Business Decision Making: the Fenwick Arms - Report Example

Learner name: Assessor name: Catherine Taylor Issue date: Submission date: Submitted on: Programme: HND Business (Management) UNIT 6 – Code D/601/0578 - Business Decision Making Assignment reference and title: Declaration I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Learner signature: Date: Abstract The objective of this report was to determine the opinion and expectations of the local community concerning The Fenwick Arms pub. This information would help come up with recommendations that would guide the management in making decisions that would enable The Fenwick Arms regain its popularity. The results show that the local community would like The Fenwick Arms to serve traditional pub meals. The staff also expressed their desire for the management avoid micro-managing the pub and improve on human resource management. It is recommended that the management makes these changes in order to attract more customers. Introduction The catering and hospitality industry is very dynamic. Eating and drinking habits are integral to any culture. Therefore, these habits are significantly influenced by changing cultural landscapes. In addition, economic factors also affect the industry. It is necessary for any business in the hospitality to be conscious of the emerging trends and adjust accordingly. According to the UK chapter of the Foodservice Consultants Society International, sustainability, rising cost of life and healthy eating are the three most significant trends(FCSI - UK & Ireland, 2015). In the recent times, people have become more aware of their contribution in such things as global warming. Thus, consumers are determined to purchase products they consider sustainable. Campaigns against obesity and other nutrition-related illnesses have also made many people aware of what they eat. Thus, the modern consumer demands healthy food. The economic crisis in the Eurozone has affected consumer’s purchasing power. Hence, consumers are looking for the best value they can get for every cent they spend. In addition to these, there are other trends associated with the modern generation. Lostincatering.com argues that the modern consumer desires menu comprising of various cuisines. The modern consumer is also concerned about the speed with which the establishment serves them(Lostincatering.com, 2015). In 2012, Jeff Gordinier wroteabout the connection between entertainment and food for the modern consumerin The New York Times (Gordinier, 2012). Food festivals are becoming more popular than music festivals. Books that have food-related content are also among the best sellers. This trend suggests how important the modern consumer considers food to be. While all these trends are relevant, it is important for the management of The Fenwick Arms consider the opinion of the local clients before making decisions. Fenwick Arm is set as a local pub. Therefore, its success will depend on how much the management is conscious of the desires and expectations of the locals. The management will then be in a position to make decisions that would enable The Fenwick Arms bounce back to popularity. This report assesses what the locals expect of The Fenwick Arm. Methods Primary data was collected using questionnaires. Questionnaires with open ended questions were preferred because they allowed the respondents to answer questions in finer details. Closed questions tend to limit the answers that a respondent can give. In addition, closed questions are likely to influence a respondent’s answer depending on the kind of options given and the order in which the options are listed. Open ended questions are much more difficult to analyze because the data is not uniform. However, they give more accurate information. Secondary data was obtained through case study and annual reports from the Office for National Statistics. The case study chosen was the second episode of ‘Ramsey’s Kitchen Nightmares’, season four. This episode featured The Fenwick Arms and provided crucial information on how the pub was run and the challenges it faced. Reports from the Office for National Statistics were crucial in estimating the economic status of the community surrounding The Fenwick Arms. The sampling frame chosen was customers at a local pub. This frame was chosen because it represented the section of the population that The Fenwick Arms targets as customers. Simple Random Sampling (SRS) was used to come up with the respondents who were given the questionnaires. SRS was preferred because it gave an equal chance for any customer in the pub to be selected. That way, the sampled population was representative of the entire clientele of the pub. A