HIGHLAND OPERATIONAL MANAGEMENT REPORT
COURSE: OPERSTIONAL MANAGEMENT_ INS2023 05
LECTURE: PS NGUYEN LIEU TRANG GROUP 1
GROUP PARTICIPATION EVALUATION No. Name Student ID Section contribution Signature 1 Đỗ Hữu Thắng 20070036 A + B X 2 Vũ Hà Khánh Linh 20070026 C + D + G X 3 Nguyễn Minh Duy 20070024 E + F X Contents
A.Introduction ................................................................................................................................. 4
B. Operations Strategy .................................................................................................................... 4
1. Introduction ............................................................................................................................. 4
2. Corporate Vision ..................................................................................................................... 6
3. Global Strategic objectives...................................................................................................... 6
4. The core competencies of Highland Coffee ............................................................................ 6
5. The value chain ....................................................................................................................... 7
6. Product value chain ................................................................................................................. 8
7. Operations management objected ......................................................................................... 10
C. Process ...................................................................................................................................... 11
1. Product process ..................................................................................................................... 11
2. Service process ...................................................................................................................... 12
3. Management process ............................................................................................................. 13
D. Supply chain management ....................................................................................................... 14
1. Introduction ........................................................................................................................... 14
2. Highland Coffee supply chain ............................................................................................... 14
3. Critic and recommendations.................................................................................................. 15
E. Quality management ................................................................................................................. 16
1. Product quality ...................................................................................................................... 16
2. Service quality ....................................................................................................................... 16
3. Quality assurance and quality control ................................................................................... 17
4. Critic and recommendations.................................................................................................. 17
F. Action 1 year programmer ........................................................................................................ 18
1. Average cost of facilities at 1 Highland store ....................................................................... 18
2. Cost of raw materials............................................................................................................. 19
3. Demand forecasting............................................................................................................... 20
4. Estimated cost ....................................................................................................................... 20
5. Promotions planning ............................................................................................................. 21
6. Inventory manager planning.................................................................................................. 22
G. Conclusions & Recommendations ........................................................................................... 23
H.References ................................................................................................................................. 25 A.Introduction
The purpose of this report is to evaluate the operation of Coffee Highland in Hanoi
and make evaluations and recommendations for improvement based on direct
research. Vietnam with the development of tea and coffee. Highland was born in
1998 with the desire to bring the taste of Vietnamese coffee closer to consumers,
elevating the long-standing coffee heritage and spreading pride and harmony
between tradition and modernity. Starting with the business of packaged coffee in
Hanoi in 2000, this coffee brand has continuously grown and expanded, becoming a
famous coffee brand operating both domestically and internationally since 2002.
During the development process, Highland Coffee always brings delicious and
comparable coffee products in a comfortable place and polite space. With the desire
that coffee cups are not only a familiar drink but also carry a cultural mission that
reflects a part of the modern lifestyle of Vietnamese people.
Up to now, HIghland Coffee still maintains the manual coffee classification to select
the best quality coffee beans, roast new every day, and serve customers with a bright
smile on their lips. The secret to success is this: great space, excellent products,
attentive service at the right price and a great operation management system1 B. Operations Strategy 1. Introduction Input: Throughput: Outout: Customer transforming process Customer satisfaction Input:
The input to the activities is customers of all ages. Target customers that Highland
Coffee want to follow are all ages in society such as the middle the office and the
young. Coffee is considered a popular drink, Highland takes their brand beyond
1 https://www.highlandscoffee.com.vn/vn/gioi-
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popular coffees, attracting the attention of both middle and upper class customers
using branded coffee brands. signal, thereby marking the level.
Not only investing in coffee beans, Highland's facilities are also strongly invested
including store location, brand advertising design, store style interior design. With
the main colors of red and white, Highland's billboards and banners impress
consumers due to the harmonious combination of tradition and modernity.
Highland's investment is also seen from the layout of the space inside the store to
the tables and chairs, the red-black staff uniforms create warmth and professionalism.
These inputs are transforming inputs. Shops is located on busy streets where
customers can easily find and have spaces for relaxing. Highland Coffee focuses on
the rental costs of locations, mainly in busy urban areas and commercial centers. Coffee Service Order Payment Delivery production consumption
The customer service process is the process of ensuring customers get feedback and
timely help. The customer is seen as an important input of the process and the output
will be the customer's reflection on the quality of products and services.
