72513902 Coffee Day Xpress Internship Report Dinesh Kumar

Organizational Study at Coffee Day Xpress 2011

M P Birla Institute of Management, Bangalore Page 1

Internship Report

An Organizational Study

At

COFFEE DAY XPRESS

BANGALORE

Submitted in partial fulfillment of the requirement of the

Bangalore University for the forward of degree in

Master of Business Administration

Submitted by

DINESH KUMAR KARNAM

REGISTRATION NUMBER- 10XQCMA032

Under the guidance of

PROF. VIJAYALAKSHMI S

No 43, Race Course Road

Bangalore 560001

August, 2011



DECLARATION

I, Dinesh Kumar Karnam (Reg. No - 10XQCMA032) hereby

declare that the Internship Report, an organizational study conducted

at COFFEE DAY XPRESS, Bangalore submitted in partial fulfillment

of the requirement of the Bangalore University for the award of degree

in Master of Business Administration, is a bonafide work carried out by

me under the guidance of Prof Vijayalakshmi S, MPBIM, Bangalore.

This report has not been submitted earlier to any other university

or institution for the award of any degree/ diploma.

The contents of this report are based on the data collected by me

at COFFEE DAY XPRESS, Bangalore under the guidance of Major

(Retd.) Allwyn Roshan D‟ Souza, Manager (SCM).

Place: Bangalore Dinesh Kumar Karnam

Date: Reg. No. 10XQCMA032







ACKNOWLEDGEMENT

Me, the undersigned IInd semester student of MBA, M P Birla

Institute of Management, Bangalore, is glad to express my deep sense of

gratitude to all those people connected with the successful completion of

this organizational study. This report is obviously not the result of my

work alone. Many persons are directly or indirectly involved, without

whom this work would not have been completed.

I am grateful to Mrs. Vijayashree Gilganchi for giving me an

opportunity to do my training and organizational study in COFEE DAY

XPRESS, Bangalore. I am thankful to my external guide Major (Retd.)

Allwyn Roshan D‟ Souza, Manager (SCM) for his guidance and

support. I am also thankful to my faculty guide – Prof. Vijayalakshmi

S, MPBIM for her guidance and support. I would also like to express

my sincere gratitude to my Principal – Dr N. S. Malavalli for all the

support provided.

Dinesh Kumar Karnam

(10XQCMA032)



CHAPTER NO.

TITLE

PAGE NO.

1

INTRODUCTION:

1.1 Background of the Study

8

1.2 Industry Profile

10

1.3 Company Profile

12

1.4 Company Divisions

15

1.5 About Coffee Day Xpress

25

1.6 Vision, Mission and Objectives

27

2

ORGANIZATIONAL STRUCTURE:

2.1 Corporate Organizational Structure

29

2.2 Department Organization Structure

30

2.3 Authority and Responsibility Relationship

52

2.4 Business Cycle

54

2.5 Rebranding of Coffee Day Xpress

55

2.6 Business Model of Outlets at CDX

56

3

CORE STUDY AREA - S C M

3.1 What is Value Chain

60

3.2 SCM Process

63

3.3 Hierarchy

69

3.4 SCM Structure

70

3.5 Vendor Specifications

71

3.6 Product Category

72

4

SWOT ANALYSIS:

4.1 Strengths and Weakness

79

4.2 Opportunities and Threats

82

5

FINDINGS, SUGGESTIONS & CONCLUSIONS

86

BIBLIOGRAPHY

89



CHAPTER 1

INTRODUCTION



(1.1) BACKGROUND OF THE STUDY

Retailing consists of the sale of goods or merchandise from a fixed location,

such as department store, boutique or kiosk, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individual or businesses. The retail industry is a sector

of the economy that is comprised of individuals and companies engaged in the

selling of finished products to end users in the general public.

In the year 2003, ABCTCL came up with a new concept to bridge the gap

between the leisurely coffee experiences that Café Coffee Day provides and that of

serving a quick cuppa from a vending point, to offer the very best in every segment

for the diverse Coffee Day patrons, and this concept was called Coffee Day Xpress

an idea that feeds a world that is in transit.

Coffee day Xpress is a unique concept of convenient café. The CDX kiosk is a

sanctuary where the harried urbanite can pause for refreshment before getting on

with life. Retail, custom - made for the 21st century. Catering to a world that needs a

coffee on the go, especially at high – traffic locations, with hot and cold beverages

and a variety of ready-to-eat snacks.

It is a unique food retailing concept addressed to provide fast, hygienic,

convenient-to-eat and affordable food & beverages. With its speed of service,

convenient location, freshness, superior quality of coffee, high hygienic standards

and affordability. Xpress has quickly reached more than 900 outlets over 20 cities

and plans 1000 franchises by the year 2010.



OBJECTIVES OF STUDY

The purpose of the Internship was to study Coffee Day Xpress in

detail.

To study the Corporate organizational structure and Department

structure at Coffee Day Xpress.

To study the functioning of various departments and the

interdependency of each towards achieving organizational goals.

To study the roles and responsibilities of Supply Chain Management

Department.

To study the product categories and the various products that Supply

Chain Management Department deals in.

SCOPE OF THE STUDY

This organizational study is restricted to Coffee Day Xpress Division only,

and not the entire ABCTCL.

The study is undertaken in Bangalore.



(1.2) INDUSTRY PROFILE

The history and development of the beverage that we know as coffee is varied

and interesting involving the chance of occurrence, political intrigue and the pursuit

of wealth and power.

Accordingly to the story, the effect of coffee beans on behaviour was noticed by a

sheep herder from Caffa. Ethiopian named Khalid as he tended his sheep. He

noticed that the sheep‟s became hyperactive after eating the red “cherries” from a

certain plant when they changed the pastures. He tried a few and was soon

overactive as his herd. The story relates that a monk happened to pass by and

scolded him for “partaking the devil‟s fruit”. However the monks soon discovered

that these fruit from the shiny green plant could help them stay awake for their

prayers.

Originally the coffee plant grew naturally in Ethiopia, but once transplanted

in Arabia was monopolized by them. Earlier use of coffee would have little appeal

than today. The Galla tribe from Ethiopia used coffee, but not as beverage drink.

They would wrap the beans in animal fat as their only source of nutrition on raiding

parties. The Turks were the first country to adopt it as a drink, often adding spices

such as clove, cinnamon, cardamom and anise to the brew.

Coffee was introduced much later to the other countries beyond Arabia

whose inhabitants believed it to be a delicacy and guarded its secret as if they were

top secret military plans. Transportation of the plant out of Muslim nations was

forbidden by the government. Legend has it that a man named Babu Budan bound

seven coffee seeds to his belly and smuggled it out of Arabia into India. He found a

cave in the hills near the Western Ghats where he planted the coffee beans. Later he



planted the beans in the Baba Budangiri hills. Early in this century, the descendants

of those original plants were still growing fruitfully in the region. In the current

scenario, coffee is grown and consumed worldwide and is one of the few crops that

small farmers in the third- world countries can profitably export.

Coffee is the second largest trade commodity in the world and is extremely

important foreign exchange earnings. Brazil and Columbia are the top two coffee

producers in the world. They account for more than 40 % of the total world

produce and while India‟s contribution is just 4.1%.

India is the sixth largest producer of coffee in the world. India accounts for

over 4% of the world‟s coffee production with the bulk of all production taking

place in its southern states. India is most noted for its Monsoonal Malabar variety.

It is believed that coffee has been cultivated in India longer than anywhere outside

Arabian Peninsula. Indian coffee is rated amongst the world‟s best in the

International market and is exported to countries like Australia, Belgium, USA,

United Kingdom, Russia, Europe, Sweden, Norway, Yugoslavia, Japan, and the

Gulf countries.

In Indian coffee cultivation is largely confined to the hilly regions of the

southern states of Karnataka, Tamil Nadu, and Kerala. Karnataka accounts for

53% of the planted area (59% planted is Arabica and 41% planted is Robusta) and

Kerala is being dominated by Robusta about 28% of the plant area. In Tamil Nadu

the crop is mostly Arabica which has 11% of planted area. About 1, 33, 049 small

planters and 2, 948 large planters cultivate coffee during the year. Among the coffee

growing states Karnataka holds about 70% of the country‟s total coffee production

followed by Kerala by about 22% and Tamil Nadu by about 7%. Europe accounts

for about 70% of India‟s coffee exports.



India produces 260 million Kg of coffee per year and its coffee production

has a yield of 800- 900 kg per hectare. This is low compared to the world‟s average

of 1,100 kg. The area under coffee cultivation is approximately 3.1 hectare. India

produces an average of nearly 2 lakh tons of coffee per year, valued at Rs 460 crore.

Out of total production, only 20% is consumed in the domestic market and the rest

is exported. Thus India has to depend heavily on the foreign markets. Indian coffee

is typically mild and not too acidic and yet it possesses an exotic full- bodied taste

and a fine aroma.

(1.3) COMPANY PROFILE

Coffee has come a long way since the 1600‟s. it has travelled out of the reach

of the Arab‟s who were protective about their coffee beans, to being smuggled into

India by a man known by the name Baba Budan and to have found a place in the

rich soil of Chikmaglur. A traditional family who started owning a few acres of

coffee estates soon ended up in formation of a new legacy. The AMALGAMATED

BEAN COFFEE TRADING COMPANY LIMITED (ABCTCL) was established in

the year 1992. In no time it gained its popularity as “COFFEE DAY”. Seizing the

moment, it took advantage of the deregulation of the coffee board in 1990‟s and

expanded its operations in exporting to countries across Europe, USA, and Japan.

Today it has taken the stand of being the largest and the biggest coffee

conglomerate. It is a Rs 700 crore+ company with over 10,000 acres of own estates.

Leading retailer and Beverages Company to coffee lover the world over- the young

and the old, the company has come a long way since its inception 1992. Today the

company provides a full range of coffee products through a robust and transparent

system of farming and social responsibility. Designing, developing and delivering

coffee products requires thought leadership, well integrated suite of capabilities and

a strong set of processes. To meet these challenges, and to continue with the

company innovation, the company maintains major practices in Advisory,



Sustainable Farming, Retail, Products, Technology, Solutions, Corporate Social

Responsibility and Operations.

