffee estates in Chikmaglur,
which yielded rich coffee beans- the starting point of a new empire. Soon ABCTCL,
popularly known as Coffee Day was formed. With the opportunity that arose with
the deregulation of the Coffee Board in the early Nineties, Coffee Day began
exporting coffee across to USA, Europe and Japan. In 2000 Coffee Day exported
more than 27000 tons of coffee valued at US $60 million to these countries. It has
gained the largest coffee exporter of India many a times.
ABCTCL engages in the retail, plantations, and export of coffee and it offers
gourmet single origin and Indian monsooned coffees. It operates a chain of retail
outlets and provides tea and coffee beverages, varieties of coffee and tea powder,
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 15
and speciality coffee, sundaes, snacks, and accessories such as coffee filters and
mugs. In addition to this it operates coffee kiosks and vending machines.
Coffee Day‟s professional network is vast covering a homogenous region. It
covers major coffee growing areas of the country comprising over 48 agents and 50
collecting depots. Coffee Day has two curing works at Chikmaglur and Hassan.
They cure over 70,000 tons of coffee per annum, the largest in the country. Coffee
Day has a well equipped roasting unit catering to the specific requirements of the
consumers. Experienced personnel carry out the process to meet highest quality
standards. ABCTCL uses the most modern technology available to maintain
consistency and roast the coffee beans to the demanding specifications of the
consumers. It has achieved a lot in a very short span of time.
With the vision of a true entrepreneur nurturing it, Coffee Day has its
business spanning the entire value chain of coffee consumption in India. Its different
divisions include:
COFFEE DAY EXPORTS
COFFEE DAY FRESH N GROUND (which owns 350 coffee bean and
powder retail outlets )
COFFEE DAY VENDING (which owns 7000+ vending machines)
COFFEE DAY XPRESS (which owns 900+ kiosks)
CAFÉ COFFEE DAY (which owns 1000+ outlets)
COFFEE DAY PERFECT (FMCG packaged coffee) DIVISION
(1.4) COMPANY DIVISIONS
Emerging as a leader in its field, it has set an example in the industry for
being the only vertically integrated coffee organization. ABCTCL has 6 divisions.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 16
These 6 divisions have made it possible for ABCTCL to be present in the entire
value chain of the coffee industry. This has given ABCTCL the base to extend its
activities into the entire industry and to derive its strength from its roots, all under
one name- “COFFEE DAY”
The smarter, the better! The red and white icon, the hall mark of the
COFFEE DAY group, represents the vibrancy and that zing that the young at heart
look for. Different divisions, different business and diverse focus areas… That‟s the
Coffee Day Group. Each divisions run as independent units, yet rolls back into the
same entity. Naturally, all the divisions are committed to provide customers with
only the very best in quality- a hallmark that‟s integral to the Group.
Café Coffee Day
Pioneering the Coffee Café concept in India, Coffee Day opened its first Café
at Brigade Road, in 1996 still one of the most important happening places in
Bangalore. The young and the young at heart immediately took to the place. A
smart, simple space that they could call their own for a while…. Discuss, listen to
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 17
conversations, hold short meetings or even have lots of good fun, all over streaming
cups of coffee. A little over a decade later, it is still the largest organized retail café
chain in India with cafes across the landscape. Coffee Day today is totally in tune
with its target audience. It is a rapport that‟s as strong as the deep red coffee day
color.
Café Coffee Day, from a handful of café‟s in six cities in the last 5 years has become
India‟s largest and premier retail chain of café‟s aiming to reach 500 in India.
Coffee Day Xpress
The stand up, walk away, take away Xpress coffee… its coffee anytime and
anywhere!
Hot, piping coffee is most welcome anytime and anywhere. It is something
that lets you perk up, when you need a „zing‟ to life.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 18
Coffee Day Xpress caters to the mobile population of a city- who is always on
the move, always on a hurry. Packaged in a area of just 60 square feet, Coffee Day
Xpress believes in “keeping it short and sweet!” coffee Day Xpress is present in all
the key city spots. “Wherever you go, I am there”…. That is the motto of Coffee Day
Xpress. No elaborate decorations, just fresh, delicious snacks and steaming
beverages that come in convenient sizes. Just buy, bite, sip, or munch…. A smarter
and more efficient way of staying ahead of time! And like a great buddy you would
like to bump into anytime, anywhere. Coffee Day Xpress lives up to its promise of
being wherever you are!
Coffee Day Beverages
Across innumerable campuses, or in Café Coffee Day divisions,
where people throng for something hot and special. Coffee Day‟s
dispensing machines- CELESTA and SIENNA play a key role.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 19
Coffee Day Beverages deal with dispensing machines that provide
at the touch of a button, hot coffee and tea, flavored milk and even sups
through its machine called CELESTA. Just like heavenly music that
flows to soothe tired nerves and perk up withered souls, CELESTA
dispenses beverages the way you need them.
Coffee Day take away beverages are for consumers who are
looking for a pleasant filter coffee experience. The machine offers its
consumers both hot coffee and hot tea.
Coffee Day Fresh & Ground
Fresh & Ground stores in markets and shopping points cater to
coffee lovers who love to make their own filtered coffee at home. This
traditional thinking, quality conscious shopper is a royal customer.
They look out for freshness and quality, but want to throw in their bit of
character too. The freshly procured coffee from plantations is packaged
in the most hygienic way to ensure consistency in freshness.
Fresh & Ground specializes in authentic filter coffee, with region
specific blends of coffee and tea customized to demand. Besides an
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 20
affordable array of coffee powders, company also retail tea to tea-
makers too.
COFFEE DAY `Fresh `n Ground' has introduced packaged filter coffee
powder “7 Day Wonder” The coffee powder is claimed to be dispatched to the retail
trade on the same day it is ground and packed; the company also says that the
powder is withdrawn from store shelves if not sold within seven days. It is available
in packs of 200 gm and can be purchased at retail outlets in Hyderabad and
Bangalore.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 21
Coffee Day Exports
Coffee Day Exports is really the leader in growing, trading, retailing and
exporting world- class coffee.
Coffee Day Exports is one of the largest exporters of green coffee in India,
since 1999. It has invested in Research and Development, and applied in learning
successfully to improve the promotion of various coffee blends and augment its
exports.
Coffee Day Exports strongly believes that their responsibility begins with the
origin of the coffee bean- right from ensuring ethical growing practices to packaging
and retailing the product for their customers. Coffee Day Exports is well versed
with experience and technological proficiencies to provide its customers with a wide
assortment of well- positioned products. With regular feedbacks from customers
and advisors, and backed by research, Coffee Day Exports continues to enhance
their products.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 22
COFFEE DAY: COMPANY PROFILE
NAME: AMALGAMATED BEAN COFFEE TRADING
COMPANY LIMITED
LOGO: RED SQUARE → Signifies Leadership and
Passion
WHITE SWIRL → Purity, Invigorating
Properties of Coffee
YEAR OF ESTB: 1992
HISTORY: THE DILUTION OF THE COFFEE BOARD
SET
THE PATH FOR “ABCTCL” TO ESTABLISH
A STRONG BRAND IN THE FIELD OF
IMPORT AND EXPORT ON INDIAN COFFEE
BUSINESS: LIMITED COMPANY
INDUSTRY: FOOD & BEVERAGES
BRIEF DESCRIPTION: LARGEST INTEGRATED COFFEE
COMPANY
INVOLVED IN PRODUCING, PURCHASING,
ROASTING, AND SELLING OF HIGH
QUALITY COFFEE AND SPECIALLY
BEVERAGES ACROSS MULTIPLE
CHANNELS
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 23
CERTIFICATION: “ISO 9002” CERTIFIED COMPANY, UTZ
CERTIFICATION
CORE BUSINESS: EXPORTING AND RETAILING OF COFFEE
CHAIRMAN: MR V.G. SIDDHARTHA
CITY OF ORIGIN: CHIKMAGLUR, KARNATAKA, INDIA
ASSET BASE: Rs 700 crore +
EMPLOYEES: 6000 +
SUBSIDIARIES: CAFÉ COFFEE DAY, FRESH AND GROUND,
ABC
EXPORTS, VENDING MACHINES/ TAKE
AWAY, COFFEE DAY XPRESS, PERFECT
CORPORATE OFFICE: 23/2, COFFEE DAY SQUARE, VITTAL
MALLYA
ROAD
COFFEE DAY XPRESS: DIVISION PROFILE
NAME: COFFEE DAY XPRESS
LOGO:
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 24
LOGO PHILOSOPHY: PLAY, MOVE ON
YEAR OF ESTABLISHMENT: 2003
PRESIDENT: PUTTURAJ A. G.
