Category: Restaurant

Technology

All European MacDonald restaurants are embracing new technology at the market. This will see their revenue grow to higher levels. This will majorly occur due to increased rate of serving customers, increased expediency and comfort. The increased rate of serving customers will result from the replacement of current cashiers with touch screen computers (Peng & Meyer 2011, p. 64).

The touch screen computers will strategically be placed at terminals where clients will be able to order various meals, such as hamburgers. Customers will then be able to pay for the meals using credit cards. Over two thousand fast food franchises in Estonia will be fitted with touch screen computers. The management team projects that the new technology will help the MacDonald attain more convenience, as well as increased accommodation.

Steve Easterbrook, who is the current president of all MacDonald based branches in Europe, indicated that the transaction will now improve in relation to the past modes of operations. In particular, the president mentioned that the transaction will be two to three times faster.

Therefore, the MacDonald’s efficiency and effectiveness is expected to increase in the near future (Brandet & Rawski 2008, p. 73). All the touch screen computers will be purchased from Japan, a nation that Easterbrook had gone for a trip and luckily came across the touch screen technology.

However, it is threatening that the new terminals are likely to phase out cash as the mode of payment. The MacDonald is anticipating that this approach is prone to reducing certain profits that come from customers who frequently use cash. Conversely, the management team and other researchers argue that Estonia is growing at a fast pace and most customers will be using debit and credit cards in making various payments in the next one year.

This is due to the fact that most residents of Estonia are educated, as well as having the high level of income (Morrison 2009, p. 78). The new machines will only accept credit cards and debit cards. The MacDonald will utilize this technology to increase its efficiency.

Corporate and work culture

The work culture of the MacDonald is highly dependent on the specific line of management. Most managers use their positions power to execute certain activities. In many cases, employees at various managerial positions assume leadership to direct young and inexperienced employees in performing a range of duties (Johnson, Scholes & Whittington 2008, p. 47).

In certain occasions, especially during peak periods, managers operate in the same way as machines. In some incidences managers are seen operating in a relaxed manner and sometimes it becomes even difficult to distinguish managers from their junior employees. Sometimes managers work at selling points, which mean that the entire management team is always ready to work at any level.

Unlike other fast food restaurants, managers at the MacDonald do not simply give orders but also participate in activities that are chiefly carried out by junior employees. Such participation creates a work environment that motivates all junior employees. At the MacDonald restaurant, a barrier is not created between employees and their supervisors. This can be proved by the interest and concern shown by managers to employees.

For instance, a manager at one time asked an employee about his weekend and family. According to the Maslow theory, employee recognition and respect has been a motivating factor for a good number of employees since workers are provided with good working conditions (Brooks, Weatherston & Wilkinson 2004, p. 86).

The McDonald’s management believes in training its employees. A number of employees are being offered training at Hamburger University. The interactive type of management, as well as training offered to employees is expected to enhance the performance of the McDonalds in Estonia.

List of References

Brandet, L & Rawski, T 2008, China’s Great Economic Transformation, Cambridge University Press, New York.

Brooks, I, Weatherston, J & Wilkinson, G 2004, International Business Environment, Pearson Education, London.

Johnson, G, Scholes, K & Whittington, R 2008, Exploring Corporate Strategy: Text Only, Pearson Education, London.

Morrison, J 2009, International Business: Challenges in a Changing World, Palgrave Macmillan, New York.

Peng, M & Meyer, K 2011, International Business, Cengage Learning, London.

Trompenaars, F & Woolliams, P 2004, Business across Cultures, Wiley, New York.

Introduction

When it comes to effective management in the hospitality industry managers need to take into account a diverse array of possible circumstances that may occur that would affect client satisfaction and their subsequent patronage of a particular business.

This can come in the form of a restaurant’s ambience, the quality of the food, the type of services offered as well as other factors that contribute to a customer’s dining experience. In this particular project the problem in question is the effect boisterous children have on other customers within an enclosed restaurant setting.

At (PLACE NAME OF RESTAURANT HERE), a restaurant that specializes in Japanese cuisine and various sushi dishes, various families come to eat due to the family friendly image that the restaurant tries to portray.

While such a marketing strategy has proven to be effective as seen in the sheer amount of families eating at the restaurant on a daily basis, this success in appealing to one consumer group has in effect started to alienate other customers at the restaurant.

When parents bring their children to come eat at the restaurant there are two possible outcomes that may occur, either

• their children can become a pleasure to serve and are perfect little angels
• the children can be compared to little demons and are overly boisterous, active and noisy.

The latter situation is what often occurs and as a result other long time patrons of the restaurant have slowly but surely begun to patronize other Japanese restaurants. Customer complaints range from children being too noisy, too active within the restaurant (as they happen to enjoy running along the lanes), and just plain annoying in their opinion.

Based on an examination of their complaints, the problem was pinpointed at the children just having nothing to do within the restaurant. While it may be true that parents should be responsible for the attitude of their children it is considered to be highly disrespectful to ask customers to control their children or leave the restaurant.

Taking this into consideration, the best possible solution to the dilemma is to find something for the children to do in order to keep them occupied and create a restaurant environment that is appealing to all types of consumers that the restaurant caters to.

This is the first factor that will be explored in this paper and will center on various studies and articles that examine the practices of other restaurants and as a result should provide an effective solution to this predicament.

The second factor that will be explored in this paper involves the types of food normally seen on a Japanese menu, the reactions of kids to such items and methods that can be put into place to help prevent any negative consequences. What must be understood is that (PLACE NAME OF RESTAURANT HERE) tries to make the dishes on the menu as authentically Japanese as possible.

While such dishes are received quite well by the adult customers of the restaurant they are not received as well by children. Items such as sushi, sashimi, and yakisoba are often found partially eaten, thrown on the table or at worse at floor of the restaurant.

What’s worse is the fact that as these menu items are reject by kids they start to wail and cry about the type of food given to them which tends to annoy other patrons within the establishment. To resolve this issue what is needed is to devise a menu that specifically caters to children while at the same time stays true to the authentic Japanese style of (PLACE NAME OF RESTAURANT HERE).

Methods Utilized in Restaurants Today to Pacify Children

One of the current methods utilized by restaurants today such as McDonald’s, Applebee’s, Wendy’s, and Burger King to pacify children is to have placemats with an assortment of puzzles and mazes to keep them amused. Such tactics have proven to be quite effective in the short term as kids seem to enjoy completing the maze, filling in the blanks and an assortment of other activities.

Unfortunately such a tactic will most likely not work in the case of (PLACE NAME OF RESTAURANT HERE). The main difference between McDonald’s, Applebee’s, Wendy’s, and Burger King is that (PLACE NAME OF RESTAURANT HERE) isn’t a fast food restaurant nor is it an establishment that serves sub-par products.

(PLACE NAME OF RESTAURANT HERE) creates authentic Japanese cuisine that is fresh and made to order and as such takes a considerably longer period of time to make as compared to America’s fast food and junk food establishments.

Taking this into consideration the placemats with mazes, games and puzzles will undoubtedly only last a child a few minutes and within that span of time it is unlikely that the food will be ready anytime soon, especially on nights when the restaurant is full.

The study of Lange-Küttner (2009) which examined the attention span of young children indicates that children have a natural propensity to continuously observe and interact with the environment around them and as a result this manifests itself as a form of hyperactive behavior making them unable to sit still for prolonged periods of time without something to continuously feed their need for environmental interaction (Lange-Küttner, 2009).

As such, due to the length of time it takes to make food at (PLACE NAME OF RESTAURANT HERE) utilizing placemats with games seems like an ill-advised solution since it will not feed the need for constant interaction that young children desire. An alternative solution to this predication could come in the form of providing children with toys to play with while they are at their table.

Such a solution could satisfy the need for interaction as indicated by Lange-Küttner (2009) but there are several issues with this particular solution.

As the article “75 years and counting: Health advice that endures (2011)” indicates contamination over shared toys is a very likely consequence with the possibility of a dozen children within a single day interacting with the same toy causing some of them to become sick as a result of cross contamination

(75 years and counting: Health advice that endures, 2011). While one possible solution to this issue is to institute some method of decontamination after each use, the researcher still thinks that utilizing toys is still an unsafe method based on the study of Lu, Samuels, Shi, Baker, Glover & Sanders (2004).

When examining the research of Mathis (2010) which detailed the use of the iPad as an interactive educational tool for children it became obvious that such a solution could be utilized at (PLACE NAME OF RESTAURANT HERE) as well. As indicated by Mathis (2010) the iPad can become a great tool for education due to the graphics and level of interactivity that it can provide.

By utilizing the iPad’s ability to feed a child’s need for interactivity through the use of various apps (applications) this would help to keep them situated in one location and above all quiet as they explore the various gaming apps that (PLACE NAME OF RESTAURANT HERE) can install.

In fact, (PLACE NAME OF RESTAURANT HERE) could install games that have a Japanese theme or food theme running through them which would help to educate children about the Japanese culture and different kinds of foods. Not only that, a water proof and germ proof cover could be applied on the iPad so that it can be easily cleaned and utilized by the next child that comes to the restaurant.