Innovation, Tradition and Coffee day are synonymous with each other as far

as everything and anything to d with coffee is concerned. The origin of Coffee Day

began over 140 years ago, with the humble beans. Decades later and across 10,000

acres of coffee grown wild, the focus remains clear. The humble is pivot of the whole

enterprises. The products and brands, innovations, ideas and knowledge are backed

by unmatched technical and qualitative expertise.

Some of the salient features are:

First consolidated and pure coffee outlet to find it‟s footprint across the

globe

Backed by ISO 9002 Certification, and a heritage of over 140 years

Asia‟s largest integrated coffee company with second largest network of

coffee estates

One of the top coffee exporters in India- to United States, Europe and

Japan.

First company in India to get an UTZ certification

Today Coffee Day is at the forefront of the Coffee revolution- co riding with

coffee growers, suppliers, corporations and planters. We are on this constant

journey! Always trying to grow and help sustain growth and raise the bar

continuously.

“ABCTCL” AT A GLANCE

AMALGAMATED BEAN COFFEE TRADING COMPANY LIMITED

(ABCTCL), located in Bangalore, a city that has grown from a pensioner‟s paradise

to the country‟s Silicon Valley. Coffee Day has become an icon for a good coffee.



Strategies, researchers, subject matter experts, marketing and sales professionals,

farmers, coffee growers, retailers and sales force comprise Coffee Day workforce.

The heritage concept of coffee, dating from over 140 years has been nurtured

with care by Mr. V G Siddhartha, Chairman of the Coffee Day Company. Launched

in 1994, the group is now a 700 crore + company, ISO 9002 certified company,

making its mark in the coffee value chain. The offshoots include over 1000 Café

Coffee day joints, around 400 Fresh & Ground stores, over 900+ Coffee Day Xpress

kiosks, and a sizeable 10,000 vending machines from Coffee Day Beverages.

ABCTCL is a fully integrated coffee company it has a very rich heritage that

stretches over a century. It has developed innovative retailing concepts to maintain

a dominant position in the coffee sector. It ensures a prominent force in the coffee

industry by maintaining quality coffee blends through extensive Research and

Development.

It was the traditionally owned family acres of coffee estates in Chikmaglur,

which yielded rich coffee beans- the starting point of a new empire. Soon ABCTCL,

popularly known as Coffee Day was formed. With the opportunity that arose with

the deregulation of the Coffee Board in the early Nineties, Coffee Day began

exporting coffee across to USA, Europe and Japan. In 2000 Coffee Day exported

more than 27000 tons of coffee valued at US $60 million to these countries. It has

gained the largest coffee exporter of India many a times.

ABCTCL engages in the retail, plantations, and export of coffee and it offers

gourmet single origin and Indian monsooned coffees. It operates a chain of retail

outlets and provides tea and coffee beverages, varieties of coffee and tea powder,



and speciality coffee, sundaes, snacks, and accessories such as coffee filters and

mugs. In addition to this it operates coffee kiosks and vending machines.

Coffee Day‟s professional network is vast covering a homogenous region. It

covers major coffee growing areas of the country comprising over 48 agents and 50

collecting depots. Coffee Day has two curing works at Chikmaglur and Hassan.

They cure over 70,000 tons of coffee per annum, the largest in the country. Coffee

Day has a well equipped roasting unit catering to the specific requirements of the

consumers. Experienced personnel carry out the process to meet highest quality

standards. ABCTCL uses the most modern technology available to maintain

consistency and roast the coffee beans to the demanding specifications of the

consumers. It has achieved a lot in a very short span of time.

With the vision of a true entrepreneur nurturing it, Coffee Day has its

business spanning the entire value chain of coffee consumption in India. Its different

divisions include:

COFFEE DAY EXPORTS

COFFEE DAY FRESH N GROUND (which owns 350 coffee bean and

powder retail outlets )

COFFEE DAY VENDING (which owns 7000+ vending machines)

COFFEE DAY XPRESS (which owns 900+ kiosks)

CAFÉ COFFEE DAY (which owns 1000+ outlets)

COFFEE DAY PERFECT (FMCG packaged coffee) DIVISION

(1.4) COMPANY DIVISIONS

Emerging as a leader in its field, it has set an example in the industry for

being the only vertically integrated coffee organization. ABCTCL has 6 divisions.



These 6 divisions have made it possible for ABCTCL to be present in the entire

value chain of the coffee industry. This has given ABCTCL the base to extend its

activities into the entire industry and to derive its strength from its roots, all under

one name- “COFFEE DAY”

The smarter, the better! The red and white icon, the hall mark of the

COFFEE DAY group, represents the vibrancy and that zing that the young at heart

look for. Different divisions, different business and diverse focus areas… That‟s the

Coffee Day Group. Each divisions run as independent units, yet rolls back into the

same entity. Naturally, all the divisions are committed to provide customers with

only the very best in quality- a hallmark that‟s integral to the Group.

Café Coffee Day

Pioneering the Coffee Café concept in India, Coffee Day opened its first Café

at Brigade Road, in 1996 still one of the most important happening places in

Bangalore. The young and the young at heart immediately took to the place. A

smart, simple space that they could call their own for a while…. Discuss, listen to



conversations, hold short meetings or even have lots of good fun, all over streaming

cups of coffee. A little over a decade later, it is still the largest organized retail café

chain in India with cafes across the landscape. Coffee Day today is totally in tune

with its target audience. It is a rapport that‟s as strong as the deep red coffee day

color.

Café Coffee Day, from a handful of café‟s in six cities in the last 5 years has become

India‟s largest and premier retail chain of café‟s aiming to reach 500 in India.

Coffee Day Xpress

The stand up, walk away, take away Xpress coffee… its coffee anytime and

anywhere!

Hot, piping coffee is most welcome anytime and anywhere. It is something

that lets you perk up, when you need a „zing‟ to life.



Coffee Day Xpress caters to the mobile population of a city- who is always on

the move, always on a hurry. Packaged in a area of just 60 square feet, Coffee Day

Xpress believes in “keeping it short and sweet!” coffee Day Xpress is present in all

the key city spots. “Wherever you go, I am there”…. That is the motto of Coffee Day

Xpress. No elaborate decorations, just fresh, delicious snacks and steaming

beverages that come in convenient sizes. Just buy, bite, sip, or munch…. A smarter

and more efficient way of staying ahead of time! And like a great buddy you would

like to bump into anytime, anywhere. Coffee Day Xpress lives up to its promise of

being wherever you are!

Coffee Day Beverages

Across innumerable campuses, or in Café Coffee Day divisions,

where people throng for something hot and special. Coffee Day‟s

dispensing machines- CELESTA and SIENNA play a key role.



Coffee Day Beverages deal with dispensing machines that provide

at the touch of a button, hot coffee and tea, flavored milk and even sups

through its machine called CELESTA. Just like heavenly music that

flows to soothe tired nerves and perk up withered souls, CELESTA

dispenses beverages the way you need them.

Coffee Day take away beverages are for consumers who are

looking for a pleasant filter coffee experience. The machine offers its

consumers both hot coffee and hot tea.

Coffee Day Fresh & Ground

Fresh & Ground stores in markets and shopping points cater to

coffee lovers who love to make their own filtered coffee at home. This

traditional thinking, quality conscious shopper is a royal customer.

They look out for freshness and quality, but want to throw in their bit of

character too. The freshly procured coffee from plantations is packaged

in the most hygienic way to ensure consistency in freshness.

Fresh & Ground specializes in authentic filter coffee, with region

specific blends of coffee and tea customized to demand. Besides an



affordable array of coffee powders, company also retail tea to tea-

makers too.

COFFEE DAY `Fresh `n Ground' has introduced packaged filter coffee

powder “7 Day Wonder” The coffee powder is claimed to be dispatched to the retail

trade on the same day it is ground and packed; the company also says that the

powder is withdrawn from store shelves if not sold within seven days. It is available

in packs of 200 gm and can be purchased at retail outlets in Hyderabad and

Bangalore.



Coffee Day Exports

Coffee Day Exports is really the leader in growing, trading, retailing and

exporting world- class coffee.

Coffee Day Exports is one of the largest exporters of green coffee in India,

since 1999. It has invested in Research and Development, and applied in learning

successfully to improve the promotion of various coffee blends and augment its

exports.

Coffee Day Exports strongly believes that their responsibility begins with the

origin of the coffee bean- right from ensuring ethical growing practices to packaging

and retailing the product for their customers. Coffee Day Exports is well versed

with experience and technological proficiencies to provide its customers with a wide

assortment of well- positioned products. With regular feedbacks from customers

and advisors, and backed by research, Coffee Day Exports continues to enhance

their products.



COFFEE DAY: COMPANY PROFILE

NAME: AMALGAMATED BEAN COFFEE TRADING

COMPANY LIMITED

LOGO: RED SQUARE → Signifies Leadership and

Passion

WHITE SWIRL → Purity, Invigorating

Properties of Coffee

YEAR OF ESTB: 1992

HISTORY: THE DILUTION OF THE COFFEE BOARD

SET

THE PATH FOR “ABCTCL” TO ESTABLISH

A STRONG BRAND IN THE FIELD OF

IMPORT AND EXPORT ON INDIAN COFFEE

BUSINESS: LIMITED COMPANY

INDUSTRY: FOOD & BEVERAGES

BRIEF DESCRIPTION: LARGEST INTEGRATED COFFEE

COMPANY

INVOLVED IN PRODUCING, PURCHASING,

ROASTING, AND SELLING OF HIGH

QUALITY COFFEE AND SPECIALLY

BEVERAGES ACROSS MULTIPLE

CHANNELS



CERTIFICATION: “ISO 9002” CERTIFIED COMPANY, UTZ

CERTIFICATION

CORE BUSINESS: EXPORTING AND RETAILING OF COFFEE

CHAIRMAN: MR V.G. SIDDHARTHA

CITY OF ORIGIN: CHIKMAGLUR, KARNATAKA, INDIA

ASSET BASE: Rs 700 crore +

EMPLOYEES: 6000 +

SUBSIDIARIES: CAFÉ COFFEE DAY, FRESH AND GROUND,

ABC

EXPORTS, VENDING MACHINES/ TAKE

AWAY, COFFEE DAY XPRESS, PERFECT

CORPORATE OFFICE: 23/2, COFFEE DAY SQUARE, VITTAL

MALLYA

ROAD

COFFEE DAY XPRESS: DIVISION PROFILE

NAME: COFFEE DAY XPRESS

LOGO:



LOGO PHILOSOPHY: PLAY, MOVE ON

YEAR OF ESTABLISHMENT: 2003

PRESIDENT: PUTTURAJ A. G.

