Hotel Annapoorna: Change Management & Leadership at a Crossroads - PDF

For the exclusive use of G. Mackie, 2025. W36264 HOTEL ANNAPOORNA: IS CHANGE MANAGEMENT AND LEADERSHIP AT A CROSSROADS? Barenya Mekap, R. G. Priya...

For the exclusive use of G. Mackie, 2025. W36264 HOTEL ANNAPOORNA: IS CHANGE MANAGEMENT AND LEADERSHIP AT A CROSSROADS? Barenya Mekap, R. G. Priyadarshini, and Lalatendu Kesari Jena wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveypublishing.ca. Our goal is to publish materials of the highest quality; submit any errata to [email protected]. i1v2e5y5pubs Copyright © 2024, Ivey Business School Foundation Version: 2024-04-12 Amarnathan Madhavan was nostalgic when he entered the Hotel Annapoorna (Annapoorna), his place of comfort in his hometown of Coimbatore, India.1 He had been away for 25 years, so he was emotional when he ran into Jegan Damodaraswamy, Annapoorna’s chief executive officer (CEO), who was Amarnathan’s childhood playmate. The much-loved Annapoorna, part of Sree Annapoorna Sree Gowrishankar Hotels Pvt Ltd., also included the Annapoorna chain of eateries, and was the industry leader in South India, specializing in traditional cuisine and ranking highest in customer delight and employee loyalty. Amarnathan recalled his conversation with Jegan a few months earlier where in the call he stated to Jegan that he would be coming back to India. Upon hearing so, Jegan was elated and was eager to meet him soon. Amarnathan had stated he was hoping Jegan would have time to interview him as Jegan was reinstated as CEO, to which Jegan was delighted and affirmed him with a “Holy, Yes”. Jegan then began to talk about his new leadership journey as a successor to his late grandfather, Damodaraswamy Naidu who was the founder of the Sree Annapoorna Sree Gowrishankar Group of hotels, the organization’s recovery from the COVID-19 setback, and the 2021 launch of an elite, high-end multi-cuisine restaurant called Kove, a subsidiary of Annapoorna. Annapoorna, with its glorious 50-year history celebrated as the “Pride of Coimbatore City,” was now at a crossroads. Amarnathan and Jegan’s detailed discussion covered Annapoorna’s milestones going forward, rebuilding the brand, and scaling up. However, the call was interrupted as Jegan was called by his secretary for a board meeting for a detailed action plan for the next three years. New brands were moving into the industry and customer preferences were rapidly changing, making expansion and diversification a critical issue while upholding the Annapoorna’s traditions and quality. How would Annapoorna rebuild its brand and reposition itself? Would Jegan re-envision his grandfather’s aspirations and strengthen the brand value? Should he drive toward transforming the organization and redefining its vision? 1 Coimbatore is an industrial city in Southern India, which houses a wide range of organizations belonging to the engineering industry, foundry, textile mills, pumps, information technology-information technology enabled services, and healthcare. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 2 W36264 ANNAPOORNA’S HISTORY Coimbatore, known as the Manchester of South India, was the fastest-growing city in India and a major industrial hub. Coimbatore’s cuisine was predominantly South Indian, with rice at its base. Most local restaurants still retained their rural flavour,2 with many restaurants serving food over a banana leaf. Coimbatore had an active food culture and various cuisine options for dining.3 In 1968, almost 21 years after India’s independence, the first branch of the Hotel Annapoorna, the Sree Annapoorna, opened its doors. At that time, Coimbatore’s restaurant industry was highly influenced by two colossal eatery chains—Kenneis Bhavan and Ideal Coffee House.4 Both lived up to their fame as the food manufacturers of Coimbatore, producing enormous amounts of food. Ramaswamy Naidu, then Annapoorna’s chair, had stated passionately that their objective was to serve their loyal customers rather than compete with their competitors. Annapoorna began in the 1950s with a small eatery. Coimbatore saw a surge in the textile industry and it was a significant producer of chicken eggs, with a large number of poultry farms. Auto components manufacturers established the market, which aimed at the middle-class consumer. The Naidu brothers— Damodaraswamy, Rangaswamy, Ramaswamy, and Lakshman—opened a small eatery next to the Kennedy Theatre to support their families. The company’s commitment and dedication to providing prime quality services at affordable prices began to gain more customers. In the 1960s, the Kennedy Theatre’s owner, Paul Vincent, hired the brothers to handle the theatre’s canteen, having observed their resolve and professionalism. This canteen led to the popular delicacies keera vadai (a traditional crunchy snack made with pulses, spinach, and spices) and filter coffee. Their piping hot filter coffee and crunchy keera vadai cooked in fresh oil set a benchmark for their industry. Another venue, the Central Theatre, granted the brothers a new canteen two years later. Since their eatery was already packed, the brothers planned to expand their business and opened their first bakery, the Royal Coffee Bar, at R S Puram, a central location in Coimbatore. Following the bakery, the brothers’ goal was to open a family restaurant, even though Coimbatore customers preferred to eat at home. The brothers decided to open their restaurant, Annapoorna, and in 1968, selected a leased site on D B Road, a busy street in R S Puram, a popular locality in Coimbatore.5 Since Annapoorna entered the market early, it claimed first-mover advantage. Moreover, the brothers were able to break through prejudiced notions and inhibitions about dining in restaurants with an effective marketing strategy that targeted middle-class Coimbatore customers who seemed the most inclined to dine out in restaurants and by