UNIVERSITY OF TRANSPORT HO CHI MINH CITY

FINAL REPORT
UNIT: Principle of Management
TOPIC: Final Start-up project

Student name: HỒ LÊ UYỂN NHÃ

Student ID: IEC21PL103

Instructor: NGUYỄN MAI LAN

 Submission date: January 2nd, 2023

TABLE OF CONTENTS
I. Scenario ......................................................................................................................................

3 II.

Introduction.............................................................................................................................. 3

III. Overall business model ..........................................................................................................

1. Environment scanning ................................................................................................................

4 1.1. Macro environment

analysis......................................................................................... 4 1.2. Micro environment

analysis.......................................................................................... 5

2. Business Model canvas............................................................................................................... 6

2.1. Customer segment..........................................................................................................

6 2.2. Value Proposition...........................................................................................................

8 2.3. Revenue stream

.............................................................................................................. 9 2.4.

Channels........................................................................................................................ 16
 2.5. Customer Relationships...............................................................................................

17 2.6. Key resources

............................................................................................................... 17 2.7. Key

activities................................................................................................................. 18 2.8.

Key partners................................................................................................................. 19 2.9.

Cost structure ............................................................................................................... 19

3. Organizational chart & labor force ...........................................................................................

22 4. Marketing Mix

application ....................................................................................................... 25

5. Ethical dilemma & Code of Ethics ...........................................................................................

29 IV. Department/Division operation management and

planning ............................................ 31

1. Organizational structure and labor force...................................................................................

31 2. Operation management

plan ..................................................................................................... 32 3. Human resource

management................................................................................................... 35 4. Management

and Leadership style: .......................................................................................... 38

5. Motivational method................................................................................................................. 39

V. Conclusion...............................................................................................................................

41 VI.

Reference ............................................................................................................................... 42

3
I. Scenario

Our coffee shop is established by a group of 5 members. The coffee shop’s

name is “Pine Cafe”. We decided to name the coffee shop “Pine Cafe” since
it was formed at the end of the year, in the winter, in particular the
Christmas holiday and the pine tree is the symbolism of Christmas. We
design a logo with three primary tones that are green, white and red which
are also the main
colors of pine trees in Christmas. The coffee shop’s sector of operation is beverages and its
business structure is private enterprise (customers can drink on the spot or take away). It is
located on no. 399 Nguyen Gia Tri st, Ward 25, Binh Thanh district with total capital price being
850,000,000 VND.

II. Introduction
A group of passionate college students started our shop, Pine Cafe, with the objective of
giving unique services, mainly beverages, as well as a fantastic venue for working, learning, and
relaxing. Along with a broadening existence come increasing requirements for labor and
enjoyment. Unlike companies that solely deliver services for people to enjoy coffee and
amusement, we have designed a good atmosphere to satisfy a wide range of demands. There must
be a pleasant, comfortable space there where customers can focus on their work or hold important
discussions. After a long day, the atmosphere will make you feel comfortable. The coffee and
drinks at the store must, of course, be diverse so that customers can choose them at their

Figure 1: Menu of Pine cafe

4

preferences. We conducted a field research and found that Nguyen Gia Tri street is one of the
perfect locations to establish a beverage startup. This is because this street is routinely visited by
students. Within a kilometer, there are five significant universities. The company attempts to
reach as many clients as possible underneath the motto “Putting prestige-quality and customers'
interests first”. Additionally, the management team and the company's employees are young
people with a range of different attributes, representing the nature of the overwhelming majority
of the clientele we target, who range from the ages of 18 and 35. I trust I can grasp my clients'
needs and give them the best experiences and services possible.

III. Overall business model

1. Environment scanning

1.1. Macro environment analysis

Overview of Vietnam's macroeconomics in the first 8 months of 2022.

Manufacturing activity recovered positively in most industries and fields. Business

performance improved. The number of enterprises re-entering and entering the market in
August and the first 8 months of 2022 both increased. Specifically, in August, 11,918
newly registered enterprises were recorded, with a registered capital of 130,198 billion
VND, an increase of 106.9 percent in the number of businesses, 6,458 enterprises returned
to operation, an increase of 67 .1% over the same period in 2021 and is the highest
increase ever. Generally in the first 8 months of 2022, there were 101,325 newly
established enterprises, an increase of 24.2% over the same period in 2021, with the total
registered capital increasing by 36.1% over the same period in 2021. 48,126 enterprises
returned to operation, up 48.3% over the same period in 2021.

