The Importance of Operation Plan in Restaurant Industry Marketing - Literature review Example

? Operation plan affiliation Operation plan Introduction Increasing the activities of the restaurant will mainly depend on the impression it makes on the consumers. The consumers are the largest determinants in the success of small and middle level companies. In this case a proper market research on the market would be the best move to make. In the market research the needs of the consumers should be well considered. A research on possible competitors should also be considered. According to Lussier (2011) shifting from one operation scope to another requires a greater market research. Operations plan should also put into consideration economic constraints. Poor financial governance in a new operation plan may be hindrance to its success. Strategy Before expanding its business to serving breakfast, the organization should completely stabilize its former operations. This is because the initial operations form the identity of the business. In an argument by Grant (2005) the identity of a business venture is the most important thing in a business even in the consideration of increasing its operations venture. In case of any incidence of risk, the former operations will be used as a mitigations tool. According to Schermerhorn (2009) once an organization is identified with a particular business operation, it is more likely to prosper in it than when venturing in other operations. However, in this case the operations are similar and involve similar operations. The staff in the restaurant should be tuned so that they accommodate breakfast schedules their activities. Different from serving other meals, breakfast served to walk in consumers requires appropriate time management. Time barrier may hinder the restaurant from offering reliable breakfast services. The restaurant transition from serving breakfast to serving other meals should also be well structured (Ferrell & Hartline, 2010). Considering it as a new activity the restaurant should adapt indulging into two shifts of serving meal. In making the new operations the organizations efficient, the management should consider training of the staff. Training of the staff will increase their efficiency in serving a new set of meal. In this serving also includes packaging of contents in breakfast. As new venture the restaurant needs new staff training procedures which would incorporate new activities in the venture. For instance, the restaurant will have to add trained chefs who are experienced in the preparation of breakfast meals. Apart from employment of new cooking staff the restaurant should consider training the already existing staff. These will the cut the cost on the implementation of the new operation plan. The restaurant should also consider implementation of a good marketing plan. In the consumer population the restaurant is famous only for other meals rather than breakfast meals. To increase their significance in the market, the restaurant should employ very informative marketing strategies. The marketing strategy should be in consideration of other competitors SWOT analysis (Johnson, Scholes & Whittington, 2008). Processes The process of a business transformation is generally referred to as a project. In this case, the restaurant should view this operational change as a project. To make the project successful the restaurant need to separate the operations of serving breakfast from the rest of the restaurant setting. In this way the breakfast operations will be handled as lone projects. According to Strategic Direction (2007) in this way the project will have enough attention and attention to launch to full operation. Launching a new line of operation in an existing business should be free from influence from an already existing company. If the two lines of operations are different it becomes more than impossible to launch a successive new line of operations. For instance, a breakfast line in a fast food setting requires a well structured new management an operational strategy. The designing of the project should not whatsoever borrow from the existing venture since of the differences in the goods traded. However, in this case the two projects are almost similar and it may provide good and applicable ideal to the breakfast line. Grant (2005) argues that it may be more ideal if the success of the new project will not be compared and determined by the original business venture. In many organizations that choose to increase their operational radius, they use an extra management and human resource team. This is however debatable as the move is viewed as extravagant by some critics. To make this project more effective, Lussier (2011) argues that a company should employ the labour of the existing human resource but organize the staff depending on duty and requirements. In any new operational plan, the script of the plan should have an appropriate back up plan. In words by Grant (2005) this cushions an organization from possible uncertainties. Venturing into a new market needs a lot of caution and strategic steps. In this case uncertainties can come from loses lack of customers or debts to suppliers after insufficient sales. If this happens not only will the new business venture fail but also the organization’s assets may be exposed to uncertainties. In some cases the failure of an alternative business may trigger the closure of the whole enterprise (Schermerhorn, 2009). In the hotel industry the risks are more influenced by external factors which organizations cannot influence. As much as the sandwich may be successful, serving breakfast may provide a new set of challenges which may require an alternative plan to shield the organization fro risk. In this case the organization should not sum the profits obtained and the profits obtained from the restaurant. Generally, the financial stability of one venture should be completely dependable on the same venture. However, this scenario may be altered if the breakfast venture gains full stability. According to Johnson et.al (2008) the joining of two related business venture may be a creation of very stable business empire. The author further argues that the creation of such a business enterprise, the organization needs an outstanding management and operational strategy. For the restaurant to create a strong breakfast business venture across the United States, the consumers play a major role in determining that. To utilize this asset the restaurant should first venture into a market with its largest number of consumers. In this way the organization can measure and predict the success of the venture through its largest market. Additionally, this gives a great launching stability to the new business. In words by Grant (2005) the strongest market of an organization should be the center of testing a new product or venture. Launching a new business venture in a new environment with a lot of competitors may be a huge mistake an organization may make. The restaurant in this scenario is an added advantage as the management may use the success of the restaurant to predict the success of the breakfast line. In locating a good location to launch a breakfast line, the organization should look for a place with fewer competitors until the line has gained the required stability. Enterprise Resource Planning System ERP systems are aimed at combining the external and internal management of an entire organization. The systems provide integration between the management of the two functions. In an argument by Lussier (2011) ERP systems maintain the relationships of all stakeholders in an organization. In this way, suppliers and customers are satisfied. Generally, the systems deal with issue touching on customer