Business Operations Management Issue at Zoes Kitchen - Case Study Example

Business Operations Management Issue at Zoe’s Kitchen Table of Contents 0 Introduction 3 2.0 The Issues Affecting Zoe’s Kitchen 4 2 Product Variation in Menu 4 2.2 Operation Management 4 2.3 Suppliers and Distributors 5 2.4 Prices of Products 5 3.0 Analysis 5 3.1 Product Variation in Menu 5 3.2 Operation Management 6 3.3 Suppliers and Distributors 6 3.4 Prices of Products 7 4.0 Key Issues 7 5.0 Outline Solution for Key Issues 8 Five Performance Objectives to the Market 8 Customers Services 9 Capacity Management 9 Focus and Scope of Business 10 Facility Location 10 Process Layout 10 Materials Management 11 Supplier Selection/Relationships 11 6.0 Conclusion 12 References 13 1.0 Introduction Zoe’s Kitchen is one of the catering companies, which provide various services such as lunch box for individuals or large meetings, wedding, office parties and dinner among others. The food products provided by this catering company include salad, sandwich, dessert and fruits. This company was established by Zoe with business partner named Steve. It is one of the leading catering companies in Manchester in North-West of England. Zoe’s Kitchen divides the customer service in two segments that include ‘deliver-only’ and ‘deliver-and-serve’. The deliver-only segment provides individual packet meals consisting of salad, sandwich and dessert among others. The deliver-and-serve segment focuses on catering for large parties such as wedding and office parties among others. Presently, the company has been identified to be facing issues relating to increased customer demand and competition (Jeremy, 2014). This paper intends to explain about the issues that are affecting Zoe’s Kitchen to perform operations in terms of competitiveness and sustainability. In this respect, an analysis of the operation management and the business environment to understand how the employee of Zoe’s Kitchen provides competitive services to their customers has been undertaken. Accordingly, appropriate recommendations are offered based on which the company can enhance its performance. 2.0 The Issues Affecting Zoe’s Kitchen Zoe’s Kitchen is one of the leading catering companies in Manchester. The business of this company focuses on providing lunch boxes for individuals and parties such as office parties and wedding. The company in order to meet with the demand of the customers has segregated its services in deliver-only and deliver-and-serve. However, the company has faced certain issues in performing operations sustainably (Jeremy, 2014). The issues are discussed hereunder. 2.1 Product Variation in Menu The company provides several good quality food products to the customers. The product items included in the menu of the company comprises desserts, hors d’oeuvres, drinks, special items and entrees. However, the company fails to meet with the rising demand of customers for variety food products as offered by niche and specialty caterers (Jeremy, 2014). 2.2 Operation Management This company have only 12 employees and among the 12 employees, 2 are chefs, 6 are in food preparation department and 4 are involved in delivery reliability department. However, the company faces some issues or problems due to increasing customers’ demand and the setup of new catering companies. The new catering companies have targeted the specific market segment for marketing and business expansion. Due to increased competition, the company faces challenges in the market in terms of flexibility in operation. Flexibility in operations arises for lack of adequate employees to conduct operations according to the market demand. In this respect, the company has faced challenges in meeting with the needs of the customers in terms of service provisions (Jeremy, 2014). 2.3 Suppliers and Distributors The company depends on few numbers of suppliers and distributors, which is also an issue of this company in terms of procuring materials and supplying products. These are the common issues, which affect the business of the company and raise problem in the future success of the company for affecting customers’ reliability on the delivery functions of the company (Jeremy, 2014). 2.4 Prices of Products With the entrance of large number of niche as well as specialty caterers, Zoe’s Kitchen is identified to have issues in providing products and/or services at prices as availed by competitors. The demand of the customers is recognised to be quality products with affordable prices. In addition, the availability of products at economical rates by competitors has raised challenges for the company to conduct operations competitively (Edgar Online, 2014). 3.0 Analysis Zoe’s Kitchen is identified to face certain challenges for factors that include competitors, price and menu items among others. In this regard, an analysis is conducted with the aim of having appropriate understanding in relation to the challenges faced by the company. 3.1 Product Variation in Menu The Zoe and Steve always believe that the customers are very essential for the development of the company, as attracting more customers increase the profitability margin. This company provides several types of food products such as chicken salad, chicken sandwich, dessert and drinks among others. With the availability of variety of food products by business rivals, the company currently witnessed increased competition to conduct operations in a sustainable way, as the customers are attracted towards such products and/or services (Jeremy, 2014). 