Macro-economic stability is still maintained thanks to controlled inflation within

the target range. The money market was stable, liquidity was smooth, interbank interest
rates and exchange rates showed signs of increasing in line with market movements.
5

1.2. Micro environment analysis

- In this market for coffee, competitors include the Trung Nguyen Legend, The
Coffee House, Katinat, Highland Coffee, and The Running Beanean. - Different
 options are pastries, milk tea, cooling teas, and other items that customers can
choose from if they do not want to drink coffee.
- Competitors: Opening a café has many favorable both objective and subjective
situations, but there are also opponents. Success is not easy, although, as both our
café and our opponents want to develop, so in order to attract customers, we must
exceed them.
- Suppliers are, in my opinion, vital to a business' growth. Our café would gain
from forging close friendships with trustworthy suppliers, but it can be hard to
find them. Being a trustworthy supplier who supplies both elevated products and
reasonable pricing is tough. Through the ongoing search and selection process,
TRUNG NGUYEN coffee, VINAMILK, COCACOLA, and other beverage
companies will be our main supplier.
- Clients: Based on their age, career, region, and other criteria, customers can be
classified into three main categories:
+ Student group: between the ages of 15-24. The median number of people
in each group is 2 to5, and the purpose might vary greatly from focus
group to relaxed delight after a day of scientific work.
+ Teams of contract employees and temporary staff, both among the ages of
24 and 30. The temporary workers are searching a café with warm,
peaceful, and wide chairs where they may work. The café must offer
wireless in order to fulfill the requirements of this group of customers who
prefer to work online.
+ The group cherishes checking in
6

2. Business Model canvas

2.1. Customer segment

2.1.1. Geographic segment

The region of Vietnam with the most opportunities and potential for economic
growth is the southern market, more especially Ho Chi Minh City. As a result, investors
attempt to establish enterprises here. Due to its central location in Ho Chi Minh City and
the presence of numerous universities. Therefore, the company will target this open
market for development and branding.
 2.1.2. Customer segment

Our business targets students, office staff and everyone between the ages of 15
and 30 who purchase the product for consumption.

2.1.3. Market analysis method (SWOT)

Strengths Weaknesses Opportunities Threats

- Quality products with - The new shop has - Have potential - A rising number of
diverse variations and not had many customers substitute products
educational values as familiar
well as background customers yet
stories for each product
- Find a good source - Increasing food
of raw materials safety assessment
- Not much standards for
- Reasonable prices in customers
an easily accessible
- Coffee shop’s
location experience - Spot to location has high
population
density, large
lease population

7
- Having strong - The large market
customer relationships potential, namely
with from adolescence to
communication skills adulthood
both through online
social
media

- Staff members who

are enthusiastic,
upbeat, and happy

- The cleanliness and

convenience of coffee
shops, the uniqueness
of the services
provided and the
ability to produce
creative ideas

* SWOT matrix:
- SO: In order to take advantage of chances, we play to our strengths, which include
offering high-quality goods at competitive pricing, easy trading and transportation
facilities, marketing expertise, and motivated employees. These can find contracts
with huge farms and persuade new clients into becoming customers. A manager
that is capable and has good communication skills will have more opportunities to
identify quality suppliers.
- ST:
+ We will bring in more new customers to the store because of our capacity
to interact and manage the store.
8

+ Strength in the competition is created by relying on advantages over rivals

in terms of marketing prowess, highly skilled, specialized engineers, and
upbeat, passionate personnel.
 + Cooperation with many suppliers, and increase consumer loyalty - WO: Our
store is not an exception to the rule that new enterprises frequently lack funding. In
order to boost the project's viability and our ability to secure bank financing, we will
therefore take advantage of government's supports and the store's positive potential
for customers, suppliers, etc.
- WT: In the present market economy, competing with other businesses is a chance
for business professionals to advance in their careers and obtain more experience.
The business environment is constantly interesting. Using knowledge and
expertise from large businesses to advance the business

2.2. Value Proposition

The Pine Cafe's value offerings to its customers include the opportunity to steep
fresh coffee and take pleasure in the atmosphere of the coffee shops as a place to
socialize.

Integrity: Pine Cafe declares that it will always operate with honesty and integrity
when conducting business.

Respect: Respect for oneself, respect for others, and respect for the firm all
embody the values of Pine Cafe. The organization values professionalism and reputation
in our partnerships, and we work together in that spirit.

Fairness: Treating others fairly, whether they be customers, suppliers, or other

parties.

Ethics: All employees of the organization are required to abide by and uphold
ethical principles that have been created in accordance with accepted norms.

Compliance: Adhering to the law, the company's code of conduct, and its rules and
regulations.
9

2.3. Revenue stream

Total capital available for investment: 850,000,000 VND

Include:
- Contributed capital: 500,000,000 VND
 - Loan amount: 350,000,000 VND

2.3.1. Sales forecast

Unit: VND
Month Number of items sold MEDIAN UNIT SALES
(cups) COST

1 2370 40,000 94,800,000

2 2420 40,000 98,000,000

3 2050 40,000 82,000,000

4 2110 40,000 84,400,000

5 2300 40,000 92,000,000

6 2400 40,000 96,000,000

7 2420 40,000 96,800,000

10

8 2260 40,000 90,400,000

9 2150 40,000 86,000,000
 10 2290 40,000 91,600,000

11 2260 40,000 90,600,000

12 2550 40,000 102,000,000

TOTAL 1,104,600,000

Because there is a yearly growth in demand from customers and the store is well
recognized, the revenue likewise grows year by the following ratio:

When compared to year 1, revenue increased by 8% in year 2.