INDUSTRY: FOOD & BEVERAGE

CONCEPT: CONVEIENCE CAFÉ THAT CATERS

TO

PEOPLE IN TRANSIT THROUGH

SMART KIOSK FORMATS, DIVERSE

MENU, AND NUMEROUS RETAIL

OUTLETS. IT AIMS AT CATERING

TO THE INDUSTRY AND BUSINESS

GAP BETWEEN CAFÉ COFFEE DAY

AND TAKE AWAY DIVISIONS.

BUSINESS MODEL UNIQUE: 1. COMPANY OWNED

2. FRANCHISE

SELLING PROPOSITION: QUICK SERVICE+ CONVENIENT TO

EAT+

AFFORDABILITY+ HYGEINIC+

TAKE AWAY.

NUMBER OF OUTLETS: 900+

CITIES: PRESENCE FELT IN 15+ CITIES

TARGET GROUP: YOUTH BETWEEN 20-35 YEARS, SEC

A,

SEC A+, SEC B, CORPORATE, ITES &

BPO‟S, BRAND & QUALITY

CONSCIOUS, HIGH DISPOSABLE

INCOME GROUPS

LOCATIONS: SHOPPING MALL, MULTIPLEXES/

MOVIE THEATRE,

CORPORATES, EDUCATIONAL



INSTITUTIONS, RAILWAYS,

AIRPORTS, BUS DEPOTS,

HOSPITALS

DEPARTMENT: 1. BUSINESS EVELOPMENT

2. MARKETING & FRANCHISING

3. FOOD & BEVERAGE

4. OPERATIONS

5. SUPPLY CHAIN MANAGEMENT

6. HUMAN RESOURCES

7. INTERNAL AUDIT

8. FINANCE

9. MIS

10. PROJECTS

(1.5) ABOUT COFFEE DAY XPRESS

A unique concept in itself, Coffee Day Xpress aims at feeding the world that‟s

continuously in transit through a convenience café format of business. Custom made

for the 21st century, it caters to the needs of the people who need coffee on the go. It

also offers hot and cold beverages and a variety of ready-to-eat snacks along with

coffee of its kind. Its Unique Selling Proposition bridges the need gap between the

leisurely cup of coffee and the stop at the café. In this segment the kiosks are

strategically positioned where a customer cannot only drink coffee but also grab a

quick bite on the move. Between home and coffee at the busy crossroads of life,

when there is not enough time for hot cup of coffee or a quick meal, the consumer

can trust a Coffee Day Xpress to provide a fresh, fast, tasty, hygienic, convenient- to

–eat and affordable food and beverages. In a short period of 8 years, Coffee Day

Xpress has managed to serve customers across 20+ cities in India. Coffee Day



Xpress is perhaps the only national coffee brand that is capturing the imagination of

modern resurgent India with a growing presence in:

Shopping Malls, as we can spend as much time for shopping and be happy

Multiplexes, so that we never miss a minute of that movie we are watching

Corporate, to keep the employees happy and ready to work

Supermarkets, when the customers get tired, CDX gives a quick refreshment

Airports, incase people are rushing to catch a plane

Railway Stations, hygienic food & beverages when people need them the

most

Parks, after a good stroll… time for some good coffee or cold beverage or tea

Depots, happy journeys begin on happy tummies

Petrol Pumps, why to refill only your vehicles

Getaways

Educational Institutions, to keep the students more focused in studies

Nature of the Business Carried

Coffee Day Xpress is into the segment of Food & beverages and the nature of

business carried is the concept of take away where hurried people can have

refreshment at Xpress in between their busy work schedule. Coffee day Xpress runs

many outlets on its own and no sharing of risks and profits with third party. In

addition, it has franchisee network, where it gives franchises to others.



(1.6) Vision, Mission and Objectives

“To be the best franchised convenience café chain by offering world class

coffee experience at affordable prices”

Values and Principles: The age-old Indian value system has its imprint on Coffee

Day‟s value system too. Coffee Day promotes a healthy working environment, which

encourages and fosters a climate of openness, respect and innovation, along with

Integrity, Leadership, Ownership and Trust.

Integrity: Coffee Day respects honesty within and outside the company. The

Group practices ethical business principles in law and spirit, and strive to bring the

best to the consumer.

Leadership is the essence of Coffee Day‟s growth. Through continuous innovation,

research, networking and collaboration, the Group strives to excel and stay ahead of

competition.

Ownership: Coffee Day drives the sense of ownership for its employees, providing

opportunities for learning, knowledge enhancement and continuous growth.

Trust: A strong foundation of trust encourages our people to deliver their best.

This trust is also extended to reflect in our endearing relationship with our loyal and

growing clientele.

In all we do, we strive for “Respect, Innovation and Excellence…” the fuel that

drives our growth.

Quality Policy

Coffee Day Xpress is following Standard of Procedure method in quality

policy.



CHAPTER 2

ORGANISATIONAL

STRUCTURE



(2.1) CORPORATE ORGANIZATION STRUCTURE

PRESIDENT

GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE

EXECUTIVE

MANAGEMENT TRAINEE

JUNIOR EXECUTIVES

ASSISTANTS



(2.2) DEPARTMENT ORGANIZATION STRUCTURE

COFFEE DAY XPRESS

HUMAN

RESOURCES

BUSINESS

DEVELOPMENT

MARKETING FOOD &

BEVERAGES

OPERATIONS

SCM MIS INTERNAL

AUDIT

FINANCE PROJECTS



1. BUSINESS DEVELOPMENT

The business development department works on the basis of its own

database. It is created by the business development team members. The database is

used for cold call, soon after which a meeting will be called for with the

administration/ faculty Head of the Corporate Office. In case the meeting is held for

only the corporate, a proposal is given and if it is retail like educational institutions

or malls, a proposal for a menu is also is given. Following up the same is the work of

the Business Development Team. Once the deal is finalized and the permission is

granted the kiosk is set up. The BD is in charge of developing business. They locate

areas for new outlets. They take care of relationship management with the existing

outlets, both company owned and franchises.

To put a kiosk in their premises a LETTER of INTENT (LOI) is taken from

the administration. It is only after this that a suitable franchise is searched. The

agreement details vary according to the type of kiosk that is to be put up.

LOCATION SURVEY

(Major concentration on

TIER- I cities, with very

TIER-II cities)

Locations having high

footfalls is preferred

The rental factor

Existing competition/

competitors

Facilities provided to

corporate employees

KIOSK SET UP

(CDX kiosks do not have

elaborate ambiences as such)

The kiosks usually

measure up to 80- 120

sq.ft depending upon the

location.



The outlets/ kiosks are of 3 types:

Indoor kiosks

Outdoor kiosks

Customized outlets

The process for selection of outlets is as follows:

The targets are set on monthly basis, which are reviewed on a quarterly basis.

The Hierarchy is as follows:

COLD CALLS PROPOSALS REQUIREMENTS INITIAL

APPROVAL

WITH OTHER

DEPTARTMENTS

(ESPECIALLY

WITH

OPERATIONS)

FINALISING THE

DEAL

FINALISING

THE DATE

30-40 DAYS

SET UP TIME

PRESIDENT

SENIOR MANAGER

ZONAL MANAGER

BD EXECUTIVE/

SENIOR EXECUTIVE



2. OPERATIONS

They take care of the entire functioning of the Xpress outlets. They

ensure that the operations in the outlets are effective and efficient.

Coffee Day Xpress maintains a strict operational hierarchy. There is a

sense of belonging that exists among the employees.

NATIONAL HEAD OF OPERATIONS

REGIONAL MANAGER

CITY MANAGER

CITY MANAGER

AREA MANAGER

AREA SUPERVISING MANAGER

AREA SUPERVISOR

AREA SUPERVISOR TRAINEE (CAMPUS HIRE)

AREA SUPERVISOR TRAINEE

CO- ORDINATOR OPERATION



However at the same time, there is a clear distinction between the

roles that each individual plays. Every employee has authority to

function and is answerable for the activities done under him.

3. FOOD & BEVERAGES

This department has four major roles to play, namely- purchase, delivery, display

and shelf life monitoring and maintenance.

PURCHASE: The Bean Buddy or franchisee is responsible for placing

orders of food with the MIS (Management Information System) contact. This

needs to be done every day before 6 pm. MIS should be alerted if any bulk

orders or cake order is communicated to the Operations Executive directly.

DELIVERY: Items should be checked against the indent order form while

taking delivery of food. The challan should be signed by the “BEAN

BUDDY” or “FRANCHISEE”. After receiving items , entry should be made

in the POS billing system

DISPLAY: The things kept in mind while displaying food items are-

The counter should look full

The counter should look appealing to customers

The counter should not be overloaded

The vegetarian items should be stored separately

The shelf takers should match correctly and placed neatly to

the relevant items

Excess food should be kept in the refrigerator

Check on disposables and ensure you stack them at the

designated place in the required quantity.

SHELF LIFE: No food is to be carried over to the next day except for

sweet items like pastries, muffins and doughnuts. All savoury filled items to

be sold within 12 hours of reaching the kiosk. Leftover, if any should be



treated as wastage. If these items are found to be carried over to the next

day, the BEAN BUDDY should be penalized.