offering food at reasonable prices. Their food quality was high and the employees were customer oriented (see Exhibit 1). They adopted a clan culture, with the intent of establishing an efficient, family-like atmosphere and closely- knit staff who interact to fulfill Annapoorna’s mission. Annapoorna surpassed customer expectations in terms of taste, quality, and variety. Their products included the traditional south Indian breakfast delicacies of idlis, dosas, vadas, and pongal, which were frequently served with three different chutneys (spicy side 2 Local hotels provided round-the-clock open reception, 24-hour accessibility by phone, a lobby with seating and beverage service, breakfast via a buffet or room service, mini bar, daily room cleaning, bathtubs and showers, modern furniture, linens, dressing mirrors, telephone and internet, and heating. The superior-class luxury hotels included an ironing service, workout rooms, personal care products, internet, door service, and valet parking. 3 Food in Coimbatore, coimbatoreonline.in, accessed April 10, 2024, https://www.coimbatoreonline.in/city-guide/food-in-coimbatore 4 Jhuisha Lunia, The Journey Of Sree Annapoorna Gowrishankar: Pride Of Coimbatore, Oct 21, 2022, https://www.slurrp.com/article/the-journey-of-sree-annapoorna-gowrishankar-pride-of-coimbatore-1666337296989 5 Vyshnavi Kuppuswamy, “Employees Build a Brand, Customers Make It Iconic,” Hospitality World, November 27, 2021, https://hospitality.economictimes.indiatimes.com/news/restaurants/employees-build-a-brand-customers-make-it- iconic/87936493. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 3 W36264 dishes) and a savoury sambhar (a traditional lentil-based sauce savoured with seasonal vegetables). The authentic filter coffee was produced from the best coffee beans and blended using a secret recipe, which became a hit with consumers. Annapoorna usually hired their staff from Coimbatore locals, which helped to make the customers feel at home. From the start, Naidu valued both his employees and customers and established the traditions and values that would become a ritual to be followed for generations. The sense of belonging and a lively ambience were among the reasons for Annapoorna’s long-standing and valued place in the hotel and restaurant industries. The employees were cordial and cheerful with the customers. Naidu frequently asked for the customers’ feedback, developed their kitchen norms, and promoted their dedicated employees to positions better suited for them. However, Annapoorna’s employees began to hire staff from India’s northeastern region, who were not accustomed to the hospitality services of Southern India’s hotels. This eventually led customers to leave, as Annapoorna lost the essence of its service, which they had experienced since their youth. This, ultimately, caused Annapoorna to lose customers.6 GENERATIONS OF LEADERSHIP Naidu was a person of exceptional intellect, whose success was due to hard work and dedication to his profession. “He was the president of the Tamil Nadu Hotels Association and headed the Coimbatore District Hotels Association for nearly 35 years. He was an executive committee member of the Indian Chamber of Commerce and Industry, Coimbatore, representing the Coimbatore District Hotels Association.”7 Damodaraswamy Naidu believed that the blessings of Goddess Annapoorani (the goddess of prosperity in India) were instrumental in the company’s vast expansion into multiple branches and products. Certainly, Sree Annapoorna served a gratified public through his unyielding efforts, dedicated leadership, and innovative ideas. He believed that customers should never have felt out of place in the family restaurant; instead, he wanted them to believe it was their place, too. So, he served customers the food for their taste buds and presented them with a healthy and scrumptious eatery. His efforts clicked in the marketplace, leading to 13 branches. Naidu also established conventions and norms that were later adopted by generations, including Jegan. As the third-generation, Jegan was promoted to chief executive officer of the Sree Annapoorna chain of eateries after working as executive director for 15 years. Under Jegan’s leadership, Annapoorna rose from a modest food store to a single-brand solitary chain of shops. He also raised the standard, refurbishing most establishments while retaining the vintage charm, and only occasionally adding a minor twist to the food. And in 2021, a brand new, top-notch restaurant serving international cuisine made debuted at the flagship hotel in R S Puram, Coimbatore, following a comprehensive renovation, and since over 20 outlets were operating in Coimbatore. ANNAPOORNA’S FOUR PILLARS Amarnathan was an eminent journalist based in the United Kingdom and born to Tamil parents and was Jegan’s playmate. His father, Venkatesan Madhavan, had been the master roaster of Annapoorna since 6 Rajesh Govindarajulu, “The Success Story of Annapoorna Hotels & The Entapillar K. Ramaswamy Naidu” accessed 11 April, 2024, https://theverandahclub.com/article/the-success-story-of-annapoorna-hotels-the-entapillar-k-ramaswamy-naidu-439 7 “K. Damodharasamy Naidu Doyen of Tamilnadu Hospitality Industry,” Kammas World, September 12, 2018, https://kammasworld.blogspot.com/2018/09/k-damodharasamy-naidu-doyen-of.html. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 4 W36264 1985. Amarnathan had gone overseas to pursue his studies but returned home often. On this trip which he planned after decades to visit India, he met with Jegan to talk about the business’s success. Amarnathan asked, “What was the biggest dilemma the organization faced after the demise of Damodaraswamy?” Jegan answered, “The untimely death of grandfather Damodaraswamy shook both the family and the organization. They were utterly grief stricken by his sudden passing in 2008. Besides, the successor was not chosen, so the employees were anxious about the next course of action. The customers were also unsure about what would follow—whether Annapoorna would be able to maintain its legacy and quality and deliver its products effectively.” Amarnathan asked, “What motivated you to become who you are today?” Jegan replied, “I was called back from the United States in 2008, the year my grandfather died, to take charge of the business. At that time, the responsibilities were too big for me as I had to make decisions, direct, and be the one binding the organization like a family. Perhaps it was the feeling of gratitude to “give back” to both the organization as well as my family that was my driving force and for Annapoorna to continue its leadership in Coimbatore’s hotel industry.” Amarnathan followed up: “It was all too sudden for you, taking over the organization, leading the employees, and using the resources effectively. How did you recognize what was needed?” Jegan smiled in agreement and added, “To understand the organization and to get a feel like that of a customer, I decided to disguise my identity and visit our branches. I learned, observed, and understood as a customer with direct exposure to the company. It gave me a sound understanding of what we lacked and what we needed to improve. I genuinely felt a ‘miraculous’ bond between employees and customers; it was more of a psychological rather than a basic transactional exchange. And I decided that the relationship needed to be preserved at all cost.” Annapoorna’s executive director, Vivek Srinivasan, was next to arrive. Jegan jokingly said, “The most awaited character finally made his way to the stage!” Srinivasan replied, “It had to be that way to make the main character remarkable and shine eternally in the eyes of the audiences.” Jegan smirked and introduced Amarnathan. They exchanged greetings. Later, Amarnathan asked, “How was Annapoorna distinct from other hotel chain businesses, and according to you, what made the organization successful?” Srinivasan explained, “Essentially, it would be the unparalleled quality of the food products that remained the same as it was in the past, even after Damodaraswamy Naidu’s demise. The organization was not International Organization for Standardization-certified, but its standards exceeded way beyond. Moreover, we embraced 360° quality, meaning the condition of the raw materials of the food materials, ingredients like masala and the hygienic packaging of the food were comprehensively checked by the management and employees. And the employees’ fondness for the company to continue giving their best and excellent service to the clientele was the hallmark of the organization’s success. The employees’ catchphrase was, ‘They can be better,’ which motivated and ignited their spirits to work at their optimum. Ultimately, Annapoorna treated its customers as their This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 5 W36264 proprietors. If ever the customers found something deficient in any aspect, it was remedied. The feedback of the customers was regarded as ‘God’s word,’ and it was acted upon solemnly by the organization.” Jegan added that “hard work” and the “non-compromising quality” of the raw food materials was what “made them go so far without a hitch.” PROGRESS THROUGH THE YEARS Amarnathan’s and Srinivasan’s conversation unwound many of the organization’s good initiatives (see Exhibit 2). Amarnathan said, “Do you think innovation has served its purpose in your organization?” Jegan interrupted to suggest, “We have always believed that innovation should simplify rather than complicate our lives. A touch screen cannot be installed at a location where it is not necessary solely for innovation. Both the user’s comfort and the innovation’s goal should be served.”8 Moreover, Jegan added, “Our organization achieved it when we innovated the stoves; even when running at their maximum temperature, you can touch them with your bare hands. It won’t burn your hands, and employees get to work in a comfortable, optimal environment with moderate temperature. We still use conventional roasting methods to make flavourful coffee to ensure consistency. The coffee seeds from Chikmagular, India, periodically and uniformly have to be roasted at the right time. We also introduced ‘steam cooking,’ which was cost-effective and preserved the nutritional value. My grandfather initiated the idea of a centralized kitchen in the mid-1980s. The idea was to stay consistent with the quality of products. He emphasized the need to be coherent in taste in all the branches. It would be the same if you taste our sambhar in any branch, it would be the same. So, that was the core idea of the central kitchen.”9 How far the central kitchen has expanded over the years and how it catered to 17–18 restaurants was a mystery to the local marketplace.10 LEADERSHIP DEVELOPMENT INITIATIVE In light of changing customer preferences and expectations, Amarnathan wondered how Annapoorna was preparing the leadership and its team to meet the challenges. So, Amarnathan inquired, “With other emerging businesses, what is your organization trump card over the others?” Jegan said, “We conduct extensive training programs (see Exhibit 3) for our employees who come to us for employment. It includes a two-day induction, one week of job training, and two weeks of worker- specialized training (see Exhibit 4) and makes them go through the operation processes of the hotel for four to five weeks (see Exhibit 5). This whole process continues for two consecutive months.” 8 Armar Ramesh, “Annapoorna the Pride of Coimbatore” [in Hindi with English subtitles and English], Studio A, March 16, 2020, YouTube video, 15:59, https://youtu.be/utqjhnrilog?si=yZ3ShX9RjklOn45f. 9 Ramesh, “Annapoorna.” 