Arena Aroma Franchises Established Control Mechanisms

Arena Aroma Franchises Established Control Mechanisms

In the endless changing customer service industry, control mechanisms need to be established for all organizations of today. According to Bateman & Snell (2004), the three systems an organization can integrate are Bureaucratic, Market, and Clan. Organizations can use a combination of all three systems, or based off of just one, to help establish a successful control system. Arena Aroma has established mechanisms based off both the Bureaucratic and Market control systems. Arena Aroma's established mechanisms oversee the following: (1) areas that must be monitored, (2) established control standards, (3) control standards implementation, (4) monitoring and measuring of results in relation to expectations, and (5) necessary corrective actions and feedback. The material below will explain these established mechanisms of Arena Aroma, and how each are applied within the organization's franchises'. The control mechanisms Arena Aroma headquarters and franchise owners' and managers' implement will establish a profitable franchise.

In quality organizations, control measures are installed to measure how the company performs, what improvements must be made to maintain success, and to regulate what changes need to be made to become better. Some of the key areas that need control are customer satisfaction, productivity, budgeting and profitability, employee satisfaction and employee performance, and employee turnover and complaints.

The first and foremost standard to monitor is customer satisfaction. Ultimately, without good customer satisfaction and quality customer service any company would cease to exist. If customers walk away from a service establishment and do not feel that they have received the quality service they expected, they are almost guaranteed not to return to the same location in the future. According to Daniel Hays, writer and researcher for the National Underwriter, "the paramount guiding force is making that customer happy" (Hays, 2006, para. 5). If the customer is happy about the goods or services rendered, the location of business will be a fun and exciting place to be. It will be noticed by the customer and employee alike. An atmosphere is created where all are happy together. In light of this, there are items that should be monitored to measure how overall customer satisfaction is within an organization such as comment cards, surveys, and questionnaires. Arena Aroma has created simple ways for customers to give the organization feedback on how there coffee experience has been. Not only are comment cards and feedback available and welcome onsite, but the organization has created a way for individuals to give comments and feedback online. The organization has established survey cards to not only find out how our products are, but how friendly and attentive the staff was in providing service to them. The survey also asks how quickly they were served, how clean the establishment was, and what group or organization they were representing. Based upon these and several other questions, the company is able to make adjustments accordingly. If we find that a particular location is having longer lines and longer wait times that are excessive, recommendations and improvements can be made to help satisfy customers in that particular location.

Productivity and efficiency is also a fundamental area to monitor, especially in locations where large groups of customers may seek service in minutes. It is important for the various locations to accommodate customers in a timely manner without sacrificing service or quality. Simple steps can be taken to monitor product sales and revenue generated at particular locations and at particular times. As with any good organization, a good business knows when its peak revenue times are, the type of clients they generate business from, and the amount of revenue expected from these individuals or groups. For Arena Aroma, the goal is to provide goods and services in an efficient manner. To do this, measurable steps have been taken to provide the most efficient steps possible. Managers staff employees according to events and groups being held at particular locations, products and materials are readily available, and communication is established not only between management and staff, but also at various locations to ensure that backup services can be provided if necessary.

Another key measurable area in an organization is its profitability and ability to budget. If an organization fails to plan ahead monetarily, failure is also inevitable. Areas such as pricing, employment costs, business leases, franchise fees, and inventory costs must be measured and accounted for to ensure the long-term success of the organization. By budgeting and accounting for revenues created, Arena Aroma monitors its sales and cost centers. Budgets are created in reflection of groups and events that have been scheduled to provide goals for the organization financially. Follow up accounting information allows the organization to make adjustments based upon revenue and costs during these periods to maintain lower costs and increase profitability.

The last key control area that Arena Aroma has focused on is the importance of hiring and maintaining quality employees. The company understands that in order to provide genuine service, the organization must be able to have competent and friendly staff to assist the customers in providing a positive experience. As with any service establishment, the employees are the first interaction that the customer has with the business. Poor employee interaction with one another as well as with customers will ruin a business. Arena Aroma understands that, although the business operates in stressful environments, it must hire knowledgeable and caring employees who will be willing to go the extra mile to help a customer. As mentioned previously, the guiding force in an organization must be to make the customer happy. One of the best ways to make the customer happy is by making the employees happy and comfortable also. Studies have shown that the most satisfied employees are those who feel that they are contributing to the organization. One such study by Joan Lloyd states that most employees who enjoy their occupations respond by saying "I like to be challenged," "I like to feel that I am making a contribution."(Lloyd, 2006, para. 3). Lloyd also notes that most employees do not see salary or benefits as being the key determinate for employment. Arena Aroma has created a checklist in hiring practices to find individuals who are willing to work hard and go the extra mile for the customer. They believe that finding individuals who like and seek high-stress situations will create the best atmosphere for customers. The organization also understands the