They introduce new products for the outlets and decide which products should be

made available in the respective outlets as per location. They also design the menu

for various outlets. The menu is based entirely on the location of the kiosk. The

menu is then sent to the Marketing Department for promotional activities, such as

design of fliers, danglers, wobblers, etc.

The functions of the F&B Department are as follows:

Vendor Selection:

There are three main criteria‟s to be considered while making a selection of a

vendor, namely – Quality, The Vendor‟s ability to deliver in volumes, The

price at which the vendor is willing to supply.

Regular auditing of the concerned manufacturing units of the vendor and the

kitchen set-up‟s. These periodical checks ensure that the food and beverages

meet the prescribed standards of Coffee Day Xpress.

Selection of the Alternative Vendor:

The F&B Department ensures that it has an alternative vendor in store in

case the main vendor is unable to provide the specified supply in the specified

time due to uncertainties. Also having an alternative vendor helps them

Department to compare costs and bargain with the main vendors.

Food Storation policy:

Effective and efficient food storage policies become more important because

Coffee Day Xpress deals with products which have a small shelf life.

Normally the food items that are kept in the kiosks have a shelf life of one

day, and any unsold items beyond the shelf life are considered as “wastage”.

All kiosks are well equipped with refrigerators and pastry coolers to make

storage of food easier.



R&D Facilities

The F&B has its own smaller research team in Bangalore to meet small

requirements of product testing and feasibility. The major Research &

Development Facilitator is located in Chikmaglur.

The F&B Department holds the responsibility of fixing the prices of the raw

materials as well as the food items served in the kiosk.

The hierarchy for F&B is as follows:

Location

Wise

4. SUPPLY CHAIN MANAGEMENT

Responsible for major activities like purchasing, vendor management, warehousing

and distribution, inventory planning and demand forecasting. They are responsible

PRESIDENT

SENIOR

MANAGER

ASST. MANAGER

(EXCEPT MUMBAI)

SENIOR

EXECUTIVES, F&B

EXECUTIVES



for making the right products available at the right place at the right time and thus

improve efficiency in operations.

It has two sections of activities that it has adhere to. One being the “Receiving

process”, and the other being the “Dispatch process”.

5. MANAGEMENT INFORMATION SYSTEM (MIS)

They are responsible for the maintenance of all the hardware and software related

issues in the orgaisation. The update of POS i.e. Point of Sales software which are

used for billing in the outlets, Xpress website and provide MIS reports to aid the

management.

6. FINANCE AND ACCOUNTS

They are responsible for payment to vendors, calculation of wastage, verification

of stock status, evaluation of financial data, auditing, tracking profit and loss of

outlets, coordinating with sales tax authorities, providing finance for various

activities of the outlets, time to time analysis of the brand standing position.

The Finance department acts as the guardian for CDX, providing back end

services. Finance department is headed by Finance Head who will be reporting to

the Chief Financial Officer and the President pertaining to the operations under his

supervision. Each city has its own branch accountants and branch assistants (if

required) who will be reporting to the Manager- Finance.

Finance department performs many services. It makes payment to the vendors‟

and collects, analysis, reconcilliates and evaluates financial data. Getting the books



of accounts audited, preparation of the balance sheet as per Company‟s Act and IT

Act is also done by the Finance Department.

The hierarchy is illustrated in the following page:

7. PROJECTS

They have three divisions under them, namely;

PRESIDENT

CHIEF FINANCIAL OFFICER

HEAD OF DEPARTMENT

MANAGER (FINANCE)

BRANCH ACCOUNTANTS/

BRANCH ASSISTANTS



Project- Once the business development team decides on the location, the

projects team do the designing, kiosk set up, and branding for the outlets in

the respective locations.

Procurement- They procure the machinery and other materials and supply it

to the outlets.

Maintenance- They maintain the machinery in the outlets

Kiosks are all taken care by the projects team, including furnishing. Furnishing

includes the refrigerator, visicooler, pastry cooler, microwave owen, thick shake

machine, and vending machine. The projects team while deciding on the design of

the outlet/ kiosk has to keep in mind its versatility in terms of its layout so that it

brings optimum utilization of the space. The division is also liable of taking care of

the equipments in the outlet. Repair of any kind are also undertaken by the business

development team, if any. Periodical checking of the instruments and the machinery

is also essential.

8. MARKETING AND FRANCHISING

Marketing department takes care of all promotion, sales, outdoor activity,

communication, market research, etc.

Franchising takes care of legal issues and procedures related to the

Franchisee Contracts.

Alliances and Public relations merchandising, which is selling of other

company products in the Coffee Day Xpress outlets.

It is in charge of the purchases by the cumulative record of the demand by the City

Heads for the various products and raises the purchase order. The task of branding,

designing, finding, Public Relation, New Product Development and launches,

finalizing advertising and media agencies is also to be taken care by the marketing

team. This division takes care of the brand auditing which ensures that adequate

promotion and related activities like Branding of the various equipment like the

pastry cooler, visicooler.



Tie up‟s with many leading brands either for selling their produce or for brand

promotion is very common in Coffee Day Xpress. Collaterals like posters, tent

cards, danglers, etc. are provided to promote such tie up‟s which are taken care of

by the marketing division. Ensuring that these co-branding communications are

placed in such a way that it does not hinder the image of Coffee Day Xpress, is the

responsibility of the Bean Buddy/ Franchisee. The marketing division also takes

care of the merchandise associated with the business. Coffee Day Xpress

merchandising products consists of the following variants:-

Chocolates

Biscuits

Juices

Ice Creams

Wafers

Cookies

9. INTERNAL AUDIT

They conduct regular physical audit and check for any business malpractices

and misuse of property. Its objectives are to examine, evaluate, and make reports on

the adequacy of the internal controls for proper functioning of the departments.

They are granted full and complete access to all corporate and franchisee manuals

and computerized records, physical properties and personnel relevant to an audit or

review without any prior notice or information.

They visit outlets and check if everything is in place and the outlets are being

run as per the set standards. If gaps are noticed, then the Head Of the Department

are intimated through mail as to what is wrong.



10. HUMAN RESOURCES

Day to day manpower activities are taken care of by this

department. They are in charge of Manpower Planning and

Recruitment, Training & Development, Grievance Handling,

Compensation & Performance Management and all legal issues related

to employees.

Coffee Day Xpress has a full fledged HR Department. In view of

conforming to the company‟s high standard of business ethics, its

employees have to maintain a strict code of conduct.

Talent Acqusition

Induction and Orientation

Leadership Academy

PMS

Total Rewards

HR Operations

Employee Relations

Separation



1) TALENT ACQUISITION:

It is a process of getting the right person for the right job at the right time.

This is done through the following steps.

Man power planning: man power planning or personal planning in an

organization is evaluating the current man power in the organization and

then determining the number of employees further required for the different

positions, and then plans as to how the organization should go about

acquiring the required number of employees for the various positions. At

ABCTCL the manpower planning is done based on the future plans and

prospective growth of the organization.

Recruitment: it is the process of discovering and selecting the sources of

manpower, and then attracting them to the organization. Recruitment can be

done in house or outsourced. The organization classifies its employees as off

rolls and on rolls.

On rolls includes- Executives, Managers, Asst. Managers, HOD‟s, President

for all departments.

Sources of recruitment for on rolls are done through: Campus recruitments,

consultancies, Casual applications, Employee reference.

Off rolls includes- Been buddies, Trainee Executives, Technicians.

Sources of recruitment for off rolls are done through: Outsourced to a

consultancy, In house, Employee reference.

Selection: It is the process of selecting the right person for the right job. At

ABCTCL, the process followed is as follows.



Placement: Once the candidate is selected he/she is placed for the respective

position and the offer letter is sent to him/her through mail.

2) Induction and Orientation:

Once the employee is placed for the respective post and he/she has receive the offer

letter the joining date has to be confirmed based on which the induction is planned.

Once the induction is planned by the training coordinator at the head office, the

regional HR‟s coordinate and sees to it that the plan is put into action.

Induction: As per the date scheduled, employees called for the induction.

Induction is different for the On Rolls and Off Rolls.

Receiving of Application forms

Screening the Applications

Calling the short listed Candidates for Interviews

Functional Interview with the Manager

Shortlisted Candidates go through a HR interview

The candidates who pass through the HR round are selected for the respective post



On Rolls- For the On Rolls, induction happens in office. If the employees executive

or senior executive, it is conducted in regional office. But for the higher levels such

as managers, induction is conducted in Head Office located in Bangalore.

Induction would consists of welcoming the new employee on board, then the HR

manager would give the employee a presentation on the company, background and

history, a brief insight into the various departments of the company, the work

culture and the policies at the work place after which the feedback would be taken

for the HR induction.

After the completion of the HR induction the employee would be inducted

on the various departments in detain by the respective people from the various

departments. This will also contain an in depth insight into the department with

which the employee would be working. The induction would be scheduled across a

period of one week in the department for which the employee would be working

across 3-5 days based on requirement. The employee is then asked to fill a feedback

form. Towards the end of the induction the employee would be given a test. This

brings the employee to the end of the induction program.

The KRA (key result areas) is designed for the purpose of reviewing his/her

performance and the employee is put on probation of six months.

After the induction is completed he/she takes on the duty and starts working as a

full fledged employee of Coffee Day. During the course of induction the joining

formalities are completed which includes,

Giving the joining kit consisting of the joining forms, employee hand book

CD, a scribbling pad and a pencil.

Filling of the joining forms by the employee which includes the following

forms.

1. Employee application form,

2. Joining report,

3. Application for med claim, ID card, Nomination and declaration form,

4. Bank account opening form.



The employee is also asked to produce certain documents and four passport

size photographs.

The duly filled forms are filed as a part of employee records, and the hard

copy of the induction schedule, feedback forms along with test answer papers

are filed for general documentation.

he date of joining, the welcoming note is sent across to all the on roll

employees of Coffee Day, after which the official email ID and the employee

ID card is created.