10 Armar Ramesh, “Annapoorna the Pride of Coimbatore” [in Hindi with English subtitles and English], Studio A, March 16, 2020, YouTube video, 15:59, https://youtu.be/utqjhnrilog?si=yZ3ShX9RjklOn45f This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 6 W36264 Amarnathan then exclaimed, “Goodness gracious, that’s awe-inspiring. What about the people at the managerial level?” Jegan said, “For the employees at the managerial level, we conduct training programs (see Exhibit 6) on Tuesdays for two hours and on Saturdays for one and a half hours. They are taught various financial and non-financial skills like accounting, communication and consumer psychology. skills like communication, customer psychology, and financial and non-financial. It will at the same time benefit the organization as it will yield productivity” (see Exhibit 7). WELFARE AND ENGAGEMENT PRACTICES Apart from employee development programs (see Exhibit 8), the organization also made a significant effort to support employees with adequate welfare measures that have consistently been acclaimed. Jegan took a call reminding him of a scheduled meeting. So, Amarnathan called Annapoorna’s chief human resources officer Ranganathan to talk about Jegan’s leadership. Trying to start the conversation, Ranganathan said, “Mr. Jegan is truly an inspiration for all of us in Annapoorna.” Amarnathan asked, “What kind of a leader do you think Mr. Jegan is?” Ranganathan answered enthusiastically, “I believe he is a transformational leader with an employee- friendly attitude and high customer orientation. He establishes an instant rapport with employees of our organization and has huge networks outside which keeps us updated with any news.” Amarnathan next asked, “What benefits are provided to the employee?” Ranganathan explained that “Employees are given performance-based incentives, cash and non-cash rewards, and one month’s salary as Diwali bonuses. Further, at the managerial level, we take them out for outings, such as cricket, football, and badminton matches, and we provide them meals three times a day and dinner whenever they want to. Medical insurance and pensions are also provided to the employees to support their families.” Amarnathan asked, “Do you promote from within?” (see Exhibit 9). Ranganathan said, “We do. We promoted one of our most trusted longtime suppliers, Jayabal, to branch head (see Exhibit 10 for Annapoorna’s organizational structure by segment). We are also planning to open a branch where the operations will be managed by women only.”11 Amarnathan said, “Sir, is there any spot vacant in your organization? When will I be interviewing for it, though?” They both started to laugh. CULTURE AT ITS FOREFRONT Hotel Annapoorna enjoyed a clan culture where the employees bonded with the organization for a lifetime due to the recognition and right to voice their opinions. 11 Ramesh, “Annapoorna.” Company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 7 W36264 Amarnathan asked, “How does Annapoorna empower its employees?” Srinivasan answered, “Annapoorna empowers its employees to make decisions and suggest changes if there is a need. They felt accountable as they were given more responsibility. The management, rather than reprimanding, encourages the employees. But it came with certain prerequisites. If the employees commit any misconduct or unethical act, they will be asked to leave the organization and, never again, they will be allowed to join in (see Exhibit 11). To keep the employees updated with the evolving market, we conduct employee training programs to help them to grow with the organization.” Amarnathan pondered and asked, “What was the attrition rate and growth observed in the past years in Annapoorna’s history? How does the organization look after its employees’ needs and motivate them to give their best?” Jegan answered proudly, “Since the beginning, the attrition rate observed was less than 1 per cent. And “‘a total of 5,000 employees were engaged in the hotel with 59 associate members. Recently, there was a total headcount growth of 16 per cent.’”12 He added that, “Its authorized share capital is INR 2.15 cr13. and the total paid-up capital is INR 1.25 cr […] Sree Annapoorna Sree Gowrishankar Hotels’s operating revenues range is INR 100 cr – 500 cr for the financial year ending on 31 March 2022. Its EBITDA has increased by 12.53 per cent over the previous year.”14 Further, Jegan said, “At the same time, its book net worth has increased by 5.50 per cent. Total employee involvement was achieved by giving the employees uniforms (see Exhibit 12), looking after their children's educational needs, providing them with healthcare facilities, and even attending employees’ wedding ceremonies and parties. The concept of ‘family’ is a decades-long tradition of Annapoorna. And the employees’ maxim is that Annapoorna is ‘where there is a sense of belongingness, and personal growth they feel like growing up,’ which gives them the motivation to offer their best commitment to the organization.” Amarnathan also interviewed one of their customers, Thiyagarajan. He asked him, “If ever Annapoorna had compromised in its quality and how it trademarked its goods from others?” Thiyagarajan replied, “‘When you look into the sambhar, there will be this round onion, wholly boiled and cooked. Just to look at it creates a delight. Idli and sambhar were usually given separately everywhere. But Annapoorna brought an interesting difference in this. Everyone loved our sambhar quality and the customers who came are used to ordering ‘sambhar idli’, rather than idli alone.’ It created a perception of the individuality of Annapoorna and eventually, made its mark as its own in the market.”15 CHALLENGES AHEAD While Amarnathan always had great admiration for Annapoorna’s firm footing in Coimbatore and in the hearts of Coimbatoreans, he was also visualizing the new generation of restaurants, fast food eateries, and hotel chains that could disrupt Annapoorna’s position in the market. 12 “Sree Annapoorna Sree Gowrishankar Hotels Private Limited,” LinkedIn, accessed November 25, 2023, https://www.linkedin.com/company/sree-annapoorna-sree-gowrishankar-hotels-private-limited/. 