When compared to year 2, revenue climbed by 15%.

Year 4: Revenue grew by 12% from year 3 to year 4.

Year 5: Revenue rose 16% from the previous year.

Unit: VND
Year 1 2 3 4 5

11

Sales 1,104,600,000 1,192,968,000 1,371,913,200 1,536,542,784 1,782,389,629

2.3.2 Profit and loss forecast table:

 Unit: VND
Items Year 1 Year 2 Year 3 Year 4

1. Total 1,104,600,000 1,192,968,000 1,371,913,200 1,536,542,784

revenue

2. 55,230,000 59,648,400 68,595,660 75,827,139

Deductions

Returnable 55,230,000 59,648,400 68,595,660 75,827,139

items,
discount
(5%)

3. Net 1,049,370,000 1,133,319,600 1,303,317,540 1,460,715,645

revenue (1-
2)

12 4. Cost of
goods sold
840,696,000 857,016,000 877,416,000 877,416,000

5. General 840,696,000 857,016,000 877,016,000 877,416,000

production
costs
 6. Gross 208,674,000 276,303,600 425,901,540 583,299,645
profit

7. Interest 35,000,000 26,500,000 13,000,000 0

8. Pre 132,000,000
operating costs

9. Marketing 10,500,000 10,500,000 10,500,000 10,500,000

expenses

13 profit from
business
activities
10. Net 66,174,000 265,803,600 415,401,540 572,799,645

11. Total 66,174,000 265,803,600 415,401,540 572,799,645

profit before
tax

12. 24,280,800 65,090,400 96,799,440 129,725,359

Corporate
income tax
payable
13. After – 41,893,200 200,713,200 318,602,100 443,074,286
tax income
(10-11)

2.3.3. Assess the financial viability of the business plan

Loan repayment plan

Amount borrowed in full: 350,000,000 VND

10% interest rate

14
Time Original Principal Principal Interest Total
(year) debt debt paid debt still to paid amount
be paid paid

1 350,000,000 85,000,000 265,000,000 35,000,000 120,000,000

2 265,000,000 125,000,000 130,000,000 26,500,000 151,500,000

3 130,000,000 130,000,000 0 13,000,000 143,000,000

Total 350,000,000 350,000,000 0 74,500,000 424,500,000

350,000,000 in bank loans at a 10% annual interest rate

Payback period analysis

Unit: VND
 Year 0 1 2 3 4

initial 850,000,000
capital

NCF 86,404,000 298,952,000 470,997,200 648,626,784

Current price (850,000,000) 78,549,091 247,067,768 353,867,167

15 443,020,821

Accumul (850,000,000) (771,450,909) (524,383,141) (170,515,974) 272,504,847

ation

Analysis of financial evaluation criteria

Targets Year 1 Year 2 Year 3 Year 4

(ROI) 7,78% 31,27% 48,87% 67,39%

Return on equity 13,23% 53,16% 83,08% 114,56%

Ratio of profit to total 4,93% 23,61% 37,48% 52,13%

capital (after tax)
 Profit to equity ratio (after tax) 8,38% 40,14% 63,72% 88,61%

Profit to total loan ratio (after tax) 11,97% 57,35% 91,03% 126,59%

Profit ratio (after tax) 3,99% 17,71% 24,44% 30,33%

16

An appraisal of the project shows that it includes a 500,000,000 VND

equity component and an initial investment capital of 850,000,000 VND (each
member contributes 100,000,000 VND)

NPV = 272,504,847 and there are no feasible projects with a loan capital of
350,000,000 VND at a 10% annual interest rate.

- As seen in the table, the forecast for financial indicators has grown
consistently over time. Time needed to recoup project capital: 3 years, 3 months,
and 8 days

2.4. Channels

There are two different kinds of channels

2.4.1. Primary channel

- Direct sales at the Pine cafe shop: One of the primary ways we define this is
by providing goods to consumers who are staying at the coffee shop.
According to Osterwalder and Pigneur (2016), direct sales have a benefit
since they allow for direct client interaction throughout the delivery of
value proposals, allowing for a direct assessment of the value proportions
produced.
- Online food delivery: Customers are increasingly using mobile ordering
apps that are compatible with their phones as smartphone use becomes
more widespread. They don't have to stand in line, which saves them time.
 Additionally, because there are less people in line, the use of a mobile food
delivery app lessens the issue of loading seats and frees up staff members
from having to handle numerous orders at once. Additionally, this makes it
simple to order, pay, and redeem rewards.
- Here are some highly regarded applications for food delivery:

• Go food

• Grab food
17

• Beamin

2.4.2. Secondary channel

There is another channel where our coffee shop can market to customers.

