Question: Please help me with the below for procurement management : Costa Coffee to cut 1 , 6 5 0 jobs as Covid - 1 9
Please help me with the below for procurement management :
Costa Coffee to cut jobs as Covid takes toll on cafes
Costa Coffee is to cut up to jobs in its cafes more than one in of its workforce, as it said trading remained challenging during the Covid pandemic.
The company, which was bought by CocaCola two years ago, said it had now reopened of its UK outlets all of which closed for six weeks during the lockdown. It plans to reopen the remaining stores over the next month.
All Costa staff were put on the furlough scheme with full pay but as that scheme winds to a close the coffee shop group said it would remove the assistant store manager role across all shops to cut costs.
While trade is returning, helped by the governments VAT reduction, which Costa passed on to customers in full, and the recent eat out to help out scheme, there remain high levels of uncertainty as to when trade will recover to preCovid levels, the company said in a statement.
Costas move comes as servicesector companies in Britain cut jobs at a faster pace than in the financial crisis, according to a closely watched survey of business activity. Despite the return of economic growth as lockdown controls have been relaxed, IHS Markit and the Chartered Institute of Procurement & Supply said the rate of redundancies accelerated in August.
It said as many as one in three companies in a survey of service sector firms had reduced their staffing levels last month, with businesses putting redundancy measures in place as their usage of the governments furlough scheme winds down.
The job cuts at Costa come after rival coffee shop chain Pret a Manger said last week it planned to cut nearly jobs after its sales plummeted.
Airport and train station specialist SSP which owns Caff Ritazza and Upper Crust, said in July it would cut jobs because of dwindling passenger numbers, while the high street cafe Le Pain Quotidien shed staff and closed of its sites after falling into administration.
In July, CocaCola said its sales of tea and coffee had fallen by nearly a third in the three months to June, largely due to the temporary closures of nearly all its Costa cafes in western Europe.
Neil Lake, managing director for Costa Coffee UK and Ireland, said: We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our team members, whilst emerging stronger ready for future growth.
Costa said it would seek to find those whose jobs were at risk alternative roles within the business where possible and provide support to help for those leaving the business.
Question
According to the case study, what caused sales of tea and coffee to reduce.
Which role did Costa Coffee remove from all its stores to alleviate the financial strain?
With an example for each relating to Costa Coffee, briefly differentiate between competencybased outsourcing and costbased outsourcing
you are required to explain the concepts before you apply it to the context of Costa Coffee.
Explain phase three of the strategic sourcing process within the context of Costa Coffee syou are required to explain the concepts before you apply it at least points to the context of Costa Coffee.
Explain any three elements of an outsourcing contract to the context of Costa Coffee
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