Process 1: Customer orders drinks. As soon as customers intend to step into
Highlands, employees will have to identify and welcome customers. In the case of
crowded stores, customers will have to wait in line for their turn. After that,
customers will choose a drink right at the counter.
Process 2: Customer pays for the order. After ordering, customers will make
payment at the cashier. Customers can choose to pay in many ways such as cash,
card, QR codes, etc then the customer will hold the vibrating card.
Process 3: Production of products - coffee. Upon receiving the orders, the staff will
immediately proceed to prepare coffee or drinks based on customer requirements.
At this step, the customer has to wait for the staff to make the coffee. Therefore,
highland coffee always has spacious and airy space for guests to wait in the most
comfortable way. Customers can enjoy the space of the Highland and choose the
ideal seat to continue chatting with friends or watching books.
Process 4: Delivery to customer. And customers will serve themselves by going to
the bar to get their drinks. After the beverage is finished, the Highlands waiter will
press the call transmitter, immediately the device vibrates. The drink in the
customer's hand will vibrate at the same time with a bell, and the customer will go
to the counter to pick up and return the card.
Process 5: Service, Complaint Settlement, and cleaning. During the service,
customers will have other requirements such as paper towels, drinking utensils, or
even complaining about drinks. After the customer leaves Highlands, the staff will
clean the tables and chairs to welcome new guests. After enjoying the services at
Highland coffee, customers can throw their trash into the designated trash cans at
locations in the store. If not, customers can ask highland staff to clean up. Regarding
service consumption, the Highland Coffee shop system is divided into 2 types:
indoor and outdoor. Indoor space is luxurious and cozy for those who like privacy
and quiet. The genre of music that often appears in this space is JAZZ music. The
outdoor space has a different style, many trees are in harmony with nature, suitable
for active people who like the bustle. 2. Corporate Vision
As a Vietnamese company, Highland Coffee is committed to the development of
Vietnam, for a market economy by providing high-class brands to the middle class
of Vietnam. Brands always aim to play an important role in improving the quality of
life of customers through the brand. Highland Coffee has no intention of stopping
and will continue to expand its current business, continue to develop the brand and
continue to search for brands that satisfy the target customers Highland Coffee aims at.2
3. Global Strategic objectives
Strategic goals are consistent with the company's vision statement. Highland Coffee's main frying goals:
− International expansion - competitors.
− Expand the menu, create a new, innovative feeling for the seasonal and festive brand.
− IT strategy, promoting advertising on e-commerce channels.
− Invest in and train retail and audit to deliver consistent service and product quality − HR Strategy
− Knowledge Management Strategy
4. The core competencies of Highland Coffee
Accompanying and developing with Vietnamese coffee for 24 years, to always
maintain the position of the brand. Highland coffee always retains 5 core values of products and brands:
- Proud and sharing the community about Vietnam
2 https://www.highlandscoffee.com.vn/vn/highlands-coffee-20-nam-gan-ket-niem-tu-hao-dat-viet.html
Highlands Coffee focuses on spreading the spirit of "Proud of Vietnam" to domestic
and international markets. The brand both stores cultural values and tries to catch up
with new tastes with business acumen. Understanding customer psychology, the
space design of each coffee shop is imbued with Vietnamese identity in harmony
with modern and elegant style. Since then, Highlands Coffee has successfully
attracted many generations and different customers.3 - Always keep the passion
Highlands Coffee was born out of the founder's strong passion for Vietnamese coffee.
Until now, the company has been constantly nurturing this aspiration with a
consistent business strategy. Highlands Coffee is proud to commit 100% of clean
ingredients imported in highland areas such as Gia Lai, Dak Dak, etc. Combined
with the unique filter making technology, the brand promises to always bring to the
pure Vietnamese coffee culture.
- Respect, integrity in business
To contribute to maintaining the trust of customers, employees and suppliers,
Highlands affirms that its business is based on respect, integrity, and integrity. - Team spirit, cooperation
Within the company, Highlands Coffee wishes to build a strong team spirit. All
members cooperate and support each other to complete the work well and develop the business.4 - Caring about customers
Customers are the top priority as Highlands Coffee provides the best experience.