Social media: Facebook, Instagram and Tiktok, our website and other social media
platforms where young people are more active.

2.5. Customer Relationships

Customer relationships are built by direct communication or use of social media

platforms like Instagram, Twitter, websites, and YouTube. These are both
effective ways to develop customer relationships.

2.6. Key resources

Key resources of our coffee shop include 4 elements:

2.6.1. Physical:
- Building: containing 3 floors (coffee shop, parking area, and room for staff).
- Machines and equipment: 1 coffee grinder, 1 oven, 1 espresso machine, 1
coffee brewer, 1 display-style refrigerator, 2 industrial blenders (essential for
smoothies and fraps), and 1 POS (point-of-sale) system.
- Furniture includes coffee tables and chairs (of various types and sizes),
shelves, and decorations.
- Consumable products: include paper hot cups, plastic containers, cup
sleeves, cake boxes, coffee takeout boxes, paper bags, disposable bags, and
 napkins.
- Additional: storage, pumps, and cleaning equipment (such as brooms,
garbage cans, and towels).

2.6.2. Human:
- Store manager
- Security personnel
18

- Permanent employees (servicer, barista, cashier, housekeeper)

2.6.3. Financial:
- Ownership stake
- Capital received from investors

2.6.4. Intellectual property:

- Brand: the name and logo of a brand.
- Recipes for some unique beverages.

2.7. Key activities

Following are the categories for Pine Café's main activities:

* Product:
- Product development: Analyze market trends to produce food and beverages. -
Product: to guarantee the quality of beverages and other products, Pine Café
concentrates on:
+ Carefully monitor the planning process of all types of products.
+ Verify the caliber of the suppliers' raw materials
+ Alternate ingredients as required to preserve product caliber
- To reduce costs and safeguard the environment, use eating utensils appropriate for
the product.

* Problem solving:
- Due to intense market competition, our company goes above and beyond to
satisfy customers in order to generate revenues.
- Analyzing data from client comments and complaints received through the
customer care call center as well as consumer response on partner platforms like
 BEAMIN, Grab, and Gojek in order to improve the caliber of our services.

* Platform/ Network:

Marketing: To establish the brand and advertising our coffee business,

concentrate on using well-known social media sites like Facebook and Instagram.
19

2.8. Key partners

We have to be aware of our supplier network and partnerships in addition to our

connections with our clients.

In terms of suppliers, we have talked to wholesale supply companies who provide

our coffee shop with sources of ingredients like coffee beans, tea leaves. They were
chosen as our provider.

To accommodate client demand and improve convenience with regard to our

media and online support, we've collaborated with the food ordering apps Baemin, Gojek,
Grab, and Shoppe food.

These associates will help us launch our business from the beginning. We are
making an effort to maintain our costs competitive and offer a high-quality entire
product in an effort to draw students.

2.9. Cost structure

Pine Cafe divides costs among the following categories:

Unit: VND
Categories Monthly costs Yearly costs

1 Space rent 25,000,000 300,000,000

 2 Ingredients 15,000,000 180,000,000

20

3 Depreciation 2,058,000 24,696,000

4 Utilities 2,000,000 24,000,000

5 Salary of staff 59,000,000 312,000,000

6 Marketing 1,000,000 12,000,000

Total Cost 70,058,000 840,696,000

Unit: VND
Start-up cost Space rent 25,000,000
Machinery 56,000,000

+ Express machine
+ Blender machine
+ Juicer machine
+ Beverage Fridge
+ Coffee grinder

21
Facilities 4,000,000

+ Glass cups
+ Paper cups
+ Preparation tools

Marketing 5,000,000

+ Banner
+ Online advertising
+ Flyer

Sale of Employees (10 59,500,000

employees)

Products and ingredients 15,000,000

 Furniture and decoration 80,000,000

+ Table&chairs
+ Painting
+ Decorative
accessories

License 1,500,000

22

Total 246,000,000

- Product cost
- Cost of marketing
- Costs associated with promotions and advertising.
- Facilities
- Building of a customer service website
- Utility costs related to operating the coffee establishment.