By providing this particular type of service to the children of customers this will boost the image of (PLACE NAME OF RESTAURANT HERE) as a family friendly restaurant that does all it can to keep customers happy.

It must also be noted that by providing this particular service to families this in turn helps to keep other customers happy since it ensures that children who come to the restaurant are quiet and peaceful and thus would help to preserve the quiet ambience that (PLACE NAME OF RESTAURANT HERE) is known for.

A Menu for Children

Children are notoriously picky when it comes to the food they eat, if they don’t like what’s placed in front of them they tend to act out in temper tantrums, fling the plate or even fling the food in the worst possible scenario. While this would normally be fine within a home setting the fact is that within a restaurant it can become incredibly disturbing for the other patrons and as such encourages them to go to other establishments.

In order to resolve this particular issue it becomes necessary for (PLACE NAME OF RESTAURANT HERE) to implement a Japanese style menu that combines authentic Japanese cuisine with an eye towards appeasing a younger consumer segment. When it comes to appetizers and side dishes few children will eat what they don’t recognize or encounter what they deem to be “unusual flavors”.

Taking this into consideration (PLACE NAME OF RESTAURANT HERE) should have a menu made especially for children and must have items that not only are authentically Japanese but have a slightly western flare to their making in order to appeal to a child’s sense of taste.

Main Meals

Chicken teriyaki is one Japanese dish that most children find quite appetizing since it closely resembles chicken barbeque in flavor. The chicken is usually placed on top of a bowl of rice with a nice sweet savory sauce being poured on top. The “easy to eat” nature of this dish along with its overall familiarity should ensure that few children would have any problems eating it.

A dish that uses a similar sweet sauce to chicken teriyaki is Yakitori, a Japanese dish that is usually served on skewers since the beef or chicken pieces are grilled over an open flame. Having this dish on the menu is in line with the idea behind having chicken teriyaki on the menu since their overall consistency, appearance and flavors closely match dishes children in the U.S. already know about.

Aside from traditional Japanese dishes it may be advisable to include some Japanese cuisine inspired American dishes especially for children.

While these items won’t necessarily be available on the main menu since they cannot be described as “authentic” Japanese cuisine they might need to become necessary elements for a Japanese children’s menu and only given on special request to adult customers. These dishes are: California rolls and Philadelphia rolls

Philadelphia rolls are composed of a stuffing of cream cheese, and cumber surrounded by rice and smoked salmon. While not technically a Japanese dish, the overall configuration does utilize several elements of Japanese sushi making and as such could be considered a fusion of Eastern technique with Western tastes.

Overall the dish is quite tasty and has several flavors that children are used to and as such is a good appetizer for children to enjoy. The combination of salmon, cucumber and cream cheese are mild enough flavors that they don’t overwhelm a child’s taste buds and as such have proven to be a well liked starter set for children.

It must be noted though that some children don’t especially like having fish and as such it is advisable to inform parents of the ingredients of the dish before having them order. Another dish that has been shown to be quite palatable for children is the California roll.

Similarly a fusion of Eastern and Western styles the California roll is composed of avocado, cucumber and crab meat surrounded by rice. Overall the dish is quite chewy and as such it is not recommended for overly young kids but overall it makes a good starter since children apparently quite like its unique orange color and mild flavors.

Deserts

When it comes to desert there are several possible strategies that could be done in order to get children to like what they are about to eat. One strategy is to utilize a desert in the menu that children will find familiar and thus be more likely to eat it as compared to other more traditional Japanese deserts.

While it may be true that (PLACE NAME OF RESTAURANT HERE) could just serve a desert like ice cream to children the fact remains that this would not conform to the message of authenticity that (PLACE NAME OF RESTAURANT HERE) is utilizing in its branding strategy.

It is due to this that it becomes necessary to find a middle ground so to speak that allows the restaurant to both conform to its branding strategy while at the same time appeases the fickle nature of children when it comes to eating.

Taking this into consideration one possible food item that could go into the menu is Dorayaki, this is a traditional Japanese desert that has sweet bean paste placed in between two pancakes and made to look like either a round sandwich or a flat bun. The pancake like exterior is made out of floor, eggs and several other ingredients and it does have a pancake like consistency to it.

One of the reasons why this would definitely entice children is due to the overall look of the desert which definitely looks like two pancakes stacked on top of each other. It must also be noted that this desert isn’t overly sweet and has a nice consistency to the bean paste which contrasts nicely with the two pancakes surrounding it.

Since it looks familiar, has just the right amount of sweetness and has been proven to be a desert enjoyed by children both in and out of Japan it is quite likely that it would be a great choice for the menu.

The second possible strategy is to appeal to a child’s sense of aesthetics by making a desert look as palatable as possible. One desert that fulfills this particular criterion is Nerikiri, this is another traditional Japanese desert that is normally served during tea ceremonies.

While the main ingredient of this particular type of desert is a sweet white bean paste Nerikiri can actually be colored and molded to conform to a variety of artistic shapes that makes it look like a work of art. (PLACE NAME OF RESTAURANT HERE) could make a special line of Nerikiri that is made to look especially appetizing for children.

This would help to entice them to eat the desert and as such prevent any tantrums regarding what they would have to eat for their last course.

Reference List

75 years and counting: Health advice that endures. (cover story). (2011). Consumer Reports on Health, 23(5), 1.

Lange-Küttner, C. C. (2009). Viewing and attention in children. Acta Paediatrica, 98(10), 1553-1555.

Lu, N. N., Samuels, M. E., Shi, L. L., Baker, S. L., Glover, S. H., & Sanders, J. M. (2004). Child day care risks of common infectious diseases revisited. Child: Care, Health & Development, 30(4), 361-368.

MATHIS, J. (2010). The iPad’s School Day: Apple’s tablet Hits the classroom. Macworld, 27(12), 28.

Entrepreneurial character of the Chipotle business

Chipotle offers a household burrito brand. The Chipotle restaurant offer customer services such as attractive eating environment. The burrito brand is a household name that defines a lifestyle among the loyal customers. Instead of just serving fast food, the Chipotle’s burrito is not a junk food. Rather, this meal is prepared from healthy ingredients in line with the health needs of the customers.

Despite the long process of preparing a single burrito, Chipotle restaurants serve their customers within the same waiting period as most of the fast food restaurants. Therefore, the decision to eat at Chipotle is informed by the need to maximize customer satisfaction. Besides, the business was founded on the principle of offering healthy Mexican food in the market at very competitive prices despite the opportunity given to customer to participate in selection of ingredients in each burrito or tacos.

How Ells promoted entrepreneurship within the organization

As the founder and CEO of the Chipotle restaurant, Ells created a unique menus and eating culture among the targeted clients in the most comfortable and warm environment.

He ensured that the restaurants were very spacious and has attractive finishes to give the business a competitive edge. The attractive eatery environment and unique arrangement of the dining area were designed to be very welcoming to families by Ells.

A typical customer would be attracted to the executive design of the Chipotle restaurant besides the delicious menu designed by Ells. Besides, Ells was able to expand the restaurant within a relatively short period through partnership with other establishments.

Insights that SWOT reveal on how Chipotle should be positioned in future

From the SWOT analysis, it is apparent that the unique menu, cultured eating environment, quality ingredients, healthy food, and relatively affordable food guarantees business profitability and sustainability in the future. However, the emergence of competition is currently threatening the expansion strategies of the business.

Apparently, the SWOT reveals that Chipotle should position itself as the restaurant offering natural recipes made from high quality and naturally bred animals and vegetables. Besides, the customers should be made aware of the aspects of proactive participation in selection of the best ingredients for their meals and observing the preparation process in a healthy environment.

Components of Chipotle’s business strategy

Quality menus and services: The restaurant is known for high quality ingredients and burrito brands prepared and served to specification of each client in an ambient eating environment. The service period for each customer is within five minutes just like the restaurants that serve fast food.

Differentiated products and cultured business: The restaurant serves series of burrito brands and other meals in restaurants that are designed to identify with the social and cultural beliefs of the targeted customers.

Changes that Ells should make to differentiate the company

The financial report bulletin of the Chipotle restaurant suggests that the company’s expansion plan for the next four years would increase the profits by almost a third. Besides, the restaurant has survived pricing backlash against the prediction of most of the analysts.

Therefore, the current pricing strategy should be modelled to be highly dependent on the variable of the customer’s value perception for the services at the Chipotle. The restaurant should introduce a series of coupons, gifts, and discounts that influenced the perception of the customers as filling the gap left by the difference in the current relatively high prices.

Besides, the restaurant should be differentiated by the Chipotle culture of round table service and customer participation in selection of ingredients and preparation of their orders.