INDUSTRY: FOOD & BEVERAGE
CONCEPT: CONVEIENCE CAFÉ THAT CATERS
TO
PEOPLE IN TRANSIT THROUGH
SMART KIOSK FORMATS, DIVERSE
MENU, AND NUMEROUS RETAIL
OUTLETS. IT AIMS AT CATERING
TO THE INDUSTRY AND BUSINESS
GAP BETWEEN CAFÉ COFFEE DAY
AND TAKE AWAY DIVISIONS.
BUSINESS MODEL UNIQUE: 1. COMPANY OWNED
2. FRANCHISE
SELLING PROPOSITION: QUICK SERVICE+ CONVENIENT TO
EAT+
AFFORDABILITY+ HYGEINIC+
TAKE AWAY.
NUMBER OF OUTLETS: 900+
CITIES: PRESENCE FELT IN 15+ CITIES
TARGET GROUP: YOUTH BETWEEN 20-35 YEARS, SEC
A,
SEC A+, SEC B, CORPORATE, ITES &
BPO‟S, BRAND & QUALITY
CONSCIOUS, HIGH DISPOSABLE
INCOME GROUPS
LOCATIONS: SHOPPING MALL, MULTIPLEXES/
MOVIE THEATRE,
CORPORATES, EDUCATIONAL
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 25
INSTITUTIONS, RAILWAYS,
AIRPORTS, BUS DEPOTS,
HOSPITALS
DEPARTMENT: 1. BUSINESS EVELOPMENT
2. MARKETING & FRANCHISING
3. FOOD & BEVERAGE
4. OPERATIONS
5. SUPPLY CHAIN MANAGEMENT
6. HUMAN RESOURCES
7. INTERNAL AUDIT
8. FINANCE
9. MIS
10. PROJECTS
(1.5) ABOUT COFFEE DAY XPRESS
A unique concept in itself, Coffee Day Xpress aims at feeding the world that‟s
continuously in transit through a convenience café format of business. Custom made
for the 21st century, it caters to the needs of the people who need coffee on the go. It
also offers hot and cold beverages and a variety of ready-to-eat snacks along with
coffee of its kind. Its Unique Selling Proposition bridges the need gap between the
leisurely cup of coffee and the stop at the café. In this segment the kiosks are
strategically positioned where a customer cannot only drink coffee but also grab a
quick bite on the move. Between home and coffee at the busy crossroads of life,
when there is not enough time for hot cup of coffee or a quick meal, the consumer
can trust a Coffee Day Xpress to provide a fresh, fast, tasty, hygienic, convenient- to
–eat and affordable food and beverages. In a short period of 8 years, Coffee Day
Xpress has managed to serve customers across 20+ cities in India. Coffee Day
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 26
Xpress is perhaps the only national coffee brand that is capturing the imagination of
modern resurgent India with a growing presence in:
Shopping Malls, as we can spend as much time for shopping and be happy
Multiplexes, so that we never miss a minute of that movie we are watching
Corporate, to keep the employees happy and ready to work
Supermarkets, when the customers get tired, CDX gives a quick refreshment
Airports, incase people are rushing to catch a plane
Railway Stations, hygienic food & beverages when people need them the
most
Parks, after a good stroll… time for some good coffee or cold beverage or tea
Depots, happy journeys begin on happy tummies
Petrol Pumps, why to refill only your vehicles
Getaways
Educational Institutions, to keep the students more focused in studies
Nature of the Business Carried
Coffee Day Xpress is into the segment of Food & beverages and the nature of
business carried is the concept of take away where hurried people can have
refreshment at Xpress in between their busy work schedule. Coffee day Xpress runs
many outlets on its own and no sharing of risks and profits with third party. In
addition, it has franchisee network, where it gives franchises to others.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 27
(1.6) Vision, Mission and Objectives
“To be the best franchised convenience café chain by offering world class
coffee experience at affordable prices”
Values and Principles: The age-old Indian value system has its imprint on Coffee
Day‟s value system too. Coffee Day promotes a healthy working environment, which
encourages and fosters a climate of openness, respect and innovation, along with
Integrity, Leadership, Ownership and Trust.
Integrity: Coffee Day respects honesty within and outside the company. The
Group practices ethical business principles in law and spirit, and strive to bring the
best to the consumer.
Leadership is the essence of Coffee Day‟s growth. Through continuous innovation,
research, networking and collaboration, the Group strives to excel and stay ahead of
competition.
Ownership: Coffee Day drives the sense of ownership for its employees, providing
opportunities for learning, knowledge enhancement and continuous growth.
Trust: A strong foundation of trust encourages our people to deliver their best.
This trust is also extended to reflect in our endearing relationship with our loyal and
growing clientele.
In all we do, we strive for “Respect, Innovation and Excellence…” the fuel that
drives our growth.
Quality Policy
Coffee Day Xpress is following Standard of Procedure method in quality
policy.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 28
CHAPTER 2
ORGANISATIONAL
STRUCTURE
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 29
(2.1) CORPORATE ORGANIZATION STRUCTURE
PRESIDENT
GENERAL MANAGER
SENIOR MANAGER
MANAGER
ASSISTANT MANAGER
SENIOR EXECUTIVE
EXECUTIVE
MANAGEMENT TRAINEE
JUNIOR EXECUTIVES
ASSISTANTS
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 30
(2.2) DEPARTMENT ORGANIZATION STRUCTURE
COFFEE DAY XPRESS
HUMAN
RESOURCES
BUSINESS
DEVELOPMENT
MARKETING FOOD &
BEVERAGES
OPERATIONS
SCM MIS INTERNAL
AUDIT
FINANCE PROJECTS
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1. BUSINESS DEVELOPMENT
The business development department works on the basis of its own
database. It is created by the business development team members. The database is
used for cold call, soon after which a meeting will be called for with the
administration/ faculty Head of the Corporate Office. In case the meeting is held for
only the corporate, a proposal is given and if it is retail like educational institutions
or malls, a proposal for a menu is also is given. Following up the same is the work of
the Business Development Team. Once the deal is finalized and the permission is
granted the kiosk is set up. The BD is in charge of developing business. They locate
areas for new outlets. They take care of relationship management with the existing
outlets, both company owned and franchises.
To put a kiosk in their premises a LETTER of INTENT (LOI) is taken from
the administration. It is only after this that a suitable franchise is searched. The
agreement details vary according to the type of kiosk that is to be put up.
LOCATION SURVEY
(Major concentration on
TIER- I cities, with very
TIER-II cities)
Locations having high
footfalls is preferred
The rental factor
Existing competition/
competitors
Facilities provided to
corporate employees
KIOSK SET UP
(CDX kiosks do not have
elaborate ambiences as such)
The kiosks usually
measure up to 80- 120
sq.ft depending upon the
location.
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The outlets/ kiosks are of 3 types:
Indoor kiosks
Outdoor kiosks
Customized outlets
The process for selection of outlets is as follows:
The targets are set on monthly basis, which are reviewed on a quarterly basis.
The Hierarchy is as follows:
COLD CALLS PROPOSALS REQUIREMENTS INITIAL
APPROVAL
WITH OTHER
DEPTARTMENTS
(ESPECIALLY
WITH
OPERATIONS)
FINALISING THE
DEAL
FINALISING
THE DATE
30-40 DAYS
SET UP TIME
PRESIDENT
SENIOR MANAGER
ZONAL MANAGER
BD EXECUTIVE/
SENIOR EXECUTIVE
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2. OPERATIONS
They take care of the entire functioning of the Xpress outlets. They
ensure that the operations in the outlets are effective and efficient.
Coffee Day Xpress maintains a strict operational hierarchy. There is a
sense of belonging that exists among the employees.
NATIONAL HEAD OF OPERATIONS
REGIONAL MANAGER
CITY MANAGER
CITY MANAGER
AREA MANAGER
AREA SUPERVISING MANAGER
AREA SUPERVISOR
AREA SUPERVISOR TRAINEE (CAMPUS HIRE)
AREA SUPERVISOR TRAINEE
CO- ORDINATOR OPERATION
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However at the same time, there is a clear distinction between the
roles that each individual plays. Every employee has authority to
function and is answerable for the activities done under him.
3. FOOD & BEVERAGES
This department has four major roles to play, namely- purchase, delivery, display
and shelf life monitoring and maintenance.