relations, finance and accounting, sales, manufacturing and delivery of services. For the food production venture ERP systems play crucial roles since the directly deal with suppliers, manufacturers and customers. For the new breakfast venture, the restaurant should employ the services of an ERP manager. In this way the external environment is maintained at equilibrium. Most importantly consumers should be satisfied in all ways possible. The manger will also have the task of selection of suppliers and manufacturers (Grant, 2005). The enterprise resource planning system incorporated in the organization should heavily invest on sales. This will make their product promotion process more efficient which is important if the breakfast venture is to succeed. The Enterprise Resource Planning system is first formulated before the process of logistics and sourcing. From the created ERP system, the process of sourcing and logistics will be fully dependable on its requirements. Sourcing and logistics The issue on sourcing and logistics is very important in launching a new business plan. The tow processes involves the acquiring of goods and services and provision of goods and services. The two processes from the backbone of the transaction within any business venture. In most organizations, sourcing and logistics are outsourced for quality and experience purposes (Ferrell & Hartline, 2010). Organizations with an internal sourcing and logistics program tend to have a vast experience in the field. However, the internal programs are cheap and easy to implement. Sourcing on its own requires more than just location of goods. While sourcing, project mangers go for quality, quantity and the price of the commodity being sourced. Additionally, services like packaging and transportation are also included in the whole package. According to Grant (2005) sourcing requires an outsourcing company for it to be carried on effectively. When outsourcing for sourcing services an organization shares the risks involved in the process as well as employ experience. On the other hand logistics require good management from the organization. The process of logistics needs an experienced manger that is cautious on the requirements of the customers as well as the needs of the organization. Just like sourcing, quality when it comes to logistics matters most. When the two processes are combined a trade link between producers, manufactures and the consumers is created. With the final recipient being the consumer, manufacturers and producers need the highest quality provision of goods and services to gain a higher competitive advantage. For starters the restaurant needs to outsource or sourcing activities. The outsourcing can be contracted for just one financial year since there is a little experience on their side when it comes to food products. The outsourcing will provide the restaurant with the confidence to venture highly into new markets since the risks involved would be shared. In formulating the outsourcing plan, the restaurant should choose an organization with a vast experience in the supply of food products. The company chosen should have an outstanding transport system due to the perishable condition of food products. Time factor should also be considered. This is because the stock in the organization should be enough to satisfy the demand. According to the Strategic Direction (2007) if the supply is less than the demand, consumers may feel obliged to look for alternative options. This scenario can be disastrous to the new business venture. However, the restaurant may have the option of merging the sourcing and logistics services for the normal restaurant setting and the breakfast setting. This may be financially friendly and the management of the restaurant would not be concerned about issues on time, quality and delivery. If the logistics and sourcing services for the restaurant are outsourced, then the company should contract the same company for their services. Grant (2005) argues that for this to be successful, the relationship between the two organizations should be outstanding. Merging of the two restaurant settings has its disadvantages. Firstly, there is the combination of the risks faced by both the normal restaurant and the breakfast ventures. In an argument by Lussier (2011) the greater the wealth exposed to uncertainties the severe the risk would hit. Additionally, the merging of the factors may hinder growth of any of the ventures. This is due to the dependency tendency created from the two ventures. This will reduce flexibility of the breakfast venture. In the provision of breakfast services, it is easier to expand than the restaurant venture. With the aim of capturing many states in the United States, the restaurant administration should be advised in maintaining the flexibility of the breakfast venture. In making its logistics services more effective, the restaurant should provide delivery services for its customers. This will not only create a greater market range but will provide the market with a good operation statement. Consumers dictate the logistics operations in an organization. They tend to dictate the packaging, the quality and the time factor (Schermerhorn, 2009). The three factors should be fulfilled if the launch of the breakfast line should be successful. In sourcing and logistics, there should be an efficient flow of finance in all the breakfast stores across the United States. When launching a new line of business, the profits obtained cannot be enough to pay for all the services and goods consumed by the venture. There should be a backup financial plan from the venture to get through the implementation stage. The management of the restaurant should ensure that the financial supplies to the breakfast line are not in deficit. Even in times when the ventures have incurred losses, there is the assurance of financial support. All sourcing and logistics operations need steady supply of finance since they involve external business forces. Additionally, when starting a new venture it is not advisable to have debts since the existence of the venture is still unknown. For the breakfast line to be successful as far as sourcing and logistics are concerned, the company needs strong business relations with sourcing companies. This may prove to be useful in terms of uncertainties and losses. Grant (2005) argues that strong business partnerships and relations are significant in the same way humans are highly dependable on one another for survival. Additionally, the option of contracting for other services is also presented. As a consultant, the best tips in terms of sourcing and logistics would revolve around supplier and consumer satisfaction. Additionally, the organization should use the restaurant as a backup plan of the breakfast venture in terms of logistics. Conclusion According to the Strategic direction (2007) venturing into a new operation plan will either fail or loose depending on how efficient the management of the situation is handled. In this case the restaurant needs to do a good market research, have well scheduled operation, have an efficient financial management system and come up with an efficient marketing strategy. References Ferrell, O. & Hartline, M. (2010). Marketing strategy. London: Cengage Learning. Grant, R. (2005) Contemporary Strategy Analysis (5th edition) Oxford: Blackwell Johnson, G., Scholes, K., and Whittington, R (2008), Exploring Corporate Strategy: Case and Text, (8th edition), Harlow: Prentice Hall Lussier, R. (2011). Management Fundamentals: Concepts, Application, Skill development. New York: Cengage learning. Schermerhorn, J. (2009). Exploring Management. New York: John Wiley & Sons. Strategic Direction (2007) VOL 23 Q Emerald Group publishing Limited Read More