Competent Jerks, Lovable Fools and the formation of Social Networks: Article Analysis

The central theme of the article states that an individual’s persona, attitude and behavior may result in both positive or negative perceptions and reactions from his/her peers or colleagues. It focusses on the necessity to maintain a balance between competitiveness and likeability while partaking in informal social relationships at the workplace. Furthermore, it examines various methods a manager can utilize to extract the best out of people of diverse personalities and competencies by capitalizing on their unique strengths. The reading states that people at the workplace are different and thus classifies them as follows:

          1          The competent jerk that is resourceful but has a bad personality.

          2          The lovable fool who is not very insightful, but has a great with people.

          3          The lovable star that is both loved by everyone and is resourceful.

          4          The incompetent jerk that is not competent, nor likeable.

While I agree with the above stated categorization, a statement made in the case mentioned that when people who are familiar with each other and who like each other work together, it is usually harder to point out negatives in each other’s ideas, strategies, etc. I do not believe this to be true as I have experienced otherwise during my own interactions with people. I feel that it is easier to convey honest opinions and criticism while working with someone you know well rather than someone who is absolutely new to you. In all honesty and simplicity, this reading has taught me that it is best for one to stay humble and down to earth despite their respective levels of intelligence, expertise, productivity or otherwise. This is essentially true because adopting a persona that can potentially alienate an individual from their peers or colleagues will inevitably result in them compromising on a vital element of success that they singlehandedly do not have entire control over – popularity. It is a quality that is earned rather than merely developed like most other soft skills and the only route towards achieving it is to ensure that the people around you like & support you. This has been the case with the lovable star, who is always at the top of the pecking order – both intelligent and loved by everyone.

I certainly believe that if the lessons learnt from this case can be well synthesized and applied correctly in real life scenarios, they can have very resounding and prominent results on a person’s work life and relationships, by and large. For these very same reasons would I strongly recommend this article to any colleague of mine, whom I would consider to be a victim of their own professional behavioral downfall simply because they may not be aware of the implications that their attitudes or actions have on those around them. I believe that this article compels one to think beyond his/her respective horizons. It helps uncover many blind spots of whose existence we may not necessarily have known. In other words it helps us identify those weaknesses that we may never have known to have had simply because we may have been blinded by the fog of our own pride and arrogance. This allows us to reflect on ourselves and take corrective action in a timely manner, before the matter goes out of hand which in relation to this article would mean rejection from your peers/co-workers. The ability to see what cannot necessarily be seen is in many ways a divine endowment and is the one crucial takeaway from this article, in my opinion. Hence, I feel that this article is instrumental in undertaking an analysis of oneself and thus remedying the situation instantaneously. 

I think this article relates to managing oneself from week 7 as it advocates managing others and being managed. It explores the process of self discovery of one’s strengths and reviews ways in which to build a personal brand around these strengths.

The Nut Island Effect: Article Analysis

The central theme of the article highlights the importance of having a linkage between management and the workforce. It explains how even productive, dedicated and hardworking teams can succumb to failure when there is discrepancy between management and the team. These shortcomings, which may result on account of management’s indifference or lack of interest in the team’s activities or cause, can result in the team losing faith in them and taking crucial decisions and actions themselves for which they aren't necessarily skilled. This has grim consequences on them such as lack of motivation, poor results and various other inconsistencies.

I completely agree with the teachings of this reading as I had experienced similar situations in my own career and it was easy for me to empathize with it. The learnings I derived from it have not been particularly unknown to me and have proved to remind me of a lesson I learned in the past wherein a group, of which I was part of, was working on a project and lost trust and interest in their supervisor owing to her lack of involvement. Hence, it served to reinforce my understanding of this issue. It taught me that having a good active connection with ones superiors/managers is vital to ensure smooth functionality of operations, promote synergy & effective flow of information, exchange ideas, keep people motivated and resolve conflicts in a timely manner. 

At work, I believe that it is absolutely critical to inherit this mentality of engagement and so I would make it a point to mention it to any colleague of mine who works in a functional team or who may be the leader themselves for that matter. I consider it to be the responsibility of the subordinates as much as it is that of the manager as to ensure proper integration of this ideology because a team also needs to respond effectively to their respective tasks and the advice of their supervisors, without which a disconnect in the system would be inevitable. In this case we notice that the fault was solely that of the upper-management, but often in real life situations, it is also the other way around and equal contribution and cooperation of both parties is required. I take away 2 principles for integration from the case – One, as a manager, to always remain hands on and physically present to support my team making sure that I am well aware of everything that is happening with an air of sincere interest and commitment to my colleagues and to their project.  Secondly, as a member of the team, to retain faith in my superior and respect them for their position by following their instructions closely and whole-heartedly. 

