INTRODUCTION TO BUSINESS FINAL REPORT

OPERATIONAL MANAGEMENT OF MR. LIKE CAFE

Lecturers:
Jovita Angela, S.Si., M.Sc.
Anggraeni Pranandari, S.E., M.Sc.

Compiled by :
Annisa Luvy (516224)
Muhammad Devandy Ahzaravy (516212)
Devonn Emmanuel Kho (516211)
Sarah Azizah (516191)
Kayla Sayidina Putri (516222)

FACULTY OF ECONOMIC & BUSINESS

GADJAH MADA UNIVERSITY
YOGYAKARTA
2023
 I. Background

The owner of Mr. Like is a former member of the Harley Davidson Club. It can be seen that he
implemented his hobby and experience into the design of this cafe. This cafe is built to provide
students from universities around Mr like to do their activities such as meeting, studying, etc.
The fusion of the owner's personal interests and the cafe's purpose reflects a dedication to
providing an engaging and conducive environment for the local academic community.

II. Theory and Concept

Operational Management

The concept we mainly focused on during the research is the Operational Management of our
object, Mr. Like. The idea of operational management can be defined as the administration of
business operations within an enterprise to achieve the best quality products and services. It is,
therefore, involved with the most effective conversion of materials and labor into products and
services to maximize an organization's profitability (Economics Times, 2023). There are two
steps of operational management:

1. Planning
- Capacity Planning: Planning the amount of a product a company can produce
under normal conditions. (Capacity<Demand = turn away customers;
Demand<Capacity = wasting money on maintaining facilities).
- Method Planning: Identifying each production step and the specific methods for
performing it.
- Location Planning: a process that helps evaluate the impact of location on the
consumer buying process.
- Layout Planning: Planning the physical location or floor plan for service centers,
machinery, equipment, customers, and supplies.
- Quality Planning: ensuring that products meet the firm’s and customers’ quality
standards.
2. Scheduling
- Master Scheduling: assigning which services or products will be produced and
when in upcoming time periods. It also helps the manager to determine the kinds
of resources that will be needed for each upcoming week.
- Detailed Scheduling: showing daily work assignments with start and stop times
for assigned jobs at each workstation.
- Staff Scheduling: assigning working times in upcoming days—perhaps for as
many as 30 days or more—for each employee on each work shift.
- Project Scheduling: consists of creating and managing a schedule to organize the
tasks, deliverables, and milestones of a project on a timeline.
All of the mentioned planning and scheduling components in operational management solely
generate positive outcomes from the holistic part of the operational side of the business, such as
maximizing and gaining efficiency improvement, cost reduction, customer satisfaction, and
competitive advantage.

In summary, operations control/management is a multifaceted subject important for the success

of any organization. It includes a strategic technique to designing and controlling techniques to
deliver services and products successfully, assembly patron expectancies, and retaining a
competitive edge within the marketplace.

SWOT Analysis

To identify what operational strategy Mr. Like should implement, we can efficiently create
strategies with the help of SWOT Analysis. A SWOT analysis is a planning process that helps
your company overcome challenges and determine which new leads to pursue. “SWOT” stands
for strengths, weaknesses, opportunities, and threats. Performing a SWOT analysis before you
commit to any sort of company action is necessary, whether you are exploring new initiatives,
revamping internal policies, considering opportunities to pivot, or altering a plan midway
through its execution (Business News Daily, 2023). By analyzing Mr. Like's strengths,
weaknesses, opportunities, and threats, we can identify what aspects of Mr. Like as a business
need to improve, guard, use as an opportunity, and threats that they should be aware of.

In doing a SWOT Analysis, we should be aware of the differentiation between internal factors
(Strengths and Weaknesses) and external factors (Opportunities and Threats). Internal factors of
the business refer to the characteristics and capabilities within the organization’s control, such as
financial, human, and physical resources. External factors are the outside environment of the
business that influence the business to implement strategic responses to adapt or capitalize on
them, such as market and economic trends. Consequently, the analyzed business's internal and
external known factors should be accounted for and assessed in the SWOT analysis.

After each consequent SWOT Matrix is filled with the respective aspects, recommendations for
the business need to be formulated. The resulting strategies will give insights into how the
company could cope with/manage its negative factors and positive factors. The result could also
act as a decision-making aid. It can help prioritize actions, develop strategic plans that match
your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a valuable
tool for setting objectives and creating a roadmap for achieving them ( Raeburn, A., 2023).
Organizational Structure

Knowing Mr. Like's organizational structure is necessary to understand how they organize their
activities and how they are designed to achieve their organizational objectives. The
organizational structure also explains the relationships and the distribution of responsibilities and
authority within the organization that impacts how information flows. Numerous types of
organizational structures differ from business to business. Here are four following key types of
standard organization structures:

1. Hierarchical Organizational Structure: a vertical structure where employees report to

supervisors, and supervisors say to higher levels of management.
2. Centralized and Decentralized Structure: A centralized structure is where authority
only lies at the upper-level management/top of the organization. A decentralized structure
is where authority is distributed across various levels of the organization.
3. Departments and Divisions: a structure that divides the organization by functions
(Functional) or semi-autonomous units based on products, geographic regions, or
customer segments (Divisional).