13 ₹ = INR = Indian Rupee; ₹1 = $0.0134 USD as of January 1, 2022 14 EBITDA is defined as earnings before interest, taxes, depreciation, and amortization; “Sree Annapoorna Sree Gowrishankar Hotels Private Limited,” Tofler, accessed November 25, 2023, https://www.tofler.in/sree-annapoorna-sree-gowrishankar- hotels-private-limited/company/U55101TZ1997PTC007871. 15 Ramesh, “Annapoorna.” This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 8 W36264 Amarnathan asked Jegan, “Do you consider the recent rising hotels in the market a threat as well as a challenge to Annapoorna?” Amarnathan smiled and answered, “Competition should never be a threat or challenge for a professional- oriented organization.” “Indeed, Annayya Garu,”16 Amarnathan said, “Was COVID-19 a stepping stone or downfall of your organization?” Jegan replied, “COVID-19 was a challenge not only for Annapoorna but also for the whole hotel industry. We could not employ people, and its impact on the hotel industry was unfavourable. When we restarted after the lockdown, our organization learned a lot. We perceived it with certainty that what was coming would be better than what was gone. We figured there should be finer human resource practices (see Exhibit 13), good cost management, better planning, and effective employee productivity. So, I would say COVID- 19 was adversity that helped build stability and our inner fortitude.” “My, my, amazing! What other significant changes have you noticed over the years that can become a possible threat for Annapoorna?” Amarnathan asked. Jegan replied, “Annapoorna has experienced a change in customer orientation. To be able to accommodate and suit the customers’ palate (see Exhibit 14) is quite a challenge for our organization. But it is not impossible to do.” It was also observed that the customers wanted rapid and fast services. How would Annapoorna perpetrate and overcome this challenge? HOTEL ANNAPOORNA’S EXPANSION AND SCOPE IN THE FUTURE Amarnathan phone rang, and he excused himself. Apparently, it was a call from his office and that he was required to be present back by next week. Later, he went back to Jegan’s office and continued the conversation. Amarnathan inquired, “why did you not expand Annapoorna outside Coimbatore?” Jegan replied, “I believe Annapoorna has unlimited scope, but we are also planning to open new branches with the concept of rooftop dining experience. On average, 40,000 to 60,000 people customers visited the hotel across their branches every day and enjoyed the food. Annapoorna has always excelled in the quality of food and processes every single time since the organization’s founding (see Exhibit 14). “My word,” Amarnathan exclaimed, “Will there be a change in the prix fixe?” Jegan replied, “Earlier, we had introduced fast food in our hotel, but the sales remained dormant while our traditional cuisine was selling well. So, we mulled over an idea for ‘Fusion Cuisine’ where the customers will find a blend of different culinary traditions.” “What a fantabulous idea, as expected of my good old buddy!” said Amarnathan. 16 “Family and Relations in Telugu,” University of California, Davis, accessed November 25, 2023, https://web.cs.ucdavis.edu/~vemuri/classes/freshman/family.htm. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 9 W36264 CONCLUSION Jegan called for a board meeting to build a strategic map to transform the organization. After a long fulfilling discussion with Amarnathan, Jegan was very happy that the board meeting he was heading towards would set stage for the growth and transformation of Annapoorna. He wanted to break the barriers and open up new avenues for growth: short and long-term plans to balance the perspectives of internal and external stakeholders and enhance customer value, launch innovative products and services, and present breakthrough competitive strategies to multiply business potential. Jegan knew that Annapoorna had its limitations, and that they had not ventured into new markets or tried different business models for growth. Annapoorna had always been confined to the local community around Coimbatore and had not expanded and diversified. But Jegan had enormous confidence in the organization’s brand and vision. He wished to take a calculated risk and expand in phases to become a brand of PAN INDIA. To make this a reality what should be the short-term and long-term plans that the strategic team work on? How can they venture out to balance the constraints and realities that are in front of them? What should be their expansion strategy? Should they modify their operations and marketing strategies in light of new realities? What kind of learning and development plans should the organization engage in? What should they unlearn as they embark on their journey forward? As Jegan was walking to the boardroom, he thought that benchmarking with the world's best organization (hotel industry) would be the best option before engaging in expansion. What organizations should they be looking at? How could they strengthen their internal resources for their future endeavours? What should be their leadership strategy? Could they develop a change management plan and firm it up? Jegan crystallized the points that he would drive in the meeting. He was looking forward to the upcoming board meeting and crafting a detailed action plan for the next three years This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 10 W36264 EXHIBIT 1: ANNAPOORNA OVER THE YEARS Source: “About,” Sree Annapoorna, accessed November 29, 2023, https://www.sreeannapoorna.com. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 11 W36264 EXHIBIT 2: ANNAPOORNA’S POLICIES Learning and Development Policy Objective Annapoorna recognizes the importance of having a skilled workforce to achieve its strategic and operational goals. Annapoorna is committed to providing employees with an environment for learning and development which is aligned to the strategic objective. The objectives of this policy are (a) to develop a management process to identify employees’ training needs and (b) to ensure delivery of systematic and controlled training interventions within the organization, thereby enhancing employee’s knowledge, skills, and competencies. Applicability This policy applies to all permanent, full-time, part-time, and outsourced (on contract) Annapoorna employees. Responsibilities Chief Executive Officer Ensuring that the policy is implemented effectively; in practice will delegate the operational management of the requirements to the GM HR. General Manager HR Responsibility for policy implementation and training effectiveness in line with the organization’s strategy and operational plans. Manager HR Manager HR will be responsible for the below listed activities: o Operational management of all the aspects of this policy. o Assessing training needs and publishing training calendar. o Ensuring that employees are provided with timely and accurate information about mandatory and statutory training requirements and compliance. o Maintaining budgets and managing training delivery. o Coordinating and ensuring the success of the training program on the required parameters. o Measuring the effectiveness of training program. Reporting Manager Constantly observe the performance of employee on the job to identify the training need on continuous basis and share it with manager HR. Ensure that subordinate has a timely and well-planned appraisal discussion each year and that planned development is identified at this point. Ensure that their subordinates attend mandatory and statutory training programs as per schedule. Employees Employees are required to comply with all requirements set out in this policy. Express the training required to perform better in their role through the training or requisition form. Self-initiative in achieving an individual development plan (applicable for employees in middle management grade and above). Note: CEO = chief executive officer; GM = general manager; HT = human resources. Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 12 W36264 EXHIBIT 3: LEARNING AND DEVELOPMENT POLICY Learning Focus Annapoorna is committed to provide 32 labour-hours of training per employee per year. Annapoorna will encourage learning and development of the employee, which is aligned with the needs of the: Organization – Learning programs relevant from the whole organization’s strategy and perspective, such as customer service, quality involvement, ethical practices, and so forth. Department – Learning programs relevant for specific department and meeting its plan, such as billing machine usage, CRM application, SCM application, financial application, GST rules, grooming standards, or hygiene practices. Individual – Individual need-based learning programs, which help individuals to improve their performance through training in areas, such as English speaking, communication, and so forth. Note: CRM = customer relationship management; SCM = supply chain management; GST = goods and services tax. Source: company documents. EXHIBIT 4: IDENTIFICATION OF TRAINING NEEDS Learning Needs The initial step for training and development is to gather the organization’s needs for training. The short fall between the required competencies to do the job more efficiently and effectively and the employees' actual competencies will be identified. The different modes/methods to gather training needs that can be used include: Business/role requirements – based on the business’s changing scenario, new technology initiatives, or process change, HR department shall constantly discuss with senior management/top management and support the business through required training intervention. Assessment from performance appraisal – based on the performance gap and mutual discussion with the employee during performance appraisal process, reporting manager shall mention the specific training required for the employee or for the entire department. Identified from discussion with reporting managers/HOD – the reporting manager/ HOD shall identify the gaps in knowledge, skills, and attributes needed to perform a job. They shall convey the specific training requirement to the HR department, as and when required. Arising out of the employee’s personal needs – HR shall create a channel to invite employees to share their training needs based on their career aspiration in the organization. HR must evaluate such training requests along with the HOD of the respective department, on the basis of the organization’s need and invest on the future resources through desired training. The process should include the recognition of prior learning as far as the required competencies are concerned. All assessments of an employee’s performance shall assist in identifying competency gaps. Post collection of training needs, HR department shall do the training need analysis on basis of the organization, department, and individual’s need fulfilment. Note: HR = human resources; HOD = Head of Department Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  Page 13 W36264 EXHIBIT 5: TIMELINE FOR TRAINING AND DEVELOPMENT PROCESS 1. Learning Need 2. Learning Objective 3. Learning Delivery 4. Learning Evaluation Identification/Analysis Delivering the learning Measuring reaction, Learning needs for Setting the learning through various modes learning, behaviour, an employee, role, objective aligned to at different proportions and result. or organization as a the organization such as OJT, formal whole goal which should training online, be measurable. tutorials, etc. Reporting Manager, GM-HR, HOD, Trainer, Reporting Reporting Manager, HR Department CEO Manager, HR Dept. HR Department Source / reference Customer Organizational goal, Training register, Customer feedback feedback/Audit Department MOM, Learning Quality audit report/Appraisal/ strategy sessions Productivity report Role change/Transfer Timeline In the month of April Before identification As per training On completion of each year / Ad hoc of training and calendar training, one month training requirements commencement of and three months training after training Note: OJT = on the job training; GM = general manager; HR – human resources; HOD = head of department; CEO = chief executive officer; MOM = month over month. Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025. For the exclusive use of G. Mackie, 2025.  For the exclusive use of G. Mackie, 2025. Page 14 W36264 EXHIBIT 6: ILLUSTRATIVE LIST OF TRAINING PROGRAMS Classification Training areas Functional Behavioural Managerial DOER Compliance Customer focus None focusing on policies, Courteous procedures, and Listening and systems observing Health and hygiene Effective Grooming standards communication Basic occupational Prompt response procedures and Proactiveness safety Team player SPECIALIST Technical skills Customer focus Supervisory skill Process oriented Quality conscious Task scheduling Eye for detail Teamwork Task monitoring and Time bound Interpersonal skills follow-up Coordination and collaboration Communication PROGFESSIONAL Core functional Customer focus Managerial skills Goal oriented Influential Latest rules and Accountability Delegation industry practices Timely reporting Analytical Team management and escalation Timely reporting skill Self-driven Team building Process oriented Excellent Productivity and communication process Perseverance improvement Communication Problem solving CRITICAL Focus on long-term Customer focus Goal focused development Visionary Task delegation Strategic thinking Organization focus Self- and team Change Culture and values motivation management driven Directional Stress management Socially responsible Feedback Leadership Passion to win Team building and Conflict High Integrity development management Decision-making and influential skill Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 15 W36264 EXHIBIT 7: TRAINING AND DEVELOPMENT PROCESS Classification Mode/source of training Proportion of training DOER Classroom (operating procedure) 60% – on the job leaning On the job (practical) 20% – observations and supervisors’ corrections Observation and correction 20% – induction/formal classroom/video Daily hurdle meeting tutorial Buddy system Internship SPECIALIST Collaborative learning session 70% – work-related challenges/learning On the job (practical) through job rotation for second in line 20% – knowledge sharing sessions, Job rotation review meetings, group discussions, and Knowledge sharing feedback from managers 10% – formal internal or classroom tutorial PROFESSIONAL Knowledge sharing 60% – work-related challenges/learning External training and feedback from seniors 20% – external workshops and seminars, Workshops peer group meetings Online course 20% – formal classroom/online tutorial/articles/journals CRITICAL Succession planning process— 70% – work-related challenges/learning additional assignment and and feedback from management responsibilities 20% – social network, coaching and Coaching and mentoring mentoring 10% – formal educational events, training Social networking programs Strategy workshop Management development programs EXHIBIT 8: LEARNING AND DEVELOPMENT INTERVENTIONS Classification Mode/source of training Proportion of training DOER Classroom (operating procedure) 60% – on the job learning On the job (practical) 20% – observations and supervisors’ corrections Observation and correction 20% – induction/formal classroom/video Daily hurdle meeting tutorial Buddy system Internship SPECIALIST Collaborative learning session 70% – work-related challenges/learning On the job (practical) through job rotation for second in line 20% – knowledge sharing sessions, Job rotation review meetings, group discussions, and Knowledge sharing feedback from managers 10% – formal internal or classroom tutorial PROFESSIONAL Knowledge sharing 60% – work-related challenges/learning External training and feedback from seniors 20% – external workshops and seminars, Workshops peer group meetings Online course 20% – formal classroom/online tutorial/articles/journals CRITICAL Succession planning process— 70% – work-related challenges/learning additional assignment and and feedback from management responsibilities 20% – social network, coaching and Coaching and mentoring mentoring 10% – formal educational events, training Social networking programs Strategy workshop Management development programs Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 16 W36264 EXHIBIT 9: ORGANIZATION STRUCTURE Board of Directors CEO JMD MD Head - Executive Head - Head-Food Executive - GM Head - Head - Head- GM- Projects & Director- Customer Safety & Head - IT GM - HR CSR Operations Branding Liaisoning Transports Finance Maintenance SCM Relations QA Activities Note: CEO – chief executive officer; JMD = Joint Managing Director; MD = Managing Director GM = general manager; SCM = supply chain management; QA = quality assurance; IT – information technology; HR = human resources; CSR = corporate social responsibility. Source: Company documents. EXHIBIT 10: ORGANIZATION STRUCTURE—BY SEGMENT CEO Head - Executive Head - GM Head - Head-Food Head - Projects & Director- Customer Head - IT GM - HR Operations Branding Safety & QA Liaisoning Maintenance SCM Relations AGM 1 AGM 2 AGM 3 Manager-- Restaurant Restaurant Restaurant Manager Managers Managers Manager Production 1+1+1+..... 1+1+1+...... 1+1+1+..... AM (F&B AM (Food AM (Sweets AM (Kitchen AM (F&B AM (Pastry) Sweets/ Production) & Savouries} F&B) Pastry) Savouries) Kitchen Kitchen Supervisors/Sr Senior Captains Senior Supervisors Captains (F&B) (F&B)/Sweet Captains Stall In Charge (F&B)/Pastry In Charge Note: CEO = chief executive officer; GM = general manager; SCM = supply chain management; QA = quality assurance; IT – information technology; HR = human resources; AGM = assistant general manager; AM = assistant manager; F&B = food and beverage; CSR = corporate social responsibility. Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 17 W36264 EXHIBIT 11: DISCIPLINARY ACTION Disciplinary action All employees will be checked for the dress code/uniform, any employee (male/ female) not following or adhering to same will be taken through the following action steps: First time non-adherence – employee will be given counselling by HR manager along with HOD/ restaurant manager. Second time non-adherence – a memo will be issued against the employee plus the employee will be fined with Rs.100. Third time non-adherence – strict disciplinary action will be taken at the discretion of the management. Note: HR = human resources; HOD = head of department. Source: company documents. EXHIBIT 12: DRESS CODE Business formal for men Employees should wear the uniform shirt and trousers provided by Annapoorna Employees should wear ID card/badges as a part of uniform during the working hours Employees should maintain the decorum of the office/work place by strictly adhering to the dress code Dress worn by the employee should be clean and pressed Male staff to neatly tuck in their shirts, clean shaven, and wear clean and polished shoes (office staff) Employees should be presentable with trimmed nails and hair Shirt sleeves must not be rolled up Top button of the shirt must be done Business formal for women Employees should wear saree/ salwar kameez with the uniform coat on Employees should wear ID card/badge during working hours Employees should wear only formal chappals/ sandals Employee should be presentable with trimmed nails and combed hair Dress worn by the employee should be clean and pressed. Note: ID = identification. Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 18 W36264 EXHIBIT 13: GRIEVANCE REDRESSAL POLICY Grievance Redressal Policy The objective of the grievance policy and procedure is to provide a means of dealing promptly with any grievance which an employee or employees may have in connection with their employment in a fair and consistent manner. It aims to provide employees with a mechanism for settlement of their individual grievances. Applicability All employees, regardless of their positions, are eligible to apply for grievance redressal under this policy. At the same time, it is important for the employee to understand that grievances are often the result of a breakdown in communications and are often resolved by the relevant parties taking time out to discuss the concerns they have and to try to resolve them informally before invoking the grievance procedure. Definition For this policy, a grievance is any discontent or dissatisfaction, arising out of anything connected with the Annapoorna, which the employee thinks, believes, or even feels to be unfair, unjust, or inequitable. In the workplace, there are only two types of grievances: (1) general grievance, which affects a group of employees; and (2) individual grievance, which affects one employee and requires a one-to-one approach. Cause The cause for both general and individual grievances may be, but not limited to the following: Economic: grievances related to individual wage adjustments, late bonus, payments, adjustments to overtime pay, loss of pay, perceived inequalities in treatment, claims for equal pay, and appeals against performance-related pay. Work environment: it may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or poor physical conditions of workplace, defective tools and equipment, poor quality of material, unfair rules, and lack of recognition. Supervisory: It may be objections to the general methods of supervision related to the attitudes of the supervisor towards the employee such as perceived notions of bias, favouritism, nepotism, caste affiliations and regional feelings. Organizational change: Any change in the organizational policies can result in grievances. For example, the implementation of revised organization policies or new working practices. Employee relations: Employees are unable to adjust with their colleagues, suffer from feelings of neglect, victimization and become an object of ridicule and humiliation, or other inter-employee disputes. Source: from the Hotel Annapoorna’s, “Grievance Redressal Policy,” provided with permission of the organization. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.  For the exclusive use of G. Mackie, 2025. Page 19 W36264 EXHIBIT 14: QUALITY COMMITMENT OF ANNAPOORNA Commitment to Customer Annapoorna commits to deliver fresh, tasty and healthy food along with best service to its customer. Commitment to Employee Annapoorna has the following commitments to the employees: Employees have the opportunity to work in a unique environment—less politics, more fun, and down to earth. Employees have the opportunity to grow their skills, gain valuable experience and develop professionally. Employees can expect open, direct communication from organization leaders and peers. Strong performance is rewarded, both financially and by increased career challenges. Commitment to Vendor Annapoorna commits to the vendors to release payments on the agreed time period for the agreed quantity and quality of resources and to maintain competitive bid relationship. Commitment to Society Annapoorna will give equal opportunities of employment without any discrimination and will never encourage modern slavery and child labour. Annapoorna has made its commitment to the environment and community engagement. From procuring the resources to recycling of the waste, we act in a sustainable and responsible manner every day. Source: company documents. This document is authorized for use only by Griffin Mackie in FoM Spring 2025 taught by Sushil Nifadkar, University of North Georgia from Jan 2025 to May 2025.