PURCHASE: The Bean Buddy or franchisee is responsible for placing
orders of food with the MIS (Management Information System) contact. This
needs to be done every day before 6 pm. MIS should be alerted if any bulk
orders or cake order is communicated to the Operations Executive directly.
DELIVERY: Items should be checked against the indent order form while
taking delivery of food. The challan should be signed by the “BEAN
BUDDY” or “FRANCHISEE”. After receiving items , entry should be made
in the POS billing system
DISPLAY: The things kept in mind while displaying food items are-
The counter should look full
The counter should look appealing to customers
The counter should not be overloaded
The vegetarian items should be stored separately
The shelf takers should match correctly and placed neatly to
the relevant items
Excess food should be kept in the refrigerator
Check on disposables and ensure you stack them at the
designated place in the required quantity.
SHELF LIFE: No food is to be carried over to the next day except for
sweet items like pastries, muffins and doughnuts. All savoury filled items to
be sold within 12 hours of reaching the kiosk. Leftover, if any should be
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treated as wastage. If these items are found to be carried over to the next
day, the BEAN BUDDY should be penalized.
They introduce new products for the outlets and decide which products should be
made available in the respective outlets as per location. They also design the menu
for various outlets. The menu is based entirely on the location of the kiosk. The
menu is then sent to the Marketing Department for promotional activities, such as
design of fliers, danglers, wobblers, etc.
The functions of the F&B Department are as follows:
Vendor Selection:
There are three main criteria‟s to be considered while making a selection of a
vendor, namely – Quality, The Vendor‟s ability to deliver in volumes, The
price at which the vendor is willing to supply.
Regular auditing of the concerned manufacturing units of the vendor and the
kitchen set-up‟s. These periodical checks ensure that the food and beverages
meet the prescribed standards of Coffee Day Xpress.
Selection of the Alternative Vendor:
The F&B Department ensures that it has an alternative vendor in store in
case the main vendor is unable to provide the specified supply in the specified
time due to uncertainties. Also having an alternative vendor helps them
Department to compare costs and bargain with the main vendors.
Food Storation policy:
Effective and efficient food storage policies become more important because
Coffee Day Xpress deals with products which have a small shelf life.
Normally the food items that are kept in the kiosks have a shelf life of one
day, and any unsold items beyond the shelf life are considered as “wastage”.
All kiosks are well equipped with refrigerators and pastry coolers to make
storage of food easier.
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R&D Facilities
The F&B has its own smaller research team in Bangalore to meet small
requirements of product testing and feasibility. The major Research &
Development Facilitator is located in Chikmaglur.
The F&B Department holds the responsibility of fixing the prices of the raw
materials as well as the food items served in the kiosk.
The hierarchy for F&B is as follows:
Location
Wise
4. SUPPLY CHAIN MANAGEMENT
Responsible for major activities like purchasing, vendor management, warehousing
and distribution, inventory planning and demand forecasting. They are responsible
PRESIDENT
SENIOR
MANAGER
ASST. MANAGER
(EXCEPT MUMBAI)
SENIOR
EXECUTIVES, F&B
EXECUTIVES
Organizational Study at Coffee Day Xpress 2011
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for making the right products available at the right place at the right time and thus
improve efficiency in operations.
It has two sections of activities that it has adhere to. One being the “Receiving
process”, and the other being the “Dispatch process”.
5. MANAGEMENT INFORMATION SYSTEM (MIS)
They are responsible for the maintenance of all the hardware and software related
issues in the orgaisation. The update of POS i.e. Point of Sales software which are
used for billing in the outlets, Xpress website and provide MIS reports to aid the
management.
6. FINANCE AND ACCOUNTS
They are responsible for payment to vendors, calculation of wastage, verification
of stock status, evaluation of financial data, auditing, tracking profit and loss of
outlets, coordinating with sales tax authorities, providing finance for various
activities of the outlets, time to time analysis of the brand standing position.
The Finance department acts as the guardian for CDX, providing back end
services. Finance department is headed by Finance Head who will be reporting to
the Chief Financial Officer and the President pertaining to the operations under his
supervision. Each city has its own branch accountants and branch assistants (if
required) who will be reporting to the Manager- Finance.
Finance department performs many services. It makes payment to the vendors‟
and collects, analysis, reconcilliates and evaluates financial data. Getting the books
Organizational Study at Coffee Day Xpress 2011
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of accounts audited, preparation of the balance sheet as per Company‟s Act and IT
Act is also done by the Finance Department.
The hierarchy is illustrated in the following page:
7. PROJECTS
They have three divisions under them, namely;
PRESIDENT
CHIEF FINANCIAL OFFICER
HEAD OF DEPARTMENT
MANAGER (FINANCE)
BRANCH ACCOUNTANTS/
BRANCH ASSISTANTS
Organizational Study at Coffee Day Xpress 2011
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Project- Once the business development team decides on the location, the
projects team do the designing, kiosk set up, and branding for the outlets in
the respective locations.
Procurement- They procure the machinery and other materials and supply it
to the outlets.
Maintenance- They maintain the machinery in the outlets
Kiosks are all taken care by the projects team, including furnishing. Furnishing
includes the refrigerator, visicooler, pastry cooler, microwave owen, thick shake
machine, and vending machine. The projects team while deciding on the design of
the outlet/ kiosk has to keep in mind its versatility in terms of its layout so that it
brings optimum utilization of the space. The division is also liable of taking care of
the equipments in the outlet. Repair of any kind are also undertaken by the business
development team, if any. Periodical checking of the instruments and the machinery
is also essential.
8. MARKETING AND FRANCHISING
Marketing department takes care of all promotion, sales, outdoor activity,
communication, market research, etc.
Franchising takes care of legal issues and procedures related to the
Franchisee Contracts.
Alliances and Public relations merchandising, which is selling of other
company products in the Coffee Day Xpress outlets.
It is in charge of the purchases by the cumulative record of the demand by the City
Heads for the various products and raises the purchase order. The task of branding,
designing, finding, Public Relation, New Product Development and launches,
finalizing advertising and media agencies is also to be taken care by the marketing
team. This division takes care of the brand auditing which ensures that adequate
promotion and related activities like Branding of the various equipment like the
pastry cooler, visicooler.
Organizational Study at Coffee Day Xpress 2011
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Tie up‟s with many leading brands either for selling their produce or for brand
promotion is very common in Coffee Day Xpress. Collaterals like posters, tent
cards, danglers, etc. are provided to promote such tie up‟s which are taken care of
by the marketing division. Ensuring that these co-branding communications are
placed in such a way that it does not hinder the image of Coffee Day Xpress, is the
responsibility of the Bean Buddy/ Franchisee. The marketing division also takes
care of the merchandise associated with the business. Coffee Day Xpress
merchandising products consists of the following variants:-
Chocolates
Biscuits
Juices
Ice Creams
Wafers
Cookies
9. INTERNAL AUDIT
They conduct regular physical audit and check for any business malpractices
and misuse of property. Its objectives are to examine, evaluate, and make reports on
the adequacy of the internal controls for proper functioning of the departments.
They are granted full and complete access to all corporate and franchisee manuals
and computerized records, physical properties and personnel relevant to an audit or
review without any prior notice or information.
They visit outlets and check if everything is in place and the outlets are being
run as per the set standards. If gaps are noticed, then the Head Of the Department
are intimated through mail as to what is wrong.
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10. HUMAN RESOURCES
Day to day manpower activities are taken care of by this
department. They are in charge of Manpower Planning and
Recruitment, Training & Development, Grievance Handling,
Compensation & Performance Management and all legal issues related
to employees.
Coffee Day Xpress has a full fledged HR Department. In view of
conforming to the company‟s high standard of business ethics, its
employees have to maintain a strict code of conduct.
Talent Acqusition
Induction and Orientation
Leadership Academy
PMS
Total Rewards
HR Operations
Employee Relations
Separation
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1) TALENT ACQUISITION:
It is a process of getting the right person for the right job at the right time.
This is done through the following steps.
Man power planning: man power planning or personal planning in an
organization is evaluating the current man power in the organization and
then determining the number of employees further required for the different
positions, and then plans as to how the organization should go about
acquiring the required number of employees for the various positions. At
ABCTCL the manpower planning is done based on the future plans and
prospective growth of the organization.
Recruitment: it is the process of discovering and selecting the sources of
manpower, and then attracting them to the organization. Recruitment can be
done in house or outsourced. The organization classifies its employees as off
rolls and on rolls.
On rolls includes- Executives, Managers, Asst. Managers, HOD‟s, President
for all departments.
Sources of recruitment for on rolls are done through: Campus recruitments,
consultancies, Casual applications, Employee reference.