When referring to this value, Mr. David Thai said:
“The success of Highlands Coffee in every step of the 20-year journey is marked by
the encouragement and close connection from partners, employees to each customer.
We hope to continue to receive support from loyal customers because it is this
support that contributes to the improvement of the Highlands Coffee brand.”5 5. The value chain
Consumer demand is one of the driving factors of the entire value chain, Highland
has focused on these essential needs for both customers throughout the value chain.
3 https://www.highlandscoffee.com.vn/vn/khoi-nguon.html
4 https://tailieu.vn/doc/tieu-luan-quan-tri-dich-vu-cafe-highlands-1499594.html
5 https://vticareers.talentnetwork.vn/gioi-thieu/cac-cong-ty/highlands-coffee.35a526dc/vi
The brand's operating strategy is also built on the needs of customers, Highland
wants to bring customers new and consistent experiences at the same time.
In particular, Highland is famous for its agricultural product value chain. The
company has been building a closed system from farmers to producers to create
agricultural products for consumers. Starting from the stage of cultivation,
harvesting, preliminary processing, transportation and preservation, to the final stage
of processing to create agricultural products; all are strictly controlled according to
international standards of “hygiene and safety”. In the process of implementing the
agricultural product value chain, the participants always follow a strictly controlled
process. The value chain of agricultural products always puts the criteria "Hygiene
and Safety" on the top, ensuring safety "from Farm to Table". 6. Product value chain
Based on the Porter model, Highland Coffee's active file value-added operations
Support each other to add value, ensuring resources are properly converted. Tripathy
(2011) states that "Products and services intended for external consumers are created
through a process that includes five key business activities.”
Porter developed the value chain to help identify which activities within the firm
were contributing to a competitive advantage and which were not. The approach
involves breaking down the firm into five 'primary' and four 'support' activities, and
then looking at each to see if they give a cost advantage or quality advantage (Porter, 2012).
The main activities of Highland based on figure include inbound logistics, operations,
outbound logistics, marketing and sales and service.
- Inbound logistics: is the process of receiving, storing and processing raw
materials. Just-in-time systems can offer a cost advantage. Coffee beans are
shipped from Dac Lac, Lam Dong, and Buon Ma Thuot to the Highlands coffee
warehouse for storage and distribution to small businesses
- Operations - transformation of the raw materials into finished goods and services.
The beans after being imported from the HighLands will be processed through
the production line into coffee powder and grains and imported from distribution
to domestic chains and partially packaged for export.
- Outbound logistics - storing, distributing and delivering finished goods to
customers. Highlands coffee uses a multi-channel delivery method that uses two
or more different distribution systems in parallel to cover the market, targeting
the best possible target clients. Apart from distributing products (coffee powder
and coffee bean) to highlands coffee shops, highlands are also looking to third
parties: retail chains such as Vinmart, Coopmart, Lotte mart. Even more
impressive, with the merger of the Jollibee Group, the highlands have expanded
their distribution network not only at home and overseas.
- Marketing and sales: Highlands marketing strategies utilize the edge with other companies.
The Highlands coffee shop is decorated in a blend of Eastern culture, traditional
Vietnamese and Western culture to create a sense of closeness bringing highland
breath between the pace of modern cities.
Merging with Jollibee has generated a highlands attraction for local media and customer attention.
Highlands to the high value and the spirit of writing using the Vietnamese coffee beans.
Provides online ordering through App Delivery Now, a self-service method that uses
a service bell when ordering drinks or food in a restaurant.
Secondary activities include the following activities such as company infrastructure,
technology development, human resources development, procurement.
Highlands Business Value Chain Analysis offers the following benefits:
- It provides a generic framework to analyze both the behavior of costs as well as
the existing and potential sources of differentiation.
- Activities that are not adding value can be identified and addressed
- Emphasizes the importance of (re)grouping functions into activities to produce,
market, deliver and support products, to think about relationships between
activities and to link the value chain to the understanding of an organization's competitive position.
- It makes it clear that an organization is multifaceted and that its underlying
activities need to be analyzed to understand its overall competitive position.
- It is an attempt to overcome the limitations of portfolio planning in
multidivisional organizations. Rather than assuming that SBUs should act
independently, Porter used his Value Chain analysis to identify synergies or
shared activities between them and to provide a tool to focus on the whole rather than on the parts.
