2879626456-Analysis of SMEs Origin Coffee-revised

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Analysis of SMEs: Origin Coffee 1 Managing and Leading SMEs ANALYSIS OF SMES: ORIGIN COFFEE Student ID number the total word count (2094)

Analysis of SMEs: Origin Coffee 2 Analysis of SMEs: Origin Coffee Introduction The generic definition of a small business is a sole proprietorship or partnership with very few employees and earns minimal revenues compared to other regular-sized businesses. Small businesses are characterized by having few employees, experiencing low turnover among the employees, having an informal structure of management and business organization, they have limited resources, and they have a greater risk of closure hence the uncertainty ( Jain 2021). SMEs are corporations or businesses with total employees ranging from 1-250, have no formal structure, and the owner has autonomy in decision-making. SMEs operate on a small scale and have few employees; the authority to manage the business lie sorely on the owner, and they have very low turnover ( Crovini 2019). The lifespan of these ventures is also uncertain because owners could make decisions to wind up when they feel they can no longer manage the business. There are several steps in an entrepreneur's start-up of a small and medium-sized enterprise. The first step is the generation of ideas this relates to what the business is all about. The second step is evaluating whether the concept generated is feasible and can lead to a profitable business. Planning plays a vital role in starting a business because of allows the owner to strategize on the funding, marketing, choice of location, business structure, name, and business registration. Formation of the business is the next step with acquiring the necessary permits from the relevant government authorities and starting the business. The paper examines Origin Coffee as one of the leading SMEs in the U.K. Origin Coffee Ltd The company has developed since its establishment to become one of the most known SMEs in the U.K, employing a team of professionals in the coffee field who have the

Analysis of SMEs: Origin Coffee 3 same passion as Tom Sobey in coffee making (Origin Coffee 2022). The company boasts a world-class coffee program that is unique to the vision of the company ( Caines 2016). Since its establishment, the company has had over six coffee shops and owns a variety of brands of specialty coffee. Origin Coffee has a culture of fully embracing coffee-making principles by blending science and senses, focusing on ritual and experimentation (Origin Coffee 2022). The company boasts of emphasizing detail in roasting. The corporation boasts a sourcing program that is second to none, making it one of the most competitive brands in the United Kingdom (Sprudge 2021). To survive in a competitive coffee market, Origin Coffee has embraced the exploration of new and better raw materials for its products through the search for high-quality beans across the globe. Origin Coffee adopts the business concept of providing specialty coffee to its market by focusing on the preparation and marketing of its products uniquely that is solely identifiable to the company (Origin Coffee 2022). Its focus on the specialty and the selling of the unique process of the whole production process gives Origin Coffee an advantage over other competitors in the coffee market. The novel approach in its marketing strategy brings the entire process closer to the consumers of coffee, giving them a better understanding of the company (Origin Coffee 2022). Origin Coffee also adopts an approach of offering its services to all coffee lovers from all walks of life. SWOT Analysis Businesses operate in different environments ( Ernur and Yüksel 2021). Each environment has a set of conditions that impact an organization's operations either positively or negatively. Also, apart from those factors outside the business that impact how it conducts its operations, internal factors have to affect how an organization operates. Factors outside the

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Analysis of SMEs: Origin Coffee 4 organizations are external issues impacting the company, and those inside the company affecting operations are internal factors ( Sarsby 2016). To better understand how the various factors affect the operations of an organization, the management investigates these factors through an analysis known as a SWOT. SWOT refers to the strengths, weaknesses, opportunities, and threats within and outside the business ( Sarsby, 2016). Understanding the strengths and positive attributes within the organization is essential in helping the management develop strategies to help the company maximize the factors and thus operate at the highest level ( Ernur and Yüksel, 2021). Weaknesses are factors within the firm or organization that may hinder performance by the organization; hence their knowledge is essential in helping the owner to develop ways to reduce their impact by adopting new measures that eliminate such factors ( Caines, 2016). Opportunities are external factors that have the potential to improve the organization's status when adequately utilized; thus, their knowledge is essential to owners to structure their operations in ways that maximize operations ( Sarsby, 2016). Threats are factors outside the organization that can affect the performance of the company in a negative way; hence developing strategies to minimize them is essential. Origin Coffee SWOT analysis Strengths Weaknesses  The company has a well-planned branding strategy  The company boast of a positive reputation in the market for its quality products  Sole ownership limits the company's access to capital that could help in its expansion  Fewer employees in the company  Targets a small market niche of

Analysis of SMEs: Origin Coffee 5  Skilled and passionate ownership and employees dedicated to high quality  Use of the right technology in the manufacture of its products specialty coffee drinkers  A few shops across the country- only six Opportunities Threats  A uniqueness to its products  Advertising and promotional awareness in the market  Outsourcing of raw materials for its products hence good partnerships  New entrants in the industry  The threat of already-established companies dealing with the same products  Increase in the substitute products in the market  A change in the taste and preference among consumers Turning Strengths into Opportunities Business owners must understand their environments and have the ability to create chances that will help improve performance. Also, failing to develop strategies to overcome the weakness critically can result in future threats to the company exposing it to risks it can avoid ( Chavan and Thorat, n.d). For Origin Coffee, the management can utilize its strength of having a positive reputation and image in the market to make it an opportunity to expand its operations further and widen its market. A positive image is a vital aspect in facilitating the growth of an