Executive Summary

The marketing strategy for Island Greek centers primarily on three distinct marketing strategies. The first strategy focuses on leveraging the popularity of social media as a means of connecting Island Greek with the local community in Sydney. Basically, this strategy focuses on leveraging social media as an easy and low cost method of brand promotion and customer support by both advertising the restaurant as well as communicating with people who are interested in getting to the restaurant as well as informing them of the various types of food that are available. The second strategy of this report focuses on using YouTube stars as a means of popularizing the restaurant by mentioning it on their videos or by vlogging about their time eating at the location. This method has the potential of reaching thousands of people within Australia at a relatively low cost as compared to creating a television commercial that would cost millions. The third strategy for this report centers on the creation of a small sporting event (i.e. a marathon) that Island Greek can sponsor. Various marathons around Australia have been sponsored by small local business and, as such, Island Greek can utilize the same strategy. This would help to “get the word out” so to speak regarding the restaurant and help to create a greater level of brand awareness. It is expected that through the implementation of the strategies that are in this paper, Island Greek would be able to gain a considerable increase in the amount of customers that visit the restaurant.

Objectives

The primary objective of this marketing strategy is to increase the market share of Island Greek by making it better known to members of the local community within Sydney. By doing so, this would help to increase the viability of the restaurant as well as increase its profits.

Marketing Growth Strategies

The primary marketing growth strategy that this report will focus on is the use of market development in order to improve the brand of the restaurant. This will focus on the use of social media campaigns, YouTube promotion and event creation in order to promote the restaurant to members of the local community in Sydney.

Consolidation Strategies

When examining the case of Island Greek and the fact that it is just a small restaurant, it was determined that no

Product Strategy

One of the initial problems that Island Greek will experience when attempting to entice customers to the restaurant is brand recognition. Branding is an important aspect of selling products since it is the manner in which consumers differentiate one restaurant from the rest in terms of what the brand represents such as quality, product longevity and popularity. As such, given an examination of the local market and the numerous restaurants that are already present, it is likely that there are already well established brands within the targeted markets with similar products lines (i.e. exotic foreign food). Sydney itself is known as one of the prime locations for foodies (people that enjoy eating unique types of food) and, as such, there is already an assortment of local restaurants that are popular with local consumers. This creates a distinct problem when promoting Island Greek to the local market since it is likely that consumers would choose a restaurant they know and are used to rather than a relatively unknown restaurant that they have never seen before. What must be understood is that Island Greek has no “claim to fame” so to speak when it comes to the type of restaurant that it is. It does not have a celebrity chef, it is far from being luxurious and is relatively unknown outside of its limited consumer base which consists of the descendants of Greek migrants. It is with this in mind that any product strategy should focus on increasing the level of brand recognition that the restaurant has with members of the local community.

Another factor that the restaurant should take into consideration is that competitors in Sydney may in fact be well entrenched within the markets that Island Greek is currently operating in which creates the possibility that demand simply will not arise due to the presence of apparently better alternatives. It is with this in mind that in order to popularize the restaurant’s products, it would be necessary to promote the brand and create interest. One possible strategy is to promote some local sporting event in order to get people to join and popularize the restaurant. As seen in the case of the New York Marathon as well as the Land Rover Malta Marathon, sporting events often draw competitors from various locations in order to be part of the event. The advantage of implementing this type of product promotion strategy is the fact that it has little need for extensive logistics. All that would be needed would be to take out a permit with the city, promote the event via the various marathon community messaging boards and place flyers in areas where people would see them. This means that compared to other product promotion strategies it does not have the same degree of difficulty and cost when it comes to its creation as compared to promoting the restaurant via a television commercial or a billboard. Island Greek could promote the event and place pictures of the different dishes it serves on the contestant numbers that the runners have to wear. This helps people to see what the restaurant has to offer (i.e. the spectators seeing the dishes as runners go past them) which would result in them visiting the restaurant in order to try out the products.

Pricing Strategy

The pricing strategy for the restaurant will remain unchanged since it is unable to leverage an extensive supply chain in order to significantly lower its prices.

Promotion Strategy

Based on an evaluation of the current financial capacity of Island Greek to sustain an effective advertising campaign, it was determined that one of the most effective yet affordable means of promoting the restaurant to the general public within Sydney is to utilize YouTube stars as a unique method of restaurant promotion. Various forms of consumable media in the form of print ads, billboards, commercials, online marketing campaigns and a plethora of other types of advertising initiatives are rife with the images of various popular individuals showing just how prevalent product endorsements are in the advertising campaigns of numerous companies. The logic behind this particular method of advertising stems from the fact that people are more likely to purchase a product or utilize a particular service if they see someone else happily using it. Studies even show that the likelihood of product patronage goes up astronomically if it is seen that a pop culture icon is utilizing a particular type of product. This speaks volumes of the influence of pop culture on consumer buying behavior however it is also indicative of the fact that companies are aware of what causes consumers to purchase a particular product and act accordingly in order to exploit it.

However, the inherent problem with using popular culture celebrities is the fact that they are often quite expensive and demand millions in fees. An alternative method that this marketing strategy has devised that overcomes this particular problem utilizes YouTube stars as a means of promoting Island Greek as a great restaurant to eat at. On average, YouTube stars such as Ray William Johnson, Philip DeFranco, Shane Dawson, Smosh and others like them often generate millions of views per video, greater even than some shows on cable television. Furthermore, these shows are watched by a global audience encompassing countries such as the U.S., China, Russia, Australia, and various states within the European Union. This would enable any marketing campaign that centers on the use of such YouTube stars to in effect target a wide range of consumer markets at a relatively low cost. YouTube stars in general do not demand a lot of money for placing ads within their show; it is usually the case that by providing a promotional code or a link in the description of the video, the company that created an advertising contract with them usually pays on the basis on the number of clicks.

This averages to around $1,000 or less on select advertising and promotional deals; this is a vast difference when compared to the millions demanded by A-list stars within Hollywood. You also have to take into consideration the fact that YouTube stars can come from a variety of different countries wherein they have a distinct level of popularity with the local populace. Based on this, a marketing campaign could spend 1 percent of the amount of money that would normally go to an A-list star yet reach 20 times the intended audience demographic by utilizing a select marketing strategy devoted to using YouTube stars from specific regions that cater to the audience demographics that the campaign is attempting to appeal to. It is based on this that Island Greek can utilize Australia based YouTube stars as a means of promoting the product to their audience.

Distribution Strategy – Use of Social Media

When taking into consideration the effectiveness of social media campaigns and their capacity to reach thousands of people, it was determined by this report that the use of social media as a means of distributing marketing material for Island Greek would be an effective strategy. The sheer proliferation of social media platforms such as blogs, wikis and online forums has created an unprecedented opportunity for Island Greek to take advantage of this new social trend in order to promote its products. Nearly 22% of all online activity within Australia is spent on social networking websites and, as such, is indicative of the consumer market share that social media platforms could potentially provide to the Island Greek should it utilize such a marketing tool.

It has been proven using social media programs such as viral marketing initiatives that a certain degree of “hype” can be generated for a particular product or service yet only cost a fraction of a standard advertising campaign. Thus, from a cost-benefit standpoint, the utilization of social media platforms as marketing tools is not only advantageous for the Island Greek in terms of brand promotion and gaining a certain degree of market penetration into potentially untapped consumer segments but it can do so at a relatively low cost and, as such, presents numerous potential avenues of approach by which the Island Greek can generate consumer awareness of its products.

One way of utilizing social media in advertising the products of Island Greek is to create a Facebook fan page for the company in order to help better connect itself with its current customer base. What must be understood is that by creating a fan page this allows subscribed Facebook fans to receive updates from the organization in the form of product launch dates, overall product availability, performance and other factors that can contribute to its sale. In fact, a fan page creates a “human” face for the organization in that by posting daily news regarding the particular industry the organization is in, this helps consumers to better understand Greek cuisine and thus create a greater degree of product awareness which translates into a higher likelihood of product patronage and sales. It is also interesting to note that through the fan page the Island Greek can also better facilitate particular promotions such as discounts, special contests and other such methods of promotional marketing that are meant to entice greater public interest over a particular wine or vintage. Various companies ranging from the alcoholic beverage maker Jack Daniels to the computer manufacturer Asus have Facebook fan pages and this has enabled them to create a larger consumer fan base since instead of the company merely being a nameless entity that consumers buy products from, it is subsequently transformed into an entity with particular views, positions on current events and even a sense of humor when it comes to posting its daily wall posts.

It is based on the various perspectives that have been elaborated on that it is highly recommend that the Island Greek venture into at least some form of social media marketing in order to better connect itself with its customers. There is little risk in utilizing this particular marketing tool and the potential rewards are massive in terms of greater brand awareness, better consumer relations and the creation of a particular image for the organization that goes beyond merely being a business entity but rather is one connected to an open attitude regarding current events, the needs of consumers and being an organization that is modernizing instead of being stuck in the dark ages of consumer marketing

Market Plan Implementation

The best way in order to fully utilize the viewership of a YouTube star is to have them sponsor the restaurant by having them mention it then have them point to either a banner location on the screen, a promotional code the viewers can use to get discounts or a link in the description of the video where viewers can go and visit a website detailing the various types of food that they can eat at Island Greek. This is often the strategy Netflix uses on either the Philip DeFranco show or on Epic Meal Time in order to gain a substantial amount of subscribers to their services. The same strategy can be utilized on select YouTube stars from specific regions and through multiple shows. By examining the viewership range and what type of viewers normally watch a particular YouTube star, the marketing campaign for Island Greek will be able to determine what star to use, how long should the promotion period last for and will be able to monitor the overall effectiveness of the campaign via the number of clicks on the link, the number of people watching the video or the sheer amount of times the promotional code is used.