7. Operations management objected
According to statista.com, Vietnam is currently ranked 24st on the list of countries'
revenue in the F&B global market with 464 million USD. This shows the very high
prospect of development in the food and beverage industry which leads to great
competition from domestic and foreign brands. Especially in the context of the open
economy, Vietnam is a member of many coalitions and associations with huge FDI
capital, the competition on management is a vital issue for businesses. According to
the latest data on the consumption behavior of Worldpanel and Kantar in the first 6
months of 2019 in Ho Chi Minh City, milk tea is still the most popular drink after
coffee. The average number of 1 person buys milk tea in every store, with a
frequency of 2 weeks / time. In particular, the current milk tea business model is
divided into 3 main groups: The first group: Vietnamese brands with franchise
policies such as Bobapop, TocoToco... The second group: milk tea brands from other
countries or the popular level of about 50 stores nationwide such as DingTea, The
Alley, Gongcha, Phuc Long ... The third group: is the small and medium-sized group,
take away… .If domestic milk tea brands mainly follow the price management
method, the second group brands pay special attention to quality and product
innovation management methods thanks to the professional management system and
rich experience. Highlands Coffee operates with a popularizing strategy. In order to
carry out this strategy, the goal for Highlands Coffee's operational managers is to
minimize costs, improve service quality and deliver customer service in the fastest
time.The first objective of this operation is cost. Specifically, the cost of staff, supply
chain, and inventory because costs will influence the decision on product prices,
reducing costs, and making the profits of businesses increase.The second objective
of this operation is service quality. The beverage industry is developing strongly
with many big brands such as Starbucks, Coffee Bean, The Coffee House,
etc.Therefore, Highlands needs to improve the quality of coffee service, focus on the
friendliness and time delivery of the service (Sander et al., 2012) to create a competitive advantage.
Besides, timely delivery is also important in operational management. Customers
often take time to wait at the stage of ordering drinks and wait to make drinks after
ordering. The more limited the stand-by time, the higher the consumer loyalty.
Specifically, the brand implements the strategy by streamlining the design, aiming
to be compact and offering the right product group, pushing investment costs to the
lowest. These include reducing the selection in the menu, converting Western food
into Vietnamese bread, the old leather upholstery furniture has been replaced by
wooden furniture and the sitting distance is also narrower. On the other hand,
Highlands Coffee also understands the tastes of users to make decisions to increase
revenue as well as expand the market. Therefore, Highlands Coffee needs to focus
on service quality management, supply chain management, inventory management,
and staff scheduling management.6 C. Process 1. Product process
Highlands Coffee guarantees to provide customers with excellent quality coffee
products. This is demonstrated through a commitment to quality that begins with the
selection of coffee beans, Highlands Coffee works only with reputable suppliers for
the best grade A beans. After that, the laboratory will perform the task of testing
samples to make sure the goods must meet the strict standards set. After entering the
warehouse, workers will choose to remove the poor quality seeds. Just a single poor
quality coffee bean left behind can destroy the entire quality of a shipment. Coffee
preservation is also a concern. Most of the coffee in Vietnam has not been properly
preserved, which makes the coffee susceptible to mold and the risk of cancer for the
drinker. With Highlands Coffee, coffee beans are carefully stored in a dry place and
are regularly tested for moisture.
The coffee roasting process is controlled by a team of experienced professionals,
which is a skillful combination of experience and science in roasting time and
temperature to get the best roasted coffee beans. . Coffee after roasting will be cooled
down before experts carry out the work of blending Arabica and Robusta beans in a
certain ratio to produce high-class Highlands Coffee products.
6https://fr.statista.com/recherche/?q=countries%27+revenue+in+the+F%26B+global+market&qKat=search&newS earch=true&p=1
Last but not least is the packaging. To ensure optimum quality, the packaging is
designed with a special liner along with a one-way valve to help release air and keep
the coffee fresh for a long time.
From the raw materials, the coffee beans are counted by the shop staff according to
the standard amount that begins to be prepared.Coffee beans are ground into small
pieces, using a filter to extract the coffee water from the coffee powder, and finally,
it is prepared according to the recipe for each product. 2. Service process
The service process is the way the service is created and the steps to achieve the expected results.
Since service is the result of interaction between customers and employees, it is
difficult to define. When businesses want to check the quality of their services, check
the service skills of the employees in the company, then it is impossible not to build
a service process. Service processes help customers visualize the benefits they will
receive from using your services, lead to purchase behavior, and then help customers test process productivity.