Analysis of SMEs: Origin Coffee 6 organization because it results in customer loyalty which helps spread the company's reputation to others and product recommendations, creating more sales opportunities for the company. The sole ownership, a weakness for the company because it limits access to a larger pool of capital, could threaten the business. Having a less pool of capital can limit the number of operations in the company, including marketing and expansion. Other organizations in the same industry are expanding their operations and developing newer marketing strategies that are capital-intensive. The decisions by the other parties have the effect of their operations encroaching into Origin Coffee's market niche, increasing the competition. Model of Growth. Every organization goes through several phases in its lifecycle from the moment of establishment. Understanding the stage at which an organization is in its growth is essential in helping the movement to develop better ways to manage the various issue that arise that affect the operations ( Yusoff, Wahab, and Fazal, 2018). Several models explain the stage/ phase an organization has reached; Greiner's Growth Model. The importance provides a five-phase/ stage growth for all organizations. According to Scarlat and Şişu (2021), the first phase of development entails growth with creativity, but the organization experiences a leadership crisis. The second phase is growth with direction, and the business faces an autonomy crisis; the third phase involves growth with decentralization of operations, resulting in a control crisis ( Scarlat and Şişu 2021). The fourth and fourth phases involve growth with the harmonization of processes and cooperation with others. Examining Origin Coffee's lifecycle, it is evident that the company is at the maturity stage. The company's top management is at the forefront in taking a leadership role in guiding others into fulfilling the visions and objectives ( Scarlat and Şişu, 2021). The company engages in

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Analysis of SMEs: Origin Coffee 7 product innovation, creating a new product to add to its catalog of products that suit the market it serves. Origin Coffee has a strategy in its marketing through niche marketing of its specialty coffee that meets a few consumers loyal to the brand. Leadership Style and Organization Culture Management plays a vital role in the success of an organization. A suitable leadership style is essential in promoting the organization's growth and increased performance from each person within the organization ( Psychogios and Prouska 2019). Because organizations undergo various phases in their growth that present numerous challenges that require different strategies to overcome, there is a need for management to understand it is essential to use different ways to lead others to more outstanding performance. The management of Origin Coffee can adopt a three-dimensional leadership style to help the organization maintain its current growth phase. Situational leadership theory calls for leaders in an organization to be flexible and adopt the correct style to manage others ( Al-Khamaiseh, 2020, Walls, 2019). The three styles to adopt are strategic, visionary, and democratic leadership styles. Adopting a combination of the three leadership styles is important because it provides the management with the necessary tool to navigate the challenges of leading the other employees. Hence, adopting various leadership styles is essential to suit the different situations that may occur within the organization. Strategic leadership ensures that the organization has strategies to help operations and ensure success ( Psychogios and Prouska, 2019). Visionary leadership provides a sense of direction toward the other employees; the organization develops a picture of where it wants to reach in the long and short term. Participative/ democratic leadership styles allow for all within the organization to be participants in providing input toward achieving the goals and objectives set.

Analysis of SMEs: Origin Coffee 8 Adhocracy organizational is an important culture among organizations. Organizations adopt the culture to increase their performance and integrate creativity and innovation within the company ( Bretcu and Demyen, 2018). The culture suits Origin Coffee because of its emphasis on creativity and innovation, similar to the company's driving force. From the company's biography, it is clear that Tom Sobey had a passion for developing and providing others with the experience of enjoying a unique brand of coffee hence his innovation and creativity. An adhocracy organization culture values transformation and flexibility, which are compatible with situational leadership theory that advocates for flexibility, innovation, and creativity ( Naranjo- Valencia et al., 2019). Developing an organizational culture that emphasizes the need for creativity, innovativeness, and flexibility and focuses on attaining the company's vision will ensure that the company enjoys growth and higher performance in its management group and among all the employees. Conclusion Small and Medium Enterprises have fewer employees, low turnover, and informal business structures. The businesses have fewer resources, and the owner has autonomy in decision-making. A SWOT analysis plays an essential role in helping an organization understand its environment to develop better strategies that help improve performance and ensure growth. Understanding the growth phase of an organization helps management make growth plans that facilitate the transition from one stage to the next. Adopting the ideal leadership style and organizational culture is essential in ensuring that an organization can sustain its growth and that employees perform at the highest level. Hence individuals need to understand the nature of a business, including all the elements related to its formation, structure, environment, leadership, and culture.

