TGI Friday’s Company Analysis

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Table of Contents

Introduction
Globalization
Conclusion
Reference List

Introduction

TGIF Friday is an American chain of restaurants that specializes in casual dining. It is part of the Carlson group of companies, with approximately 1000 restaurants all over the world. The chain of restaurant has a presence in 51 countries and is still expanding. The restaurant was started by in 1965 by Allan Stillman in New York City and at the time, it was specializing in the Alcoholic beverages, American Cuisines, and bar food.

The second branch began its operations in 1970 in Memphis, Tennessee. In 1972, another branch was opened branch in Dallas, Texas. Following its huge success, the company went nationwide in its operations by opening other new branches in different locations across the nation. Currently, the company has operations in most countries across the globe.

Globalization

Like any other organization, the TGI Friday’s management implements the core functions of management namely, Planning, Organizing, Leading, and Controlling. There are also both internal and external factors that affect the execution of the core functions of management (Schermerhorn, 2011).

Globalization has become a common trend not only for large organizations, but also medium sized organizations as well. TGI Friday restaurants have made a global stride by opening up new branches in different countries of the world. By 2010, the company had over 1000 restaurants in 61 different countries operating either as a franchise, or just as a standalone corporate of TGI Fridays.

To accomplish such an achievement, the company has to plan well and develop strategies to achieve its long term goals. This involves planning and making estimates for the funds required to establish the new branch in a different country, the estimated revenues from such a venture and the profits expected each year.

There are different factors that come into play and they are both internal and external. The internal factors are those within the organization, like the availability of funds and the type of management required to so as to establish the new branch in a different country. The external factors are those that are outside the control of the company. This could be the license fee by the hosting country or the political interference.

Innovation

Innovation has been the driving force behind the success of TGI Fridays. These are the new strategies adopted and the methods of running their businesses. Using a franchise to expand its operations is an extremely cost effective way of expanding without incurring huge capital outlay (Ethical Consumer, n. d.).

In doing this the company has to consider its organizational culture and its brands so that business partners will be selling their authentic products and not just using the name to sell other products. There is always a franchise contract between the company and the business partner. The company too has to ensure that the business model is accepted to both the government and the community. All this will affect how the company organizes its activities and planning its operations.

Diversity

Diversity has always been at the heart of TGI Friday’s business operations. To establish business branches in other countries it has to contend with different cultures and this requires a very good business organizational strategy. For example, in India where most Buddhist and Hindus are largely vegetarians and believe that cows are sacred, their products have to be largely vegetarian and they have to avoid beef in their products. Here, the company has to consider other peoples cultures and their attitudes.

Ethics

Good business Ethics requires business leaders who are able to control their operations and their consequences as well. The company has to ensure their staff are well paid and have high working morale; this should include medical cover extended to their families. The company should ensure their suppliers, in addition to observing good business ethics, and not exploiting their staff. The environment should be taken into account by reducing and minimizing solid wastes.

Conclusion

The TGI Friday’s have been criticized on several occasions on how they are treating animals, how they are treating their employees, their suppliers and the environment in general. The Ethical Consumer Magazine in the United Kingdom places the company at the bottom of its list, scoring a mere 2 points out of the 20 points. The best performing restaurants such as Gourmet Burger Kitchen scored about 9 points out of the possible 20 points; such restaurants largely deal with organic foods.

Reference List

Ethical Consumer. (n. d.). Ethical Shoppers guide To Restaurant Chains. Retrieved from ethical consumer website: https://www.ethicalconsumer.org/food-drink/shopping-guide/restaurant-chains

Schermerhorn, J. R. (2011). Exploring Management. John Wiley and sons: New York, NY.

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