With regard to current business trends, I believe that this article is very relevant in an age where autonomy has become an essential element of a young professional’s persona. Today, the lines of hierarchy in modern organizations have blurred to an extent that even subordinate newcomers consider their own judgment and abilities to be more developed than those of their seniors, albeit their numerous years of experience. This article relates to various concepts discussed in class that can be used to derive managerial insights:

·         The presence of linkage between management and the team of workers at Nut Island wasn’t evident. This fundamental flaw stemmed from the lack of engagement on management’s part and marked the beginning of turbulent times at the plant that was met with much dismay.

·         Human beings are a social species. They desire recognition for their work just as they need criticism for their shortcomings. This is possible by means of active interaction between management and the high performing team that was absent at Nut Island. Thus, despite their best efforts to perform, stay motivated and keep the plant alive, they eventually succumbed to a classic case of negligence by upper level management.

·         The strategic & political lens can be applied to this case. Strategically managing relationships appropriately and having the right inputs can produce the right results. Mismanagement of people is a strategic failure for a manager. MDC’s rash decision to focus on other areas while neglecting an efficient project depicts how management can crumble under political pressure. 

Terra Byte Case Analysis - A new Location, A new beginning

Terra Byte is a Kirkland, Washington based Coffee shop that operates on a business model wherein customers are given the liberty to decide on the price they pay for food and drinks. They believe in trusting their customers and relying on their judgment and honesty. In this way they were able to create loyalty among frequent customers toward the brand. Also, since customers can decide on the value of the products, their satisfaction quotient always remains high. Moreover, their target audience largely comprises of an affluent, well-educated and diverse demographic. On an average, Terra Byte makes $3 per customer and has an average of 80 customers a day. In order to break even, 200 customers per day are required. The business model largely depends on a few patron customers to pay a greater amount of money to make up for those that pay smaller sums or none at all. One of the co-founders, Ervin Peretz wants to start a new café at another promising location. It was important that the new location have a customer base that would at least allow them to break even. Even though the original café was in an affluent neighborhood, Ervin believed different types of neighborhoods would also be appropriate. It is essential that the new location resemble the dynamics of Kirkland in a manner that would allow Terra Byte to cater to their current class of customers in the same way.  

The following problems are related to the central problem of choosing a new location:

• Competition from established Coffee Shops in the area.
• Identifying a location that has customer characteristics conducive to a voluntary payment business.
• The consumer perception of an individual café or restaurant is very different from that of a chain. In a way, Tera Bite risks losing its sense of exclusivity and distinction in the minds of many of its current and prospective customers.
• Influencing customer perceptions in a negative way i.e. creating an impression that Tera Bite is a mere gimmick started by Peretz for the sole purpose of gaining tax benefits.  
• The current business model i.e. operating as a for-profit, seems less likely to convince people to donate more as would operating as a not for profit. Perhaps, Tera Bite should consider a change to a not-for –profit in order to revamp its image.
• As Tera Bite’s model relies heavily on individuals from the high-income groups to become its prime patrons, it is imminent that they target high-rent districts or cities to set up their next store. However, as the name suggests, setting up shop in such places will come at a significantly high cost along with a lurking risk of complete failure on account of the high uncertainty surrounding the model. Whether or not Tera Bite with merely break-even in this new location is also questionable taking into consideration the increased variable costs.  
• An Uneven & Anonymous distribution of customer payments make it difficult to identify true and loyal customers from the rest. This may lead to a degree of customer dissatisfaction as the true customers of the brand may begin to feel that their contributions are not being recognized. Moreover, this business model is at a high risk of being easily exploited by dishonest customers and staff.

Situation analysis.

Based on an in-depth analysis of Tera Bite and its internal & external environment, the following SWOT Analysis was compiled:

STRENGTHS	WEAKNESSES	OPPORTUNITIES	THREATS
Unique Model. Customer determined Pricing – Customers can decide on the value of the products meaning their satisfaction quotient always remains high. Highly Competitive Pricing. A legion of dedicated patrons. Low operating costs.	Financially Unstable model with a high risk factor. Uneven & Anonymous distribution of customer payments making it difficult to identify loyal customers. Low market penetration. A very small and niche target market. Potentially unsustainable model.	The business model can evolve into a dynamic phenomenon that can possibly revolutionize the manner in which consumers pay for products. If the feeling of trust can create a feeling of guilt in the minds of people, then the average payment per customer can increase immensly. Potential to evolve into a one-of-its-kind niche household Café chain.	Skepticism of business operations – Risks being perceived as a fraud undertaking. The business model is at a high risk of being easily exploited by dishonest customers and staff. High uncertainty for growth in the future.

Google Trends Research:

As Tera Bite operates in Kirkland WA, for the purpose of consideration of Statewide-competition and in part, with relevance to selection of the City of Seattle as the location to open the next shop, the following competitors were identified as the most potent in the entire State of Washington. (In-depth Analysis for selection of this location is provided in the last section):

1.  Starbucks
2. Caribou Coffee
3. Tim Horton's
4. Seattle's best

      Using the Google Trends tool, the daily searches for Tera Bite Cofee and its competitors in the State of Washington only in the past month i.e September 4^th to October 4^th were determined. The purpose of selecting this very brief period was to acquire the most recent estimates which in turn were very specific figures to gauge the current popularity of the brand and its competitors for the Location Analysis. From the Trend analysis below, its evident that Starbucks is the most searched and hence most popular brand in the area, partly owing to its strong brand presence there and also globally. Because of low Brand Awareness and regional physical presence, all the others including terra bite returned no more than 5 searches on any particular day for the entire month.