Aside from promoting the restaurant by having an Australian YouTube star promote it on their show, one potential avenue of approach is to arrange for an all expenses paid trip for the YouTube star to the restaurant where they can vlog their experience to their viewership. Vlogging is a term that is a result of combining the words “blogging” (referring to act of publishing personal thoughts and experiences online for complete strangers to read) and “video”. The vlogs of YouTube stars often generate a substantial degree of views due to the current obsession over “reality viewing” wherein people want to watch people living their lives as it unfolds. By having YouTube stars vlog their experiences of eating at the restaurant and enjoying the different dishes, this in effect acts as type of commercial which shows cases the amenities and overall appeal of the location. Since it comes from a personal perspective and not through a telegraphed and obviously one sided view of the restaurant, this in effect generates a unique appeal to the market segments that the marketing campaign is attempting to target (i.e. people that have yet to try eating Greek cuisine). It must also be noted that the YouTube stars in question could also be potentially convinced to host their shows with a live background of the restaurant. This enables the marketing campaign to more effectively capture a larger audience without having to increase the amount of money paid to the YouTube star since they are already on an all expenses paid free “vacation”.

When it comes to the sport event promotion, its implementation is actually pretty straightforward. All that would be needed is to take out a permit with the local Sydney council, advertise the event on the various marathon community boards that are based in Australia, plan and route and advertise through the use of fliers. The “fun run” itself does not have to be very long (5 to 10 miles) and the proceeds from the event can be donated to charity. The main point behind its implementation is to basically promote Island Greek by turning the runners into walking billboards for the restaurant.

Forecasts and Financial Data

Based on an examination of costs which arise with doing business which consists of the cost of promotion. branding expenses and online promotional. expenses The highest cost for the business is the $5,000 paid for the online promotion through YouTube stars and online Facebook giveaways.

Year 1 estimate along with costs

Market Plan Control

Since all customers that will be attracted through this marketing campaign will be directed to the restaurant’s website, Island Greek will be able to easily track the amount of visits within a given period. This can be done automatically through an installed program on the website which would enable easy tracking and the creation of a database of customers through the site’s registration option.

Living in during the time of business globalization, it is natural that people from other countries go abroad to establish their business. There are no problems if a business is established in another country with the same culture and traditions. The problem of cultural conflict takes place in case the business is established in the country with a different culture. Thus, Eastern and Western cultures differ greatly. Working with Eastern employees, it is important to research their interests, to understand how they are working and what they expect from their work.

The principles of Easter and Western management have many differences; therefore, when establishing a business in the Easter country, a Western entrepreneur has to search for the specifics of the cultural management style and to understand the peculiarities of the working process and the employees’ expectations in the country. Only in this case, the business will bring much success. Goodman has decided to establish a Western restaurant in China and having failed to consider the Chinese management principles; he suffers some difficulties. Still, they can be easily solved.

Why do you think Goodman has a difficult time finding employees who can perform up to his expectations? How can he teach them to perform better?

One of the main difficulties Goodman faces in China is the cultural differences he fails to understand correctly. Having created a good business, Goodman relies on his Western strategies and wants to implement the services which are popular in the West. However, he does not get into consideration the fact that the work in China requires other strategies, and that some services which are popular in the West remain without demand in the Easters countries (Chen, 2004). Hiring employees Goodman wants to make them work by the Western principles, but he does not think about training.

China employees work differently, as another culture has trained them to do it in another way. Goodman wants them to work by the Western principles without having explained to them what he expects. This is the difficulty in finding employees who can perform up to his expectations. Goodman should train employees before making them work. One week training would be enough. Further, it is possible to organize advanced courses for increasing qualification.

Do you believe Goodman is unrealistic in his expectations of bringing quality Western service to China?

Goodman is realistic in his expectations as China is an international country, and even though many citizens may refuse from attending Western restaurant, there are a lot of people who are going to become the regular customers.

Moreover, serving corporate delivery orders Goodman may organize the work much better, and this sector of restaurant business may be very useful if to make sure that food is delivered on time and with the highest quality. Moreover, having organized a work of the restaurant not from the central kitchen but at different parts of the city, it is possible to organize fresh and even warm food to the corporate orders which may increase the service quality.

What are the key success factors for Beijing Sammies? What are its strengths and weaknesses?

The key success factors for Beijing Sammies are serving corporate clients and the presentation of the Western food for Chinese citizens. It is important to give immigrants in China to eat food they got used to. Serving corporate clients Beijing Sammies gets more profit as this is a guarantee of constant orders and profit. The strength of the restaurants is the net Goodman has created.

However, there are several disadvantages which prevent the restaurant from bringing more income. First, the central kitchen is a good idea as the chief has an opportunity to follow the whole process. However, one kitchen is unable to serve the clients in the other parts of the city who also want to get just cooked meals. Online orders and flexible means of payment are also important for the restaurant net.

What should Goodman do to build the business moving forward? How should he approach future fundraising efforts?

Goodman’s business has many chances of developing. Having created several restaurants, Goodman can expand the net having initiated a specific advertising campaign. Serving different events may be another niche Goodman should think about. Every day, lunch delivery to corporate clients is a good service. However, there are a lot of different events which need fast and quality food. Goodman may increase his income using serving such events.

In conclusion, it should be stated that that the difficulties Goodman’s restaurant experiences right now can be solved; however, some time should pass and much affords are to be taken. It is essential to reconsider the whole working system and either to train Chinese employees to work by the Western system or to learn the Easter management principles and apply them into the business. Only in this case, the restaurant is going to come profitable, and the problems it faces now are going to be solved.

Reference List

Chen, M. (2004). Asian Management Systems: Chinese, Japanese and Korean Styles of Business. London: Cengage Learning EMEA.

Plan for enterprise risk management

Organisation current risk management policies, procedures, and processes

In a business environment, sustainability is affected by the forces in the market, decision science, business structure, and real financial management both in short and long term (Horine, 2012). In the quest for competitive advantage, the Hun Chinese Restaurant has opted for specialization in Chinese meals besides offering a variety of menus. The company has a risk monitoring and oversight system which tracks the market dynamics within the Birmingham market.

Also, the restaurant has a policy for tracking the market trends against the activities of its competitors. These processes have the strengths of ensuring the sustainability of the business since they operate within the business operations strategies. However, the current risk mitigation system lacks an integrated structure to absorb company goals and those that favour business in Birmingham city.

Scope for the risk management process

The scope of this risk management plan for the Hun Chinese Restaurant will revolve around examining the market trends to know where the market gap is for capitalization. Besides, the risk plan will provide the necessary information that will clearly show possibilities of success and what needs to be done to achieve this success (Horine, 2012).

By identifying the trends within the immediate environment, the restaurant will be able to set the risk management procedures and aspects right. The study will enable the Chinese restaurant to focus on the aspects that have been neglected by the other restaurants in terms of disaster preparedness and security of the business. This is because the Birmingham city is prone to fires. Vandalism may also occur, especially given the rising unemployment rates in the city.

Impacts of the following on risk management

Political environment

Given the agitation from the rising number of unemployed youths within Birmingham, a certain level of political risk is anticipated in this business environment.

Economic climate

Better economic climate translates into lower business risk in terms of sustainability. The reverse is also true, especially in the business environment of the Hun Restaurant, which is very sensitive to changing customer preferences.

Social factors

Any disruption on the social and cultural traditions may increase the probability of a risk. For instance, misuse of certain resources may lead to rejection of a business when the locals feel disrespected by the actions of the Hun Restaurant business.

Legal factor

Laws and regulations are governing the establishment and operation of a business in any market. Compliance or non-compliance to such regulations may increase or reduce the probability of the business risk.

Technological advancements

Technological advancements determine the competitiveness and sustainability of a business. In the case of the Hun Restaurant business, technology will determine its business model of serving and communication to customers.

Policy context

If the Hun Restaurant business adopts a proactive policy in its business activities, the business will be sustainable. On the other hand, the poor policy will increase the probability of failure of the business.

Critical success factors, goals or objectives

The restaurant has a comprehensive plan to make sure that members of the staff are trained in constant watch over the CCTV captions. The strategy ensures that any potential risk is noted in advance and dealt with within a reasonable time. The financial department of the company has been mandated to take into consideration all the necessary provisions when planning to ensure that all the potential risks are catered for.

Internal and external stakeholder groups

The directors hold the key to the future of the restaurant. They have a mental picture and a vision of how they want the company to become after a given period. The clients of the company should understand that the company policy is on security. This will ensure that they cooperate in terms of being checked at the door to make sure that persons with ill intent do not pose as clients or patrons. This will also ensure that they are secure during their time at the restaurant.