Off rolls includes- Been buddies, Trainee Executives, Technicians.
Sources of recruitment for off rolls are done through: Outsourced to a
consultancy, In house, Employee reference.
Selection: It is the process of selecting the right person for the right job. At
ABCTCL, the process followed is as follows.
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Placement: Once the candidate is selected he/she is placed for the respective
position and the offer letter is sent to him/her through mail.
2) Induction and Orientation:
Once the employee is placed for the respective post and he/she has receive the offer
letter the joining date has to be confirmed based on which the induction is planned.
Once the induction is planned by the training coordinator at the head office, the
regional HR‟s coordinate and sees to it that the plan is put into action.
Induction: As per the date scheduled, employees called for the induction.
Induction is different for the On Rolls and Off Rolls.
Receiving of Application forms
Screening the Applications
Calling the short listed Candidates for Interviews
Functional Interview with the Manager
Shortlisted Candidates go through a HR interview
The candidates who pass through the HR round are selected for the respective post
Organizational Study at Coffee Day Xpress 2011
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On Rolls- For the On Rolls, induction happens in office. If the employees executive
or senior executive, it is conducted in regional office. But for the higher levels such
as managers, induction is conducted in Head Office located in Bangalore.
Induction would consists of welcoming the new employee on board, then the HR
manager would give the employee a presentation on the company, background and
history, a brief insight into the various departments of the company, the work
culture and the policies at the work place after which the feedback would be taken
for the HR induction.
After the completion of the HR induction the employee would be inducted
on the various departments in detain by the respective people from the various
departments. This will also contain an in depth insight into the department with
which the employee would be working. The induction would be scheduled across a
period of one week in the department for which the employee would be working
across 3-5 days based on requirement. The employee is then asked to fill a feedback
form. Towards the end of the induction the employee would be given a test. This
brings the employee to the end of the induction program.
The KRA (key result areas) is designed for the purpose of reviewing his/her
performance and the employee is put on probation of six months.
After the induction is completed he/she takes on the duty and starts working as a
full fledged employee of Coffee Day. During the course of induction the joining
formalities are completed which includes,
Giving the joining kit consisting of the joining forms, employee hand book
CD, a scribbling pad and a pencil.
Filling of the joining forms by the employee which includes the following
forms.
1. Employee application form,
2. Joining report,
3. Application for med claim, ID card, Nomination and declaration form,
4. Bank account opening form.
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The employee is also asked to produce certain documents and four passport
size photographs.
The duly filled forms are filed as a part of employee records, and the hard
copy of the induction schedule, feedback forms along with test answer papers
are filed for general documentation.
he date of joining, the welcoming note is sent across to all the on roll
employees of Coffee Day, after which the official email ID and the employee
ID card is created.
The employee is given the appointment letter.
Orientation (Training)
Once the induction is completed orientation happens which is nothing but on
the job training. This again different for off rolls and on rolls.
On Rolls
The training that is given to on roll employees are mostly on the job where they
learn in the course of their day to day duties during the probation period, apart
from this there are other training programs that will be organized by the training
coordinator if the need is recognized and if it is requested for by the employees.
Off Rolls
The Off Roll employees go through training sessions on Saturdays at Coffee Day
Training centers situated in their respective locations.
3) COFFEE DAY LEADERSHIP ACADEMY:
This is a special program initiated by HR department. In this program, the training
coordinator sends reading material on motivation, leadership and material related
to personality development, documents which consist of useful information which
employees need to know how to improve their knowledge, material which helps in
improvement of the working in the various departments. These materials are sent to
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the employees through mails and could be in any format such as ppt‟s, word
documents, pdf etc.
4) PERFORMANCE MANAGEMENT SYSTEM(PMS)
Performance Management System is nothing but performance appraisal, also
known as employee appraisal. It is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, cost and time). It is a
part of career development and the regular reviews of employee performance within
organization.
Generally, the aims of performance appraisal are as follows:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizational rewards.
Form a basis for personal decision: salary increase, promotions, disciplinary
actions, etc.
Provide the opportunity for organizational diagnosis and development.
Validate selection techniques and human resource policies to meet federal
Equal Employment Opportunity Requirements.
At Coffee Day, PMS is setup to help the managers in the employee management and
also help the employee in planning his/her career. The formats provided below are
designed to facilitate discussions between manager and his subordinate.
On Rolls:
PMS comprises of 3 main activities:
1. Performance Planning and Review
2. Career Development
3. Improvement plans
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1.Performance Planning and Review :
This is the activity where the KRA‟s are designed and the targets to these KRA‟s
are set in order to measure the performance of an individual in the organization
during appraisal.
Review process has the following ratings.
Description Rating
Exceeds Expectation- Has exceeded more than the
required objectives and targets set.
5
Above Expectations- Has exceeded some of the
required objectives and targets set.
4
Meets Expectations- has met the required
objectives and targets set.
3
Does not meet-has met some of the required
objectives and targets set.
2
Below Expectation- has not met some of the
required objectives and targets set.
1
The performance appraisal format consists of 3 sections which are described as
below:
Section 1- Consists of Employee Details along with Appraiser‟s Name &
Designation.
Section 2- Pertains to KRA‟s/ Job activities set for the year and are purely a
performance indicator. These KRA‟s need to be filled in by the employee
after discussing the same with his reporting supervisor with proper weight
age given to the respective activities. The total should cumulate to 100. First
the employee whose performance is being reviewed rates himself after which
the appraisal will give his rating and also write remarks and
recommendations if any.
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Section 3- pertains to the Critical Managerial/ Behavioral skills required to
perform a set of task, to be rated (1-10 point scale). This section also captures
the training need identification for an employee.
This section also mentions the areas where the Appraisee needs to improve
based on which the training needs get identified and it also forms a basis for
the person to improve.
The final rating will be given by the appraiser and the form will be signed by
both, appraiser and Appraisee with final score.
2. Career Development:
Based on the above mentioned format the appraisal is done for the employees, which
results in the employee getting a hike in the salary, promotion, transfer, recognition
etc. as the case may be.
3. Improvement Plans:
Based on the inputs obtained from the review forms the gaps in the standards set for
the performance and the actual performance of the employee is identified and the
necessary steps like training, feedback etc are given to the employee to improve
his/her performance in future.
The PMS forms should be duly completed and signed by Appraiser and Appraisee.
A copy of the forms must be sent to HR department for record purpose in the
personal file.
Off Rolls
For off Rolls, the appraisal is done by the operation executives based on the KRA
designed for the employees by their supervisors. They are rated on a five pointer
scale. The review form is signed by the employee himself, the operations executive,
city head and regional HR. Based on the review from the necessary steps are taken
to give incentives or if the performance is not up to the mark the employee is to be
given training or removed from the job.
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5) TOTAL REWARD AND RECOGNITION:
Rewards and recognition play a major role in increasing employee engagement,
which in turn results in happy, loyal and productive employee. Reward and
recognition also help in motivating an employee to perform better.
At coffee day employees recognized and rewarded for their performance. any
personal awards received are taken note of and the certificates are displayed on the
notice board to be viewed by all as a sign of appreciating the employee.
The HR department also organizes certain informal completions as breathers
between daily work pressures, for which the employee are awarded for their
participation.
6) HR OPERATIONS:
Regional HR
Manpower planning and
recruitment
HR operations
Cost reduction at regions
Training at regions
Submission of reimbursement
forms on time
Employee attendance
Submission on statutory report
(ESI & PF) to HO
Meeting with agencies
Ensuring salary pay to employees
Recover plans
HR Admin
Overall administration to be reduced
Printing of visiting cards
Permanent id card
Travel booking and advances
Processing of rental cheques and
proper accounting
Med claim insurance
Outlet insurance updates/ reports
Travel settlement report
Vendor payment
Daily sales report
Sales MIS
Launch and closure communication
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Asst HR manager Training SR Executive
Processing of attendance Training at regions
Invoice checking and submission to audit
team
Training modules
Physical verification of reimbursement
and submission
Effective training
Submission of challan (PF & ESI) Succession planning
Recovery plan Training calendar
Agency follow ups for salary Effective induction process
Agency meeting
Salary processing
Report submission/ analysis of cost
Full and final settlement
Salary grievance handling
HR MIS
7) EMPLOYEE RELATION:
This is nothing but grievances of the employees are related to the work rules
and regulation, policy and procedure, health and safety regulations, past
practices, changing the cultural norms unilaterally, individual victimization,
salary bonus etc .Here the attitude on the part of management in their effort
to understand the problems of the employees and resolve the issues amicably
have better probability to maintain a culture of high performance. Effective
grievance handling is an essential part of cultivating good employee relations
and running a fair, successful and productive work place. Positive employee
relations are two-way street. Both sides must give a little and try to work
together. At ABCTCL , the HR department handles the employee grievances
through an open door policy. If there is any complaints, they should report it
to the HR Department, who will further look into the matter and try solving
it to the best of their ability. If the complaint is beyond the control of HR
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department, the matter will move up to the respective higher authorities for
review.