The employee is given the appointment letter.

Orientation (Training)

Once the induction is completed orientation happens which is nothing but on

the job training. This again different for off rolls and on rolls.

On Rolls

The training that is given to on roll employees are mostly on the job where they

learn in the course of their day to day duties during the probation period, apart

from this there are other training programs that will be organized by the training

coordinator if the need is recognized and if it is requested for by the employees.

Off Rolls

The Off Roll employees go through training sessions on Saturdays at Coffee Day

Training centers situated in their respective locations.

3) COFFEE DAY LEADERSHIP ACADEMY:

This is a special program initiated by HR department. In this program, the training

coordinator sends reading material on motivation, leadership and material related

to personality development, documents which consist of useful information which

employees need to know how to improve their knowledge, material which helps in

improvement of the working in the various departments. These materials are sent to



the employees through mails and could be in any format such as ppt‟s, word

documents, pdf etc.

4) PERFORMANCE MANAGEMENT SYSTEM(PMS)

Performance Management System is nothing but performance appraisal, also

known as employee appraisal. It is a method by which the job performance of an

employee is evaluated (generally in terms of quality, quantity, cost and time). It is a

part of career development and the regular reviews of employee performance within

organization.

Generally, the aims of performance appraisal are as follows:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personal decision: salary increase, promotions, disciplinary

actions, etc.

Provide the opportunity for organizational diagnosis and development.

Validate selection techniques and human resource policies to meet federal

Equal Employment Opportunity Requirements.

At Coffee Day, PMS is setup to help the managers in the employee management and

also help the employee in planning his/her career. The formats provided below are

designed to facilitate discussions between manager and his subordinate.

On Rolls:

PMS comprises of 3 main activities:

1. Performance Planning and Review

2. Career Development

3. Improvement plans



1.Performance Planning and Review :

This is the activity where the KRA‟s are designed and the targets to these KRA‟s

are set in order to measure the performance of an individual in the organization

during appraisal.

Review process has the following ratings.

Description Rating

Exceeds Expectation- Has exceeded more than the

required objectives and targets set.

5

Above Expectations- Has exceeded some of the


4

Meets Expectations- has met the required

objectives and targets set.

3

Does not meet-has met some of the required

objectives and targets set.

2

Below Expectation- has not met some of the


1

The performance appraisal format consists of 3 sections which are described as

below:

Section 1- Consists of Employee Details along with Appraiser‟s Name &

Designation.

Section 2- Pertains to KRA‟s/ Job activities set for the year and are purely a

performance indicator. These KRA‟s need to be filled in by the employee

after discussing the same with his reporting supervisor with proper weight

age given to the respective activities. The total should cumulate to 100. First

the employee whose performance is being reviewed rates himself after which

the appraisal will give his rating and also write remarks and

recommendations if any.



Section 3- pertains to the Critical Managerial/ Behavioral skills required to

perform a set of task, to be rated (1-10 point scale). This section also captures

the training need identification for an employee.

This section also mentions the areas where the Appraisee needs to improve

based on which the training needs get identified and it also forms a basis for

the person to improve.

The final rating will be given by the appraiser and the form will be signed by

both, appraiser and Appraisee with final score.

2. Career Development:

Based on the above mentioned format the appraisal is done for the employees, which

results in the employee getting a hike in the salary, promotion, transfer, recognition

etc. as the case may be.

3. Improvement Plans:

Based on the inputs obtained from the review forms the gaps in the standards set for

the performance and the actual performance of the employee is identified and the

necessary steps like training, feedback etc are given to the employee to improve

his/her performance in future.

The PMS forms should be duly completed and signed by Appraiser and Appraisee.

A copy of the forms must be sent to HR department for record purpose in the

personal file.

Off Rolls

For off Rolls, the appraisal is done by the operation executives based on the KRA

designed for the employees by their supervisors. They are rated on a five pointer

scale. The review form is signed by the employee himself, the operations executive,

city head and regional HR. Based on the review from the necessary steps are taken

to give incentives or if the performance is not up to the mark the employee is to be

given training or removed from the job.



5) TOTAL REWARD AND RECOGNITION:

Rewards and recognition play a major role in increasing employee engagement,

which in turn results in happy, loyal and productive employee. Reward and

recognition also help in motivating an employee to perform better.

At coffee day employees recognized and rewarded for their performance. any

personal awards received are taken note of and the certificates are displayed on the

notice board to be viewed by all as a sign of appreciating the employee.

The HR department also organizes certain informal completions as breathers

between daily work pressures, for which the employee are awarded for their

participation.

6) HR OPERATIONS:

Regional HR

Manpower planning and

recruitment

HR operations

Cost reduction at regions

Training at regions

Submission of reimbursement

forms on time

Employee attendance

Submission on statutory report

(ESI & PF) to HO

Meeting with agencies

Ensuring salary pay to employees

Recover plans

HR Admin

Overall administration to be reduced

Printing of visiting cards

Permanent id card

Travel booking and advances

Processing of rental cheques and

proper accounting

Med claim insurance

Outlet insurance updates/ reports

Travel settlement report

Vendor payment

Daily sales report

Sales MIS

Launch and closure communication



Asst HR manager Training SR Executive

Processing of attendance Training at regions

Invoice checking and submission to audit

team

Training modules

Physical verification of reimbursement

and submission

Effective training

Submission of challan (PF & ESI) Succession planning

Recovery plan Training calendar

Agency follow ups for salary Effective induction process

Agency meeting

Salary processing

Report submission/ analysis of cost

Full and final settlement

Salary grievance handling

HR MIS

7) EMPLOYEE RELATION:

This is nothing but grievances of the employees are related to the work rules

and regulation, policy and procedure, health and safety regulations, past

practices, changing the cultural norms unilaterally, individual victimization,

salary bonus etc .Here the attitude on the part of management in their effort

to understand the problems of the employees and resolve the issues amicably

have better probability to maintain a culture of high performance. Effective

grievance handling is an essential part of cultivating good employee relations

and running a fair, successful and productive work place. Positive employee

relations are two-way street. Both sides must give a little and try to work

together. At ABCTCL , the HR department handles the employee grievances

through an open door policy. If there is any complaints, they should report it

to the HR Department, who will further look into the matter and try solving

it to the best of their ability. If the complaint is beyond the control of HR



department, the matter will move up to the respective higher authorities for

review.

8) SEPARATION:

Exit interview or separation as it called in ABTCL is interviewed conducted by an

employer of a departing employee. They are generally conducted by a relatively

neutral party, such as human resource staff member, so that the employee will be

more inclined to be candid a opposed to worrying about burning bridges. The

purpose of an exit interview is usually to gather data for improving working

conditions and retaining employees.

At ABCTCL, the exit interview or separation procedure involves filling of the exit

form which includes the following details:

Reasons for resigning

What the person liked the most about the job

What he least liked about the job

Supervisor review

Rating on the various compensation and benefits

Rating on the various training programs and potential for growth in the

organization

What would be the situations that would prevent the person from leaving

Would the person consider working in the organization future

Suggestion if any

Along with filling of this form, the employee must also handover all the assets

of the company that were in his possession during his course of working with

the company along with all confidential documents.

The employee should keep all the information attained about the business,

the vendors, other business associates during the course of his job at the

organization confidential.



(2.3) AUTHORITY AND RESPONSIBILITY RELATIONSHIP

Authority is the right to give commands and to get the things done. Authority

always flows from top to bottom. It explains how w superior gets the work done

form the subordinate by clearly explaining to him/ her as to what is expected from

him/ her and how they should go about it.

Responsibility, on the other hand, is the duty of the person to complete the task

assigned to him and ensuring that he completes the task assigned to him.

Responsibility flows from bottom to top. The middle level and the lower level

management holds more responsibility.

The authority at the divisional level starts with the President, who is in

charge of the entire functioning, growth, revenues generation of the Division.

He sets the objectives, guidelines and mission statements for all the

departments under the division.

The responsibility to carry forward and execute the guidelines and objectives

set by the President rests with the Head of Departments of individual

departments, who have a specific KEY RESULT AREAS as fixed by the

President of the Division.

For example Coffee Day Xpress Division has 10 Departments, and each

department has an HOD to execute the operations.

The HOD delegates a part of his responsibilities to the Regional Managers,

who are responsible for the execution of orders in their specified regions

(North, South, East, West) and also the performance of the same.

The Regional Managers carry out their functions through the Managers. By

Managers, they mean City Managers, who take the responsibility of the

functioning of their respective city. In certain cases, the Manager is also

assisted by Assistant Managers who take care of operations of certain

locations/ areas within the city.

The Senior Executives and Junior Executives function under Manager

according to the particular job description. These junior executives have to



carry out smaller tasks assigned to them by their superior and report the

same to the senior executives

The final leg in the hierarchy ends with Management Trainee‟s, who get

trained in the particular area of their job profile as per their job

requirements.

REGIONS OF OPERATION

COFFEE DAY XPRESS

EAST NORTH SOUTH WEST

KOLKATA DELHI,

GURGAON,

NOIDA

CHANDIGARH

JAIPUR

BANGALORE

HYDERABAD

CHENNAI

GOA

MUMBAI

PUNE/

NAGPUR

AHMEDABAD

SURAT

MYSORE BHILAI



(2.4) BUSINESS CYCLE

Need for a new Xpress outlet is recognized.

The Business development Department has to find a suitable location with a

captive audience of 800+.

Once the location of the kiosk has been decided, the Projects Department do the

designing for the outlet along with the supply of machinery required for the

kiosk.

The Franchising Department also gets the in a franchisee to own the outlet.

Then the Marketing Department comes into the picture. They take care of the

branding, promotional activities, and the communication to be done for the

kiosk.

The F&B Department designs the menu for the kiosk depending upon where

the kiosk is situated and the type of prospective customer who would visit the

kiosk.

The Operation department does the executive work and Bean Buddy

requirement planning for the kiosk.