3. Organizational chart & labor force

- Business type: Pine cafe is a small business form established by 5 people -
Organizational chart:
 Figure 2: The business's organizational chart

Source: Group 4’s report (2022)

- Pine cafe operator:
Position Quantity Working form Wage (expected)

23

Manager 1 Fulltime 8,000,000

Supervisor 2 Fulltime 7,000,000

Barista 2 Fulltime 6,500,000

Service Staff 2 Fulltime 6,000,000

2 Partime 3,000,000

Security 1 Fulltime 6,000,000

guard

Total 10 59,500,000
* Professional qualification:
- Manager:
+ Business Administration graduate
+ Three or more years of experience
+ Able to work under pressure
+ Respectful of others
+ Responsible, optimistic, and highly motivated; possess problem-solving
abilities; and observation skills.
- Barista:
+ Has completed bartending training programs or has at least a year's worth
of baking experience.
+ Sincere, nimble, futuristic, learning, dedicated, and imaginative.
24

- Service staff:
+ Effective communication abilities
+ Possessing problem-solving abilities
+ A courteous demeanor, self-control, and a positive attitude toward
consumers.
- Security guard:
+ Male, 18 to 50 years old, with identification, in good physical and mental
health, energetic, pleasant, and approachable with clients.

* Task for each position:

- Manager:
+ Take care on all business operations
+ Coordination, control, and oversight of subordinate staff's work
performance, ensuring adherence to laws and norms
+ Checking up on the customer's service and supply chains
+ Prepare monthly reports for companies; assess employee performance; and
counsel participants in awards or discipline.
- Barista:
+ Welcoming clients as they enter
+ Giving clients drink menus and responding to their inquiries about
ingredients
 + Taking direction and being attentive to details (e.g. preferences of coffee
blend, dairy and sugar ratios)
+ Acquire and handle payments (cash and credit cards)
+ Maintain a hygienic bar area.
+ Inform managers of client comments and suggest new menu items -
Service staff:
+ Offers details to make meal and drink selections easier.
+ An understanding of the menu and the capacity to offer advice
+ Quickly and effectively presents choices in an orderly manner.
+ Keeps the atmosphere vibrant in the restaurant.
+ Perform cleaning and sanitizing tasks
25

+ Take payments and process them (cash and credit cards)

- Security guard:

Ensure the store's security and order. Ensure consumer vehicle safety.
Take the customer's vehicle in and out.

4. Marketing Mix application

Pine-Cafe Marketing Mix (4Ps):

* Product:
- Feature
- Quality
- Branding
- Packaging

* Price:
- Strategy
- Pricing
- Allowances
- Payment methods

* Place:
- Channels
 - Location

* Promotion:
- Advertising
- Promotional channels
- Discounting strategy
- PR

Description of Marketing Mix (4Ps) of Pine-Cafe:

1. Product:
26

* Feature:
- Beverage:
+ Top-notch ingredients
+ Ensure the health and safety of the audience
+ A variety of goods
+ The consumer can truly appreciate the product's flavor.
+ Appealing ornamentation
- Coffee shop atmosphere:
+ Establishing a space where clients can unwind and concentrate
+ Contemporary, young design aesthetic
+ A well constructed virtual home

* Quality:
- The major ingredients are incredibly healthy and have a clear origin to
guarantee safety.
- Attractive, new taste.
- COFFEE: Fairly sourced coffee, organic coffee, and carefully chosen
coffee beans.
- TEA: be aware of the preparation guidelines to provide consumers with
high-quality, safe products.
- JUICE: always fresh

* Branding:
- Logo:
 + Coffee cups with the logo printed on them.
+ Coffee sleeves with the logo printed on them.
+ Branded napkins and takeout bags.
- Products with a distinctive recipe that become known as a brand's
"signature." Ex: Tea with Vitamin C.

* Packaging:
- Sustainable packaging
27

- Packaging that "catch the trend" for the season or a particular occasion or
unique event
- Packaging includes advertising materials or messages.
2. Price:
- Strategy:
+ Reasonably priced
+ Value pricing: the cost of the fair-trade, organic coffe
+ Cost-plus pricing: centered on defraying expenses (10,000 vnd) -
Allowances:

5% off the entire bill for 30 cups.

10% off the total of 40 cups in the order

- Pricing:

Figure 3: Pricing

- Payment methods:

Quick payment: Pay at the counter when placing your order.

+ Transfer of credit and cash
 + e-wallet Momo

Payment after arrival of goods

+ Cash on delivery (COD)
+ Credit transfer
28

3. Place:
- Channels: We use two channels to market our products and services. +
Direct sales at Pine cafe shop
+ Mobile food delivery
- Location: 399 Nguyen Gia Tri st, Ward 25, Binh Thanh district. +
Crowded location
+ High degree of security
+ Customers can easily park their car on the wide walkways that are
available.
4. Promotion:
- Advertising:
+ Leaflets
+ Display banners, set up stands, and hire signage.
+ Open-air opening ceremony
+ Banner
+ Enhancing packaging aesthetics for the holidays (eg: Christmas,
Tet, etc.)
+ Decorations, a seasonal meal, or a major holiday
- Promotional channels:

Social media: Facebook, Instagram, Tiktok

+ Sharing photos of the coffee shop and food on the menu.
+ Location of the coffee shop; product images; and shop area.
+ Publicize coffee shop events, news, and details about promotions.
+ Interact directly with customers
+ Videos promoting cafes, drinks, or simple how-to instructions to
draw in a big audience
- Discounting strategy:
+ Membership card and point accumulation
 + Regular customers who shop at the business 20 days a month will
receive V.I.P. cards with a 10% discount on each item.
+ 5% off everytime a new drink is added to the menu
29

