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Cafe Expresso


karim makhlouf

on 10 April 2013

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Transcript of Cafe Expresso

Martina Mai
Daniela Schink
Karim Makhlouf Café Expresso Overview One of the main three players
First mover advantage
Number one position (15 years)
Lost market share (number 3) Configurational Approach Holistic principle of inquiry to identify configurations or unique patterns of factors that are posited to be maximally effective Challenge SIHRM Agenda Case overview
SHRM approach
HRS development Low pay wages
High staff turnover
Low commitment
Low motivation
Short-term contracts Review of HR Loyal customers:
Variety of coffee
Coffee house experience
High level of customer service Review of customers Appropriate decoration
Variety in the range of products
Barista Review of competitors Bundle of IHRM Practices Resourcing
Window advertisement
Word of mouth
Manager authority
Half-day trail period Talent management
Performance management system
Learning and development
Mentor system
Master program
Spend time on the floor Reduced the turn-over to 25%
Improved customer service feedback Performance Improvement Strategy The new HR strategy focuses on development and retention of key HR We don't just sell coffee we provide customers with an unforgettable experience HR STRATEGY BUSINESS STRATEGY VISION VALUE MISSION BUT: Base of HR Strategy Café Expresso : Forced them to rethink strategy
(International fact finding tour) International Fact Finding Tour
Results Relaunch Business:
Attract new and retain existing customer Retention strategy
Quality of compensation
Range of benefit Compensation and benefits
Discount program
Pay wages above minimum
Share option scheme
Employee involvement
Team briefing
Ideas and feedback
Engagement survey
The company magazine
“Partners” Regained the second place How can Café Expresso sustain its competitive advantage? The configurational approach performance gained, built a strong base that management can relay on to gain sustainable competitive advantage First step in the right direction by realising
that HR is crucial for the success of the new strategy Resource-Based View Focus on the internal resources as a key to sustainable competitive advantage

HR provides a uniqueness to the company and therefore is considered a key asset Current Status Competitors could copy their practices, particularly in terms of rewards and benefits New HR strategy! It’s important to focus on a firm’s resources and capabilities VRIO Good relationships Commitment/Loyalty Motivation Equal treatment regardless of hierarchy
Friendly working atmosphere
Work-life balance HR Strategy Teamwork valued
Teambuildung activities Delegation of tasks/responsibility
Ideas and engagement honored Career opportunities offered
Variant learning and development programs Increased outcome through
diversity and individuality Summary and Conclusion New HR strategy based on Resourced-Based View Configurational Approach Market leader No. 3 No. 2 No. 1 HR Strategy
Café Expresso benefits from the arising synergy effect
Creation of a firm-specific identity through HR practices Should be embedded in the business strategy
Focus on resources, competencies and skills, that are difficult to identify and imitate Advantages Implemented HR practices - valuable
- rare/specific
- difficult to identify/imitate!
- appropriate organisation’s policies and
procedures! V
O Culture/Diversity Trust Mission Strategy Customers Service:
Barista experience People:
Reward to retain Systems:
Learning & Development,
Performance management THANK YOU Questions ?
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