Once the menu and the manpower planning are in place, the Supply Chain

Management Department (SCM) starts action. They locate suppliers and direct

supplies to the kiosks.

Now everything required for the kiosk is in place, the Business Development

department is intimated and the operation of the kiosk is started.



(2.5) REBRANDING OF COFFEE DAY XPRESS

Rebranding at CDX was a total overhaul of all the things old to be replaced

by a swanky, modernized, and colorful image that appeals to the general public

today.

Business Development

Projects

Marketing

F&B

Operations

SCM



A wide range of articles had to replaced or rebranded to bring the spectrum under

the new brand image of that was adopted. The list is large and it includes:

Website

Office stationery

Buddy Uniforms

Disposables including cups, tissues, sachets

Ad Standees

Danglers and Wobblers

Tent cards

LED and Sun Boards

Machine and Dustbin Branding

Packaging Stickers

Menu cards

Wall visuals and posters

The management at Coffee Day Xpress made it a point that the rebranding was

restricted to articles that were placed directly in front of the customer or in his line

of vision at the kiosk. This was to ensure the customer was exposed to only one set of

branding and logos either new or old, but not a combination of both which has a

detrimental effect on the image of the company.

(2.6) BUSINESS MODEL OF OUTLETS AT COFFEE DAY XPRESS

At Coffee Day Xpress, the outlets are of two types, namely:

1. FRANCHISED OUTLETS

Here the outlets are franchised after taking into condition the strategic locations of

the same. It is the responsibility of the franchisee to handle the outlet in accordance



to the company norms and guidelines. The franchisees pay a deposit, i.e. a non –

refundable registration fee for a lock in period. Currently the company is present in

20 cities with around 495 franchise owned outlets. By December 2011, the company

plans to add an average 10 franchisees per month. The Investment ranging between

2 lakhs – 5 lakhs.

2. COMPANY OWNED OUTLETS

In this case as the name suggests, the company, i.e. CDX takes the responsibility to

operate the outlet through its trained Bean Buddies. Some 400+ kiosks under Coffee

Day Xpress operate under the company owned outlets.

KIOSKS TYPES:

1. Indoor Kiosks (inside corporate houses, airports)

2. Outdoor Kiosks (outside shopping malls, railway stations)

3. Customized Kiosks (the clients requirements are taken into consideration)

4. Premium Kiosks



A Coffee Day Xpress Kiosk

Bean Buddy at CDX Kiosk



CHAPTER 3

CORE STUDY AREA:

SUPPLY CHAIN MANAGEMENT



(3.1) WHAT IS A VALUE CHAIN?

A value chain is a chain of activities for a firm operating in a specific

industry. Products pass through all activities in a chain in order, and at each

activity the product gains some value. The chain of activities gives the products

more added value than the sum of independent activity value. It is important not to

mix the concept of value-chain with the costs occurring throughout the activities.

The value-chain categorises the generic value adding activities of an

organization. The primary activities include:

Inbound logistics

Operations

Outbound logistics

Marketing

Services

The supporting activities include:

Infrastructure management

Human Resource Management

Research and Development

Procurement

The following diagram illustrates how the value chain functions under SCM:

VENDOR MOTHER

WAREHOUSE

REGIONAL

WAREHOUSE WAREHOUSE

OUTLET CUSTOMER



All the inventory / products, for which the purchase order is raised by the SCM

Department, are supplied by the vendors directly to their main/ mother warehouse

in Bangalore about 95% of the time through the vendor‟s own transport services.

As illustrated from the figure above, all in-station and outstation supply of

the products and equipments takes place from the mother warehouse through the

Coffee Day Xpress‟ own or hired transport services to the regional warehouses and

to the other warehouses/ outlets.

The Supply Chain Management Department of the Coffee Day Xpress

division is concerned with the primary activity of INBOUND/ OUTBOUND

LOGISTICS and PROCUREMENT. Responsible for major activities like

purchasing, vendor management, warehousing and distribution, inventory planning

and demand forecasting. They are responsible for making the right products

available at the right place at the right time and thus improve efficiency in

operations.

It has two sections of activities that it has adhere to. One being the “Receiving

Process”, and the other being the “Dispatch Process”.

The functions of SCM Department are as follows:

1. PLANNING

Planning involves forecasting the future requirement of the different items under

various product categories, as well as Dispatch Planning. Estimations for future

orders are made on the basis of closing stock available and the average sales of the

of all the outlets in India as a whole during the previous three months duration.

There are 2 terminologies associated with Dispatch Planning:

Local/ Milk Route Planning



Outstation Dispatch Planning

The “MILK ROUTE” terminology into being from the age old concept of supply of

milk which used to happen every day, during the early hours of the morning

without fail to all the locations/ outlets/ shops of sale. Similarly, CDX drafted a

weekly chart through which they allocated the regions in and around Bangalore to a

particular day, so that all outlets falling under the specific region will be catered to

on that particular day, even if it is a new kiosk opened recently.

Outstation dispatch of items is done twice in a week.

2. PROCUREMENT

The entire process for SCM Department starts with the procurement of items/

products from the various vendors. Procurement process initiates with the selection

of the vendors through invitations through quotations or tenders and raising of

Purchase Order, based on the weekly requirement indent filed by the Bean Buddies

from the kiosks nationwide. The criteria‟s for selecting a vendor include:

Quality

The Vendor‟s ability to deliver in volumes

The price at which the vendor is willing to supply.

The vendor‟s current/ existing client database.

3. STOCK/ INVENTORY MANAGEMENT

This is one of the most important components of the SCM Department, as Inventory

Management requires a lot of specifications and details to be looked into especially

at the time if receiving and dispatching of materials. Inventory Management has 3

important components, namely;



Inward Material Management

Outward Material Management

Software entries and Updation

The inward and outward material management process will be dealt in the following

pages.

4. VENDOR MANAGEMNT

Vendor selection only forms a part of the procurement process. Vendor

management involves careful screening of legal documents, timely bills submission

and effective payment system. The credit period offered at Coffee Day Xpress

normally ranges between 45 – 60 days. The payment must be only through cheque.

5. PREPARATION OF REPORT

The SCM Department has to prepare not annual, but monthly reports stating the

progress of the firm. There are three types of reports that SCM Department follows

up with, namely

Monthly Budget (it is a nation wise budget)

Monthly operating report (this is in direct relation to the Management

information System Department, where the daily8 proceedings get updated)

Need – Based Reports (these reports are prepared as and when the need

arises)

(3.2) SCM PROCESS

1. RECEIVING PROCESS (INWARD)

2. DISPATCH PROCESS (OUTWARD)



The following diagram illustrates the sequence of operations that are carried out

throughout the inward and the dispatch process:

This diagram in the following page represents the receiving process.

It all starts from the preparation of the monthly budget based on the average

requirement of all the regional warehouses and the outlets throughout the

country. Regional budget should reach Bangalore on or before 23rd

of every

month and then only a consolidated budget is prepared for the necessary

purchases, on approval from the HOD, and then the purchase order is

released to the vendor.

Purchase Order is raised by the SCM Executive based on the indent

received from various outlets. Some of the key factors considered while

preparing the PO is that it must have complete information of the vendor, i.e.

name, address, phone no, along with TIN & CST number. The shipping

address/ consignee address/ deliver address to where the material has to be

delivered along with the TIN & CST number.

Security Inward Check is required to regulate the flow of materials inside

the warehouse. For this very purpose the products/ items are given a

Material Identification Number. This check is done by the Security

Personnel at the entrance of the warehouse. The security personnel have to

maintain a Security Inward Register to record the flow of goods inside the

warehouse. This register is to be signed and checked by the stores in charge

on a weekly basis.



Binning and sorting of the items are done to place the goods according to

their product category under a common order and place. A particular

format is followed to carry out the process and the information is filled in as

per the format, such as – MIN number, Vendor Name, Invoice No & Date,

Item Name, Sorting Date, Quantity (actual, shortage, damaged, excess). The

PREPARATION OF BUDGET

RAISING OF PURCHASE ORDER (PO)

SECURITY INWARD CHECK (MIN)

BINNING AND SORTING

LOCATION

BIN CARD

GOODS REVEIVED NOTE (GRN)

AUDIT



supervisor has to mention the name and sign on the sheet and then it is

handed over to the authorized person at the warehouse.

Location implies the basic amenities required for storing the items. It is

important to keep a strategic location for certain kinds of product categories.

Bin cards are used to keep record of the stock levels in the warehouse on a

given date, during a particular period of time. The warehouse supervisor

maintains the opening stock, goods received and issued in the bin card.

Goods Received Note is prepared by the CDX to send to the vendor about the

successful delivery of goods. Some of the key factors which are taken into

consideration while receiving the stock into the warehouse are –

All inward taken is on the basis of the Security Check, Supervisory

Check and Sorting & Binning

Inward register has to be maintained for all goods received within the

warehouse

Goods received will be accompanied by the approved PURCHASE

ORDER, DELIVERY CHALLAN, TAX INVOICE billed in the name

ABCTCL- Xpress Division

Check for manufacturing date and expiry date

GRN should be prepared for all the items and a copy of the same must

be filed at the branch level for records along with MIN number as

reference.

Original documents such as INVOICE, GRN, PO, VENDOR

REJECTION NOTE, and DBIT NOTE with customer/ supplier

signature are sent to the Head Office for payment process and

duplicate copies are sent to the branch offices for record purpose.

Audit is conducted weekly or fortnightly or monthly basis to have a better

control of the stocks of all the regions. All pending entries, Manual Delivery

Challan and necessary updating have to be completed before conducting the

audit.



The following diagram represents the Dispatch process:

INDENT

CHECKING AND

APPROVAL

PICK LIST

DELIVERY CHALLAN

VERIFICATION OF

DOCUMENTS

SECURITY OUTWARD

REGISTER (MON)

ACKNOWLEDGED

DOCUMENTS

FILING



Indents are prepared based on the given route plan. They are raised by the

bean buddies at the outlet as and when requirement arises. An Indent

contains particulars such as – Name of the Outlet, Date, Product Description,

Closing Stock, Consumption and Requirement details.