total of ten questionnaires were issued. Results Secondary Data ‘Ramsey’s Kitchen Nightmares’ portrays The Fenwick Arms as a good pub with the wrong management. The menu does not reflect a local pub. The menu is indicative of a high-end formal restaurant. In addition, the owners, Brian and Elaine, micromanage everything. Brian does not let the other chefs help him in the kitchen. Brian is neither a good manager nor a good chef. He does not delegate duties to his other chefs. He also doesn’t remember how long a particular dish has been cooking. His health is deteriorating, having undergone a triple heart bypass. He has also purchased many things that the pub does not need. Brian confesses that he purchases plates simply because he likes them. Such unnecessary equipment increase expenditure and hold capital. As a result of such expenditure and poor management, The Fenwick Arms is £250,000 in debt and losing £6,000 a month(Daily Motion, 2015). The Office for National Statistic’s database indicate that families in the North West region spent an average of £12.10 on restaurant meals per week(Office for National Statistics, 2013). The average household has 2.3 adults. Thus, this figure leads to £5.26 per adult per week on average. The average expenditure on restaurant meals for households in the North West region is the third lowest in the United Kingdom. Primary Data All the ten questionnaires were completed and returned. The table below explains the findings after analyzing the data.   Mean Mode Median Std Deviation Mean Deviation Range Age 39.60 41.00 41.00 6.06 4.16 21 Pref. Food 4.60 4.00 4.00 0.97 0.84 2 Courses 3.00 3.00 3.00 0.00 0.00 0 Starter Budget 3.70 4.00 4.00 0.67 0.56 2 Main Budget 10.95 11.50 11.25 1.04 0.86 3 Dessert Budget 3.70 4.00 4.00 0.67 0.56 2 Formal/Informal 1.90 2.00 2.00 0.32 0.18 1 Visits/Week 6.20 4.00 7.00 2.53 2.16 7   Correlation Coefficient Age/Main Budget 0.31 starter/Main Budget 0.97 Main/Dessert Budget 0.97   1st Quartile 2nd Quartile 3rd Quartile IQR Age 39.25 41 42.5 3.25 Pref. Food 4 4 5.5 1.5 Courses 3 3 3 0 Starter Budget 3.125 4 4 0.875 Main Budget 10.125 11.25 11.5 1.375 Dessert Budget 3.125 4 4 0.875 Formal/Informal 2 2 2 0 Visits 4 7 8.5 4.5 For the formal/informal questions, two options were given with 1 as formal and 2 as informal. The preferred menu question also had options numbered as shown below: 1. Crisps, nuts etc. 2. Snacks (e.g. sandwiches) 3. Bar meals (e.g. pizza, curry, lasagna) 4. Traditional pub meals (e.g. fish & chips, steak & chips) 5. Formal, high-quality restaurant meals 6. Themed evenings (e.g. Indian night, steak night) 7. Other(Specify) A sample menu was also analyzed. The data is presented below. All figures represent prices in £.   Mean Mode Median Std Deviation Mean Deviation Range Starters 5.842857 5.25 5.95 0.699064 0.593878 4.95-6.75 Main 10.09286 10.75 10.75 1.351366 1.15102 8.25-11.95 Desserts 3.88 #N/A 4.5 1.634243 1.324 1.50-5.50   Correlation Coefficient Starter/Main 0.115053946 Main/Dessert 0.674633787 Starter/Dessert -0.218339358 Discussion and Interpretation of Results The mean indicates the average of all the values in a data set. The mode represents the value that occurs most in a data set. The median, on the other hand, indicates the value that occurs in the middle when data is arranged in ascending order. These measures are important in understanding the distribution of data. In this study, the mean, mode and median ages can help The Fenwick Arms predict the ages of most of their customers. The standard deviation shows how various data values vary from the average value. A large standard deviation would indicate that values vary by a wide margin from the average. Age showed a standard deviation of 6.06. Thus, the average age (39.6) would not be an accurate estimate of customers’ age because of the large deviation. However, responses to the questions on preferred menu, formality or informality, and budget all showed a standard deviation less than one. The average of these data sets would be a reasonable estimate for the rest of the values. Range isa measure of the difference between the largest and smallest values in a set of data. A wide range indicates that it may be necessary to consider the first and third quartiles in decision making. For example, the range for age is 21 years. This value shows that there is a big age difference between the youngest and oldest customers. Thus, The Fenwick Arms might consider services that would appeal to both age brackets, instead of the average age. The interquartile range (IQR) shows the difference between the third and first quartiles. It is the range of the middles half of the data. The interquartile range is important in