Foundations of Operations Management - Coursework Example

FOUNDATIONS OF OPERATIONS MANAGEMENT 09-07 Restaurant with Foreign and Local Cuisine Introduction The city already attracts a lot of tourists from around the world, so there is no shortage of potential customers when targeting foreigners. As our restaurants and hotels business is basically located in the center of the city, potential clients who visit the seaside attractions are being left unexploited. So, the operation manager has proposed a use of our small and old office near the seaside as using it for serving foreign cuisines. The old office has been shut down for quite some time and is neither profiting the company nor helping in any other way to achieve company’s goals of profit maximization and dominance or monopoly in the market. The office is small as it was the starting point of the business. The company had been trying to find a way to explore the potential clients at the sea side, but had been reluctant to work on a business plan or business strategy due to the presence of a huge number and variety of competitors already operating in that set up. Instead they have been focusing on building a brand name and customer loyalty through exceptional customer care. Due to this strategy the company had been fast in reaching their annual profit goal, in fact they have exceeded it. So, the board has decided that it is time to step in this potential market. The company’s resorts are already present there and are flourishing but research has shown that a small restaurant will attract a lot of foreign tourists and who could say no to a side profit. A business plan has already been made and approved, this plan includes financial planning, restaurant market research, cash flow forecast, competitor’s analysis, human resource planning and a marketing plan. Restaurant market research More than 70% of our surveyed foreigners focus group deduced having a liking to eat their homelands native food rather than trying new things even in foreign land. Due to already being able to deal with a lot of tourists our chefs are already specialized in foreign cuisine. This is a strength as compare to the potential competitors. Client satisfaction with services and the main menu has been and keeps on being of most extreme significance, yet our discoveries demonstrate that the lighting, bar, decor, and different alternatives to enhance the feasting experience are additionally figures in client choices and tourists are mainly attracted to such places. Financial planning: To carry out this project the excess profit for the year has been allotted as well as a small percentage of the general reserve would also be used. Cash flow forecast: Cash flow for the next two year has been prepared starting from a huge outflow in the first three months in the preparation and setting up of the restaurant. Starting from cleaning of the already present and damaged material and furniture, refurnishing, paint, windows, décor etc. Then a significant amount of fund is allotted for the one month extensive marketing locally as well as internationally, as our main target market would be the foreigners. We are expecting an inflow to start coming at the end of the fourth month and breakeven at the end of second year if the restaurant keeps significantly functioning. Human resource planning: The HR planning has posed to be a significant problem for the HR department. Because, it is a small restaurant it does not need a large number of waiters and a single manager would be enough but what poses a challenge is the number of cooks needed. A foreign as well as local cuisine chef is required. That means and expert chef who would be willing to work in a small seaside restaurant. The basic HR plan includes a single chef with 15 cooks to help him out, a manger, two receptionists and 11 waiters and 20 other occupation including bartender, wine waiter, accountant etc. Competitor’s analysis: While planning for a marketing strategy a survey of competitors took place which shows already established competitors who compete with them in the city as well as some single owner restaurants and deli famous among tourists because of being cheap. But our strength would be exotic food with a unique culture and setting as well as offering discounts for our resorts, also offering discounts to our resort clients. Marketing Plan: As we are targeting tourists are marketing plan should be unique and eye catching that even before the customer lands on our soil they should be willing to eat in our restaurant. That is why we will have to market our main strength of offering a food whose cuisine is filled with all kind of dishes from around the world. For this the best medium is internet and social media where our exotic food will be marketed. Other than that the feedback of our foreign customers should be made the main focus for marketing. Their experiences would be shared on pamphlets and social media. Also, our brand name has earned us many loyal customers so the word of mouth will also help in marketing. The unique décor and culture of the restaurant, which includes a different countries culture related décor every week, would be made an attraction. Matrix Structure: In matrix organizational structure, a company joins divisional and functional chain command in a network so that there are two inter-joined structures, horizontal and vertical. The functional structure typically doesnt transform or change, it is the associations ordinary offices or divisions, for example, Marketing, Finance, Research & Development and Production. The divisional structure may shift as by brand, client, product or geographic district. Business Unit Structure: A business unit is an association or hierarchical subset that is autonomous as to one or more bookkeeping or operational functions. These are adaptable structural gadgets that you can use to execute associations strategies focused around how a business is sorted out and organized. A business unit is characterized as an autonomous transaction-processing element or entity. Divisional Structure: In a divisional structure, individuals with various work related specialties are assembled in formal teams or groups by comparable or same products or administrations, clients or customers, services or geographic districts. Wheel Structure: Wheel or network structure is a structure in which there is a central hub which communicates with all internal and external employees. This can be disadvantageous as the absence of the hub can cause chaos or confusion (Chron.com). Organizational Structure Figure 1: (Writing 2006) Divisions work well on the grounds that they are permitted a group to focus upon a solitary or single item or services, with an authority or leadership structure that is backings its organizations main goals. Having a team’s own head or supervisor makes it more probable the division will get the resources or assets it needs from the organization. Likewise, a divisions or teams focus permits it to construct a typical culture that is common in the employees working under one single supervisor which helps both to higher resolve, motivation and a superior learning and knowledge of the divisions portfolio (Chron.com). Because there are four different divisions it is better that they work independent of each other as this provides more opportunity of specialization and efficiency; even though this reduces the communication between the groups or teams. References: Writing, A. (2006). Organizational Structure. [online] Operations, Processes, and Decisions. Available at: http://sameh.wordpress.com/2006/05/13/a7/ [Accessed 9 Jul. 2014]. Small Business - Chron.com, (2014). Different Types of Organizational Structure. [online] Available at: http://smallbusiness.chron.com/different-types-organizational-structure-723.html [Accessed 9 Jul. 2014]. Read More