Whether the process meets the requirements of the contract between the two parties
or not. For employees in the company, that service process helps employees to be
trained and improve their work productivity, according to the standards set by the company. Appoach, record Serve, requests Farewell Service Preparation Welcome and receive and clean observation payment up and care from customers
Step 1: Individual preparation: each employee is neatly dressed, uniform is ironed,
hair is neat, each individual will start work with a positive spirit and attitude, full of energy and joy.
Step 2: Welcoming guests Each guest coming to Highland Coffee is politely
welcomed by the staff. The staff takes care of and supports, advises and guides the
appropriate location. Friendly attitude, smiling, communicating with guests by
saying "Highland Coffee hello customers".
Step 3: Approach, record the request and receive payment from the customer:
Many first-time customers may not be familiar with the names of the drinks here or
would like to indulge in a certain variety. After receiving an order from a customer,
very quickly, the bartender will receive the information and start making the mix.
Step 4: Serve, observe and care. Staff always observe and care when customers need.
Step 5: Goodbye and clean up The smiling receptionist said goodbye to the guests and they said
"Thank you Highland!" Then their staff comes and clears the table, ready to serve the new guest.
Every time customers come to Highlands Coffee, they will feel the dynamism,
friendliness and professionalism of the staff. 3. Management process
As a chain selling brand, Highland possesses 2 organizational management
structures as shown in the figure below Chairman Research Marketing Human Regional Financial Department Department Rerources Director Department Bartender Store Cashier manager 1 District Store Delivery Supervisior Manager manager 2 staff Store Security manager n.. Service staff
D. Supply chain management 1. Introduction
In Operation Management book by R. Dan Reid Nada R. Sanders (5th edition),
Supply chain management is the vital business function that coordinates and
manages all the activities of the supply chain linking suppliers, transporters, internal
departments, third-party companies, and information systems. Supply chain
management for manufacturers entails: Coordinating the movement of goods
through the supply chain from suppliers to manufacturers to distributors to the final
customers. Sharing relevant information such as sales forecasts, sales data, and
promotional campaigns among members of the chain.7
2. Highland Coffee supply chain
This report analyzes the norm by which Highlands Coffee manages the supply chain.
We analyze the selection of suppliers and the organization of warehouse systems.
The suppliers impact directly on quality and price of final products for customers.
To bring the best products for the customer, Highlands Coffee selects suppliers to
achieve objectives: supply high raw materials and ensure low cost. The coffee shops
like Highlands have many suppliers such as coffee suppliers, milk and sugar
suppliers, coffee equipment suppliers. Supply chain management in Highlands faces
the quality problems of raw materials like near or out of date, spoiled in the
transportation process. Not at all, the suppliers can supply a lack of quantity of
products, not deliver products on time like agreement, highly cost input raw
materials. To reduce the risk of the supply chain, Highlands will consider choosing
suppliers carefully. The supplier’s Highlands attach special importance is raw
materials suppliers. Highlands make decisions to choose suppliers based on three
criteria: The first criteria are the quality of raw materials. The raw materials in
Highlands include coffee beans, milk, and tea. Highlands Coffee is a reputation
brand coffee so the quality of coffee is always putting in first. Highlands choose the
specialized farms in Buon Ma Thuot, Dak Lak which produce the coffee beans for
the best quality, suitable for climate and soil conditions. All coffee beans have to
achieve the quality standards of Highlands. With fresh milk, Highlands chooses the
supplier DaLat Milk which uses organic ingredients. That is completely safe for
consumers' health. Regarding tea, Highlands chooses COZY tea - the tea brand of
VN - to produce the freshest, safest teacups. The second criterion is price. The price
of raw materials has to guarantee the lowest cost, consistent with the service quality
and cost source of the Highlands. Highlands also create relationships with suppliers
to reduce cost and ensure the quality of raw materials. The third criterion is on-time
delivery. Because a coffee shop like Highlands will face the problems of time
7 https://www.studypool.com/documents/13840643/bus-670-week-10-supply-chain-management
delivery transportation. It directly affects the process of service quality for the
customer. If they do not have materials, Highlands cannot make final products as
customers need. It leads to a reduction in Highlands reputation and satisfaction of
customers. So Highlands is very focused on choosing the suppliers who deliver the
raw materials according to the agreement and take remedial measures when the
quantity cannot be delivered on time. Not only manage the suppliers but the