3.2 Operation Management Zoe and Steve have a clear understanding about how to attract customers and have the knowledge about the importance of quality products and service reliability. Therefore, the management of the company provides training programme to the new joining employees regarding the policies of the company, their job profile and the responsibilities. The company comprises both full-time and part-time employees. In this respect, the company faces challenges in providing the required products and/or services to the customers, as the part-time employees are not equipped with the required skills to ensure that operations of the company are conducted appropriately (Jeremy, 2014). 3.3 Suppliers and Distributors Zoe’s kitchen is also identified to be facing issues relating to suppliers as well as distributors. The company is identified to be having a certain limited numbers of suppliers and distributor owing to which with the rise in the level of competition, the company is not able to meet the requirements as well as needs of the customers in terms of products and/or services. In this respect, the reliability of the customers on the services offered relating to delivery of products is affected to a large extent. Suppliers and distributors play an important role for the company in terms of providing quality products based on freshness and taste. Respectively, lack of adequate suppliers and distributors hampers the performance of the company due to incompetency in meeting the needs of the customers (Jeremy, 2014). 3.4 Prices of Products Prices of products are considered as one of the important factors essential for businesses to conduct operations profitably. In this regard, Zoe’s Kitchen is identified to face challenges with the rising numbers of caterers in the market segment. The competition level has increased due to the availability of variety products at reasonable prices. Correspondingly, the customers are offered with different options to meet their desired needs and requirements. The company is recognised to face intense pressure to meet with the increased demand of customers relating to menu items and prices. In this respect, the company with limited menu items having prices higher as compared to the competitors. Accordingly, the company has been facing certain challenges to meet with the requirements of the customers (Kowalski, n.d.). 4.0 Key Issues Zoe’s Kitchen is a leading catering company in the North West of England. The company provides catering services to the customers by providing quality and tasty products with deliverer option. The company ensures that the customers are offered with quality products on the basis of their requirements as well as time preferences. In the present day context, the company has been facing certain challenges to perform operations sustainably due to increase number of business rivals. Currently, the competitiveness of the catering sector has augmented to a large extent in terms of operations flexibility, reliability of delivery, cost of products and quality considerations. In this respect, the major problems faced by the company are related to operation flexibility, and price and cost of products. Due to the entrance of different catering companies in the market with diverse types of food products, have raised the issue relating to flexibility in menu and the faster services. In addition, the company is recognised to be ineffective in meeting with the demands of the customers in terms of food variety. The company is identified to be having competition in terms of the food products provided by others catering companies. In this respect, the company faces the problem to hold the market position, which in turn is affecting the growth as well as development of the company. Another key problem is the limited number of suppliers and distributors in the market for supplying along with distribution of the food products. Therefore, the company does not have the available food products to meet the needs of the customers in a time efficient manner. Hence, the company faces the problem relating to increased demand of the customers to a certain extent. These issues are considered as the major or key issues for Zoe’s Kitchen in the future success of the company. Competitors are the major issue for the improvement of the company for building challenges associated with the cost and quality of the products (Jeremy, 2014). 5.0 Outline Solution for Key Issues In the recent years, Zoe’s Kitchen faces several problems due to intense competition in the market. In this regard, the management of the company have to resolve the issues in order to improve the performance of the company in relation to profitability and sustainability. The solutions for the key issues are provided hereunder. Five Performance Objectives to the Market The five performance objectives to the market include quality of the product, flexibility and variety of the product, cost of the products, specific focus and time. These objectives are important to enhance the performance of the company to the market. In this regard, the company should ensure that quality products are available. In addition, variety and flexible products are to be provided to capture the market. The cost of the products should be reasonable, so that customers can make their purchase decisions in an efficient manner. Accordingly, the company should formulate specific objectives based on which the company will be able to conduct operations successfully. The company should also ensure that the objectives are framed with a specific time with the aim of accomplishing the desired objectives in a timely way for better sustainability. The five performance objectives would ascertain that the company is able to influence the purchase decisions and behaviour of the customers (Philip Allan, n.d.). Customers Services The company should focus