Members of the workforce are an integral aspect of the implementation of the risk management procedure. They are the hands that carry out the actual duty. If properly trained, they are the strengths that ensure the success of the new procedures (Heldman, 2005). The surrounding community is the leadership and stakeholders who are key figures in helping the restaurant achieve the goal. They ensure an effective risk management plan and a harmonious working relationship between the two.

Communicating with stakeholder groups

Directors

Key messages: Risk mitigation and monitoring for the sustainability of the business

Delivery strategies: Open meetings and consultative forums.

How to encourage input/participation: Preplanning of the meetings and micromanaging each stage.

Level and type of support for the risk management plan: Technical support.

Employees

Key messages: Risk mitigation and monitoring for the sustainability of the business

Delivery strategies: Open meetings and consultative forums.

How to encourage input/participation: Preplanning of the meetings and micromanaging each stage.

Level and type of support for the risk management plan: Constant group involvement.

Identify the risks

SWOT diagram, identify the risk that faces the company

(Source: self-generated)

The identified risks and background

The Birmingham city is prone to fires even though there is a functional fire department. Thus, accidental fires are a conventional risk. Due to the rising cases of unemployment, vandalism is a risk. The high unemployment rate may translate into a high rate of crime, just like in any other city in the world.

When the campaign season is approaching in the UK, there is a boom in many businesses. The politicians will need venues for rallies, especially in cities like Birmingham, despite the threats political violence risk (Hollman, 2012). In the long run, these risks may negatively affect the business activities within the Hun Chinese Restaurant.

Other tools and techniques for generating a list of risks

1. Delphi technique
2. Interviewing
3. Root-cause analysis
4. Assumption analysis
5. Diagramming technique
6. Expert judgment

Analysing the risks

Likelihood and impacts of the risks occurring

After identification, these risks were classified in terms of their overall impact on the project and probability of their occurrence. The basis for classification was in terms of the magnitude of impact such as (LI) low impact, (MI) medium impact, and (HI) high impact. In terms of probability of occurrence, the risks were broadly classified as (LP) low probability, (MP) medium probability and (HP) high probability of possible occurrence (Sai, 2012).

(Source: Self Generated)

The risk matrix

Evaluation and prioritisation of the risks

Select and implement treatments

Appropriate option/s for treating the top 3 risks

The main risk responses include avoidance of risk, transfer of risk, mitigation of risk, and acceptance of risk as to the underlying ways of organizing appropriate responses in project implementation. This broad-spectrum classification of risks is critical in the identification of the various risks, reviewing their impacts on the project, and offering mitigation to the risks to make the project viable and successful.

Specifically, the risks are rank in terms of their magnitude, that is, low risk, medium risk, and high risk to make the responsive strategies specific in addressing the risk concerns (Sai, 2012). For the case of the Hun Chinese Restaurant, the first three risks identified are vandalism, political violence, and fires. The appropriate actions are summarized in the table below.

Action plan for implementing those risk treatments

The plans need to be adaptable. At this point, the risk mitigations plan is ready in action. Though weekly analysis and monitoring of the progress, the plan will be able to classify the success of the risk management within the Hun Chinese Restaurant.

The action plan can be effective by following the risk procedure to check the progress. The plan will be broken to monitor one risk activity at a time (Timans, 2006). The results of each activity will be merged to identify any overlap or conflict within the action plan. The plan will run for two weeks.

Communicating the action plan

The plan will be communicated through face to face meetings and official emails. The progress will be communicated after every three days.

Documentation needed, completion, and storage

The documentation needed is training pamphlets, risk monitoring books, and storage file for each mitigation strategy proposed.

Steps in implementing the risk management action plan

The first step will be prioritising the risks. This is followed by grouping the risks in terms of materials needed for implementation. The third step will be to conduct employee awareness and participation training. The fourth step will be internalising the suggestions through open and consultative meetings with all the stakeholders (Timans, 2006).

Monitoring the action plan

The action plan will be monitored every day during the first month. Reports on its progress will be made after every two days. After completion of the complex parts, the plan will be assimilated into the restaurant’s employee training module for it to become part of the Hun Chinese Restaurant’s organisational culture.

Evaluating the process of managing the risks

The success will be measured in terms of responses from the stakeholders after every stage of implementation. Since the whole process is flexible, the evaluation will be based on the key parameters of operations management strategies such as the level of awareness, consciousness, and participation among the stakeholders (Timans, 2006).

Reference List

Heldman, K 2005, Project manager’s spotlight on risk management, Jossey-Bass, San Francisco.

Hollman, J 2012, Total cost management framework, an integrated approach to portfolio, program, and project management, Wiley and Sons, New York

Horine, G 2012, Project management absolute beginner’s guide, Que Publishing, New Jersey.

Sai G 2012, Risk management: Principles and guidelines. Web.

Timans, K 2006, Risk assessment, Wiley and Sons, New York.

Introduction of the Proposed Business

The proposed business will be a restaurant that will be located in the city of Chicago. The decision to start a restaurant in this location was arrived at following one-month long research that was conducted to understand how customers’ needs are met. From this market research, it was established that there is a market segment that has been ignored by almost all the current firms existing in the market.

In Chicago, the size of the middle-class population has been increasing. Young adults now have decent jobs in various companies in this city. Some of these young men are keen on getting quiet places where they can take their meals in privacy. Our research revealed that most of them are not very comfortable with the open-space design that is common in most of the existing restaurants. For that reason, we considered it appropriate to come up with a unique product, The Blue Gardens Restaurant, which will meet their unique needs in the market. In this essay, the researcher focuses on how this business can be put into operation, challenges that may arise, and how these challenges can be addressed in order to ensure that this business is a success.

Type of Business Entity

The business entity that has been chosen is a restaurant. The main products that will be offered here will be various types of foods and drinks. However, The Blue Gardens Restaurant will try to offer an experience, other than the products mentioned above. These products will be part of the experience that our customers will get. In fact, these products are available in other rival firms. However, the experience that they will be offered will be unique, given that the restaurant will be targeting young adults.

The products offered, design of the restaurant, the lighting that will be used, the music in the background, and the choice of colors, the waiters and the waitresses, the payment mode, and post-purchase services will all make the experience that this firm will offer to its clients. As Finch (2013) says, in the service industry, experience economy has become very important, and only those firms that have realized how it works can achieve success.

Customers are no longer keen on the products and services offered to them because most of the firms have perfected the nature of their products. The focus has now turned to the experience the customers get when they visit these facilities (Abrams & Abrams, 2003).

Our firm will be operating in the hospitality industry where experience the customers get defines their ability to make repeat visits. The middle-class young adults were considered a more attractive market segment because of a number of reasons. These clients have the potential to afford to pay for the products that we will offer. Our products are designed to offer value based on their own tastes and preferences. Moreover, most of them have just started staying away from their families have graduated from colleges and secured good jobs. They may find preparing their own meals a little challenging. Our firm will be there for them, offering them unique products to meet their needs.

Steps Needed To Successfully and Legally Start the Business

In order to start this business, there are steps that will have to be followed in order to make The Blue Gardens Restaurant a legal business. The first few steps have been conducted. These steps include conducting market research to determine the size of the market, the specific products needed, how to deliver the products to the customers, and the location of the business premise. Our team has also determined the amount of money needed to start this business entity, the number, and type of employees, the cost of these employees, among other issues of internal operations. The next step will be to undertake processes that will make this business to start as a legal entity. The steps include the following:

Business structure

The first step in legalizing this business entity will be to define the business structure (Zaharuddin, 2009). Our business will be a partnership. We would have preferred a limited liability company, but we may consider that in the future because some of the requirements are way off our limits currently. This was a decision that was approved by all the partners.

Application of the business number

The next step that we will have to follow is to make an application for a business number. In order to operate legally in this country, we will need to have a business number that will be our identity when it comes to the issues of payment of taxes or other government obligations.

Checking if the proposed business name is available

We will then go for a name search to determine if the proposed name, The Blue Gardens Restaurant, is available. If it is available, it will be registered against the business number. If it is not, then we will be forced to look for another name that is available.

Register the business name

The registration of the business name will be the formal acceptance by the government that our business entity is accepted legally and authorized to conduct business operations as defined by the applicants.

Register the website domain name

In the current digitized world, we will need to maintain an online presence. For this to be possible, we will need to put up a website that will help us to interact with our customers. We will register the domain name as per the name that was accepted during the name search stage.

Get the certificate

We will wait for a few weeks for the certificate to be issued, identifying the business as a partnership to validate our operations.

Start operations

When all the above steps have been followed, and the business website is up and running, we will be able to start the operations immediately.

A Draft of a Valid Contract with a Supplier

In this business, the suppliers will be very important in defining our success. The following is a draft of a valid contract of our relationship with one of the suppliers.

Contract for Supply of Vegetables

This is a contract made between The Green Suppliers Limited and The Blue Gardens Restaurant for the supply of vegetables for the period starting June 1, 2015, and ending December 31, 2015.

Duties and obligation

• The seller and the buyer enter into an agreement that the supplier will be delivering 20 kilograms of the vegetables that will be bought at $ 15 per kilogram every morning before 10.30.
• The seller and the buyer enter into an agreement that the buyer will pay the cumulated amounts on or before the 4^th of every month.
• Any delays in the delivery of products or payment should be communicated in time and alternative mutually accepted by both parties.