Once the Indent is received from the respective outlet, thorough checking has

to be done on the availability/ quality of the stocks and allocate the quantity

as per the availability. Indent will be punched on the system after checking.

The Purchase Order (PO) is raised once the Indent is checked and approved

by the warehouse manager.

The warehouse manager then raises a Delivery Challan (DC) stating the

quantity of goods which are being transported, along with the date of

dispatch, vehicle number, etc. it is an important document for any dispatch

of material.

The manager has to check for all the necessary documents of the vendor and

verify them form a definite source before purchasing goods from the

concerned vendor.

Just like the Securities Inward Register, the Security personnel at the CDX

warehouse maintains a Securities Outward Register to supervise the quantity

and type of products being dispatched. He also gives a (MON) Material

Outward Number to every category of products serial wise. The details such

as name of the consignee, product, quantity of stocks dispatched with total

number of boxes, vehicle number and driver‟s signature are obtained.

The filing of certain legal documents, statutory in nature, by the CDX SCM

Department is absolutely necessary before dispatch of any category products,

such as – Stock Insurance, Transit Insurance, Sales Tax Branch Certificate,

Municipal Corporation Health Certificate, Labor Department Certificate.

This register gives complete information on all the goods which have been

moved out of the warehouse.

Acknowledged documents for local supplies include delivery challan with

name and signature of the bean buddy along with the kiosk stamp, the date



of receipt and discrepancy comments if any. Daily dispatch log sheet filled by

Bean Buddy along with time of receipt of goods.

(3.3) HIERARCHY

PRESIDENT, CDX

MANAGER, SCM

REGIONAL/ ASSISTANT MANAGERS

SENIOR GENERAL MANAGER

SENIOR EXECUTIVES

EXECUTIVES

JUNIOR EXECUTIVES

MANAGEMENT TRAINEES



(3.4) SCM STRUCTURE

BANGALORE

(MOTHER WAREHOUSE)

EAST NORTH SOUTH WEST

KOLKATTA

(MAIN

REGIONAL

WAREHOUSE)

DELHI/

NOIDA

GURGAON

(MAIN

REGIONAL

WAREHOUSE)

CHANDIGARH

JAIPUR

BANGALORE

(MAIN

REGIONAL

WAREHOUSE)

MYSORE

HYDERABAD

CHENNAI

GOA

MUMBAI

(MAIN

REGIONAL

WAREHOUSE)

PUNE

SURAT

NAGPUR

BHILAI



The mother warehouse consists of a - Warehouse Manager, 3 Executives,

Warehouse Supervisor and warehouse employees or operating staff.

(3.5) VENDOR SPECIFICATIONS

There are quite a few specifications that a vendor has to submit to the SCM

Department before he is finalized for the order. Coffee Day Xpress has its own

product requirement and specification sheet. Most of the products of all divisions

cater to the ABCTCL (the parent company) specifications. In response to these

specifications, each vendor has to submit:

1. His own product specification sheet, which would include;

Type of the product to be supplied

Source of the raw material in case the vendor has a manufacturing

unit and even in case of procuring from other units.

Aesthetic points about the product such as – weight, height,

dimensions, holding capacity, etc)

2. Quotation sheet;

The quotation sheet contains vendor details such as – Company/

Billing Address, Outlet Address, Tax number (both VAT & CST) for

authenticity.

Product information such as – Product Specifications, Physical

parameters, Production Details, Rate of the Product, Packaging

Details, Product Dispatch Details.

Contact details of the vendor/ supplier such as – Phone Number (it is

generally stipulated by the SCM Dept. that the vendor must give two

phone numbers), E- Mail, Fax Number, etc.



The vendor may also provide for any supporting documents along

with the quotation sheet, especially in situations when the vendor

demands a hike in the price of the products to be supplied. Such

documents lend authenticity to the quotations.

3. Cost Break – up Sheet, which should contain the following components;

Cost of raw material per unit

Cost of processing of material

Wastage in %

Cost of packaging of material

Transportation Cost

Total cost excluding margin and tax

Margin in %

Tax in %

In case of any implications of any increase or decrease in costs of any direct and

indirect components affecting production, the same must be communicated to the

SCM Department in order to bargain for any authentic price hike. Documents

supporting such hike must be attached with the costing sheet showing reasonable

comparison between the existing and the proposed cost of the product.

(3.6) PRODUCT CATEGORIES

The SCM Department at Coffee Day Xpress deals 7 categories of products, namely:

1. Consumables

2. Counter equipment

3. Food & Beverages

4. Packing Material



5. Advertising Material

6. Merchandise Products

7. Capital Items

8. Housekeeping

However the first four categories constitute the major portion of the functioning of

the SCM Department.

PRODUCT CATEGORY ITEM NAMES

1. CONSUMABLES

CAKE BOX (HALF KG)

CAKE BOX (ONE KG)

COLD CUPS (250 ML)

COLD CUPS 200ML

COLD LID 250ML(DOME SHAPE)

COLD LID DOME-200ML

DOILY PAPER (RECT)

HOT CUPS (150 ML)

HOT CUPS (200 ML)

HOT CUPS (250 ML)

HOT CUPS 110ML

HOT LIDS 200 ML

HOT LIDS (250 ML)

MILK CRATES

PAPER BOWLS

PAPER PLATE

PAPER POUCH

PL HAND GLOVES

SPOON

STIRRERS

STRAWS

THERMAL ROLL

TISSUE



2. CONTER EQUIPMENT

BOWL

COFFEE BEAN CONTAINER

COOKIE JAR

CRATE LID 600 SERIES

CUTLERY TRAY

DISPENSER TABLE TOP

DISPLAY PLATE (RECT)

FOOD CRATES

JUG (2 LTR)

KNIFE

MEASURE (2 LTR)

MEASURE (50 ML)

MEASURE 500 ML (PLASTIC)

MUG

PASTRY TONGS

SCISSORS

SERVICE TRAY

SLICER

SPRAY GUN

STOREWELL CONTAINER

SYRUPS PUMP

3. FOOD & BEVERAGES

BOOST SACHET (15 GMS)

CARDOMOM TEA BAGS

CHOCOLATE SYRUP

CITRIC ACID

CITRIC ACID (ANHYDROUS)

COFFEE BEANS XPRESS BLEND (1

KG)

COFFEE CONCENTRATE (500 ML)

COFFEE PREMIX (1KG)

COMMON BASE (500 GMS)

DAIRY WHITENER

EQUAL SUGAR

GINGER LIME SYRUP SATCHET

20ML

GINGER PREMIX 1 KG

GINGER TEA BAGS

HORLICKS SACHET (10 GMS)



INSTANT COFFEE – NESTLE

INSTANT KHARA BATH (100 GMS)

INSTANT LIME AVALAKKI (100 GMS)

INSTANT TEA

INSTANT TEA _TATA

KESAR ELAICHI PREMIX 27GM

KIWI SATCHET (20 ML)

LEMON GARLIC SOUP (6 GMS)

LEMON PREMIX 1 KG

LEMON TEA BAGS

LEMON TEA PREMIX 500 GMS

MALIC ACID

MALTO DEXTRINE

MANGO SYRUP 20 ML

MASALA TEA BAG

MINERAL WATER (1 LTR)

MINERAL WATER (500 ML)

MIXED VEG SOUP

MOJITO SYRUP 20ML

MUG NOODLE CHICKEN

MUG NOODLE MASALA

MUG NOODLE VEG

ORANGE SYRUP 500 ML

ORANGE SYRUP SATCHET (20 ML)

PLAIN TEA BAGS

SAFAL ALPHONSO MANGO PULP

20KG

STRAWBERRY SATCHET (20 ML)

SUGAR -S 30

SUGAR FREE GOLD

SUGAR SACHETS (5 GMS)

TEA PREMIX -500 GM

TEA PREMIX 1KG

THICK SHAKE BASE SATCHET 15

GM

TOMATO KETCHUP (10 GMS)

TRUSIL LEMON SPL

WAI WAI 123 VEG

WAI-WAI-123-CHICKEN

4. PACKING EQUIPMENT

AMLA SYRUP LAMINATE ROLL

BROWNIE STICKER



BURGER STICKERS (NON VEG)-

BURGER STICKERS (VEG)

BURGER TRAY

CAKE BOX 7*7

CAKE BOX 9*9

CHICKEN KATHI ROLL

CHICKEN MAYO BURGER STICKER

COFFEEBEAN PACKING LAMINATE

CORRUGATED BOX (EMPTY BOX)

CORRUGATED BOX WITH CALIQUE

FRESH FRUITS STICKER

FRESHNESS VALVE

GINGERLIME PACKING LAMINATE

HEALTHY CHEESE N TOMATO S/W

LEMON ROLLS

MANGO SYRUP LAMINATE

MEXICAN CHEESY DELIGHT S/W

ORANGE PACKING LAMINATE

PACKING TAPE

SANDWICH (NON VEG)

SANDWICH (VEG)

SANDWICH BOXES WITH LID

SPICY CHICKEN S/W

SUBMARINE (NON VEG)

SUBMARINE (VEG)

VEG KATHI ROLL

VEG MAYO BURGER STICKER

VEG TIKKA S/W

5. HOUSEKEEPING

BROOM WITH STICK

BUCKET

CHECK CLOTH

CLEANING LIQUID

GARBAGE COVER



GARBAGE BAGS

MOP CLOTH

MOP REFILL SET

MOP STICK

PHENOIL

SCRUBBER

WIPING CLOTH



CHAPTER 4

SWOT ANALYSIS



(4.1) STRENGTHS:

1) VERY GOOD BRAND NAME OF COFFEE DAY

Coffee Day has emerged as a leader in its field and therefore has created its own

brand name for being the only vertically integrated coffee organization. Coffee Day

has always believed in – “The smarter. . . The better”. Different divisions, different

businesses, and diverse focus areas, that is Coffee Day Group.

