Toms Coffee Cup on the Verge of Imminent Collapse Essay

Toms Coffee Cup - on the Verge of Imminent Collapse - Essay Example It is upon the decisions and actions taken by business management that determines the success or failure of a business. This report will review Coffee Cup’s business strategy and the decisions that have led to its rapid deterioration as a result of the actions taken by its management. The report will provide recommendations at the end based on various principles of management such as planning, organizing and leading. This will in part borrow most of the information from the popular P-O-L-C framework of management. Through these recommendations, the management will certainly get back on course to revive this business. Coffee Cup is a sole proprietorship business owned by Tom. It started out as a coffee house although it has recently expanded its services to serving sandwiches and salads for lunch and smoothies for breakfast. Tom started the business after leaving his corporate job and has enjoyed fair success as a first-time entrepreneur. The business currently has 12 employees after Tom employed Willie Cheet to fill up the position of the manager. Willie is the only salaried employee in the business with the rest being paid on an hourly-rate basis. The business has seen numerous changes since Willie took up the management position and the business is facing a possible collapse due to his selfish management decisions aimed at increasing his earnings. As earlier mentioned, Coffee Cup is experiencing several challenges that are emanating from Willie’s high-handed style of leadership which has seen the business adopt various changes in products quality and quantity. Willie has also introduced strict and somehow irrational rules in the workplace that have affected the morale of the workers thereby leading to reduced productivity and loss of cooperation from a section of them. The effects of these management challenges have seen an increase in complaints from customers and consequently a drastic reduction in sales.