Analysis of SMEs: Origin Coffee 9 Recommendations Origin Coffee should re-evaluate its strategy and adopt a broader to increase its market coverage to cope with the increase in competition within its industry. A re-evaluation of the market niche is necessary to empower the organization to develop better ways to satisfy its current clients and enter other untapped markets fully. The organization's leadership should focus on broadening the businesses by establishing other retail shops for the brand. The focus on a small number of consumers for their products can pose a risk to the organization's future because of the various uncertainties in the taste and preference, which can change. The company can avoid the threat of a lacking market for its products when it can diversify and serve a larger group. Another recommendation is for the organization to emphasize strengthening its organizational culture. Origin Coffee's great corporate culture has made it create a unique place within the market. Therefore, the organization needs to continue emphasizing this culture which promotes integrity and honesty in all the phases of their supply chain. When the people within the business are constantly aware of the culture that the management promotes, they develop a personal attachment to the organization, which ensures better performance because they see it as their own.

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Analysis of SMEs: Origin Coffee 10 References List Al-Khamaiseh, Z., Halim, B.B.A., Afthanorhan, A. and Alqahtani, A.H., 2020. Exploring and developing items measuring situational leadership II (SLII). Development , 3 , p. D4. https://core.ac.uk/download/pdf/304922006.pdf Accessed: 26 Oct. 2022 Bretcu, A. and Demyen, S., 2018. Total Quality Management and The Collaborative Adhocracy. Annals of the University of Oradea, Economic Science Series , 27 (1). https://www.researchgate.net/profile/Daniela-Cialfi/publication/333419923_Social_capital_form ation_Do_ICT_matter_for_Europe/links/5cecdac5299bf109da7513f8/Social-capital-formation- Do-ICT-matter-for-Europe.pdf#page=402 Accessed: 26 Oct. 2022 Caines, Mathews, 14 Nov. 2016. Origin Coffee founder on the importance of business supporting communities, The Telegram. https://www.telegraph.co.uk/connect/small-business/origin-coffee-on-business-supporting- communities/ Accessed: 26 Oct. 2022 Chavan, M.A., and Thorat, H., A Study of Various Methods Used To Gain Competitive Advantage In Small and Medium Enterprises. In Seventh National Conference (p. 79). https://www.sbpatilmba.com/pdf/7th%20NC%20MANAGING%20RESOURCE %20THROUGH%20CREATIVITY%20FOR%20GENERATING%20OPPORTUNITIES %20IN%2021ST%20CENTURY.pdf#page=86 Accessed: 26 Oct. 2022 Crovini, C., 2019. Risk management in small and medium enterprises . Routledge. Ernur, O. and Yüksel, H., 2021. Assessing Industry 4.0 Transformation of SMEs: A SWOT Analysis. Proceedings Book , p.48. https://polen.itu.edu.tr:8443/server/api/core/bitstreams/3a93b5e0-1200-4bfd-bc4f- 9699f8944620/content#page=59 Accessed: 26th Oct. 2022 Jain, P., 2021. Innovative Marketing: 30 types of Marketing for Small & Medium Enterprises . Notion Press. Naranjo-Valencia, J.C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2019. Organizational culture effect on innovative orientation. Management decision , 49 (1), pp.55-72. https://parsmodir.com/wp-content/uploads/2019/10/culture-innovation.pdf Accessed: 26 Oct. 2022 Origin Coffee, 2022. Origin Story: Origin Coffee Roosters. https://www.origincoffee.co.uk/pages/story Accessed: 26 Oct. 2022 Psychogios, A. and Prouska, R., 2019. Managing people in small and medium enterprises in turbulent contexts . Routledge. Sarsby, A., 2016. SWOT analysis . Lulu. com.

Analysis of SMEs: Origin Coffee 11 Scarlat, C. and Şişu, M., 2021. Studying the lifecycle of an international group: A closer look at the growth phases of its companies. UPB Sci. Bull. D Ser , 83 , pp.293-304. https://www.scientificbulletin.upb.ro/rev_docs_arhiva/full575_272779.pdf Accessed: 26 Oct. 2022 Sprudge 2021. Build-Outs of Summer: Origin Coffee Roasters in London. https://sprudge.com/build-outs-of-summer-origin-coffee-roasters-charlotteroad-in-london- 79642.html . Accessed on 26 Oct. 2022 Walls, E., 2019. The value of situational leadership. Community practitioner: the journal of the Community Practitioners'& Health Visitors' Association , 92 (2), pp.31-33. https://nrl.northumbria.ac.uk/id/eprint/38415/1/Walls%20-%20The%20Value%20of %20Situational%20Leadership.pdf Accessed: 26 Oct. 2022 Yusoff, T., Wahab, S.A. and Fazal, S.A., 2018. Beyond the Current SME Growth Models. https://www.researchgate.net/profile/Sazali-Abd-Wahab/publication/ 325846078_Beyond_the_Current_SME_Growth_Models/links/5b28a1b0a6fdcca0f09c60d0/ Beyond-the-Current-SME-Growth-Models.pdf Accessed on 26 Oct. 2022

2879626456-Analysis of SMEs Origin Coffee-revised

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