2) FAST AND QUICK SERVICE

CDX caters to the mobile population of the city, who are always on the move, always

in a hurry. Coffee Day Xpress believes in keeping it “short and simple”. The

convenient and quicker modes of service provide the people a smarter and efficient

way of staying ahead of time.

3) MAJORITY OF THE EMPLOYEES ARE YOUNG AND

DYNAMIC

One of the most striking features of the CDX division is that it comprises of young

and dynamic team whose hard work has paid dividends in the form of the number

of kiosks that are opening in around 20+ cities in India. A majority of the Bean

Buddies operating in the outlets of CDX are roughly around 20 – 24 years

4) COFFEE DAY XPRESS HAS A GOOD RELATIONSHIP

WITH THE FRANCHISEE



More than half of the kiosks of Coffee Day Xpress are franchisee owned outlets.

This itself is a telling story of the kind of encouraging relationship that CDX has

with its franchisor. CDX has been awarded with – “Best Franchisee growth driver

of the year” (2008) and also the “Best Franchisee of the year” (2008). CDX is aiming

at adding 10 new franchisees to its wing every year.

5) COFFEE DAY XPRESS HAS GOOD NUMBER OF

OUTLETS IN MANY PLACES OF THE COUNTRY

Coffee Day Xpress has its presence in 20+ cities with over 900 outlets all over the

country. The company is also planning to touch the 1000 mark very soon. Coffee

Day Xpress is perhaps the only national coffee brand that is capturing the

imagination of the modern resurgent India with its growing presence in Shopping

Malls, Multiplexes, Corporate, Supermarkets, Airports, Railway Stations,

Educational Institutions, etc.

6) HYGIENIC, TASTY AND QUALITY PRODUCTS

Coffee Day Xpress provides fresh, fast, tasty, hygienic, and convenient-to-eat and

affordable food & beverages. The F&B Department at CDX takes great care that no

leftover food item of the present day will be served the next day, since most of the

food items that the CDX deals with are perishable item which have a smaller shelf

life.

7) STRONG MOTHER BRAND RECOGNITION

Coffee Day has emerged as a leader in its field and therefore has created its own

brand name for being the only vertically integrated coffee organization. Coffee Day



has always believed in – “The smarter. . . The better”. Different divisions, different

businesses, and diverse focus areas, that is Coffee Day Group.

8) NO ATTRACTIVE AMBIENCE AND DÉCOR

Coffee Day Xpress kiosks do not have an attractive ambience, nor do they spend too

much on decoration. Their main funda is to keep it short and simple. An efficient

and delightful format kiosk that serves hot and cold beverages and a variety of food

items for the people in transit/ move. The kiosks occupy somewhere between 80 –

120 sq.ft of business space.

9) SELF GROWN COFFEE USED IN BUSINESS

Coffee Day takes pride in the home grown coffee, i.e. CHIKMAGLUR. It has

become an icon for good coffee. Coffee Day is a prominent force in the coffee

industry by maintaining quality coffee blends through extensive Research &

Development

(4.1) WEAKNESS:

1) Business is concentrated and dependent more around corporate offices

and shopping malls, educational institutions though they have identified

lots of other locations.

2) Concentrate only on prime locations and cosmopolitan cities.

3) Targets only youths and executives.

4) Same variety of food and beverages or menu in almost every outlet.

5) Prices are relatively higher than the local coffee/ tea stalls.

6) Mainly in the colleges estimating daily demand is very difficult.



7) Unable to control excess wastage.

8) Many outlets are not set up in a central place of a location.

9) Lack of proper display of ads in many outlets.

(4.2) OPPORTUNITIES:

1) LESS COMPETITION

As there are few players, Coffee Day Xpress has wide market availability.

2) FLEXIBILITY TO VENTURE TO NEW AREAS

Open option of venturing into other potential cities. Newer cities will expose Coffee

Day

Xpress to more Franchisors, thereby creating and driving a huge franchisee growth

which would also help them to increase their number of kiosks.

3) INCREASING BRAND AWARENESS

Since Coffee Day is situated only in big cities, CDX can expand its business to small

cities. This is one opportunity that CDX has as it can take the COFFEE DAY brand

to the interiors of the country. It gives the company a further chance to expand and

diversify its existing business

4) LESS COMPETITION



As of now there is no big competitor for Coffee Day Xpress. With the kind of

business they are into there is no big competitor as such. Hence they have the

flexibility to experiment.

5) YOUTH ORIENTATION

Coffee Day Xpress has a good opportunity to serve young people, because if they

become loyal to it, Coffee Day Xpress can enjoy continuous relationship. Coffee day

Xpress has always believed that that their biggest brand ambassadors are the youth

that they are targeting to. They are the most impacted customers and offer the most

brand loyalty, and there are an equally large number of them working in corporate

business firms.

6) INCREASING COFFEE CONSUMPTON

In India coffee consumers are increasing and also people are getting busy day by

day, hence the concept of Coffee Day Xpress attracts more takers. This especially

holds good for corporate employees who have to stay efficient while at work and a

quick and refreshing coffee is what they look forward to.

(4.2) THREATS:

1. Few main competitors like Barista, Fusion Espresso (TATA), Costa are

immediate threats to Coffee Day Xpress. Entry of these players into the

market will lead to a very competitive price war as all these companies

command a very brand in the market.



2. Many foreign players have entered in coffee retailing market. E.g. Star

Bucks.

3. In few outlets existence of other coffee vending machines, which serves free

coffee to employees by the companies, becomes threat for the Coffee Day

Xpress and Beverages.

4. Threat from neighboring coffee bars selling coffee at a lesser price than

Coffee Day Xpress.

5. Threat from location owners, because they can hike rent for their place

where Coffee Day outlets are setup.

(4.3) PROBLEM IDENTIFICATION AND SOLUTION

Department – Supply Chain Management

Problem Diagnosed:

Unsystematic storage of database and scattered information regarding;

Product Specification

Vendor Details

Cost Sheets

No structured format was in use

No documentation of records regarding product categories and new product

developments after rebranding. The existing database consisted of products

pictures with old logo and also products which were not being procured or

used by CDX in any of the outlets.

Space consumption in the mother warehouse in Bangalore, was according to

my observation, was another problem area. There are certain areas which

are occupied by unused boxes thereby creating the space shortage.



With respect to the database, I was assigned the task to prepare a systematic

database according to a prescribed format.

The first step involved was collection of information about products of all

product categories, which involved meeting with various category

executives from other division and collecting specification sheets,

packaging details, costing sheets, quotation formats, vendor details.

I also had to take the photographs of all the products with the present logo

and color print.

I assembled the entire information and created a database for all the

products according to a set format which would be easier for the SCM

Executives to store and retrieve any information they want at any time.

In another word document, I listed all the product categories along with the

products and created hyperlink with the consolidated database sheet.

SUGGESTIONS

Remove or relocate the unused stock, which is blocking the floor area in the

warehouse.

Capital Items should be kept in a more systematic way. This would enable to

utilize the floor area better.



CHAPTER 5

FINDINGS AND

CONCLUSION



FINDINGS

1. One of the major strengths of the organization, which they really feel proud

off, is that employees have the satisfaction, freedom, and the opportunity to

do their best at work.

2. The one very good thing about CDX is that the superiors and subordinates

are in direct communication with each other.

3. The reasons for such positive results for the company have been mainly

achieved by strong and dynamic leadership of the President, as well as Heads

of Departments.

4. Great care is taken by Coffee Day Xpress that they cater to every need and

criteria‟s with regards to procurement, storage, supply and serving of Food

& beverages. The Quality Team at CDX ensures that all specifications are

met.

5. Employees are provided with compensation and benefits, Training &

Development, periodic performance appraisals as and when required.

6. The Managers are very particular about their work and go about their job in

a very professional manner.

7. Regular and consistent feedback is taken by the Managers from their

subordinates (Regional/ Assistant Managers) regarding execution of the

work, and performance evaluation.

8. CDX maintains good healthy relations with all its vendors and franchisees

across the country. No wonder CDX looks to add more franchisor to their

already existing list.



CONCLUSION

This study was undertaken to understand and analyze the business processes

and functioning of various departments at Coffee Day Xpress. A unique concept in

itself, Coffee Day Xpress aims at feeding the world that‟s continuously in transit

through a convenience café format of business. Its Unique Selling Proposition

bridges the need gap between the leisurely cup of coffee and the stop at the café.

CDX caters to the mobile population of the city, who are always on the move,

always in a hurry. Coffee Day Xpress believes in keeping it “short and simple”. The

convenient and quicker modes of service provide the people a smarter and efficient

way of staying ahead of time. Coffee Day Xpress is into the segment of Food &

beverages and the nature of business carried is the concept of take away where

hurried people can have refreshment at Xpress in between their busy work

schedule. Coffee day Xpress runs many outlets on its own and no sharing of risks

and profits with third party. In addition, it has franchisee network, where it gives

franchises to others.

One of the most striking features of the CDX division is that it comprises of

young and dynamic team whose hard work has paid dividends in the form of the

number of kiosks that are opening in around 20+ cities in India. Strategically

positioned kiosks where a customer can not only grab a quick bite. Xpress gives

emphasis to quality and the freshness of the product as well as affordability. Coffee

Day Xpress provides quick and delightful services. The reason for Coffee Day

Xpress to stand out is the personal commitment from the members, i.e. staff at all

levels.



BIBLIOGRAPHY

Coffee Day Xpress Departmental Reports

Briefings from Managers/ Asst. Managers of individual departments

www.coffeedayxpress.com

www.wikipedia.org

www.coffeeday.com

www.cafecoffeeday.com

www.coffeedaybeverages.com

www.coffeedayfng.com

www.coffeedayexport.com

http://www.coffeedayxpress.com/

http://www.wikipedia.org/

http://www.coffeeday.com/

http://www.cafecoffeeday.com/

http://www.coffeedaybeverages.com/

http://www.coffeedayfng.com/

http://www.coffeedayexport.com/