+ Momo's online voucher

+ 5% off the total of 30 cups in the order
+ 10% off the entire order of 40 cups
- PR:
+ Working together with KOLs and influencers
+ Publish a press release concerning my product.
+ Organizing coffee and business workshops that draw a lot of young
people. Stories of "internal" employees and social events in the
neighborhood also exist.
+ Organize a noteworthy event: sound-free day

5. Ethical dilemma & Code of Ethics

5.1. Stakeholders when running the business:

* Suppliers:
- Source of ingredients: Fresh materials, such as coffee beans, tea leaves, milk, cream,
sugar, etc., that are supplied by wholesale supply companies must have a
traceable provenance.
- Source of tools, machines and equipment: Companies that sell striking tools,
equipment, and machinery for preparation and decoration include those that make
coffee tableware, automatic drip coffee makers, premium espresso machines,
industrial coffee grinders, industrial blenders, ovens and toasters, refrigerators and
freezers, shelving, tables and chairs, lights, and more.
- Business premise: On Nguyen Gia Tri street (former D2) in Binh Thanh district, the
neighborhood's hub and a popular gathering place.

* Employees:
- All persons who work full- or part-time at our coffee shop are protected by an
employment contract that outlines their duties and rights.
 30

- Our employees include: baristas, cleaners, cashiers, waiters and waitresses,

managers, and CEO
- Our hiring preference is for young, motivated professionals between the ages of 20
and 25.

* Customers:
- People of any gender have different demands depending on their age. People's needs
and preferences for drinks will vary depending on their age.
- Students and people between the ages of 15 and 30 make up the majority of our
clientele at our store.

* Media:

We might gain more knowledge about the clients, rivals, and market of our coffee
shop by using social media platforms like Facebook, Instagram, and Tiktok for marketing.

* Stockholders:

We own shares in the coffee shop, and as such, we are vested in the success of the
business. We first chose to combine our funds to open the coffee business. The
investments made in internet advertising, information technology, in-store decoration,
and space renting total 50 million VND from each of us.

* Dealers (retailers):
- To draw customers and entice them to make purchases, we have employed popular
social networking sites like Facebook, Instagram, Tiktok, and others. - Beamin,
Gojek, Shopee food, and Grab food are some more prominent and well known online
meal ordering apps in Vietnam that mostly target young people. - The confidentiality
of consumer information and priority delivery are two advantages of these sales
pages.

* Government leaders:

Taxes are collected from the business (corporate income taxes), all of the
employees (payroll taxes), and other expenses the business incurs (sales taxes).
31
 5.2. Ethical dilemma and Code of ethics:

Moral requirements include following the correct path, treating others fairly at all
times, and preventing harm. A company must conduct itself ethically in addition to
according to the law. We recognize that it encourages consumer and partner trust and also
helps customers feel more at ease when making purchases at our coffee shop. We want to
create a welcoming environment where employees can work honestly and with good
manners.

There are some potential ethical issues that we think might face in the future: -
Should the firm use child labour? Child labor is, in fact, unethical and prohibited
everywhere in the globe. Children should consistently partake in pursuits that
advance their own development and wellbeing.
- To what extent should the business seek to be environmentally friendly? Our
company can endeavor to participate in a circular economy where choices are
taken to reduce waste and guarantee resources are reused and repurposed.
- Health and safety. The health and safety of our clients and staff is one of the more
important ethical issues we face in our line of work.
- Should our business get cheap ingredients that have no clear origins and any
security about the quality for more profit?

IV. Department/Division operation management and planning

1. Organizational structure and labor force

For startups and small businesses like ours, a lean and adaptable organizational
structure for customer service will be ideal. Due to the possibility of having to wear
several hats simultaneously, our customer support employees need to be proficient in a
variety of different areas.
32

To automate some aspects of customer service, my team will likely need to rely on
tools and software: such as quickly responding to feedback, and posting content onto
social media platforms that helps improve customer satisfaction.

Here’s our customer service department organizational structure:

 Figure 4: Customer service department's organizational chart

Source: Owned (2022)

In our organizational structure, we have:

+ 01 manager (It is me);
+ 01 customer service staff who is a specialist in the customer care service
field;
+ Automatic tools which will help us quickly solve easy problems as well as
save time.

2. Operation management plan

In order to promote customer focus and boost the company's competitive position, the
customer service unit is in charge of implementing concepts of customer relationship
management. It has enormous strategic significance as a result.

Position Task

33
Customer service staff - Interact with customers either directly
or online (on social media
platforms) and on hotlines.

- Consult and collect customers’

opinions and suggestions about the
products and service.

