2.1 Business Process
Café Coffee day for Indian market is uses the consumer value preposition: revenue model for the retail market(Mishra, 2013). Global retail market has shown upward trend in last decade and retail sector has shown steady growth where as big retails has faced negative growth so many company has decided to go abroad for business expansion(Mishra, 2013). The major players have started adopting multi format and multi-channel market to sustain in the market and grow fast in the market(Mishra, 2013).
Café Coffee Day is doing multiple businesses and their business includes agriculture business, logistics, vertical infrastructure and investment business are the included in its portfolio of business(Mishra, 2013). Below table explains the business elements and process of café coffee day in India.
Table 2.1.1 Business model
Above table shows the business model of CCD which explains key elements and constituents of the elements(Mishra, 2013). An element includes customer value proposition, profit formula, key processes and key resources(Mishra, 2013).
Agriculture Business Process: Agri business is family heritage of the company as the owner of the company Mr. V G Siddhartha’s family is in the coffee business from 140 years(Mishra, 2013). Business process includes growing coffee in their 11000 acre land and managing additional 4000 acre land for the business(Mishra, 2013). The major product is Arabica coffee which the 80 percent from total products and the other remaining product is Robusta coffee(Mishra, 2013). Coffee day is the first ever company across India to get the certificate of UTZ for their traceability practice and best management(Mishra, 2013).
Retail Business Process: Coffee Day Company has its own retail chain businesses which provide the service to the customer for their daily need of coffee. The Coffee Day Express, Coffee Day Export, Coffee Day Chain, Coffee Day Fresh & Ground and Coffee Day Beverage are the key businesses of the company(Mishra, 2013)
Logistic Business Process: Under the logistic business of company has its own multi model logistic solution, container freight station and inland contain depots(Mishra, 2013). Company handles around 26 million tons of cargos. Company also does surface logistics and cold chain business operation for CCD which runs between Bangalore and Chennai(Mishra, 2013).
Investment Business Process: Investment business is the company’s owner driven business since he is from investor back ground(Mishra, 2013). The company is investing it in owner’s portfolio as well as IT and technology driven businesses like DSP technology, Mindtree and way to health businesses(Mishra, 2013).
Infrastructure Business process: Small part of the business for the company is also the infrastructure business development in Bangalore location(Mishra, 2013). Other process is the hotels which are located in Rajastahn, Kerala, Andaman and Nicobar and Kerala(Mishra, 2013).
Currently the core concertation of the business owner is in the Coffee business only and other all business are just for the transactions and requirement of the business which are related to the core coffee business and some or the other way it help to the core business to grow(Business Standard , 2015). Company has find out that it has huge potential in B2C coffee retail industry business so company has already adopted the same(Srinivasan, et al., 2014). Company has started Vocational Training institutes at Chikmagaloor to provide with the rigorous training to the entire employee who can train the youth from rural area and employ them for the business(Srinivasan, et al., 2014). Company has shown its ability to replicate by implementing standardization of process which help company to expand its business easily and in sourcing and integration backward to add for the business growth of the company(Srinivasan, et al., 2014). Company has adopted the model call Hub’n spoke with making the streamline in supply chain which helps for rapid growth, transport facility, processing of goods and plantation(Srinivasan, et al., 2014).
Overall the business growth for CCD is high and one of the key factors is business process. The business process is requires to changes as per the requirement on time to time. The company has rapidly change its business process according to the requirement of the business to make it the well-known brand in country and around the world.As far as the coffee business the other business are the support businesses for company and the core business expansion is must for the company. The company is trying their level best to compete in the market and sustain their highest market share position and this business process is influencing it a lot throughout the process.