Formal report on the current management challenges faced by FreshChoice and the
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of
FreshChoice.
Introduction:
m
FreshChoice is a UK supermarket company that has been operating for 10 years and competes
with well-known supermarkets such as Tesco, Sainsbury’s and Asda. Over the last 10 years the
co
business has been able to grow, by expanding the number of stores throughout the UK and
increasing its market share. The business aims to achieve three business goals; to become one
s.
of the top five supermarkets in the UK by sales revenue by 2030, to achieve a customer
satisfaction rate above 90% and to reduce labour turnover to below 30%. However, progress
te
towards these business goals is limited as FreshChoice currently faces several management
challenges from the lack of training that has caused employees to not be able to complete the
no
duties of their job effectively to the overreliance on full-time staff causing the business to be
inflexible. Therefore, this report sets out to analyse the current management challenges faced
ss
by FreshChoice and provide the management of the business with a set of justified proposals
and recommendations to overcome the challenges and ensure the business goals are
ne
successfully achieved.
Current management challenges faced by
si
bu
FreshChoice
ec
1.Lack of Training
bt
The first management challenge faced by FreshChoice is a lack of training. This has manifested
in two ways; inconsistent training and a complete lack of training. While there is an online
learning platform called “FreshChoice Click and Learn”, employees are often expected to
complete the training at home due to the lack of technology in store. Furthermore, several
stores do not check if employees have completed or passed the training and so there is little
engagement. Paired with the fact that employees often begin their roles feeling unprepared to
© BTEC Business Notes | btecbusinessnotes.com
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For college/institutional use or distribution, contact:
1
, meet customer expectations or perform key duties of their jobs confidently, the current state of
training at FreshChoice is inconsistent. Employees feeling unprepared to perform the duties of
their role effectively means that they are unable to provide customers with an excellent level of
service, which could be the cause behind the feedback data in Figure 1 that showcases that
only 41% who say they do not receive excellent service and only 50% of customers are
satisfied. A lack of training is present with the new technology to improve stock control and
wastage as only very few employees across several stores have the knowledge and skills to
om
operate it. This has caused the technology to be used incorrectly and subsequently caused
empty shelves, inaccurate deliveries and stock inconsistencies that are likely driving the
statistics that 36% of customers disagree or strongly disagree that the product they want is
.c
always available.
es
Ultimately, this lack of training is directly harming the experience and satisfaction of customers
as its resulted in worsened customer service provided by employees and often means that
ot
customers cannot purchase the products they want due to stockouts. Consequently, this
negatively impacts the business goal to improve customer satisfaction to 90% as the workforce
sn
currently do not have the necessary skills required to satisfy the customers of FreshChoice. This
also makes it harder for FreshChoice to continue growing their revenue and become a top five
es
UK supermarket store, as less satisfied customers will begin to shop at their competitors instead
causing them to lose revenue and market share.
in
2.Lack of Career Progression Opportunities
us
The lack of career progression opportunities at FreshChoice is another critical management
challenge and is caused by several factors. One factor is the flat organisational structure of
b
FreshChoice that is charactersied by few layers. Although this structure can improve
ec
communication and therefore reduce costs, it can also reduce the amount of vertical career
progression offered to employees as there are simply not many roles employees can be
bt
promoted into. However, a more significant driver of this challenge is the fact that there are no
graduate or management development pathways and that the business always hires externally
when job opportunities arise, rather than promoting staff from their own workforce. This has
directly resulted in higher labour turnover, which is currently 45%, much higher than the industry
average of 30% and therefore worsens the progress to achieve the reduced labour turnover
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of
FreshChoice.
Introduction:
m
FreshChoice is a UK supermarket company that has been operating for 10 years and competes
with well-known supermarkets such as Tesco, Sainsbury’s and Asda. Over the last 10 years the
co
business has been able to grow, by expanding the number of stores throughout the UK and
increasing its market share. The business aims to achieve three business goals; to become one
s.
of the top five supermarkets in the UK by sales revenue by 2030, to achieve a customer
satisfaction rate above 90% and to reduce labour turnover to below 30%. However, progress
te
towards these business goals is limited as FreshChoice currently faces several management
challenges from the lack of training that has caused employees to not be able to complete the
no
duties of their job effectively to the overreliance on full-time staff causing the business to be
inflexible. Therefore, this report sets out to analyse the current management challenges faced
ss
by FreshChoice and provide the management of the business with a set of justified proposals
and recommendations to overcome the challenges and ensure the business goals are
ne
successfully achieved.
Current management challenges faced by
si
bu
FreshChoice
ec
1.Lack of Training
bt
The first management challenge faced by FreshChoice is a lack of training. This has manifested
in two ways; inconsistent training and a complete lack of training. While there is an online
learning platform called “FreshChoice Click and Learn”, employees are often expected to
complete the training at home due to the lack of technology in store. Furthermore, several
stores do not check if employees have completed or passed the training and so there is little
engagement. Paired with the fact that employees often begin their roles feeling unprepared to
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
1
, meet customer expectations or perform key duties of their jobs confidently, the current state of
training at FreshChoice is inconsistent. Employees feeling unprepared to perform the duties of
their role effectively means that they are unable to provide customers with an excellent level of
service, which could be the cause behind the feedback data in Figure 1 that showcases that
only 41% who say they do not receive excellent service and only 50% of customers are
satisfied. A lack of training is present with the new technology to improve stock control and
wastage as only very few employees across several stores have the knowledge and skills to
om
operate it. This has caused the technology to be used incorrectly and subsequently caused
empty shelves, inaccurate deliveries and stock inconsistencies that are likely driving the
statistics that 36% of customers disagree or strongly disagree that the product they want is
.c
always available.
es
Ultimately, this lack of training is directly harming the experience and satisfaction of customers
as its resulted in worsened customer service provided by employees and often means that
ot
customers cannot purchase the products they want due to stockouts. Consequently, this
negatively impacts the business goal to improve customer satisfaction to 90% as the workforce
sn
currently do not have the necessary skills required to satisfy the customers of FreshChoice. This
also makes it harder for FreshChoice to continue growing their revenue and become a top five
es
UK supermarket store, as less satisfied customers will begin to shop at their competitors instead
causing them to lose revenue and market share.
in
2.Lack of Career Progression Opportunities
us
The lack of career progression opportunities at FreshChoice is another critical management
challenge and is caused by several factors. One factor is the flat organisational structure of
b
FreshChoice that is charactersied by few layers. Although this structure can improve
ec
communication and therefore reduce costs, it can also reduce the amount of vertical career
progression offered to employees as there are simply not many roles employees can be
bt
promoted into. However, a more significant driver of this challenge is the fact that there are no
graduate or management development pathways and that the business always hires externally
when job opportunities arise, rather than promoting staff from their own workforce. This has
directly resulted in higher labour turnover, which is currently 45%, much higher than the industry
average of 30% and therefore worsens the progress to achieve the reduced labour turnover
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