organization of the warehouse also are focused by Highlands. Highlands control the
quantity and quality of raw materials export and import the warehouse very strictly
to ensure the supply chain operations efficiently and not have an interruption. The
necessary materials used in the process of making finished products will be returned
to the store twice a week. That helps the store: minimize excess inventory, easily
track and preserve the quality of goods, save investment costs in terms of storage
space and the space of an unnecessary large warehouse. The Highlands staff check
the quantity of raw materials in the warehouse every day by checklist tools, check
the date of all products or any spoiled materials. If there are any problems, Highlands
will contact suppliers to ensure raw materials in a warehouse. 3. Critic and recommendations
In this part of the report, with the aim of improving the efficiency of supply chain
management, we make some recommendations
First, each supplier relationship needs to be strengthened. In the book Operations
Management by R. Dan Reid Nada R. Sanders (5th edition), the purchasing role
becomes increasingly important as the cost of raw materials accounts for 50-60% of
COGS. Highland is able to reduce raw material costs to increase profitability and
improve input quality by implementing supplier relationship threat development
strategies. In addition, Highland needs to pay attention to building a close
relationship with the chosen strategic supplier to find the factors that can create a
relationship when developing business on a mutually beneficial basis. profits and
create new sources of profit. Supplier selection also needs to be carefully considered
to ensure the desired product quality at a reasonable price. To manage supplier
relationships, Highlands should introduce beneficial cooperation regulations, share
expertise and resources, and plan with suppliers. Secondly, when making the
decision to choose the right supplier, Highlands must choose the product that can
and the product price want to bring customers to choose the right supplier, Highland
needs to pay attention to the test segment. quality raw materials in stock to ensure
quality for customers, avoid food safety problems. Not only that, the combination
between the brand and the supplier should mention the delivery time and the extent
of deviation when there is a problem. Finally, Highlands should apply more
technologies such as tools and applications to manage warehouse organization. E. Quality management
Quality manager is the traditional approach, concerned with ensuring that actual
quality, as measured, meets the target or benchmark standards that have been set. It
is concerned with maintaining quality standards, rather than improving them and involves:
- Establishing quality standards for a product or service.
- Establishing procedures and processes that ought to ensure that these quality
standards are met in a suitably high number of cases (in other words, quality
acceptance standards are established). - Monitoring actual quality.
- Taking control action in cases where actual quality falls below the standard
- Procedures for inspecting and checking the quality of boughton materials, and production output 1. Product quality
With the mission to bring consumers delicious cups of coffee, Highlands is always
strict in selecting quality coffee beans from the garden of the plateau. All are applied
with modern machinery, carefully selected and sent to the packing factory. Because
of the noble mission that Highlands has set out, the brand is constantly strengthening
and developing products. Therefore, product management is an extremely important
step in the chain of activities of the brand. 2. Service quality
“The definition of quality depends on the point of view of the people defining it”
according to R. Dan Reid (2009). Gronroos (2000, p.46) defined service as, “A
service is a process consisting of a series of more or less intangible activities that
normally, but not necessarily always, take place in interactions between the customer
and service employees and/or physical resources or goods and/or systems of the
service provider, which are provided as solutions to customer problems”.
Although, there is a marked distinction between physical goods and service in term
of the sequence of production and consumption. Physical goods Product Storage Sold Consumed Service Sold Producted and consumed
Highlands builds its brand based on customers' needs and consumption, so they hope
their customers always feel the dynamism, friendliness and professionalism from the
position of the staff. In terms of space, with a combination of luxurious and cozy
space inside and harmony between bustling streets, nature and greenery for the
outside space create a space to enjoy for customers. All of these factors add up to a
good value for HIghlands' service quality.8
3. Quality assurance and quality control
Highlands builds its brand in the chain of stores, so it is inevitable that the difference
between the supply chain network is inevitable. To ensure and maintain a uniform
quality of output from each store, Highlands requires the preparation and storage of
certain ingredients in stock from which the items are distributed to the stores. This
reduces the need to stock up on ingredients and ensures Just-in-time setup.