Google Ad Words/Insights Research:

The bubble chart depicts the 4 brand’s overall monthly search volume in the United States, shown by the Size of the Bubble. The X axis represents the customer ranking viz. 1-5, based on public voting in a survey of ‘Seattle’s Best Coffee Shops’. Therefore, a lower number means a higher rank, which in turn means greater popularity. The Y axis shows the average price per coffee purchased by a customer. This chart provides a good understanding of the various brands’ popularity, pricing and awareness that are crucial parameters for understanding the position of competitors, public opinion, acquiring an estimation of price versus quality and in determining the best possible areas for improvement & growth. 

Terra Bite’s value proposition (VP)

Tera Bite is a Coffee Shop with a unique business model that allows customers to pay what they please. This distinguishes them from their competition in the most unusual way. Their goal is to allow people the opportunity to unwind over coffee after a hard day’s work without having to go through the whole process of comparing prices of the various products. Instead, they rely on trusting their customer’s judgment and allowing them to pay whatever price they want for their purchases and whenever they want. In this way they reduce their operating costs and provide great value and convenience to customers. Their target audiences are well educated, urban, sophisticated and socially responsible individuals of varying age groups and demographics. They include teens, young adults and even middle aged people.

Where should the next location be?

In-order to identify a promising prospective and potentially succesfull market for Tera Bite, Research on the same led to confirmation that the Seattle region of Washington State turned out to be the most viable option. Since long, Seattle has been a Coffee haven that housed some of the best brands in the US including hosehold names like Starbucks that opened their first shop there. The selection of this location was based on the fact that since both Kirkland and Seattle fall under the same State, their demographics, legal structures, laws and public mindsets are relatively similar. This would give Tera Bite the opportunity to perform at a larger stage in the same State, without having to undertake too many unexpected risks. The ideology is that if Tera bite was successful in Kirkland, it will also be in Seattle. Moreover, managing both the café’s in the chain will be a lot more convenient on account of their close proximity of distance. Also, this gives Tera Bite another unique advantage and that is to leverage its resources if necessary which wouldn’t have been possible if the 2 café’s were located too far apart.

 One of the key criteria while determining the next location for Tera Bite was ensuring that the new location was similar in characteristics to the initial location inorder to maximize the potential for success. The Facebook Ad Creation tool identified 125,380 people who reside in Seattle, Washington only between the target age-group of 16 to 55 that have indicated an interest in Coffee. This raw data shows that Seattle has tremendous Market potential for Tera Bite to open their new Coffee Shop and the same was proven with the influx of several other café’s in the area that are successfully established today. Since Tera Bite largely caters to and wishes to focus its offering towards the elite high income group segment of the market, the following LMAA Research was used to identify 1,912,923 individuals that fall into the category of Affluentials in the Seattle-Tacoma, WA area. This number is significantly higher than most other afluent US Cities but what stands out is the fact that Seattle also has one of the greatest concentration of affluential groups per square mile area in the United States which form the primary target segment for Tera Bite.

The PRIZM Target Group Concentration Map is testament to the selection of a city within Washington State, which evidently falls into the much sought after first quintile. Only 5 other states fall into this group and their geographical dispersion makes them impractical locations to serve.

Other criteria for determining the next location for Tera Bite was selecting a place where citizens had high social responsibility. This was essential as it is a prerequisite for the implementation and smooth functioning of Tera Bite’s model which relies on trust. As the LMAA tool did not provide any direct parameter to filter the States on the basis of ‘Social Responsibility’ at large, similar Psychographic parameters such as ‘People that would pay more for environmentally friendly products’ were used to arrive at the same conclusion. The assumption made here is that individuals who care for the environment are naturally socially responsible since environmental protection and care are one of the primary traits of socially responsible people.

The State of Washington has more than proven that it is one of the more socially responsible states in the country by showing a concern for the environment, welfare of the needy & children and citing bans on products that pollute the environment. Moreover, the success of Tera Bite first stint in the State is vital evidence that it is certainly the most potent and viable candidate to house the next café, this time in one of its bigger cities.

Based on the above research, evidence, assumptions and conclusions, Seattle WA seems the most likely of places in the United States to open the new Tera Bite Café because of its affluent, coffee loving, diverse and socially responsible people as well as its geographical proximity to the other Café in Kirkland, making management a lot easier. While it will certainly pose more competition with established names such as Starbucks, it is one of the best places for Tera Bite to announce itself on the biggest of stages – The Coffee Capital of the United States.