Summeray Foods is a company that controls a ten-restaurant chain in different locations. The company’s headquarters are in Hawaii. The fine dining restaurants are located in booming and expanding areas, such as New York, New Jersey, and Hawaii, among others. Summeray Foods has a cozy dining room and décor that exudes a homely feeling. There are a garden and a patio that provide for the best ambiance. It focuses on offering first-class services to consumers. Summeray Foods serves a menu that incorporates different specialties that are inspired by different areas, such as Asian, European, and African cuisines, among others. The company also serves soft, exotic, and non-alcoholic drinks. Be ready to wine and dine at a warm and friendly place.
Summeray Foods is a restaurant chain that facilitates services, such as the preparation of foods and drinks for customers. The restaurants are located in New York and other areas. They serve different cuisines, a factor that has attracted a large number of customers. Summeray Foods is guided by a vision statement, which is to ensure that quality food is provided at an affordable price. Additionally, the company’s mission statement is to enhance customer satisfaction. The core values of Summeray include ensuring that high-quality services are delivered and that in the very end excellence prevails. Furthermore, other core values at Summeray include excellence in hospitality. The company also values environmental sustainability and is focused on the customers. Summeray Foods also appreciates and highly values family and diversity.
The food and drink industry is highly competitive, and Summeray has made profits and losses since it was developed. The company controls ten restaurants in various locations. Since its launch in the year 2008, the restaurant chain has experienced good and bad years. From the year 2011 to 2016, the organization’s revenue has grown relatively at an 8% rate. However, from the year 2017, the company started experiencing losses in one of the branches located in New York. The management has analyzed the problems that are contributing to this drop in revenue to improve the prospects of the company. The researcher will conduct a SWOT analysis to determine the organizational issues facing the company and establish possible interventions.
The key success factors are also known as critical success elements. These are the essential aspects that are needed in the organization to ensure some objectives are accomplished. The essential factors of success in the industry include market position (Healy, 2014). The restaurants should be located in a place of advantage to attract a large number of consumers. Further, the restaurant chain should be in a position to facilitate high-quality products in and out of season (Tran, 2011). Summeray Foods should also provide food and drinks at a cost-effective price. Also, it should ensure employee development through training (Summers, 2017). This can improve the skills and abilities of employees and nurture them to meet customer demands. The restaurant chain should conduct marketing and advertising to attract a larger pool of customers. Lastly, Summeray Foods should facilitate continuous improvement of operations and processes.
PEST Analysis of the Restaurant Chain
PEST analysis involves scrutiny of political, environmental, social, and technological factors. The political factors affecting the industry include government rules and regulations. The restaurants have to maintain high health and quality standards. Economic factors include the fiscal policies that can change due to inflation. Inflation can negatively impact the prices of raw materials that are used in the production of food. Social factors include characteristics of the general population. People are becoming more educated than before and, thus, are selective in relation to diet. Some markets are dominated by people who are health conscious and want healthy food options. Additionally, in other markets, people are attracted to fast foods. Technological factors involve the use of IT to promote publicity. Restaurants use social media and television for advertisement and marketing. As such, people can order food online and get information regarding the Summeray Foods chain of restaurants.
A SWOT analysis involves an assessment of Summeray Foods’ strengths, weaknesses, opportunities, and threats.
Strengths. The company offers foods that are clean and of high quality. Additionally, the restaurant chain operates under a low-cost structure, which has been essential in promoting the growth of the firm over the previous years. It also provides diversified foods and drinks. This is necessary for the firm since customers’ tastes and preferences keep changing. Further, it is strategically located and has excellent geographic coverage. Besides, it has a strong brand name which has caused an increase in the number of customers.
Weaknesses. Summeray Foods has had negative reviews from customers on social media platforms. The lack of proper marketing and advertising has contributed to unsatisfied consumers. Further, the company is getting a high amount of losses in one location. The amount of sales in the New York branch is currently declining. This has affected the growth prospects of the firm.