Centralized control of supply ensures consistency, maintaining all ingredients to create uniform products. 4. Critic and recommendations
Highlands Coffee has a strong foothold in the market today largely thanks to the
quality of the coffee shop. To ensure this work, Highlands Coffee needs to pay more
attention to the process of supplier selection, product inspection, production, mixing,
packaging and storage. It is necessary to strictly check the process and product
quality during production and storage. According to research, currently Highlands
is applying food hygiene and safety standards issued by the Ministry of Health. We
give some recommendations for the brand, Highlands should apply international
food safety and hygiene standards such as HACCP for product lines from coffee to
cakes. And publish the certificate on the media portals to improve the trust of
domestic customers, convenient for working far away from the international market.
In particular, the company can develop service packages to attract customers, such
8 https://www.ccsenet.org/journal/index.php/ijbm/article/download/9689/6943
as customer upgrade programs, customer loyalty points, gift programs for VIP
customers, loyal customers and loyal customers. trademark. Besides, innovating
seasonal menus, developing and searching for new catering products for seasonal
and festival runs. Create something new to attract new customers.
Regarding service quality management, currently the brand has built a standard and
professional service process, however, the Central Highlands still needs to train staff
periodically, maybe every 3-6 months, to ensure quality. the same number of
members. Offer a number of benefits to long-time employees who have a spirit of
contribution and branding. In addition, Highlands can learn how to train employees
in the West to improve service quality.
F. Action 1 year programmer
1. Average cost of facilities at 1 Highland store
For facilities, store managers and employees must perform stock checks every day
of each month, determining the quantity to plan for stocking based on each store's
sales volume. At the same time, to avoid the lack of impact on costs, each store also
needs to report if there is an incident such as loss, damage, which needs to be verified
and found the cause. The option treatment of the value of a short-term asset. If the
property has a low value (<1 million), the manager will notify the accounting
department and proceed to buy a new one; Money used for new purchases will be
deducted from payments in the working capital portion of the restaurant. If the
property has a great value (> 1 million), the manager will make a written report of
damage or loss of the trademark. Then send it to the company's technical department
to request a new purchase. Money used to buy new food is also extracted from the restaurant's bank sources. 2. Cost of raw materials
The shop's products are prepared by the staff at the request of the customer, so the
stockpile is mostly in terms of raw materials.
Besides, Coffee is the main product and is distributed by the factory for the brand
and stored in a safe food warehouse. This not only eases quick conversion and
ordering, but also greatly reduces the cost of ingredients
We make calculations, Highlands will lose about 5,500 VND per cup, 10% for
ingredients for an average cup of 55,000. 3. Demand forecasting
The brand mainly sells coffee products, so the sales below are based on coffee
products and are referenced through newspapers and stores in the Hanoi area.
Therefore, in the following years, under the influence of the Recession and the
economic situation, the scale of the Central Highlands is not expected to change
significantly. In addition, the fast-growing catering industry, many cafes and food
stalls opened, raising the brand's competitiveness. Although Highlands still has a
significant number of loyal customers, it is still low to change drastically according
to customer demand. However, still taking into account the increased achievements
of the restaurant. Our estimate for customer demand is 500 cups a day and about
182,500 cups a year (365 days) 4. Estimated cost Employee cost 5. Promotions planning Action 2023 Budg et ($) Ju Fe Ma Ap Ma Jun Jul Au Se Oc No De n b r r y e y g p t v c Collect X X X 2500 3 stamps get 1 Phin sua da Free X X 1500 upsize for women on Octobe r 20 Tea X X X 1500 and cake combo for the afterno on Buy 2 X X 3600 tea get 1 coffee Combo X 1000 back to school for student 30% X X 2000 off size L when buying size M
These promotions are designed to demonstrate clients the diversity of deals available
at the shop, entice them to visit and participate in the program. Because major
holidays and anniversaries are busy occasions, it is critical to offer promotions that
appeal to all customers in order to increase the diversity of customers. Advertise on
social networking sites, hand out coupons at the checkout counter, and inform clients
about discounts from the start of their order.
- Tea and cake combo for the afternoon: Because the afternoon is typically a time
for friends to gather, selling in combos will be more diverse for clients,
potentially increasing cake and drink sales.
- Combo back to school for students: Students will have a lot of work to do when
they return to school, so they will always need a place to study and deal with
schoolwork, and promotions will encourage them to come to the business more.