overcoming sensitivity to the extreme values in a set of data. Range may be misleading in a situation where the lowest or highest values in a set of data are isolated. For example, the range for agein this study was 21 years. However, the interquartile range for age was 3.25 years. This difference indicates that although there was a large difference between the youngest and oldest respondents, the ages of the middle half of the respondents did not vary by a wide margin. The correlation coefficient indicates the relationship between two data sets. It usually ranges from -1 to +1. -1 indicates a perfect but negative linear relationship while +1 indicates a perfect positive linear relationship. From the analysis above, the price of main course and dessert showed the highest correlation of approximately 0.7. This value indicates that an increase in the price of desserts would be expected to accompany an increase in the price of the main course. The results indicated that a significant majority of pub customers would not be happy with the food and drinks served at The Fenwick Arms. The primary data concurred with the secondary data on the need for traditional pub meals. As shown below, 70% of the respondents preferred traditional pub meals while 30% chose themed evenings. No respondent chose any of the other options. On the sample menu, the mean price for starters was found to be £5.84. From the questionnaire, the average budget for a starter was found to be £3.70. However, the mode stood at £4.00. This indicates a need for the management of The Fenwick Arms to prepare a menu with cheaper starters, averaging at most £4.00. The dotted lines indicate the trend of the budgets. For the main course, the trend is about £11.25 while for the starter and dessert, the trend is about £3.90.   Sample Menu Questionnaire Responses   Mean Mode Median Mean Mode Median Starter 5.842857 5.25 5.95 3.70 4.00 4.00 Main 10.09286 10.75 10.75 10.95 11.50 11.25 Dessert 3.88 #N/A 4.5 3.70 4.00 4.00 This table and graph shows that the prices on the sample menu are quite reasonable compared to the questionnaire responses. For the main course, the management could still prepare slightly more expensive food since the respondents’ budget is higher than the menu prices. However, the starter and dessert prices have to be carefully monitored and possibly reduced. The trend line indicates that starter prices may need to be reduced further. On average, each respondent visits a local pub 6.2 times a week. The median number of visits was 7 indicating that a significant number of people visit a local pub at least once a day. This figure is important in estimating the number of customers The Fenwick Arms would have if it was the pub of choice in the area. Sources of Error The main drawback to the study was that the sampled population was quite small due to resource constraints. Conclusion The study revealed a strong desire by pub customers to be served traditional pub food. This desire is among the reasons why The Fenwick Arms does not have many customers. Also, the study indicated the prices that The Fenwick Arms should sell the meals at. There exists demand for a traditional pub in Lancashire. The Fenwick Arms would succeed if the management tried to satisfy this demand. Recommendations The Fenwick Arms has an excellent chance of survival because of the support it has from the staff and local community. The management of the pub can change a few things in order to attract the local community. First, the management should amend the menu of the pub. As seen from the study, the local population would like to be served traditional pub food. The management can also introduce themed nights, maybe once a week. The study shows significant support for themed nights. The local population is willing to spend reasonably at The Fenwick Arms if quality is improved. However, the management should treat 10£ as the price ceiling for all their meals. Secondly, the management should ensure that they express confidence in their staff and delegate duties. If this is done, the relationship between the staff and management will improve and boost the morale of the staff. The end-result will be an improvement in the quality of service. Thirdly, the management should consider selling equipment and cutlery that they were using for the formal meals and would not be needed for pub meals. The proceeds from these sales can be used to improve the pub and make it more family and child-friendly. The management can consider installing play equipment for children at one corner of the garden. It is not necessary for the management to rebrand. The local population expressed satisfaction with the name and appearance of The