8) SEPARATION:
Exit interview or separation as it called in ABTCL is interviewed conducted by an
employer of a departing employee. They are generally conducted by a relatively
neutral party, such as human resource staff member, so that the employee will be
more inclined to be candid a opposed to worrying about burning bridges. The
purpose of an exit interview is usually to gather data for improving working
conditions and retaining employees.
At ABCTCL, the exit interview or separation procedure involves filling of the exit
form which includes the following details:
Reasons for resigning
What the person liked the most about the job
What he least liked about the job
Supervisor review
Rating on the various compensation and benefits
Rating on the various training programs and potential for growth in the
organization
What would be the situations that would prevent the person from leaving
Would the person consider working in the organization future
Suggestion if any
Along with filling of this form, the employee must also handover all the assets
of the company that were in his possession during his course of working with
the company along with all confidential documents.
The employee should keep all the information attained about the business,
the vendors, other business associates during the course of his job at the
organization confidential.
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(2.3) AUTHORITY AND RESPONSIBILITY RELATIONSHIP
Authority is the right to give commands and to get the things done. Authority
always flows from top to bottom. It explains how w superior gets the work done
form the subordinate by clearly explaining to him/ her as to what is expected from
him/ her and how they should go about it.
Responsibility, on the other hand, is the duty of the person to complete the task
assigned to him and ensuring that he completes the task assigned to him.
Responsibility flows from bottom to top. The middle level and the lower level
management holds more responsibility.
The authority at the divisional level starts with the President, who is in
charge of the entire functioning, growth, revenues generation of the Division.
He sets the objectives, guidelines and mission statements for all the
departments under the division.
The responsibility to carry forward and execute the guidelines and objectives
set by the President rests with the Head of Departments of individual
departments, who have a specific KEY RESULT AREAS as fixed by the
President of the Division.
For example Coffee Day Xpress Division has 10 Departments, and each
department has an HOD to execute the operations.
The HOD delegates a part of his responsibilities to the Regional Managers,
who are responsible for the execution of orders in their specified regions
(North, South, East, West) and also the performance of the same.
The Regional Managers carry out their functions through the Managers. By
Managers, they mean City Managers, who take the responsibility of the
functioning of their respective city. In certain cases, the Manager is also
assisted by Assistant Managers who take care of operations of certain
locations/ areas within the city.
The Senior Executives and Junior Executives function under Manager
according to the particular job description. These junior executives have to
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carry out smaller tasks assigned to them by their superior and report the
same to the senior executives
The final leg in the hierarchy ends with Management Trainee‟s, who get
trained in the particular area of their job profile as per their job
requirements.
REGIONS OF OPERATION
COFFEE DAY XPRESS
EAST NORTH SOUTH WEST
KOLKATA DELHI,
GURGAON,
NOIDA
CHANDIGARH
JAIPUR
BANGALORE
HYDERABAD
CHENNAI
GOA
MUMBAI
PUNE/
NAGPUR
AHMEDABAD
SURAT
MYSORE BHILAI
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(2.4) BUSINESS CYCLE
Need for a new Xpress outlet is recognized.
The Business development Department has to find a suitable location with a
captive audience of 800+.
Once the location of the kiosk has been decided, the Projects Department do the
designing for the outlet along with the supply of machinery required for the
kiosk.
The Franchising Department also gets the in a franchisee to own the outlet.
Then the Marketing Department comes into the picture. They take care of the
branding, promotional activities, and the communication to be done for the
kiosk.
The F&B Department designs the menu for the kiosk depending upon where
the kiosk is situated and the type of prospective customer who would visit the
kiosk.
The Operation department does the executive work and Bean Buddy
requirement planning for the kiosk.
Once the menu and the manpower planning are in place, the Supply Chain
Management Department (SCM) starts action. They locate suppliers and direct
supplies to the kiosks.
Now everything required for the kiosk is in place, the Business Development
department is intimated and the operation of the kiosk is started.
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(2.5) REBRANDING OF COFFEE DAY XPRESS
Rebranding at CDX was a total overhaul of all the things old to be replaced
by a swanky, modernized, and colorful image that appeals to the general public
today.
Business Development
Projects
Marketing
F&B
Operations
SCM
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A wide range of articles had to replaced or rebranded to bring the spectrum under
the new brand image of that was adopted. The list is large and it includes:
Website
Office stationery
Buddy Uniforms
Disposables including cups, tissues, sachets
Ad Standees
Danglers and Wobblers
Tent cards
LED and Sun Boards
Machine and Dustbin Branding
Packaging Stickers
Menu cards
Wall visuals and posters
The management at Coffee Day Xpress made it a point that the rebranding was
restricted to articles that were placed directly in front of the customer or in his line
of vision at the kiosk. This was to ensure the customer was exposed to only one set of
branding and logos either new or old, but not a combination of both which has a
detrimental effect on the image of the company.
(2.6) BUSINESS MODEL OF OUTLETS AT COFFEE DAY XPRESS
At Coffee Day Xpress, the outlets are of two types, namely:
1. FRANCHISED OUTLETS
Here the outlets are franchised after taking into condition the strategic locations of
the same. It is the responsibility of the franchisee to handle the outlet in accordance
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to the company norms and guidelines. The franchisees pay a deposit, i.e. a non –
refundable registration fee for a lock in period. Currently the company is present in
20 cities with around 495 franchise owned outlets. By December 2011, the company
plans to add an average 10 franchisees per month. The Investment ranging between
2 lakhs – 5 lakhs.
2. COMPANY OWNED OUTLETS
In this case as the name suggests, the company, i.e. CDX takes the responsibility to
operate the outlet through its trained Bean Buddies. Some 400+ kiosks under Coffee
Day Xpress operate under the company owned outlets.
KIOSKS TYPES:
1. Indoor Kiosks (inside corporate houses, airports)
2. Outdoor Kiosks (outside shopping malls, railway stations)
3. Customized Kiosks (the clients requirements are taken into consideration)
4. Premium Kiosks
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A Coffee Day Xpress Kiosk
Bean Buddy at CDX Kiosk
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CHAPTER 3
CORE STUDY AREA:
SUPPLY CHAIN MANAGEMENT
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(3.1) WHAT IS A VALUE CHAIN?
A value chain is a chain of activities for a firm operating in a specific
industry. Products pass through all activities in a chain in order, and at each
activity the product gains some value. The chain of activities gives the products
more added value than the sum of independent activity value. It is important not to
mix the concept of value-chain with the costs occurring throughout the activities.
The value-chain categorises the generic value adding activities of an
organization. The primary activities include:
Inbound logistics
Operations
Outbound logistics
Marketing
Services
The supporting activities include:
Infrastructure management
Human Resource Management
Research and Development
Procurement
The following diagram illustrates how the value chain functions under SCM:
VENDOR MOTHER
WAREHOUSE
REGIONAL
WAREHOUSE WAREHOUSE
OUTLET CUSTOMER
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All the inventory / products, for which the purchase order is raised by the SCM
Department, are supplied by the vendors directly to their main/ mother warehouse
in Bangalore about 95% of the time through the vendor‟s own transport services.
As illustrated from the figure above, all in-station and outstation supply of
the products and equipments takes place from the mother warehouse through the
Coffee Day Xpress‟ own or hired transport services to the regional warehouses and
to the other warehouses/ outlets.
The Supply Chain Management Department of the Coffee Day Xpress
division is concerned with the primary activity of INBOUND/ OUTBOUND
LOGISTICS and PROCUREMENT. Responsible for major activities like
purchasing, vendor management, warehousing and distribution, inventory planning
and demand forecasting. They are responsible for making the right products
available at the right place at the right time and thus improve efficiency in
operations.
It has two sections of activities that it has adhere to. One being the “Receiving
Process”, and the other being the “Dispatch Process”.
The functions of SCM Department are as follows:
1. PLANNING
Planning involves forecasting the future requirement of the different items under
various product categories, as well as Dispatch Planning. Estimations for future
orders are made on the basis of closing stock available and the average sales of the
of all the outlets in India as a whole during the previous three months duration.