The delivery mode of the product

The seller and the buyer agree that the products (vegetables) will be delivered by the seller through means that are convenient to the seller.

Breach of the contract

In case the supplier fails to deliver the products as per the agreement without consulting and agreeing with the buyer, all previous payments will be forfeited.

In case the buyer fails to make the payments due for the seller without a mutually accepted reason, the buyer will be liable to a 25% fine of all the dues.

• Seller Date
• Buyer Date
• Witness Date

Ethical Considerations the Business

When we start the operations, it will be important to put into consideration ethical concerns in order to enhance our sustainability. We will avoid any form of environmental degradation. We will establish a proper disposal mechanism. We will use modern cooking stoves to save energy. The firm will give customers a priority when it comes to meeting their needs in time and as per their desire. Our business will be responsible for the national and state government when it comes to payment of tax and other levies.

Social responsibility plans or attitudes that the business will embrace

We will engage in a number of corporate social responsibilities. The first two activities will be tree planting within the city and supporting sporting events for the youth in this city. We understand that most of our customers are sports enthusiasts. Supporting sporting events will be an activity acceptable to them.

A Possible Disagreement That Could Be Encountered Among the Partners

We hope that when this firm starts the operations, we will not encounter any disagreements among the partners or the shareholders. However, we are conscious of the fact that such disagreements may not be avoided given that we are different individuals with varying business ideas. The main area of disagreement that may be encountered is how to reinvest the earned profits. However, we did not specify how to reinvest profits. One partner may feel that the profits should be shared while the other partner may feel that the profits should be reinvested. Unless this issue can be addressed amicably among the partners, it may be an issue with the potential of disrupting the operations of the firm.

Various Ways through which the Disagreements Could Be Resolved

When such disagreements occur, the partners will have various means of resolving them. The first and most recommended way of solving the disagreement will be through dialogue. Each member will be given an opportunity to explain and justify his thoughts. From that, it may be possible to find common ground. When this fails to yield fruits, a mediator may be called in to act as a neutral person who will bring understanding and justice to the issue. If this fails to work out, then an arbiter will be called to guide the arbitration process. The parties will be legally expected to accept the decision of the arbiter. If this is not accepted by either of the parties, then the last resort will be a litigation process in a court of law.

References

Abrams, ‎R. & Abrams, R. (2003). The Successful Business Plan: Secrets & Strategies. New York: Cengage. Web.

Finch, B. (2013). How to Write a Business Plan. New Jersey: John Wiley & Sons. Web.

Zaharuddin, H. (2009). Business Plan Analysis for Steel Fabrication. London: McMillan. Web.

Subway is the American popular restaurant franchise which specializes in selling such fast food as submarine sandwiches. The franchise develops actively, and today, Subway restaurants are opened in more than 100 countries all over the world (“Subway”). To discuss the particular features and advantages of using the Subway franchise opportunity, it is necessary to focus on the perspective of opening one more Subway restaurant in Griswold, Connecticut.

Description of the Franchise

The first Subway shop and restaurant were opened in Connecticut in 1965, and Subway became the franchise in ten years, contributing to the brand’s development and recognition. Today, the Subway franchise is owned by the Doctor’s Associates Inc. (DAI), and it sells different types of submarine sandwiches, salads, and baked goods in the United States, and the menu is different with references to the restaurants’ locations globally (“Subway”).

Mission and Philosophy Statement

The franchise’s mission is to “delight every customer, so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and exceptional experience” (“Subway Guide” 2). Subway focuses on proposing only fresh products, and the franchise’s philosophy is reflected in the advertising slogan “Eat Fresh” (“Subway”). The philosophy supports such values as family, teamwork, and opportunity, and it can be formulated the following way: “We build our business relationships by serving each other, our customers and our communities, much as we do within our own families” (“Subway Guide” 2).

Management Plan

Subway develops an effective international management strategy to regulate the operations of many restaurants around the globe. The focus is made on the strict corporate culture and emphasis on values and high-quality. The basic management plan responds to the issues of effective planning, organizing, controlling, and leading, which are associated with the development of the franchise globally (“Subway”).

Business Costs

Subway’s competitive advantage depends on proposing adequate costs of opening and operating the business. Thus, the franchise fees associated with the startup are fixed, and today, they are $15,000 (“Subway”). This fact explains the popularity of the franchise among entrepreneurs all over the world. The other fees associated with the other essentials, real estate, equipment, and insurance are influenced by the new restaurant’s size, location, and build-out costs which are set by the franchisee. However, the total investment can range “from $114,800 to $258,300 for traditional locations and $84,300 to $200,100 for non-traditional locations”, and these numbers include the franchise fee, construction costs, equipment costs, and the operating capital (“Subway”; “Subway Development”). Moreover, franchisees are expected to pay 12.5% every week to the franchisor to cover the franchise royalties and advertising fees. The net worth is expected to be $80,000 (“Subway”).

Funding Acquisition

If the franchisee has no necessary costs, it is possible to use the assistance of reputable lenders working with Subway. The franchisor provides all the necessary information on the lender requirements and particular features of the agreement to choose the appropriate lender among such companies as Ascentium Capital, LLC, JenCas Financial, Inc., and IPC Financial Solutions (“Subway Approved Lenders Comparison Chart for US and Canada” 1).

Franchisor Assistance

To help the franchisee start the business, the franchisor provides such services and assistance as the equipment leasing program; training; and local marketing assistance. To guarantee that the franchisee can succeed after opening a new restaurant, the franchisor focuses on proposing the advantageous equipment leasing program. The next step is the two-week training course, which provides the classroom training and outlet training to make the franchisee to practice all the skills and knowledge. The next stage is the work with the Development Agent to work out the effective marketing plan and strategy. Subway also proposes the necessary marketing assistance to design the restaurant and to compete within the industry effectively (“Subway”; “Subway Development”).

Franchisee Requirements

To open the Subway restaurant, the franchisee should complete the final examination after the two-week training courses and provide the approximate marketing plan to respond to the brand’s image and corporate principles. The Subway restaurants should propose the set menus with the local variations which do not exceed six items. The franchisee is also expected to complete the Basic Skills Test as part of the training program. The franchisor has the limited control over the business, and this approach provides many opportunities for the franchisees’ development because the main requirement is to follow the Subway’s high-quality standards and to support the brand image (“Subway”; “Subway Development”). The control of the franchisor is associated with approving the suppliers, distributors, strategies, and general approaches influential for the brand image.

Opportunity Attractiveness

The discussed opportunity can be considered as attractive for the franchisee because the Subway restaurants are expected to respond to the community’s needs. The community in Griswold, Connecticut, is not familiar with the Subway restaurants, and it is reasonable to focus on the effective location and marketing strategy while opening a new restaurant. The target market can be discussed as good because the local community is interested in Subway restaurants as one of the largest fast-food restaurant chains because there are no representatives of the industry in the city. The young population seeking for the opportunity to visit the fast-food restaurant comes to the nearest cities, and it is possible to attract the young male and female population while focusing on the development of the Subway restaurant according to the pattern of the small family restaurant, but with the focus on the high quality of the sold services and products (“Subway”; “Subway Development”).

The Location of Business

265 Slater Ave, Griswold, CT 06351, United States

The Marketing Plan

To market the fresh products under the Subway brand, it is necessary to focus on such elements of the marketing plan as the (1) definition of the business mission, (2) the focus on the target market, (3) the analysis of the competitive environment, (4) the market positioning with references to the franchisor’s principles, (5) the development of the market model, and (6) the focus on the key success and risk factors (Nickels, McHugh, and McHugh 12-29). The franchisee demonstrates independence while developing the strategies for the second, third, and sixth points. The realization of the first, fourth, and fifth steps depends on the principles and norms stated by the franchisor (“Subway”). Thus, the choice of the strategies and models to follow can be discussed as rather limited.

Conclusion

Today, Subway restaurants are located in many countries globally, and this fact is associated with the idea that Subway proposes rather advantageous conditions and terms for entrepreneurs to become the franchisees. As a result, each year, new restaurants are opened in different countries, and the franchising principles are regularly revised to respond to the modern trends within the industry.

Works Cited

Nickels, William, James McHugh, and Susan McHugh. Understanding Business. USA: McGraw-Hill/Irwin, 2012. Print.

Subway. 2014. Web.

Subway Approved Lenders Comparison Chart for US and Canada. 2013. Web.

Subway Development. 2013. Web.

Subway Guide. 2010. Web.

Hot Pot House will primarily focuses on its target market, the regional student population and the working class subway users, through direct selling via its premises. Aside from this, a substantial percentage of the resources will be dedicated to advertising to ensure that potential customers are made aware of the existence of our business. Our strategy is to expand service and product delivery capabilities. This will enable us take care of the requests of customers which current industry players are at the moment unable to address. To this end a variety of risks have to be countered and this have been briefly summarized.