on the quality of the product and freshness to attract as well as retain customers. The company should focus on increasing and differentiating products to meet the needs of the customers. There should be variety of products in the menu of the company, so that the diversified requirements of the customers are met. The company has limited numbers of suppliers in the market. Therefore, the company has to increase the number of suppliers and distributors in the market for supplying the products and accordingly, the availability of the products in the market can be enhanced, which would aid the company in meeting the requirements of the customers (Edgar Online, 2014). Capacity Management Capacity management is the process based on which resources that include labour, material and equipment as well as organisations’ processes are managed in an effective way. The objective of capacity management is to ensure that resources and processes are organised as well as arranged with the aim of meeting the current as well as future goals. In the short term, the company is needed to focus on managing the resources, so that products are provided in accordance with the needs of the customers as identified in the current market scenario. On the other hand, in the long term, the organisational processes are to be organised based on which innovative products are provided to the customers. Respectively, providing variety and quality will be able to meet with the preferences of the customers. The availability of quality products at affordable prices would enhance the brand image of the company in the market, which would aid in retaining as well as attracting customer (Arnold, Chapman & Clive, 2008). Focus and Scope of Business The focus and scope of the company is to attract more customers by providing good quality and fresh products to the customers at an affordable price. The focus of the company is to produce variety of products based on the market demand to hold a strong position in the market and achieves competitive advantage (Philip Allan, n.d.). Facility Location Facility location or the best location to target the market can be expanding business in different areas with the aim of minimising competition in the market. The company is needed to have a minimum number of suppliers to supply the products in the market and meet the demands of the customers (Arnold, Chapman & Clive, 2008). Process Layout The goal of process layout is to develop operational efficiency by placing innovative production and storage tools for managing market demand. Process layout also helps in communicating and developing collaboration between managers and workers. Therefore, the company should focus on the process layout to enhance the efficiency and maintain a good communication with workers, so that the operations are performed in an aligned and coordinated manner. The company should focus on the process layout to design the ground plan of the business and to have the opportunity in using resources in a flexible manner (Person Education, 2007). Materials Management The company should focus on material management to supply an appropriate quality of products at the required time, cost and place. The company should also focus on material management to schedule the requirements of materials and to control the inventories both raw materials and in process materials. Material management helps the company in the accurate uses of materials for the production of good quality of products (Arnold & et. al., 2008). Supplier Selection/Relationships The company have only limited number of suppliers in the market and therefore, it faces the problem of supplying the products in the market. The company should increase the number of suppliers in the market and maintain a good relationship with the suppliers for supplying the products in the market to meet the demand of the customers. The company should have an adequate number of suppliers who can supply the products at an economical rate, so that the company should offer the products at a lowest price than the other catering company in the market (Edgar Online, 2014). 6.0 Conclusion From the above discussion and analysis, it can be comprehended that Zoe’s Kitchen is one of the leading catering companies in the UK. The company provides variety food products, which include chicken salad, sandwich and desserts among others. It provides fresh products and maintains the quality of the products. It has been observed that the company faces several problems due to entrance of new catering companies in the market for increased competition due to diverse menu items and affordable costs. It also faces the problem of increased demand of the customers due to the availability of substitute as well as diverse food products in the market. Based on the analysis, it has been identified that the major issues faced by the company are related to operation management, prices of the products and menu items. In this respect, the company is needed to devise appropriate strategies and advanced technology to mitigate the issues and accordingly, improve the growth of the company. Respectively, the company should have the knowledge related to the demand of the customers to retain its market position. References Arnold, T. R. J. & et. al., 2008. Introduction to Material Management. Sixth Edition, pp. 1-509. Edgar Online, 2014. Zoes Kitchen, Inc. Welcome to Zoe’s Kitchen, pp. 1-166. Jeremy, H., 2014. Zoes Kitchen, Inc. Edgar Online, pp. 1-3. Kowalski, S., No Date. Zoe’s Kitchen, Inc. (ZOES) Memo. Collab ITC, pp. 1-6. Philip Allan, No Date. Understanding Marketing objectives. Marketing Strategies, pp. 106-114. Person Education, 2007. Process Layout. Chapter 8, pp. 1-8. Read More