As a result, more youthful clients will be attracted because they have a lower salary. 6. Inventory manager planning
Inventory cost can be reduced to increase the store's profit Highland consists of 3
types of inventory: raw materials are converted into beverages such as coffee, fruit,
milk,... ; finished products such as coffee cans, coffee bags; food service utensils.
Consignment costs — including the cost of unloading at the warehouse and
inspecting the goods to ensure that they are correct and free of defects. Raw materials
at Highland coffee need to be checked right from the import step. If Highland coffee
breaks stock on arrival, delivery costs will be a concern. If the goods are damaged
or broken by the supplier, an inventory of the goods is necessary to avoid incurring
this cost. Shortage Costs - These costs, also known as out-of-stock costs, occur when
a business runs out of stock for any reason. When there is a shortage of goods in the
warehouse, the production process will be interrupted. Cost of spoilage - Perishable
inventory in stock can rot or spoil if not sold in a timely manner, so controlling
inventory to prevent spoilage is essential.
In addition, Highlands also need to check import time, quantity and food hygiene
and safety. The process of importing goods and checking needs to be saved in a book
or computer, and the imported goods need to have the correct data to ensure that they
are not broken and of good quality. This helps the store: reduce inventory, easily
track the quality preservation supervisors to keep track of the quality preservation
supervisors, save unnecessary investment costs.
Our opinion is that inventory management should start with the import of goods.
Goods must have a clear origin, clear labels and packaging with the production time
and certificate of the food company. When the goods arrive at the warehouse as food,
it is easy to have problems from the environment such as inappropriate storage
temperature, low humidity, fragile,... For coffee, the product is easy. , should be
placed in a dry place. For frozen items that need to be at a reasonable temperature,
assign staff to check the temperature daily and report when there is a problem. In
addition, raw materials such as grass, perch, straw, .. need to be counted to avoid
loss, buried in a dry place, not moldy and destroyed by rats. Highlands need to issue
a daily consumption report and make a reasonable import report to avoid shortage
of goods when necessary and excess stock on days when consumption is also low.
To calculate the number of existing goods, we have come up with a plan to use FIFO
with the principle of first in first out. The first shipment will be shipped first to ensure
food safety, fresh or dry ingredients such as milk, coffee, plastic cups will be shipped
first. Balance between reasonable import and export of goods with sufficient
quantity, avoiding the situation of imported goods being sold too little or importing
too much leading to a backlog of old goods. In addition, in order to ensure a safe and
high-quality source of goods, it helps to save costs and avoid inventory stagnation.
Thereby helping to ensure the continuity and stability of the goods during the
operation of the store. And the import and export process was formed.
G. Conclusions & Recommendations
To summarize this article, we would like to summarize the main issues and
suggestions for contributing to the brand. In the coming years, Highland is likely to
face many challenges so it is important for the brand to pay attention in the process
of checking the management of the brand's operations, in addition to providing a
plan to ensure and definitely develop service quality, quality management, supply
chain management, inventory management and brand operation planning. Our
contribution is to improve the service quality of Highland Coffee, and at the same
time recommend to help increase service and attract customers, increase customer
satisfaction and love for Highland Coffee. First, Highlands needs to offer staff
training courses to unify service quality and output products of disadvantaged chain
stores. Because human resources are one of the factors that create a brand, training
and investing in employees is also a part of the operational management process.
Next, Highlands needs to improve the quality of inventory preservation, some
solutions can be applied that we give in the article. Commodities play an important
role in the chain of operations, requiring the military to manage and control the
output strictly to avoid lack of items and budget. In addition, we recommend that
Highlands can turn its brand's plastic products into reusable and compostable
products. To that end, it is possible to build some promotion or program for
customers who use their cup to drink Highlands. Not only that, in brand advertising,
Highlands should have new cultivation steps instead of communicating in traditional
ways. Marketing is a factor to attract customers and brand closer, both attracting
customers and building a great brand. Finally, we offer an innovative idea for the
festive seasons that Highlands can develop and build new seasonal products that
create new sensations, new experiences for new and old customers. Giving away
coupons or building combos for the menu is also a potential innovation. In summary,
Highlands Coffee is a coffee brand with a highly appreciated and potential chain of
management activities, capable of thriving to achieve better results in operations management. H.References
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