Risk analysis

Demand risk

Like with any other start up company, Hot Pot House has to establish strategies for dealing with fluctuations in demand. One of the measures taken is to reinvest some of the profits made in the high seasons to the emergency fund such that the company is able to remain afloat on its own during when faced with tough conditions.

Credit risk

At some point, Hot Pot House has to provide credit facilities to deserving clients. Unfortunately and like with any other business establishments, there is the possibility that some of these creditors may end up defaulting on the payments. As such the company has to make contingencies to ensure that such losses are adequately taken care of. This is definitely a risk that the company has to take in order to establish and maintain a loyal customer base.

Financial market risk

Businesses, particularly those dealing with consumer products, are subject to constant financial market fluctuations. Hot Pot House definitely has to contend with increases in taxation rates, a rise in interest rates on acquired loans and oscillating exchange rates for products that have to be imported from other countries. A constant review of the business plan and analysis of the financial records will help ensure that such fluctuations are appropriately dealt with.

Liquidity risk

With the ups and downs that plague businesses, there is the possibility of the company not being in a position of settling debts and as such subject itself to auctions and other liquidation procedures. The main risk incurred here is having both the liquid and illiquid assets undervalued resulting in even more loses for the company. Measures are being taken to ensure that proper and regular valuation of products is being carried out in case of any eventualities.

Technical risk

The food industry is very tricky particularly when trying to analysis the product performance. On paper and in theory, it is easy to come to the conclusion that customers will be willing to take to the products on offer. However, because of competition and market flooding there is a very big likelihood of the Hot Pot House restaurant not performing very well in its given locality resulting in losses for the company. To avoid this, a proper analysis of localities and market performance is underway to select the place where the restaurant will perform at optimum levels.

Operational risk

Failure of the equipment such as coffee makers used in Hot Pot House restaurant could result in poor service delivery and even lesser customer satisfaction. In order to avoid such inconveniences and embarrassments, the company has invested in the top of class equipment and even installed back-up power systems to deal with the random power outages in the region.

Legal risk

The management of Hot Pot House has signed various contracts with different entities including suppliers and state offices. It is therefore the obligation of the company to fulfill its end of the agreements irrespective of the fact that the other parties may not honor their roles in the signing. Proper legal measures have been taken to ensure that all loopholes pertaining to contracts and other official agreements have been sealed to avoid any clashes.

Personnel risk

Since Hot Pot House runs mainly on human expertise, it subject to the underpinnings associated to the weakness of the human persona. Dishonesty being a key human characteristic could see the company succumbing to huge loses as a result of fraudulent deals and document alteration. To avoid this, proper methods of company record analysis have been established such that all the profits made can properly and genuinely be accounted for. Another risk associated with humans is the physical weaknesses associated to mortality. The loss of a key company head could lead to a slow down in company operations. In order to avoid such risks and inconveniences, the company has taken measures to ensure that no single individual holds exclusive knowledge and expertise to a given company operations element.

Competitor and industry specific risk

Hot Pot House is under stiff competition from other restaurants and as such has to constantly review its strategies to ensure that it always stays on top. There are also industry specific risks that the company has to contend with including the perishability of cooked foods. Since some given ready-made meals can not be reused, the company has to make sure that the amount that ends up in the garbage is well compensated.

Abstract

David Epstein is the current sales manager at Massachusetts Restaurant Appliances, one of the leading distributer of industrial appliances used in restaurants within the United States. David has eight employees within this department that work in various parts of the country to promote and distribute various products of the firm. The performance review indicated that some employees such as Erin and Johnny registered impressive performance while that of others such as Derik and Samantha were unsatisfactory. The best performing candidates will need to be motivated to continue with their impressive performance. The underperformers may need their tasks to be redefined in order to improve their performance. This way, the sales department will be able to achieve its set objectives in the market.

Background

Massachusetts Restaurant Appliances (MRA) is a leading supplier of large industrial appliances to restaurants in the United States. Currently, this firm is ranked second in market share, after New York’s Ruth Restaurant Services. Since the appointment of David Epstein as the firm’s sales manager, the firm has experienced a phenomenon market growth. Epstein has been with the firm for the last nine years and has been working with various heads of this department to help the firm to expand its market share.

At 31, he has the experience, energy, and commitment to ensure that this firm achieves massive market growth to help it become the leading supplier of large restaurant appliances in the entire country. This sales manager is convinced that the firm can achieve this growth in the near future if the marketing team works appropriately to achieve the set targets. To achieve his objective of making MRA the leading supplier of restaurant appliances, Epstein has decided to make individual sales persons at this firm responsible for their output within the firm. Their expenses and salaries awarded to them at this firm must be commensurate to the value they deliver to the firm. That is why the management came up with the performance review strategy.

Issue

The sales department of Massachusetts Restaurant Appliances has a team of eight dedicated sales people working under the sales manager, Mr. David Epstein. Epstein is convinced that within the next one year, this firm can overtake New York’s Ruth Restaurant Services as the country’s leading supplier of restaurant appliances. However, this can only be achieved if the current sales team is able to double its effort in service delivery. The manager has decided to come up with performance evaluation system to make employees more accountable in their work. The performance review looked at specific issues of interest such as sales volume, number of accounts that each employee has, number of orders per employee, expenses that they use in delivering their services, number of calls they make, and the number of days worked.

This review of performance would help the firm to identify areas of strengths and weaknesses per individual employees so that solutions to their weaknesses can be found (Deutschendorf, 2014). However, some employees feel that the performance review criterion is unfair and may not reflect their true effort in the firm. Robert Smythe and Derek Francona have clearly stated that they are working in regions with a lot of challenges, and using the same measure to determine the overall performance of individual employees is unfair. Their claim was factual, but this did not stop the sales manager from reviewing their performance. To achieve unity within the firm, Epstein will need to address concerns of these employees.

Data, Facts and Information

David Epstein is keen on ensuring that Massachusetts Restaurant Appliances becomes the leading market player in this industry. To achieve his objective, this manager can use a number of strategies. However, it will be necessary to evaluate the current situation to determine areas of weaknesses and strengths that will have to be put into consideration as the firm tries to come up with a winning formula in the market.

According to, Balu (2015), performance review does not necessarily mean that a firm intends to use the data provided to make significant decision on issues such as the specific employees to promote, to lay off, or to increase their salaries. The assessment makes the firm to understand areas where the firm finds challenge so that a strategy can be developed to overcome these challenges. It may not be a personal issue that targets individual employees. On the contrary, such evaluation may help to understand where a firm needs to inject more resources to improve the overall performance of the sales department (French, 2012). The table in the appendix shows the outcome of the performance review done by the sales department.

A brief overview of the data and facts presented in the table shows that Erin McCloud has the best sales record of all the sales persons working at this firm. His sales growth is also very impressive, outsmarting that of all other employees within this department. Erin has been working for an average number of days per year compared to other fellow employees. On the other hand, Derek Francona has recorded the worst sales record within this team.

His sales growth rate also remains the worst. Derek is one of the employees who were opposed to this form of review. He claimed that over the past year, he had lost one of the most important clients, making it difficult for him to achieve the set targets. One interesting fact noted about this employee is that he had the highest number of days worked within the year compared to his colleagues. It is clear that although Derek has had one of the worst performances at this firm, he has been putting great efforts to ensure that his performance is improved. David Epstein may need to investigate the logistical issues and any other factors that could have hindered the performance of this particular employee. His efforts were not rewarded as well as that of his colleagues in terms of increase in the sales volume.

The information gathered from the performance review is very important for David Epstein when making strategic decisions that will enable this firm to emerge as the leading supplier of restaurant appliances in the country (Hein, 2012). He now knows that specific regions such as those where Derek and Robert are working may need special attention. He also knows that there are some employees such as Erin who have committed themselves to delivering excellent performance at this firm. All these factors will need to be put into consideration when coming up with both strategic and operational strategies for the sales department.

