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Cafedirect is the UK's leading fairtrade company - how business works

Extracts from this document...

Introduction

GNVQ INTERMEDIATE BUSINESS HOW BUSINESS WORKS ASSIGNMENT 1 I have produced a Case Study on Cafedirect, which is a well-known coffee supplier in the U.K. It is an Ltd business, because the organisation is owned and operated by private individuals. In this assignment I will try to produce evidence that shows I understand how the business works, what it sets out to do, how it is organised and how it looks after its customers. P1 A description of what the business does, what its aims and objectives are In this section of my assignment I have to give a description of what the business does what its aims and objectives. Cafedirect is the UK's leading fairtrade company - providing the best deal for coffee and tea growers in the developing world. In return, caf�direct are able to supply their customers with some of the highest quality teas and coffees. Basically this means the coffee is purchased direct from the grower's co-operatives, not from the middlemen. The price paid is never lower than an agreed minimum, regardless of any fall in world market price reductions. When the world price goes above this minimum, Caf�direct pays an extra 10% social premium. Pre-payments, regular price updates and a business development program all go to help the growers help themselves by negotiating better terms for all their coffee. By building strong partnerships with growers, guaranteeing a good price, with a shared aim of producing the best coffee, by doing this Cafedirect enables the growers to invest back into their businesses and communities. This way everyone benefits, Growers are more secure and better able to improve the quality of their crop, so we the consumer get a better cup of coffee. Cafedirect has many major competitors such as Nescafe, Kenco, Maxell House and Carte Noire. Cafedirect's mission statement is "To be the leading brand which strengthens the influence, income and security of producer partners in the south and links them directly to the consumer." ...read more.

Middle

This picture was taken from the cafediret website. It shows a young African worker collecting coffee leaves. P3 A description of how the equal opportunities of employees are safeguarded by legislation In this section I have to give a description of how the equal opportunities of employees are safe guarded by legislation. All employers and employees have rights and responsibilities that are all laid down in employment law. There are four main Acts that all employers must follow: 1. The Employment Rights Act 1996 was created so every employee has the right to holidays, leave, payslips, redundancy payment, and maternity leave. This Act covers virtually all of the main rights of employees. 2. The Race Relations Act 1976 was created so everyone would be treated equally, whatever their colour race religion nationality citizenship or ethnic origin. This Act makes it unlawful for anyone to be discriminated against on grounds of colour, race, nationality or ethnic origin. 3. The Sex Discrimination Act 1975 was created to stop discrimination between males and females as this occurs in training, recruiting, dismissing and promotion prospects. This Act makes it illegal for anyone to be discriminated against on grounds of gender - either directly or indirectly 4. The Disability discrimination Act 1995 was created so that people with disabilities would not get discriminated in employment. This Act is concerned with employers that treat a disabled person less favorably than able-bodied persons. Without any of these legislation's in place anyone could get treated unfairly at work. Here are a few examples of how the Acts can be used; If an Asian went to get a job at a company and was told by the boss that he couldn't have a job because no Asians worked there, this would be discrimination because of his colour and that person would be able to take further action and take him to court using the Race Relations Act 1976. ...read more.

Conclusion

The advantages of having a hierarchical structure are for cafedirect: * There will be a clear job role for the employees * Good promotion prospects * A clear pay structure * Specified holiday entitlement, pay scales and company pension schemes * Large number of colleagues * A human resources function * Wider range of facilities such as canteen and social clubs * The employees have an opportunity to join a union There are also disadvantages for having a hierarchical structure, which are: * There is no limit to the number of levels of management * Communication between each level of management is slower as it takes time for information to flow upwards and downwards * Information passed on could be interpreted differently due to the many layers of management In contrast with Cafedirect, which is one of the leading coffee manufactures in the UK, a small chip shop would have a flat structure. A flat structure usually has only three levels of management, which is ideal for a small organisation. The advantage for a chip shop to have a flat structure would be: * The flow of information between each other is much quicker * There is a faster response to problems * Because there are only a few layers of management the employees fell they have more responsibility, which give them their motivation to work harder. A flat structure doesn't have any disadvantages like a hierarchical structure due to the reduced levels of management. P6 An appropriate list of sources of evidence you used in your research The information below is the sources that I used for my assignment. Internet Sources www.cafedirect.co.uk www.bized.ac.uk Text books Name: GNVQ Intermediate Business Publisher: Heinemann Author: Carol Carysforth and Mike Neild Name: Intermediate Business Publisher: Osborne Books LTD Author: Michael Fardon, Glynis Frater and John Prokopiw Name: GNVQ Intermediate Business, Second Edition Publisher: Collins Author: Chris J. Nutall Umar Saddique Unit 1 - 1 - ...read more.

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