- Record complaints of customers

- Give instructions and solutions for

customers encountering problems
when making purchases

- Process table reservation orders if any

- Check, record and reply to customers'

messages on social media platforms
accounts

- Do the report and submit it to the

manager at the end of month.

Technical support - Automatically reply to senders when

they send messages to our coffee
shop’s accounts.

34
 - Automatically record clients’
messages

Manager - Give directions and instructions to the

customer service staff when there
are much more complex problems
which the customer service staff
do not know how to solve.

- Deal with reporting issues, managing

complaints and designing processes

- Support applications to the customer

service staff

- Provide knowledge to the staff and

resolves questions that the staff can
not resolve by himself

- Monitor all activities in the

department and have insight about
the staff and the operation.

Communicating with customers plays a quite vital role in doing business because it is the
only way to approach customers’ preferences and feedback. There is 1 staff in charge of
communicating with clients in the customer care service team who cover many levels of customer
support. Because our business is a small start-up company, our customer service staff has to be
responsible for many tasks at the same time. The task of communicating with clients consists of
consulting and collecting customers' opinions as well as their complaints about the coffee shop's
drinks or staff's manners, offering solutions for customers having problems or requiring
35
information on their status and past purchases. The staff will then do the report about all
customers’ opinions, complaints as well as issues and submit them to the manager of the
department.

When there are higher levels of support with much more complex problems and processes
which the customer service staff has never met before and do not know how to solve (for
example, the problems in payment terms with credit cards which need to work with banks), he
will report them to the manager and ask for the manager’s direction and instruction.

In terms of technical support, we have automatic tools such as quickly responding to

customers’ messages on social media platforms like Facebook. This system will automatically
reply to senders when they send messages to our coffee shop’s Facebook page. This will decline
the waiting time of customers and quickly give the answer to the customers’ enquiries. As a
result, this enhances clients’ pleasantness. This system will also be managed by the customer
service staff.

The manager of the customer service team is responsible for dealing with reporting issues,
managing complaints and designing processes as well as supporting applications to the customer
service staff. The manager provides knowledge to the staff and resolves questions that the staff
cannot resolve by himself. Moreover, when the volume of questions from customers is
overloaded, the manager will also be in charge of many tasks at the same time like the staff.

With a lean and adaptable organizational structure for customer service, the manager
easily and comprehensively oversees all labor forces in the department. In addition, the
automatic tools will contribute to satisfy customers by immediately responding. Therefore, the
customer service team can effectively collect and consult customer expectations and improve
customer satisfaction. Accommodating client expectations well helps the business increase
revenues, have competitive advantage, improve ability to retain customers, and have better
reputation.

3. Human resource management

3.1. Recruitment:

* Job description:
36
 Pine cafe is a coffee shop start-up. We offer to our customers the opportunity to
steep fresh coffee and take pleasure in the atmosphere of the coffee shops as a place to
socialize. We are looking for a Customer Service Representative to assist with our
operations and earn our customers’ ongoing trust. You'll be responsible for interacting
with the customers and helping them to solve their problems that they might overcome
while using our service. You should attract potential clients by answering service
questions and taking suggested information about our products and services so that we
could improve its utility to stay within the customers’ reach. You should be a team player
looking for the opportunity to contribute to a growing business.

- Why you should join:

+ Significant opportunity for professional advancement at a friendly, fast
paced and impact-driven startup
+ Education for customer service and other pertinent professions
+ Access to affordable healthcare and private health insurance
+ Uniform

- What will you do:

+ Grasp the details of the business's product so you can respond to the
customer's call appropriately
+ Recognize and adhere to the proper customer service guidelines
+ Completely processing customer orders and table reservation
+ Using numerous platforms to contact customers (phones, email, chat, social
media,...)
+ Quickly responding to consumer inquiries
+ Having customer follow-up conversations
+ Addressing and acknowledging client complaints
+ Fulfilling KPI standards for customer feedback and experience
+ Making sure you collect feedback and suggestions from each customer
visited
37

+ Working together with other departments to create a product that satisfies

consumer demand.
 * Job requirement:
- Good interpersonal, communication, and customer engagement skills -
Outstanding customer service mindset
- The ability to work nights and weekends is advantageous.
- A track record of initiative and a solid work ethic
- Outstanding Vietnamese communication and effective problem-solving abilities -
English proficiency at the intermediate level or higher is recommended - Can work
in Binh Thanh District.