There are 2 terminologies associated with Dispatch Planning:
Local/ Milk Route Planning
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Outstation Dispatch Planning
The “MILK ROUTE” terminology into being from the age old concept of supply of
milk which used to happen every day, during the early hours of the morning
without fail to all the locations/ outlets/ shops of sale. Similarly, CDX drafted a
weekly chart through which they allocated the regions in and around Bangalore to a
particular day, so that all outlets falling under the specific region will be catered to
on that particular day, even if it is a new kiosk opened recently.
Outstation dispatch of items is done twice in a week.
2. PROCUREMENT
The entire process for SCM Department starts with the procurement of items/
products from the various vendors. Procurement process initiates with the selection
of the vendors through invitations through quotations or tenders and raising of
Purchase Order, based on the weekly requirement indent filed by the Bean Buddies
from the kiosks nationwide. The criteria‟s for selecting a vendor include:
Quality
The Vendor‟s ability to deliver in volumes
The price at which the vendor is willing to supply.
The vendor‟s current/ existing client database.
3. STOCK/ INVENTORY MANAGEMENT
This is one of the most important components of the SCM Department, as Inventory
Management requires a lot of specifications and details to be looked into especially
at the time if receiving and dispatching of materials. Inventory Management has 3
important components, namely;
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Inward Material Management
Outward Material Management
Software entries and Updation
The inward and outward material management process will be dealt in the following
pages.
4. VENDOR MANAGEMNT
Vendor selection only forms a part of the procurement process. Vendor
management involves careful screening of legal documents, timely bills submission
and effective payment system. The credit period offered at Coffee Day Xpress
normally ranges between 45 – 60 days. The payment must be only through cheque.
5. PREPARATION OF REPORT
The SCM Department has to prepare not annual, but monthly reports stating the
progress of the firm. There are three types of reports that SCM Department follows
up with, namely
Monthly Budget (it is a nation wise budget)
Monthly operating report (this is in direct relation to the Management
information System Department, where the daily8 proceedings get updated)
Need – Based Reports (these reports are prepared as and when the need
arises)
(3.2) SCM PROCESS
1. RECEIVING PROCESS (INWARD)
2. DISPATCH PROCESS (OUTWARD)
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The following diagram illustrates the sequence of operations that are carried out
throughout the inward and the dispatch process:
This diagram in the following page represents the receiving process.
It all starts from the preparation of the monthly budget based on the average
requirement of all the regional warehouses and the outlets throughout the
country. Regional budget should reach Bangalore on or before 23rd
of every
month and then only a consolidated budget is prepared for the necessary
purchases, on approval from the HOD, and then the purchase order is
released to the vendor.
Purchase Order is raised by the SCM Executive based on the indent
received from various outlets. Some of the key factors considered while
preparing the PO is that it must have complete information of the vendor, i.e.
name, address, phone no, along with TIN & CST number. The shipping
address/ consignee address/ deliver address to where the material has to be
delivered along with the TIN & CST number.
Security Inward Check is required to regulate the flow of materials inside
the warehouse. For this very purpose the products/ items are given a
Material Identification Number. This check is done by the Security
Personnel at the entrance of the warehouse. The security personnel have to
maintain a Security Inward Register to record the flow of goods inside the
warehouse. This register is to be signed and checked by the stores in charge
on a weekly basis.
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Binning and sorting of the items are done to place the goods according to
their product category under a common order and place. A particular
format is followed to carry out the process and the information is filled in as
per the format, such as – MIN number, Vendor Name, Invoice No & Date,
Item Name, Sorting Date, Quantity (actual, shortage, damaged, excess). The
PREPARATION OF BUDGET
RAISING OF PURCHASE ORDER (PO)
SECURITY INWARD CHECK (MIN)
BINNING AND SORTING
LOCATION
BIN CARD
GOODS REVEIVED NOTE (GRN)
AUDIT
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supervisor has to mention the name and sign on the sheet and then it is
handed over to the authorized person at the warehouse.
Location implies the basic amenities required for storing the items. It is
important to keep a strategic location for certain kinds of product categories.
Bin cards are used to keep record of the stock levels in the warehouse on a
given date, during a particular period of time. The warehouse supervisor
maintains the opening stock, goods received and issued in the bin card.
Goods Received Note is prepared by the CDX to send to the vendor about the
successful delivery of goods. Some of the key factors which are taken into
consideration while receiving the stock into the warehouse are –
All inward taken is on the basis of the Security Check, Supervisory
Check and Sorting & Binning
Inward register has to be maintained for all goods received within the
warehouse
Goods received will be accompanied by the approved PURCHASE
ORDER, DELIVERY CHALLAN, TAX INVOICE billed in the name
ABCTCL- Xpress Division
Check for manufacturing date and expiry date
GRN should be prepared for all the items and a copy of the same must
be filed at the branch level for records along with MIN number as
reference.
Original documents such as INVOICE, GRN, PO, VENDOR
REJECTION NOTE, and DBIT NOTE with customer/ supplier
signature are sent to the Head Office for payment process and
duplicate copies are sent to the branch offices for record purpose.
Audit is conducted weekly or fortnightly or monthly basis to have a better
control of the stocks of all the regions. All pending entries, Manual Delivery
Challan and necessary updating have to be completed before conducting the
audit.
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The following diagram represents the Dispatch process:
INDENT
CHECKING AND
APPROVAL
PICK LIST
DELIVERY CHALLAN
VERIFICATION OF
DOCUMENTS
SECURITY OUTWARD
REGISTER (MON)
ACKNOWLEDGED
DOCUMENTS
FILING
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Indents are prepared based on the given route plan. They are raised by the
bean buddies at the outlet as and when requirement arises. An Indent
contains particulars such as – Name of the Outlet, Date, Product Description,
Closing Stock, Consumption and Requirement details.
Once the Indent is received from the respective outlet, thorough checking has
to be done on the availability/ quality of the stocks and allocate the quantity
as per the availability. Indent will be punched on the system after checking.
The Purchase Order (PO) is raised once the Indent is checked and approved
by the warehouse manager.
The warehouse manager then raises a Delivery Challan (DC) stating the
quantity of goods which are being transported, along with the date of
dispatch, vehicle number, etc. it is an important document for any dispatch
of material.
The manager has to check for all the necessary documents of the vendor and
verify them form a definite source before purchasing goods from the
concerned vendor.
Just like the Securities Inward Register, the Security personnel at the CDX
warehouse maintains a Securities Outward Register to supervise the quantity
and type of products being dispatched. He also gives a (MON) Material
Outward Number to every category of products serial wise. The details such
as name of the consignee, product, quantity of stocks dispatched with total
number of boxes, vehicle number and driver‟s signature are obtained.
The filing of certain legal documents, statutory in nature, by the CDX SCM
Department is absolutely necessary before dispatch of any category products,
such as – Stock Insurance, Transit Insurance, Sales Tax Branch Certificate,
Municipal Corporation Health Certificate, Labor Department Certificate.
This register gives complete information on all the goods which have been
moved out of the warehouse.
Acknowledged documents for local supplies include delivery challan with
name and signature of the bean buddy along with the kiosk stamp, the date
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of receipt and discrepancy comments if any. Daily dispatch log sheet filled by
Bean Buddy along with time of receipt of goods.
(3.3) HIERARCHY
PRESIDENT, CDX
MANAGER, SCM
REGIONAL/ ASSISTANT MANAGERS
SENIOR GENERAL MANAGER
SENIOR EXECUTIVES
EXECUTIVES
JUNIOR EXECUTIVES
MANAGEMENT TRAINEES
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(3.4) SCM STRUCTURE
BANGALORE
(MOTHER WAREHOUSE)
EAST NORTH SOUTH WEST
KOLKATTA
(MAIN
REGIONAL
WAREHOUSE)
DELHI/
NOIDA
GURGAON
(MAIN
REGIONAL
WAREHOUSE)
CHANDIGARH
JAIPUR
BANGALORE
(MAIN
REGIONAL
WAREHOUSE)
MYSORE
HYDERABAD
CHENNAI
GOA
MUMBAI
(MAIN
REGIONAL
WAREHOUSE)
PUNE
SURAT
NAGPUR
BHILAI
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The mother warehouse consists of a - Warehouse Manager, 3 Executives,
Warehouse Supervisor and warehouse employees or operating staff.