Case Study Questions

Question 1

Sales growth

• Derek Francona: 481,000/480,000= 1.002
• Johnny Schilling: 883,000/750,000= 1.177
• Daphne Gellar: 613,000/576,000= 1.064
• Robert Smythe: 852,000/745,000= 1.144
• Jennifer McCarver: 860,000/765,000= 1.124
• Manuel Lopez: 835,000/735,000= 1.136
• Samantha Kerrey: 670,000/665,000= 1.008
• Erin McCloud: 925,000/775,000= 1.194

Sales to quota

• Derek Francona: 481,000/575,000= 0.837
• Johnny Schilling: 883,000/835,000= 1.057
• Daphne Gellar: 613,000/657,000= 0.933
• Robert Smythe: 852,000/850,000= 1.002
• Jennifer McCarver: 860,000/850,000= 1.012
• Manuel Lopez: 835,000/825,000= 1.012
• Samantha Kerrey: 670,000/720,000= 0.931
• Erin McCloud: 925,000/875,000= 1.057

Sales per account

• Derek Francona: 481,000/1100= 437.272
• Johnny Schilling: 883,000/1600= 551.875
• Daphne Gellar: 613,000/1150= 533.043
• Robert Smythe: 852,000/1350= 631.111
• Jennifer McCarver: 860,000/1300= 661.534
• Manuel Lopez: 835,000/1400= 596.429
• Samantha Kerrey: 670,000/1600= 418.750
• Erin McCloud: 925,000/1700= 544.118

Average order

• (780+1970+1020+1650+1730+1790+960+1910)/8
• Average order=1476.25

Sales expenses

• 9300+12300+7500+11000+11300+11500+10800+12800
• Total sales expense= 86,500

Calls per day

• Derek Francona: 1300/235= 5.532
• Johnny Schilling: 1800/223= 8.072
• Daphne Gellar: 1650/228= 7.239
• Robert Smythe: 1700/230= 7.391
• Jennifer McCarver: 1750/232= 7.543
• Manuel Lopez: 1750/220= 7.955
• Samantha Kerrey: 1550/200= 7.750
• Erin McCloud: 1850/225= 8.222

Orders per call

• Derek Francona: 780/1300= 0.600
• Johnny Schilling: 1970/1800=1.094
• Daphne Gellar: 1020/1650= 0.618
• Robert Smythe: 1650/1700= 0.971
• Jennifer McCarver: 1730/1750= 0.989
• Manuel Lopez: 1790/1750= 1.023
• Samantha Kerrey: 960/1550= 0.619
• Erin McCloud: 1910/1850= 1.032

Ranking the sales persons based on sales growth

1. Erin McCloud: 925,000/775,000= 1.194
2. Johnny Schilling: 883,000/750,000= 1.177
3. Robert Smythe: 852,000/745,000= 1.144
4. Manuel Lopez: 835,000/735,000= 1.136
5. Jennifer McCarver: 860,000/765,000= 1.124
6. Daphne Gellar: 613,000/576,000= 1.064
7. Samantha Kerrey: 670,000/665,000= 1.008
8. Derek Francona: 481,000/480,000= 1.002

Question 2

Epstein should realize that the performance of each of the employees can be improved if they are given appropriate guidance and support. Epstein should encourage Erin McCloud and John to continue using their current sales strategies to improve their performance which is already very impressive. Robert Smythe feels that performance measures would be unfair given that making sales in the region is not easy.

However, he has come third, meaning that his efforts are good enough. Epstein should talk to him and address all his fears because he is among the best salespersons that this firm has. Manuel Lopez and Jennifer McCarver’s performances are average. They need to improve their strategies of reaching out to the clients and making sales (Herzberg, Mausner, & Snyderman, 2009). The same advice should go to Daphne Gellar and Samantha Kerrey whose sales growth rate are slightly below the average. Derek Francona’s case should be considered special. In fact, Epstein should consider working with Derek from time to time to sharpen his marketing skills. He should be informed that loss of a single client may not mean a loss of the entire market.

Question 3

This evaluation system has a number of limitations that may need to be addressed. The first limitation is that it has overemphasized on the statistical values of the employees without looking at other qualities that these employees bring to the firm. For instance, some employees may offer inspirations to others. This is not captured in this review. Other employees may play major roles in the technical areas of marketing, especially when coming up with new strategies of managing market competition or managing emerging trends. These are good qualities that should be captured in a review process. Epstein should address these weaknesses to ensure that the each salesperson’s true worth is established (Walker, 2011).

Analysis and Evaluation

David Epstein, the sales manager has gathered the relevant information about the performance of individual sales employee at Massachusetts Restaurant Appliances. In this section, it will be necessary to conduct a close analysis and evaluation of the data presented in the sales performance. This will help in finding ways of lowering the expenses while increasing revenues at the firm. This analysis and evaluation will be based on the eight areas of performance measurements conducted in the previous section of the paper.

Sales growth was the first performance measure that was used in the evaluation. The sales manager understands that the only way this firm can emerge as the top provider of restaurant services is to increase its sales volume. Under this measure, Erin Mcloud, Johnny Schilling, and Robert Smythe registered the best performance of all the employees. Erin had a 19.4% market share increase while that for Johnny and Robert was 17.7% and 14.4% respectively. The worst performance was registered by Derek who had a 2% increase in sales volume. Samantha did not have an impressive increase in sales volume either, recording an 8% increase. The best perfuming employees will need to be motivated to continue with their impressive performance. The underperformers may need special attention from the relevant authorities to overcome their challenge (Terpstra, 2009).

Sales to quota were set by the employees as a target that they had to achieve in their effort to improve their sales volume in that particular year. Five of the eight employees were able to surpass their sales quota. Erin and Johnny were able to go beyond the set targets by 5.7%. Only three employees were unable to meet their targets. The employee who was had the lowest performance in terms of meeting the set target was Derek who was 16.3% off the set target. The sales manager should help these employees to address their deficits in terms of meeting their targets in the coming financial year.

Sales per account helped the sales manager to determine how individual customers assigned to the employees were performing in terms of purchasing the products of this firm. Different employees were assigned different number of accounts based on the number of years served in the firm, the region of work, and personal capabilities. Jennifer and Robert emerged as the best and second best employees respectively in terms of the best performing accounts. Samantha and Derek had the worst and second worst performing accounts respectively. The average order was found to be 1476.25 per employee per year.

Calls per day would enable the sales manager to determine the effort made by the employees to keep the clients close by maintaining close communication with them. The calls had to be relevant. The highest number of calls per day was recorded by Erin followed by Johnny. This may be directly attributed to their high number of accounts. The least number of calls were made by Derek.

Sales expenses would enable the sales manager to compare the revenue generated by each employee against their expenses. This would enable the management to determine the value of the employees working in this department. The sales manager also needs this information to come up with strategies on how to cut the average cost of operations. The total sales expense was determined to $ 86,500. Erin and Johnny had the highest sales expense, while Galler had the least. The expenses correspond to the sales growth of these employees.

Number of orders per call was another important performance parameter that enabled the sales manager to determine the capacity of the individual sales representatives to convince clients to purchase products of this firm. Based on the review, Johnny, Erin and Manuel had the best performance in that order. In fact, these were the only sales representatives that had at least an order per call. The worst performance was registered by Derek who registered a paltry 0.6 orders per call.

Ranking the sales persons based on sales growth was finally used to determine the best performing employees at this firm. Top of the list was Erin who was followed by Johnny and Robert respectively. The last in the list was Derek and Samantha came as second last performer.

Solution

David Epstein will need to find a solution to address the performance record of Derik and Samantha. These two employees registered the worst sales volume increase within this firm. The two also recorded the worst performance in terms of orders per call they made. This is a clear indication that they lack skills to convince clients to purchase their products (Robbins & Judge, 2013). The challenges affecting these two employees may need to be addressed differently.

For Samantha, she did not make any complaints when the performance review was initiated. It means that the management is still unaware of the reasons that could have led to her poor performance. It may be necessary for Epstein to talk to her personally and understand her areas of weaknesses. She can be assigned a different role within the firm in case she finds her task as a sales representative quite challenging. For Derik, he had clearly stated that one of his major clients went out of operations.

The sales manager should talk to him and offer him any necessary assistance within the coming year to help determine if his performance will improve. In case no improvements are registered, then his role within the firm may be redefined. Robert registered complaints and was uncomfortable with the performance review process. However, the review revealed that he was the third best performing sales representative.

He and Derik threatened to quit this firm if the performance review outcome was used to make major decisions that could affect the employees. This firm cannot afford to lose this employee. The management should engage him and understand his fears when it comes to performance evaluation (Siyli, 2015). All the hurdles mentioned by the employees should be addressed conclusively. The sales manager should make an effort to ensure that all the employees have even playing ground. After this is assured, then measures can be taken to reward excellent performers within this department.

Conclusion

David Epstein, the sales manager at Massachusetts Restaurant Appliances, is determined to ensure that his firm surpasses New York’s Ruth Restaurant Services in terms of market share. Already the firm has experienced a phenomenon growth in its sales volume. To achieve this target, David has initiated a performance review process to ensure that employees become responsible for their output. This performance review is a positive step towards identifying strengths and weaknesses within the sales department. The sales manager will need to use additional strategies to evaluate the real value of the employees. After the evaluation, various measures should be taken to address weaknesses within the department.

References

Balu, T. (2015). Digital Marketing using Google Services: Make your website visible on Google Search. New Delhi: LSDP Limited. Web.

Deutschendorf, H. (2014). 7 Habits of Highly Emotionally Intelligent People. New York: Springer. Web.

French, R. (2012). Organizational behavior. Hoboken: Wiley & Sons. Web.

Hein, R. (2012). Career Mapping Offers a Clear Path for Both Employees and Employers. London: McMillan. Web.

Herzberg, F., Mausner, B., & Snyderman, B. (2009).The motivation to work. New York: John Wiley & Sons. Web.

Robbins, S., & Judge, T. (2013). Organizational Behaviour. London: Pearson Education Limited. Web.

Siyli, L. (2015). Search Inside Yourself Leadership Institute. Hoboken: John Wiley & Sons. Web.

Terpstra, D. (2009). Theories of motivation: borrowing the best. Personnel Journal, 58(1), 376-399. Web.

Walker, A. (2011). Organizational behaviour in construction. West Sussex: Wiley-Blackwell. Web.

Appendix