Opportunities. Summeray Foods has an opening for growth. The company can venture in other markets and, hence, attract a more significant number of potential customers. Additionally, there is an opportunity of the firm further diversifying the foods and drinks served. Summeray Foods has a chance to create self-ordering outlets. Also, it has an opportunity to facilitate mobile pre-order services. Summeray can also expand internationally; the company has a chance to extend its marketing and provision of services to different countries.
Threats. Summeray Foods faces the threat of being outdone by competitors, such as local restaurant chains that may provide more attractive menus and at more affordable prices.
Summeray also faces the threat of being phased out by restaurants that have adopted new technologies and are using them to facilitate top-notch services.
In Summeray Foods, the management needs to implement continuous quality improvement to increase revenue and offset the amount of losses made over the past few years. The New York branch needs to improve the production process. This is part of the operations control of the restaurant industry. It incorporates cost control and capacity management. The production process involves handling of materials by the employees, inventory management, and other tasks. Cleanliness and safety standards matter in food production (Rodgers, 2011). Further, eliminating waste products during production is also an essential aspect of the management of supplies. One way that Summeray Foods fails is in the control of the inventory. Additionally, some of the facilities have been inefficient in food production.
Lack of inventory control has caused a loss in the amount of sales. Summeray Foods has also been ineffective in approximating future demands. The implication has been an overproduction of foods which has, in turn, increased the amount of waste. The management has also not been making regular inventory checks, thus, affecting the operations of the business. Further, some of the necessary food production equipment have also failed, thus, affecting the production processing. Most of the burners and ovens are defective and have not been replaced in a very long time. The implication has been negative; causing the production of low-quality foods.
McKinney’s 7-S framework is a model that can be used to improve organizational effectiveness. The model was coined by Tom Peters and Robert Waterman in the year 1980 (Pothiyadath & Wesley, 2014). A model is a tool for improving the company’s performance. The elements of the 7-S framework are such as strategy, whereby a plan is built to give the organization a competitive edge. The approach to maintaining inventory at Summeray Foods is to incorporate Kaizen as a quality management technique. Kaizen is a continuous improvement process that helps in waste reduction and saving the time taken to complete operations (Summers, 2017). The method integrates the application of a management software which can help in the monitoring of inventory to prevent under or overproduction. The structure is another element of the 7-S framework, where the rules of the company, as well as the roles and responsibilities of every employee, are outlined (Singh, 2013). The framework comprises the daily activities of staff. Employees should be responsible enough to follow their job descriptions. Those who handle inventory and supplies should be versed with inventory management skills to correct the amount of supplies that can be ordered. The impact can be positive as the excess waste can be managed, thus, reducing the losses incurred.
Shared values include mission and vision statements in Summeray Foods. It is relevant that employees are working towards a common goal, which is outlined in the mentioned statements. Also, the style of leadership adopted matters in quality management. Where poor leadership prevails, all else fails. At Summeray Foods, the administration should adopt transformative leadership to ensure that the ineffective processes and procedures are eliminated.
Kotter’s 8-step change model
Kotter’s 8-step change model hinges on the fact that change is inevitable, implying that it must happen. The agents of change for any organization includes project-based working, being in the fore of the competition, technological enhancements, and new initiatives. John Kotter devised the “do” change strategy originating from the management and the desire to shift from the general perspective (Das, 2019). Kotter’s model is not just a tool for improving the company’s performance. Instead, it is the ultimate change strategy for any organization. It encompasses many aspects of company change than any other framework. It has elements that put it in a class above the other models. Kotter argues that for change to happen, there ought to be a mechanism to create urgency. Creating the sense of urgency sparks in the employees the desire to go out of their way to make sure that the change happens (Calegari, Sibley & Turner, 2015). Many people misuse this model when they present the poor statistics that ail the company. While that may help, it might demoralize people who work tirelessly, but feel being accused of laxity on their jobs. The model entails identifying threats the company faces and development of possible scenarios that would significantly affect it. Honesty and having candid conversations are essential to drive change. The firm must also create opportunities for employees to exploit to avert the threats. Remember that 75 percent of any company’s personnel need to buy into an idea, thus, making the first step critical.