Fenwick Arms. The management may, however, consider introducing a slogan that portrays The Fenwick Arms as a traditional pub. References Daily Motion, (2015). Kitchen Nightmares Season 3 Episode 6 - The Fenwick Arms. [online] Available at: http://www.dailymotion.com/video/x22rqdk_kitchen-nightmares-season-3-episode-6-the-fenwick-arms_shortfilms [Accessed 19 May 2015]. FCSI - UK & Ireland, (2015). Taste of the Future. Allegra Strategies. London: William Murray Communications, pp.4-12. Gordinier, J. (2012). Pork Belly, Lobster and, Yes, Music. The New York Times. Lostincatering.com, (2015). Restaurant Trends 2014 on Lost in Catering. [Online] Available at: http://lostincatering.com/lostincatering/restaurant_trends_2014.html [Accessed 14 May 2015]. Office for National Statistics, (2013). Detailed household expenditure by UK countries and regions, 2010-2012. [Online] London. Available at: http://www.ons.gov.uk/ons/regional-statistics/[Accessed 19 May 2015]. Appendix 1: Formulae Mean,  Standard deviation,  Mean Deviation,  Appendix 2 The Fenwick Arms, Claughton Local Pub Survey Introduction The management of The Fenwick Arms would like to improve the establishment in order to serve you better. This questionnaire seeks to know what the residents of Claughton think about the services and food offered at The Fenwick Arms and what they would expect in the future. The information you will provide will be treated confidentially and will only be used for the purpose of this survey. Please return your completed questionnaire within the next one week. There will be collection boxes at all the main shops and public areas. Questionnaire Please answer the following questions. A. How old are you?                                             Years. B. What type of food would you prefer in a local pub? (Tick appropriately) 8. Crisps, nuts etc. ☐ 9. Snacks (e.g. sandwiches) ☐ 10. Bar meals (e.g. pizza, curry, lasagna) ☐ 11. Traditional pub meals (e.g. fish & chips, steak & chips) ☐ 12. Formal, high-quality restaurant meals ☐ 13. Themed evenings (e.g. Indian night, steak night) ☐ 14. Other(Specify)                                                                                                                                                                                                                                                                                       C. How many courses would you wish to be served?                                                                 D. On average, what would be your budget for the following: i. Starter                                                    ii. Main Course                                          iii. Dessert                                                   iv. Extra (If any)                                          E. How would you like a local pub to be set? 1. Formal ☐ 2. Informal ☐ F. How often do you visit your local pub?                                                                                                                                                  Appendix 3 MENU STARTERS PUB SOUP OF THE DAY with Fresh Bread Rolls and Butter. £4.95 CREAMY STILTON MUSHROOMS with crusty fresh bread. £5.95 SMOKED CHICKEN LIVER PARFAIT Apple & Raisin Chutney, Mulled Wine Jelly, Toasted Brioche, and Apple Batons. £5.25 FENWICK’S HOMEMADE BLACK PUDDING Warm Buttered Crumpet, Baby Watercress, Crispy Hen’s Egg, and Pea Shoots. £6.75 MELON & SORBET Fresh melon with a tantalizing fruit sorbet. £5.25 SMOKED SCOTTISH SALMON a Platter of Smoked Scottish Salmon with Coriander & Lime Dressing andGranaryBread& Butter.£6.50 PRAWN SALAD MARIE ROSE Greenland Prawn Salad Served with Granary Bread and Butter. £6.25 MAIN DISHES CHICKEN BREAST WITH BUTTER Served with Chips, Salad and Homemade Coleslaw. £10.75 BEER BATTERED HADDOCK WITH CHIPS Served with Minted Mushy Peas. £8.75 FENWICK’S BEEF BURGER WITH PROPER CHIPS Served with Special Coleslaw Cheddar £8.25 THE FENNY’S STEAK & ALE PIETender English Beef in a Rich Ale Gravy, Thyme Short Crust Pastry, Market Vegetables, and Choice of Potatoes. £10.75 LANCASHIRE CHICKEN Griddled Chicken Topped With Barbeque Sauce & Melted Cheese. Served with Chips, Onion Rings and Roasted Tomatoes. £10.95 FENWICK’S HAM Served with Double egg & chips. £9.25 VEGETARIAN BURGER Brioche Bun, Herbed Cheese, Slow Dried Tomato, Field Mushroom, Grilled Aubergine&Courgette, and Traditional Tomato Relish. £11.95 DESSERT CHEF’S CHEESE BOARD Selection Of English Cheeses, Syrup Grapes, Traditional Chutney, Celery Sticks £5.50 SELECTION OF LOCALLY-MADE ICE CREAMS 3 Scoops @£4.50, 2 Scoops @£2.95, or 1 Scoop @£1.50 TOFFEE PUDDING Sticky with Butter Scotch Sauce and Vanilla Flavored Ice Cream £4.95 Read More