* More information
- Gender: Female
- Degree: Bachelor
- Age: 20 - 25
- Salary: Negotiate

3.2. Selection process

* Identify the qualifications and background of the ideal candidate:

- Which skills are required of the customer service staff?
+ Good communication skills
+ Good problem-solving skill
+ Good negotiation skill
+ Good at technology and proficient in using social media platforms. -
Which characters do the customer service staff need to have?
+ Confident, optimistic, energetic and enthusiastic
+ Patient and dedicated
+ Friendly, open minded - can naturally connect and communicate with
others and make customers to be willing to
+ Easily understand customer psychology
38

* Publish the recruitment: we choose to publish the recruitment onto platforms that have
many interactions from users, include:
- Official Facebook page of the coffee shop
- Official website of the coffee shop
- Linkedln
 - Ybox.com

* Conduct interview:

It's time to schedule some interviews after narrowing down the pool of potential applicants that
we received applications from. The purpose of the interview questions is to assist us find
candidates who understand the function of customer service in a manner consistent with our
business philosophy. How would you describe good customer service, for instance?

Additionally, we are seeking people who:

- Possesses emotional acuity, empathy, and reflectiveness.
- Demonstrate your capacity for problem-solving.
- Possess effective communication skills.

4. Management and Leadership style:

* Which leadership style do we choose to manage our customer service team?

With a start-up business like us, we do not have many staff to begin with.
Therefore, I choose to manage my department by participative (democratic) leadership
style. This style of leadership involves managers and employees working together to
make decisions. In other words, a leader will consult with their team before making a
choice and will take into account all of their input.

* Reasons I choose participative (democratic) leadership style:

39

Firstly, we are a start-up company, we do not have many employees to begin with.
As a result, meeting the demands of both employers and employees becomes considerably
simpler when using the participative leadership style.

Secondly, it enables a beginning business owner to have a deep connection with

their staff. “Research has found that employee participation in decisions may not always
increase effectiveness, but it usually does increase job satisfaction”, Jim Pawlak,
“Treating Employees as Assets, Not Expenses Boosts Profits,” Hartford Business
Journal, February 24, 2014. This is because the business is creating for the staff the
feeling of being listened to and empathized. Therefore, the staff freely share their
opinions which makes them feel a friendly working environment, a comfort zone and
boosts the bond between the staff and the business.

Thirdly, employees typically become more active and productive when they are
involved in such issues. Since their thoughts are valued by the organization they work for,
they will go above and above to establish their credibility. They will try to contribute to
the business which helps the business develop and achieve success when they are given
the opportunities to contribute their opinions and efforts which are respected and valued
by the company.

5. Motivational method

Instead of receiving praise for the services provided, conversations with clients
frequently center on complaints or problems. My customer support workforce may as a
result become demotivated and self-conscious. Therefore, I have some methods to
motivate our subordinates in my customer service team.

1. In terms of training and development:

* Equip our team with the appropriate equipment:

40

To ensure strong client engagement and real-time interactions, we provide

the customer care team with tools like live chat, video chat, co-browsing, chatbots,
etc. The team may feel motivated and be able to service consumers more
effectively if it has the necessary tools and feels empowered.

* We hold frequent training and refresher workshops:

Investing in the professional development of our staff is another strategy to

increase employee motivation. Our clients change along with the products and
services offered by our business. In light of this, it's critical to continuously perfect
customer service methods in order to identify the best and quickest fixes. My
commitment to my customer service representatives' professional development is
demonstrated by the training I give them. My staff members are consequently
more inclined to fund their own personal growth.
 * Set attainable objectives for our customer care staff:

In order to tackle things appropriately, our service team requires a clear

awareness of what tasks are low- and high-priority. Setting goals that are intended
to achieve the company's objectives should always be the main focus.

2. In terms of rewarding:

Celebrate achievements: I celebrate my team's accomplishments in various ways:

- Having a party when my team achieve the goal in the month
- Reward by letter or giving the bonus for the staff when performing well and
accomplishing the objective.

3. In terms of inspiration:
- Celebrate the birthday party for my employee. This makes the staff feel loved,
accepted, and part of the group.
41

- Organize travel trips. Traveling is a great chance to network, mingle, and get to
know your coworkers better. This can improve morale at work and make everyone
happier. When regular travel visits take place, employees of the customer service
team can become closer and foster a sense of collaboration. These trips help
organizations foster an innovative and creative culture as well as an inspired staff.

V. Conclusion

When Pine Cafe launches, it will have a wide range of features that will make it unique as
a particular draw for customers. The staff not only keeps coming up with delicious dishes at
reasonable pricing, but they also exhibit a friendly demeanor. Another very remarkable feature
that actually impacts the cafe's revenues is its position. Pine Cafe will become well-known in part
because of the unique design aesthetic of the company. At first, the position of the coffee shop is
fabulous, and the inside is enormous. The drinking space is made to be appealing with trendy,
young design aesthetics. Pine's cafe is designed to deliver consumers a significant amount of
pleasure. We split the space into different spaces to suit a range of consumer requirements, from
checking in to conversing and studying. Finally, Pine Cafe has rearranged its ornament style and
space over time in order either to attract new customers or keep the company of repeat customers.
This is done by analyzing the trend of our prospective customers to immerse themselves in
settings with peaceful, comfortable, and seasonal altering.
42

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