Once the foundational elements are clearly understood, the business must assign responsibilities
and establish accountability in each part of the organization where specific individuals or teams
are designated to handle specific tasks and simultaneously conferring those who have authority
that empowers these individuals. Elaboratively, by setting expectations and standards,
individuals undertaking responsibilities are held responsible for their actions and the output they
produce. A successful organizational structure defines each employee's job and how it fits within
the system. The organizational structure lays out who does what so the company can meet its
objectives (Kenton, W. et al., 2023). Hence, when every responsibility is carried out carefully,
the given organizational structure will nurture feelings of ownership, dedication, and
independence within the organization, thus leading to a more agile and responsive organizational
framework.
III. Analysis

After interviewing Mr. Bambang as the manager of Mr. Like Cafe, our team can conclude a
few things, such as Mr. Like’s organizational structure, operational controls, quality
improvement, and quality management. But before we delve into the Operational Controls, our
team first needs to know the Strengths, weaknesses, opportunities, and threats of Mr. Like to
further concisely analyze the operational control that resonates with Mr. Like’s SWOT Analysis.
After doing the analysis independently, here is the following SWOT analysis diagram that our
team holistically evaluated:

It can be seen from the diagram above that one of Mr. Like’s strengths is the good and strategic
location. However, before they chose Jl. Gambir, Kocoran, Caturtunggal, Kec. Depok,
Kabupaten Sleman, and D.I Yogyakarta as the spot for their cafe. Mr. Like’s management team
did location planning, which is classified as operation planning. By doing location planning, Mr.
Like may be able to produce low-cost products, or in consumer services, Mr. Like can
concentrate on being located near customers. Hence, Mr. Like is located near the students’
densely populated area, with their main customer targets being students who do activities such as
meetings, studying, etc.

There are various scheduling operations, each with its own operations, in Mr. Like's company.
One of them, the master operations schedule, lists the services and goods that will be produced in
the future. It also assists the management in figuring out what kinds of resources are going to be
required for each future week. In addition to comprehensive timetables, there are schedules that
display daily tasks together with the start and end periods of the jobs allocated to each
workstation.

Every employee has a personal schedule. Staff schedules, in general, outline the designated
working hours for each employee throughout each work shift in the coming days—possibly for
as many as thirty days or additional information. Lastly, project scheduling is employed
whenever a new project is undertaken. Creating and maintaining a timetable to arrange a
project's work, deliverables, and milestones on a timeline is known as project scheduling.

From the interview conducted we also find out Mr. Like operation planning. We stated
before that operation planning is divided into 2 categories, these are our analysis regarding those
operation planning

Types of Planning Analysis

Capacity Planning From the interview we conducted, we find

that Mr. Like’s capacity planning is 300 - 400
people with various seating arrangements that
can accommodate any occasion.

Method Planning Mr. Like’s manager said that because Mr.

Like is so new their current method of
running the business is still a hit and miss. He
said that they are still trying to implement the
S.O.P as best as they can. He said that from
his experience it is actually common that a
cafe/restaurant is still not following the S.O.P
100% when it first started open.

Location Planning Mr. Like is located close to a campus. They

have benefited greatly from this location
planning since it has become a popular spot
for students looking for a place to hang out or
study, which has increased their earnings
significantly.

Layout Planning In order for customers to purchase food or

beverages, they must first place their order
with the cashier, choose a seat, and then wait
for their meal to be delivered. This is why Mr.
Like's layout design is a process layout. Our
analysis shows that, given Mr. Like's
sometimes hectic schedule, this layout
 planning is quite effective.

Quality Planning From our interview, we find that Mr. Like’s

effort to maintain their quality is through a
series of protocols. Produce arrives at the
restaurant straight from the supplier and is
placed in the storage section. To ensure they
have everything they need for the day, the
staff of the storage division will then conduct
a daily stock check and submit the results to
the manager. In order to ensure that they
provide the best service possible to the
customer, cashier and server staff members
must also adhere to certain rules.

V. Summary

The research we conducted focuses on the the organizational structure, operational

management, and SWOT analysis of the business Mr. Like. Our research discusses about the
organizational structure Mr. Like and how it determines the relationships, responsibilities, and
authority within the business, which affects the flow of information.

We also discussed about the operational management of Mr. Like and how it involves
planning and scheduling components that aim to maximize efficiency, reduce costs, enhance
customer satisfaction, and gain a competitive advantage. Operational management is crucial for
the success of any business and involves setting expectations, standards, and accountability for
individuals responsible for specific tasks.

Our research also conducts a SWOT analysis on Mr. Like which covers the identify
strengths, weaknesses, opportunities, and threats for the business. We also considered both
internal and external factors that impact the business. Internal factors include financial, human,
and physical resources, while external factors refer to the outside environment such as market
and economic trends.

In summary of our research, Mr. Like is a business that focuses around university
student’s who do activities such as meetings, studying, etc as their target consumers. Their
branding and location planning also revolves around said target since they are located near UGM
and UNY. Their SWOT are also affected by this factor and they are continuing to improve their
business as they gain more experience. Mr. Like, as a business is still new to their method
of running a business and the owner claims that they will continue to improve and trying to
implement the S.O.P as best as they can.
VI. References

Anonym. (2023). What is 'Operations management'.

https://economictimes.indiatimes.com/definition/operations-management. Economic Times.
Accessed on 04 December 2023.

Schooley, Skye. (2023). What is a SWOT Analysis? (And When To Use It).
https://www.businessnewsdaily.com/4245-swot-analysis.html. Business News Daily. Accessed
on 04 December 2023.

Raeburn, Alicia. (2023). SWOT analysis:Examples and templates.

https://asana.com/resources/swot-analysis.Asana. Accessed on 04 December 2023.

Anonym. (n.d.). 10 types of organizational structures (+ org charts for

implementation).https://www.lucidchart.com/blog/types-of-organizational-structures. Lucidchart,
Accessed on 04 December 2023.