(3.5) VENDOR SPECIFICATIONS
There are quite a few specifications that a vendor has to submit to the SCM
Department before he is finalized for the order. Coffee Day Xpress has its own
product requirement and specification sheet. Most of the products of all divisions
cater to the ABCTCL (the parent company) specifications. In response to these
specifications, each vendor has to submit:
1. His own product specification sheet, which would include;
Type of the product to be supplied
Source of the raw material in case the vendor has a manufacturing
unit and even in case of procuring from other units.
Aesthetic points about the product such as – weight, height,
dimensions, holding capacity, etc)
2. Quotation sheet;
The quotation sheet contains vendor details such as – Company/
Billing Address, Outlet Address, Tax number (both VAT & CST) for
authenticity.
Product information such as – Product Specifications, Physical
parameters, Production Details, Rate of the Product, Packaging
Details, Product Dispatch Details.
Contact details of the vendor/ supplier such as – Phone Number (it is
generally stipulated by the SCM Dept. that the vendor must give two
phone numbers), E- Mail, Fax Number, etc.
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The vendor may also provide for any supporting documents along
with the quotation sheet, especially in situations when the vendor
demands a hike in the price of the products to be supplied. Such
documents lend authenticity to the quotations.
3. Cost Break – up Sheet, which should contain the following components;
Cost of raw material per unit
Cost of processing of material
Wastage in %
Cost of packaging of material
Transportation Cost
Total cost excluding margin and tax
Margin in %
Tax in %
In case of any implications of any increase or decrease in costs of any direct and
indirect components affecting production, the same must be communicated to the
SCM Department in order to bargain for any authentic price hike. Documents
supporting such hike must be attached with the costing sheet showing reasonable
comparison between the existing and the proposed cost of the product.
(3.6) PRODUCT CATEGORIES
The SCM Department at Coffee Day Xpress deals 7 categories of products, namely:
1. Consumables
2. Counter equipment
3. Food & Beverages
4. Packing Material
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5. Advertising Material
6. Merchandise Products
7. Capital Items
8. Housekeeping
However the first four categories constitute the major portion of the functioning of
the SCM Department.
PRODUCT CATEGORY ITEM NAMES
1. CONSUMABLES
CAKE BOX (HALF KG)
CAKE BOX (ONE KG)
COLD CUPS (250 ML)
COLD CUPS 200ML
COLD LID 250ML(DOME SHAPE)
COLD LID DOME-200ML
DOILY PAPER (RECT)
HOT CUPS (150 ML)
HOT CUPS (200 ML)
HOT CUPS (250 ML)
HOT CUPS 110ML
HOT LIDS 200 ML
HOT LIDS (250 ML)
MILK CRATES
PAPER BOWLS
PAPER PLATE
PAPER POUCH
PL HAND GLOVES
SPOON
STIRRERS
STRAWS
THERMAL ROLL
TISSUE
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2. CONTER EQUIPMENT
BOWL
COFFEE BEAN CONTAINER
COOKIE JAR
CRATE LID 600 SERIES
CUTLERY TRAY
DISPENSER TABLE TOP
DISPLAY PLATE (RECT)
FOOD CRATES
JUG (2 LTR)
KNIFE
MEASURE (2 LTR)
MEASURE (50 ML)
MEASURE 500 ML (PLASTIC)
MUG
PASTRY TONGS
SCISSORS
SERVICE TRAY
SLICER
SPRAY GUN
STOREWELL CONTAINER
SYRUPS PUMP
3. FOOD & BEVERAGES
BOOST SACHET (15 GMS)
CARDOMOM TEA BAGS
CHOCOLATE SYRUP
CITRIC ACID
CITRIC ACID (ANHYDROUS)
COFFEE BEANS XPRESS BLEND (1
KG)
COFFEE CONCENTRATE (500 ML)
COFFEE PREMIX (1KG)
COMMON BASE (500 GMS)
DAIRY WHITENER
EQUAL SUGAR
GINGER LIME SYRUP SATCHET
20ML
GINGER PREMIX 1 KG
GINGER TEA BAGS
HORLICKS SACHET (10 GMS)
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INSTANT COFFEE – NESTLE
INSTANT KHARA BATH (100 GMS)
INSTANT LIME AVALAKKI (100 GMS)
INSTANT TEA
INSTANT TEA _TATA
KESAR ELAICHI PREMIX 27GM
KIWI SATCHET (20 ML)
LEMON GARLIC SOUP (6 GMS)
LEMON PREMIX 1 KG
LEMON TEA BAGS
LEMON TEA PREMIX 500 GMS
MALIC ACID
MALTO DEXTRINE
MANGO SYRUP 20 ML
MASALA TEA BAG
MINERAL WATER (1 LTR)
MINERAL WATER (500 ML)
MIXED VEG SOUP
MOJITO SYRUP 20ML
MUG NOODLE CHICKEN
MUG NOODLE MASALA
MUG NOODLE VEG
ORANGE SYRUP 500 ML
ORANGE SYRUP SATCHET (20 ML)
PLAIN TEA BAGS
SAFAL ALPHONSO MANGO PULP
20KG
STRAWBERRY SATCHET (20 ML)
SUGAR -S 30
SUGAR FREE GOLD
SUGAR SACHETS (5 GMS)
TEA PREMIX -500 GM
TEA PREMIX 1KG
THICK SHAKE BASE SATCHET 15
GM
TOMATO KETCHUP (10 GMS)
TRUSIL LEMON SPL
WAI WAI 123 VEG
WAI-WAI-123-CHICKEN
4. PACKING EQUIPMENT
AMLA SYRUP LAMINATE ROLL
BROWNIE STICKER
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BURGER STICKERS (NON VEG)-
BURGER STICKERS (VEG)
BURGER TRAY
CAKE BOX 7*7
CAKE BOX 9*9
CHICKEN KATHI ROLL
CHICKEN MAYO BURGER STICKER
COFFEEBEAN PACKING LAMINATE
CORRUGATED BOX (EMPTY BOX)
CORRUGATED BOX WITH CALIQUE
FRESH FRUITS STICKER
FRESHNESS VALVE
GINGERLIME PACKING LAMINATE
HEALTHY CHEESE N TOMATO S/W
LEMON ROLLS
MANGO SYRUP LAMINATE
MEXICAN CHEESY DELIGHT S/W
ORANGE PACKING LAMINATE
PACKING TAPE
SANDWICH (NON VEG)
SANDWICH (VEG)
SANDWICH BOXES WITH LID
SPICY CHICKEN S/W
SUBMARINE (NON VEG)
SUBMARINE (VEG)
VEG KATHI ROLL
VEG MAYO BURGER STICKER
VEG TIKKA S/W
5. HOUSEKEEPING
BROOM WITH STICK
BUCKET
CHECK CLOTH
CLEANING LIQUID
GARBAGE COVER
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GARBAGE BAGS
MOP CLOTH
MOP REFILL SET
MOP STICK
PHENOIL
SCRUBBER
WIPING CLOTH
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CHAPTER 4
SWOT ANALYSIS
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(4.1) STRENGTHS:
1) VERY GOOD BRAND NAME OF COFFEE DAY
Coffee Day has emerged as a leader in its field and therefore has created its own
brand name for being the only vertically integrated coffee organization. Coffee Day
has always believed in – “The smarter. . . The better”. Different divisions, different
businesses, and diverse focus areas, that is Coffee Day Group.
2) FAST AND QUICK SERVICE
CDX caters to the mobile population of the city, who are always on the move, always
in a hurry. Coffee Day Xpress believes in keeping it “short and simple”. The
convenient and quicker modes of service provide the people a smarter and efficient
way of staying ahead of time.
3) MAJORITY OF THE EMPLOYEES ARE YOUNG AND
DYNAMIC
One of the most striking features of the CDX division is that it comprises of young
and dynamic team whose hard work has paid dividends in the form of the number
of kiosks that are opening in around 20+ cities in India. A majority of the Bean
Buddies operating in the outlets of CDX are roughly around 20 – 24 years
4) COFFEE DAY XPRESS HAS A GOOD RELATIONSHIP
WITH THE FRANCHISEE
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More than half of the kiosks of Coffee Day Xpress are franchisee owned outlets.
This itself is a telling story of the kind of encouraging relationship that CDX has
with its franchisor. CDX has been awarded with – “Best Franchisee growth driver
of the year” (2008) and also the “Best Franchisee of the year” (2008). CDX is aiming
at adding 10 new franchisees to its wing every year.