After getting everybody on board, it is essential to form coalitions based on the planned changed. Formation of coalitions gives people the confidence that their input is needed to drive that change. At this stage, it is imperative to identify leaders who can drive the improvements that effect changes required. When the leaders are settled, requiring an emotional commitment from them is vital. It is also essential to create a vision for the change that needs to be actualized. Creation of the vision entails determining the values that are pertinent to that change, as well as creating a strategy to execute the idea. It is essential to make sure that the team is conversant with the vision before implementing it. Creation of short-term wins is also a critical aspect of Kotter’s model of change. Establishing quick wins gives the team morale for going to the next steps of improving the business. Another essential element is anchoring the change in the corporate culture. This is probably the most critical aspect of Kotter’s model as it hinges all the changes in the culture that defines the company. It must not be lost to the staff that the values of the firm still stand.
The Seven MBNQA Criteria
The award was established in 1987 to recognize excellence and quality management among the U.S. firms. It necessitated that companies employ quality management systems. The criteria for the award are seven-fold. The first criterion is leadership. An analysis of the top-down leadership structure is performed. Also, the relationship between the company and the community is put to task. The second criterion is the company’s strategy (Lazaros, Sofia & George, 2017). How a company establishes its plans and how it implements it is critical to the award. The third step of evaluation is the level of customer satisfaction. Any firm ought to devise a strategy that appeals to its customers. The firm must also employ strategies that ensure the retention of its customers.
The other aspect that qualifies a company for the MBNQA is the measurement, management, and analysis of knowledge within the company. Such analysis requires that organizations develop a system through which data is synthesized at the company level to enhance performance. The fifth one is how the company deals with its workforce. The HR departments ought to ensure that the human capital is well-remunerated, as well as appraised. The sixth aspect is organizational operations. The award requires that companies have systemic processes that allow for smooth and efficient operations. The last criterion for the award is result-oriented. A company must be able to satisfy its clients, appraise human capitulation, manage finances, and take corporate governance and social responsibilities. It also entails the relationship between a company and its competitors. It falls within the mandate of any reputable company to ensure that there is no bad blood between the competitors.
The operation of the seven MBNQA criteria is important for the success of any hotel business. When the process of operationalization starts, wastage and pilferage are contained. Lee and Ooi (2015) argue that the lack of a proper mechanism to start company operations work to diminish the achievements made in the sector. While maintaining the DNA of the business is important, changing the operations of the firm work to boost productivity. MBNQA criterion is vital in determining the business’ key performance indicators. The measurement means that the operations are evaluated constantly. Any changes in operations that adversely affect the performance of a business are done away with, while those that indicate progress are retained and improved upon.
The second criterion that Summeray must employ is the MBNQA Strategy. Putting in place objectives is not enough (Galli, 2018). It is essential to come up with a strategy through which the objectives are achieved. Approach goes a long way in curbing possible pilferage of company assets, as well as shortening the turn-around time of any objective. Strategy means that the obsolete procedures that have existed in a company are done away with. Evaluation of such protocol helps to improve on those that are in a salvageable state. While not all strategies used in the past are ineffective, examining the repercussions of all the approaches is vital. The company must be able to identify those strategies that work and those that do not. New plans must reflect the desires of both the customers and the management. It is not enough for the managers to dictate the new strategies without the input of the intended clientele. After all, the customers are the center of attention of any business.
