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Description:

In 2002 Glen and Tom Dean started a small bakery in St. Kilda. Employing two bakers and seven service assistants, the bakery became profitable in 2004 and has increased its annual turnover by an average of 37% p.a. Staffing has not increased since then as owners also work in the bakery. In 2006, they opened 4 more bakeries in Windsor, Essendon, Brighton and Pakenham employing 2 bakers and 12 service assistants in each store. These businesses have also done well and are trading at the same rate as the St. Kilda store. Their business plan includes the opening of three new bakeries in country Victoria in 2014.

They analysed and decided to open in Kyabram, Sale and Shepparton. They also have a plan to extend the trading hours of the Essendon bakery in 2014 with the goal of increasing sales by 30% at Essendon. They hope to open Kyabram and Sale stores by January 2014 and Shepparton by June 2014. It is anticipated that the site at Shepparton will double the St. Kilda turnover, while Kyabram and Sale will trade at 50% of the St. Kilda site. On the other side, they have decided to close Brighton bakery by Jan 2014, due to a decline in sales. Currently, Glen and Tom work in the service counter and manage the business together.

However, they are thinking to have independent managers for each store from 2014 but are concerned about the additional cost. They have some concerns about their ability to cope with the workforce. They have a high staff turnover of 25% especially the high skilled labour. The owners are apprehensive with this turnover rate. The owners have tried to increase the pay rates and make it more competitive but it does not seem to work.


Questions:


1. What shall be the best organisational structure for the Dean Bakery? What could be the strengths and weaknesses of such a structure?


2. How many and what types of jobs and skills are needed to meet the organisational strategy? (They are not sure about the exact number of staff they would require in all the stores. You can use template one to identify workforce projections). 


3. Glen and Tom are concerned about when to hire the staff for the new stores since they have to be properly trained before they can independently run the stores. (assume it takes one month for training for each new staff member)


4. What strategies could they engage to make up a shortfall when an employee vacates a position?


5. What strategies could they engage to manage a staff surplus?


6. What strategies should they use to ensure that they are able to source skilled labour as compared to their competitors?


7. What strategies should be in place to retain skilled labour?


8. How will they get staff in Kyabram where the existing businesses are facing staff shortages and where most of the workforce is ageing?


9. How global trends or incidents can lead to a change in their objectives and strategy?


10. What strategies should be in place to have a succession planning system, organisational climate and Employer of Choice?


11. How will staff retirement, annual leave and maternity leave plans affect the organisation and its ability to deliver services

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