Background
Tea and More (TAM) was a company specializing in various types of tea created by three sisters in Los Angeles in 1985. Jack Reynolds now owns it, and the business’s earnings increased from less than $1 million to over $25 million (Doyle & Bell, 2009). TAM’s owner tried to personally manage every business component throughout his work in the organization, which was almost impossible.
TAM delegated the tea business to Asian countries to help the company be competitive (Doyle & Bell, 2009). Although it had expanded to other nations, it had to solve several problems, including shipment dimensions and dependability. Despite the active growth of the business, TAM experiences severe problems adjusting to the speed of its development.
Problem and Its Possible Solutions
The problem statement is: Should Reynolds and his companions start solving a fundamental issue with the supply chain before trying to cope with problems with personnel turnover, low employee motivation, and problems with client communication? The organization has had issues with clients because of the complex nature of the procedures and because the manufacturing facility is far from the corporate office. Customer dissatisfaction is a complicated problem, and management practices, personnel turnover, demotivated sales agents, and a lack of innovative thoughts are responsible for it (Doyle & Bell, 2009). Therefore, the critical steps in manufacturing tea include transportation, packaging, and retailing.
TAM may organize idea-generating sessions and attempt to release novel offerings that follow consumer preferences and demands. Innovation may not be sustainable in the long term if the underlying problems are not resolved. Reynolds appears to be stressed regarding the prospects for the business, resulting in his attempts to cope individually with excessive obligations (Doyle & Bell, 2009). He may consider employing a company consultant and altering his managerial approach (Wisner et al., 2015). Delegation of some responsibilities might help him change the way things are done, but adjustments made by one individual do not typically impact the overall business.
Choice and Rationale
TAM needs to consider the importance of staff involvement as a possible solution to the existing problems. The company requires internal transformation, and improving the business culture might help to reestablish contact with the sales experts to resolve other problems. A lower turnover rate among staff members will result in a more efficient transfer of expertise among new employees (Wisner et al., 2015). Motivated employees tend to be more inventive and develop ideas for offerings and advertising plans. Finally, they will be motivated to contact customers, inform them of their due dates, and request comments concerning the company’s work.
Training sessions where every staff member’s strengths are identified can be the initial step towards achieving the aim. Small-group workshops supervised by a professional leader improve worker productivity and provide lasting effects (Wisner et al., 2015). Furthermore, Reynolds has to begin paying attention to the workers’ complaints about personal expenses and transportation, which they often mention (Doyle & Bell, 2009). The last issue is that employees must understand what is required to achieve these goals (Wisner et al., 2015). The leadership council might establish monthly, weekly, and yearly objectives to encourage efficiency.
Case Summary
It is clear that sales agents lack motivation and are unwilling to cope with challenges in their work. The company’s leaders should assist them in realizing their abilities rather than blaming people for feeling discouraged. TAM’s recruiting personnel should investigate this issue and attempt to remove the constant pressure. Furthermore, creating a company culture is a universal value for all companies on the international level (Wisner et al., 2015).
The solution can involve building horizontal connections, organizing occasions, and reinforcing relationships. Finally, the business leader must realize that money and rewards motivate all employees significantly. If there is no opportunity for immediate salary increases, the company should pay the employees’ transportation bills.
The brand has consistently emphasized originality and complexity, resulting in higher costs. TAM should keep highlighting to clients what sets the business apart from rivals (Wisner et al., 2015). It might promote its goods as both natural and ethical, for instance. To be persuaded by environmentally conscious marketing, many consumers think about a producer’s mission and reputation before purchasing.
TAM could gain by using historical data analysis to forecast future sales. Customers can make irrational judgments. However, an enterprise owner can do enough to encourage them to plan. Initially, because the business has observed that the same events occur annually, it is possible to create a stock of the most appreciated goods and guarantee that they remain readily accessible during the period of the most significant demand.
Second, it is possible and recommended to personalize every connection with a customer (Wisner et al., 2015). When buyers fail to make sufficient purchases and demand more significant goods, they are not acting maliciously. People typically cannot pay enough attention to all things in their lives. Therefore, a pleasant and non-aggressive text message notification may promote the goods.
A company may lose up to three days to the billing process when it waits for the delivery service to process an invoice. Although it is automatic, condemning clients for late payments is generally a poor response to the current circumstance. Implementing new practices without causing problems for consumers is a significant challenge.
One approach to the problem is to instruct employees to utilize the software for monitoring and to make calls or write emails stating that payment is needed (Wisner et al., 2015). Nevertheless, this tactic might not work. In this scenario, TAM could consider opening a bank account to make scheduled transactions. If clients’ demands for more straightforward payment methods were addressed, they might be more inclined to comply.
The “Christmas Mint” failed mainly because of weak marketing efforts rather than its flavor or general quality. Tea and More cannot launch fresh offerings without an effective plan that the company can implement. The head of marketing may wish to investigate the demographics of the audience and identify the most successful marketing platforms, including traditional media outlets and social media platforms. In addition to promotion, various theoretical techniques, including VRIO analysis, can be employed to assess the distinctiveness of a new proposition (Wisner et al., 2015). Nevertheless, staying with simple teas goes against the organization’s ideology, which emphasizes uniqueness and refinement.
The information not mentioned earlier is that the company’s owner appears to have an often oppressive micromanaging leadership style. Although being concerned with the organization’s expansion is positive, his anxiety and reluctance to delegate tasks burden his psychological well-being and the involvement of his employees. The organization would benefit from employing a professional to assess the internal environment and provide answers.
Though incomplete details regarding how Tea and More addresses human resources concerns are available. The expert might carefully examine the business’s mission and hire new candidates who align with its ideals (Wisner et al., 2015). Employee turnover rate could be decreased by taking additional measures to promote a positive workplace environment.
References
Doyle, B., & Bell, A. H. (2009). Reading the tea leaves at Tea and More: Resolving complex supply chain issues. Operations and Supply Chain Management: An International Journal, 4, 165-171.
Wisner, J. D., Tan, K., & Leong, G. K. (2015). Principles of supply chain management: A balanced approach (4th ed.). Cengage Limited.