Summeray ought to employ the following quality management tools to ensure that it is successful in its bid to improve service delivery. The seven quality tools are indispensable. Thus, change and improvement hinge on how a company adapts them. The first one is the cause-and-effect demonstration. Summeray must identify as many causes for a problem as possible, then categorize the ideas. Prioritization of such ideas is essential. The company also needs to have a check sheet. The check sheet is used for data collection. The tool should be diverse, meaning that it can be used to collect a wide array of data, and also cluster the data into purposeful information. The third tool involves control charts. The charts are used to monitor the change progression within Summeray. Such data helps to evaluate whether the progress is consistent.
The most effective way for Summeray to evaluate the frequency of a certain set of values is the use of a histogram. The histogram keeps a record of the number of times that a particular value recurs, which could enhance the focus of the change model. The Pareto chart is also employed to evaluate the factors that are of more significance to the company. They help identify the relationship between the variables. Furthermore, Summeray should use a scatter diagram. The diagram shows the tangents at which variables converge and the contributing factors for the independent progress of each item. The last tool is the stratification. The company ought to separate the data that it gathers to establish patterns. These patterns enable the management to plan for the next phase.
For Summeray to stay afloat, a change of strategy is vital. The management ought to rethink the company’s policy and how that contributed to the negative reviews across social media platforms. It must establish a presence on the social networks to mitigate and counter the negativity about the restaurant. In this age of social media, the restaurant’s policy must reflect the fact that it has embraced change. As earlier stated, change is inevitable. The only thing that remains constant is change itself. The restaurant must evolve and embrace innovations that drive change today. It must go all the way to ensure that it is at the upper echelons of the restaurant business.
Summeray should also reduce the cost of production. When strategies are in place to minimize wastage, the overall cost will come down significantly. Cutting down the cost will have an impact on the cost of food at the restaurant. The company will lower food prices without altering the quality of stock. It is also important that it diversifies its food choices to include a wider bracket of consumers who do not use conventional foods (Wu & Mohi, 2015). The management should also invest in a system that will ensure delivery of food. It may entail offering food delivery services like the rest of the restaurants are doing.
The current world systems require that a restaurant is able to diversify itself to all identities. While every business model has a target clientele, it is important that Summeray diversifies its menu to accommodate more people. Doing this requires research and a lot of dedication on the part of the management of the restaurant. The company has to go out of its way to attract customers. It should incorporate meal packages, instead of offering single meals to its clients. Businesses that do that attract a wide customer base. Specialized offers attract clients. Having a special offer for all its customers is vital in identifying the strategy to use in devising this offers.
The restaurant might also need to relocate. Operating in a business environment that is saturated is not healthy. It forces businesses to compromise their standards in a bid to attract more customers. Many businesses in such areas experience stunted growth. Relocating to a premise that does not have a high competition is important because a firm does not need to lower its prices beyond the expected profit margins. The hotel business in particular experiences unhealthy competition. The risk of such competition is a fall in the level of income due to loss of clientele who are attracted to cheaper prices and offers. Summeray might be forced to lower its standards in order to cut its prices, which in turn affects the quality of the business.
Change is must and it constantly happens. To stay on the niche of any industry, it is important to adopt change and innovations in order to improve the quality of service delivery. Kotter argues that without accepting change, no industry, regardless of its financial might, can navigate through the ever-changing market. Adopting change models may have financial implications, but it is a risk that has returns. Adopting technological infrastructure is a costly affair. However, in the long run, it is worth the investing in. Today, all businesses operate on the e-platform. Embracing the e-platform increases the customer base for a business. It is important to understand the market. The market is innovation-driven and so must the companies. The consumer market evolves on a daily basis, especially the food industry. A restaurant must be able to cope with the changes that drive its market. Having a customer-based opinion is important, because the customer is always right (Sweeney, Armstrong, & Johnson, 2016). A company must be willing to adjust to the customer wants, or it risks losing clients. Among the criteria for awarding MBNQA is customer satisfaction. This means that the restaurant must base its services on the needs of its customers.
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