The Coffee Pot

Group F

Ayisha Jaseela P.N

Dileep Gopinath
Ganesh Puri
Renu J. Kandthil
Sharon V Saji
Sushmitha Mathews
Summary

The Coffee Pot is a coffee shop, founded in 1980s, and had 8 branches. It was set up in
shopping malls. It could not compete with Starbucks. So, Brooke introduced a new brewing
technology, called cold mesamosis brewing system, diagrammed by her father. After thorough
testing, the new system was introduced in all 8 branches. With low costs assured, Brooke
embarked on a strategy of targeting price sensitive coffee drinkers.

Characters

 Brooke’s father – founder of The Coffee Pot

 Brooke – quit job as a biochemical engineer and took over as President of The Coffee
Pot, after her father’s departure.
 Auntie Susan – Book Keeper
 Jane- Brooke’s friend and partner in a small accounting firm
 Jack – Manager responsible for Administration, Purchasing, and HR

Requirements

1) Analyze The Coffee Pot’s competitive environment using Porter’s Five Forces. When
completed, propose key success factors for The Coffee Pot given its competitive
situation.

a. Threat of new entrants – High

b. Threat of substitute products- High
c. Bargaining power of suppliers- Low
d. Bargaining power of customers- Low
e. Competition in the Industry- High
2) Discuss the management control issues that may be hindering Brooke from increasing
The Coffee Pot’s profitability.

a. Belief Control Systems (Perspective)

i. Lack of vision
ii. Unable to retain employees

b. Boundary Control Systems (Position)

i. Pizza & Beer expansion
ii. Jack accepting gifts

c. Diagnostic Control Systems (Plan)

i. No proper accounting
ii. Aunt Susan is not qualified
iii. Accounting is not up to mark
iv. No audit

d. Interactive Control Systems

i. Lack of training

3) Use Simon’s Management Control Framework to derive recommendations that address

the issues raised above.

a. Belief Control Systems (Perspective)

i. Proper Vision or Credo
ii. Train Staff

b. Boundary Control Systems (Position)

i. Employee code of conduct

c. Diagnostic Control Systems (Plan)

i. Budget
ii. New incentive system (say, branch wise comparison)
iii. Hire new qualified employees
 d. Interactive Control Systems
i. Footfall at malls

Further, Internal Control Techniques:

a. Audit
b. Segregation of duties
c. New accountant