5) COFFEE DAY XPRESS HAS GOOD NUMBER OF
OUTLETS IN MANY PLACES OF THE COUNTRY
Coffee Day Xpress has its presence in 20+ cities with over 900 outlets all over the
country. The company is also planning to touch the 1000 mark very soon. Coffee
Day Xpress is perhaps the only national coffee brand that is capturing the
imagination of the modern resurgent India with its growing presence in Shopping
Malls, Multiplexes, Corporate, Supermarkets, Airports, Railway Stations,
Educational Institutions, etc.
6) HYGIENIC, TASTY AND QUALITY PRODUCTS
Coffee Day Xpress provides fresh, fast, tasty, hygienic, and convenient-to-eat and
affordable food & beverages. The F&B Department at CDX takes great care that no
leftover food item of the present day will be served the next day, since most of the
food items that the CDX deals with are perishable item which have a smaller shelf
life.
7) STRONG MOTHER BRAND RECOGNITION
Coffee Day has emerged as a leader in its field and therefore has created its own
brand name for being the only vertically integrated coffee organization. Coffee Day
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has always believed in – “The smarter. . . The better”. Different divisions, different
businesses, and diverse focus areas, that is Coffee Day Group.
8) NO ATTRACTIVE AMBIENCE AND DÉCOR
Coffee Day Xpress kiosks do not have an attractive ambience, nor do they spend too
much on decoration. Their main funda is to keep it short and simple. An efficient
and delightful format kiosk that serves hot and cold beverages and a variety of food
items for the people in transit/ move. The kiosks occupy somewhere between 80 –
120 sq.ft of business space.
9) SELF GROWN COFFEE USED IN BUSINESS
Coffee Day takes pride in the home grown coffee, i.e. CHIKMAGLUR. It has
become an icon for good coffee. Coffee Day is a prominent force in the coffee
industry by maintaining quality coffee blends through extensive Research &
Development
(4.1) WEAKNESS:
1) Business is concentrated and dependent more around corporate offices
and shopping malls, educational institutions though they have identified
lots of other locations.
2) Concentrate only on prime locations and cosmopolitan cities.
3) Targets only youths and executives.
4) Same variety of food and beverages or menu in almost every outlet.
5) Prices are relatively higher than the local coffee/ tea stalls.
6) Mainly in the colleges estimating daily demand is very difficult.
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7) Unable to control excess wastage.
8) Many outlets are not set up in a central place of a location.
9) Lack of proper display of ads in many outlets.
(4.2) OPPORTUNITIES:
1) LESS COMPETITION
As there are few players, Coffee Day Xpress has wide market availability.
2) FLEXIBILITY TO VENTURE TO NEW AREAS
Open option of venturing into other potential cities. Newer cities will expose Coffee
Day
Xpress to more Franchisors, thereby creating and driving a huge franchisee growth
which would also help them to increase their number of kiosks.
3) INCREASING BRAND AWARENESS
Since Coffee Day is situated only in big cities, CDX can expand its business to small
cities. This is one opportunity that CDX has as it can take the COFFEE DAY brand
to the interiors of the country. It gives the company a further chance to expand and
diversify its existing business
4) LESS COMPETITION
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As of now there is no big competitor for Coffee Day Xpress. With the kind of
business they are into there is no big competitor as such. Hence they have the
flexibility to experiment.
5) YOUTH ORIENTATION
Coffee Day Xpress has a good opportunity to serve young people, because if they
become loyal to it, Coffee Day Xpress can enjoy continuous relationship. Coffee day
Xpress has always believed that that their biggest brand ambassadors are the youth
that they are targeting to. They are the most impacted customers and offer the most
brand loyalty, and there are an equally large number of them working in corporate
business firms.
6) INCREASING COFFEE CONSUMPTON
In India coffee consumers are increasing and also people are getting busy day by
day, hence the concept of Coffee Day Xpress attracts more takers. This especially
holds good for corporate employees who have to stay efficient while at work and a
quick and refreshing coffee is what they look forward to.
(4.2) THREATS:
1. Few main competitors like Barista, Fusion Espresso (TATA), Costa are
immediate threats to Coffee Day Xpress. Entry of these players into the
market will lead to a very competitive price war as all these companies
command a very brand in the market.
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2. Many foreign players have entered in coffee retailing market. E.g. Star
Bucks.
3. In few outlets existence of other coffee vending machines, which serves free
coffee to employees by the companies, becomes threat for the Coffee Day
Xpress and Beverages.
4. Threat from neighboring coffee bars selling coffee at a lesser price than
Coffee Day Xpress.
5. Threat from location owners, because they can hike rent for their place
where Coffee Day outlets are setup.
(4.3) PROBLEM IDENTIFICATION AND SOLUTION
Department – Supply Chain Management
Problem Diagnosed:
Unsystematic storage of database and scattered information regarding;
Product Specification
Vendor Details
Cost Sheets
No structured format was in use
No documentation of records regarding product categories and new product
developments after rebranding. The existing database consisted of products
pictures with old logo and also products which were not being procured or
used by CDX in any of the outlets.
Space consumption in the mother warehouse in Bangalore, was according to
my observation, was another problem area. There are certain areas which
are occupied by unused boxes thereby creating the space shortage.
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With respect to the database, I was assigned the task to prepare a systematic
database according to a prescribed format.
The first step involved was collection of information about products of all
product categories, which involved meeting with various category
executives from other division and collecting specification sheets,
packaging details, costing sheets, quotation formats, vendor details.
I also had to take the photographs of all the products with the present logo
and color print.
I assembled the entire information and created a database for all the
products according to a set format which would be easier for the SCM
Executives to store and retrieve any information they want at any time.
In another word document, I listed all the product categories along with the
products and created hyperlink with the consolidated database sheet.
SUGGESTIONS
Remove or relocate the unused stock, which is blocking the floor area in the
warehouse.
Capital Items should be kept in a more systematic way. This would enable to
utilize the floor area better.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 86
CHAPTER 5
FINDINGS AND
CONCLUSION
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 87
FINDINGS
1. One of the major strengths of the organization, which they really feel proud
off, is that employees have the satisfaction, freedom, and the opportunity to
do their best at work.
2. The one very good thing about CDX is that the superiors and subordinates
are in direct communication with each other.
3. The reasons for such positive results for the company have been mainly
achieved by strong and dynamic leadership of the President, as well as Heads
of Departments.
4. Great care is taken by Coffee Day Xpress that they cater to every need and
criteria‟s with regards to procurement, storage, supply and serving of Food
& beverages. The Quality Team at CDX ensures that all specifications are
met.
5. Employees are provided with compensation and benefits, Training &
Development, periodic performance appraisals as and when required.
6. The Managers are very particular about their work and go about their job in
a very professional manner.
7. Regular and consistent feedback is taken by the Managers from their
subordinates (Regional/ Assistant Managers) regarding execution of the
work, and performance evaluation.
8. CDX maintains good healthy relations with all its vendors and franchisees
across the country. No wonder CDX looks to add more franchisor to their
already existing list.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 88
CONCLUSION
This study was undertaken to understand and analyze the business processes
and functioning of various departments at Coffee Day Xpress. A unique concept in
itself, Coffee Day Xpress aims at feeding the world that‟s continuously in transit
through a convenience café format of business. Its Unique Selling Proposition
bridges the need gap between the leisurely cup of coffee and the stop at the café.
CDX caters to the mobile population of the city, who are always on the move,
always in a hurry. Coffee Day Xpress believes in keeping it “short and simple”. The
convenient and quicker modes of service provide the people a smarter and efficient
way of staying ahead of time. Coffee Day Xpress is into the segment of Food &
beverages and the nature of business carried is the concept of take away where
hurried people can have refreshment at Xpress in between their busy work
schedule. Coffee day Xpress runs many outlets on its own and no sharing of risks
and profits with third party. In addition, it has franchisee network, where it gives
franchises to others.
One of the most striking features of the CDX division is that it comprises of
young and dynamic team whose hard work has paid dividends in the form of the
number of kiosks that are opening in around 20+ cities in India. Strategically
positioned kiosks where a customer can not only grab a quick bite. Xpress gives
emphasis to quality and the freshness of the product as well as affordability. Coffee
Day Xpress provides quick and delightful services. The reason for Coffee Day
Xpress to stand out is the personal commitment from the members, i.e. staff at all
levels.
Organizational Study at Coffee Day Xpress 2011
M P Birla Institute of Management, Bangalore Page 89
BIBLIOGRAPHY
Coffee Day Xpress Departmental Reports
Briefings from Managers/ Asst. Managers of individual departments
www.coffeedayxpress.com
www.wikipedia.org
www.coffeeday.com
www.cafecoffeeday.com
www.coffeedaybeverages.com
www.coffeedayfng.com
www.coffeedayexport.com