Analysis of Dobbies GC Restaurant Chain - Case Study Example

Dobbies GC Dobbies GC Introduction Dobbies is a restaurant chain that specializes in delivering the best food to its niche market and employing innovation in this process. The company posts good results every year, but it is aware that it can do much more to improve its performance. This awareness is exacerbated by the fact that its rivals are constantly evolving their services and products to stay ahead of it. Dobbies knows that swift, decisive and effective action is required, and it has identified competitive priorities as one way of implementing such action. In this paper, the writer will analyze its sales, hiring and cafeteria divisions in order to identify and compare its competitive priorities. The writer will also provide a way for Dobbies to carry out resource capacity management. 2. Efficient ways of Managing Resources 2.1 Identification of Competitive Priorities Various scholars and literature define competitive priorities in different ways. However, for the purpose of this research, competitive priority can be defined as strategic preferences or the methods used by an organization to compete in the marketplace (Pez, 2013). As organizations compelled to react effectively and efficiently to a dynamic business environment, one of the main challenges that they face is acquiring and developing competitive advantage. Creating competitive advantage demands identification of the factors that can put an organization in a better position vis-à-vis its rivals in the marketplace. Competitive priorities play a vital role in technology adoption, capacity management, control systems, process choice and manufacturing planning, quality assurance and staff skill development (Collier and Evans, 2009). Competitive priorities can define good resource allocation to achieve operational objectives in both short and long term. The underlying principle of competitive priorities is to operationalize organizations’ competitive approach (Wright, 2012). The two common competitive advantages – differentiation and cost – are often operationalized in terms of quality, flexibility, cost and speed. By allocating priorities to these aspects, organizations operationalize their competitive strategy. The priorities can then be applied in generating supply objectives associated with quality and innovation, lead-time and availability, cost reduction, as well as supplier responsiveness and service. Department Competitive Priorities Sales Division Cost, Quality, Flexibility, Speed Hire Branch Cost, Quality, Flexibility, Speed The Cafeteria Cost, Quality, Flexibility, Speed Rationale, Implementation and Outcomes of the Priorities Cost Organizations that work aggressively towards cost control pursue the abolition of all waste (Evans, 2009). Dobbies is an example of an organization that needs to avoid wastage and optimize returns and output. Earlier, organizations in this class produced or sold standardized products and services for mass markets. Dobbies should use cost to increased yields by stabilizing the sales process, investing in automation and tightening productivity benchmarks. Today, the whole cost structure is analyzed for reduction potential, not only direct labor costs. Based on data from its website, Dobbies desperately needs to do this. High-volume automation and production may or may not offer the most cost-effective option. Organizations which compete on cost basis know that they cannot sustain low cost as a competitive advantage if growth in productivity is achieved solely by near-term cost reductions. Dobbies needs a long-term productivity portfolio that exchanges current expenditures for later reductions in operating cost. The portfolio should be comprised of investments in new facilities and infrastructure, systems, equipment, and programs to optimize operations, and development and training that improve the skills of people (Hitt and Ireland, 2013). Quality Most companies approach quality in a reactive or defensive way. Quality is restricted to reducing defect rates or matching design specifications (Hoskisson and Hitt, 2012). To compete on quality, Dobbies must view it as a chance to please the client, not just a way to escape problems or minimize rework expenses. To please the client, Dobbies must first comprehend customer perceptions of and expectations of quality. In both scenarios, the feedback is a way of comparing existing standards to those demonstrated by one of the most revered and benchmarked organizations in the world. Flexibility Dobbies’ sales and marketing divisions should always want more options to provide its customers. Production will oppose this pattern because variety increases costs and disturbs the stability – and efficiency – of production system. The ability of Dobbies to respond variation has created a new level of competition. Flexibility has developed into a competitive tool; it comprises the ability to generate a wide variety of services and products, to introduce new services and products and revise current ones quickly, as well as to, as well as to react to customer needs. Speed More than ever before, speed has grown into a competitive advantage weapon. The internet has shaped customers to expect instant response and fast service delivery. For example, service organizations like Poslaju and McDonald’s have always competed on sped. Citicorp advertises a mortgage approval lasting 15 minutes while LL Discount Store delivers orders the same day they are received. Now manufacturers also realize the rewards of time-based competition, with build-to-order efficient supply chains and production. In the restaurant business (the one Dobbies has invested in) where trends do not last, companies must deliver services and products as fast as possible. For example, a customer who orders a meal from Dobbies and expects it in 1 hour should receive it in 30 minutes, and the meal should be of the same or better quality. Competing on speed demands that Dobbies embrace fast moves, tight connections and fast adaptations, and from the performance data obtained from its website shows it can achieve this. Dobbies should push decision-making down the organization, collapse levels of management and perform work in cross-functional groups. Change is embraced, and risk-taking is propagated. Close contact is ensured with both customers and suppliers. Performance metrics shows time, rate and speed, in addition to profit and cost. Strategy is time-paced to develop a predictable pattern for change. Forging partnerships is one of the most effective means of competing for speed, and Dobbies can also use this. The best analogy is the textile market’s quick response (QR) plan, designed to enhance the flow of information, benchmark recording systems and minimize turnaround time along the whole supply chain from fiber through to textiles, apparel and retailing. Electronics, automotive and equipment manufacturers promote similar partnerships within their respective markets with a program known as agile manufacturing (Musaibah, 2011). Company-sponsored B2B websites and e-market places are dramatically reducing the time required to identify suppliers, communicate procurement needs and negotiate contracts. Comparison of Priorities across the Three Departments The Sales division needs cost, speed, flexibility and quality more than the Cafeteria and Hire divisions. The cafeteria ranks second when it comes to the need for these dimensions because it is a part of the business. In fact, it is like a business within a business. Hire division needs these priorities, but less than the other three departments. In general, Dobbies is more likely to fail if its sales division does not apply the competitive priorities in improving its processes. It is responsible for attracting customers and using the most flexible, cost-effective and fast and quality approaches to attract and retain customers so that sales remain on a high. 2.2 Forecast for the Company’s Future Plan It is not uncommon to hear a firm’s management talk about forecasts (Putsis, 2014). For example, “our sales did not achieve the forecasted numbers,” or “we are confident in the forecasted sales growth and expect to surpass our goals.” Ultimately, all financial forecasts, whether on the particulars of the business, such as sales growth or predictions on the economy as a whole, are often well-informed guesses. Forecasting is, therefore, a central component in business, because organizations have identified it as a source of competitive advantage if it is well-planned and executed. The use of forecasting has increased over the past decade as businesses demand more consistency in performance and delivery. Failure to meet forecasted targets means that there is always room for improvement, something all companies want. Application of Time-Series Time-series, when implemented at Dobbies, will provide a point-and-click system that offers automatic model forecasting and fitting as well as interactive model design. The method will ensure that Dobbies’ uses a completely automatic forecasting system selection feature that chooses the best-fitting model for all time series. Alternatively, Dobbies can use time-series analysis tools to identify series patterns, conduct diagnostic checks on adopted models and fit potential forecasting models. Time-series provides a wide range of applications, as well as tools for Dobbies to perform the following: a) Degenerate raw and processed series variables and show the seasonally adjusted series, the seasonal component, the trend-cycle feature, or an irregular pattern. b) Implement forecasting models, choose from a list of models or construct its forecasting models and make it part of its list of available models. c) Apply the automatic time series diagnostic component to subset the current models list based on seasonality, series properties of trend, need for log conversion, and thereby directing attention to the models with the most potential. 2.3 Capacity Management There are many definitions of capacity management that can be found in many scholarly sources. In essence, there is no single definition of this concept because it is very relative. However, based on the various definitions available, capacity management can be defined as a group of work processes linked to the provisioning and management of information technology (IT) infrastructure resources, such as printers, servers and telecommunications gadgets, used to buttress business operations in a cost-effective manner (Putsis, 2014). Capacity management work operations include reporting, monitoring, planning, tuning and predictive modeling. Resource Capacity Management Organizations always mention resource management as their most challenging processes. Dobbies has also highlighted resource management as its most overwhelming dimension (Morlidge and Player, 2010). In spite of the best-laid plans, organizations just cannot get a handle on hiring the right people at the right time. As a service-oriented company, Dobbies needs to learn how to apply capacity planning in managing its resources. Resource capacity management examines the use and performance of single infrastructure resources. These resources might be servers, scanners, personal computers (PCs), telecommunication lines, routers and printers. This is the simplest approach. The work just addresses each single unit’s capacity positions and performance. Although it is very effective in the management of single units, this approach also has limits due to its myopic view (Ord and Fildes, 2013). Enhancing capacity on individual infrastructure units can have unexpected implications on others. For instance, upgrading a telecommunications line can facilitate more transactions to be carried out during a specific period of time, possibly cramming a server with drastic transaction volume. This likelihood can cause poor performing processes or even worse, cause the server to crash unexpectedly as a result of overwork. The following questions could be important: a) How do we change gears when priorities change? b) With things changing so rapidly and our day-to-day firefights, how can we dedicate resources with any degree of confidence? c) Can we really deliver on our service and product roadmaps? d) How can the company staff all the processes they have approved, and what else will it affect? e) What do we do we do when projects delay; tying up our most important resources? Due to this, organizations sometimes hesitate to embark on new projects for fear of the capacity to deliver. They, therefore, become less competitive – less aggressive – in the industry. Worse still, they do the opposite and in complete ignorance, take on a huge demand, managing as if they possess infinite capacity (Schlickel, 2013). As an example, think about how you treat your checkbook. If one is not aware of the amount of money in the bank account at any one time or when automatic utility payments will come, one will either become scared about writing checks, or will write them anyway and hope that things will just be okay. In the meantime, the children need new toys. Similarly, organizations need a clear view of resource availability in order to confidently face new projects and respond to drastic market opportunities. Failure to do this results in the wastage or misuse of resources (Manas, 2014). Although there is no silver bullet or magic wand for capacity planning and resource management, there are four unique dynamics that can significantly enhance success and aid a company become proactive rather than reactive. Together, these dynamics form what can be called The Capacity Quadrant. The four components that form this model are: i. Visibility This comprises enhancing visibility across three spectacles: a. The demand lens – includes regular projects, services, strategic projects, and other planned processes. b. The capacity lens – includes holidays, resource schedule minus holidays, and any unscheduled work that can be approximated on a standard percentage basis. c. The system lens – applying a systems thinking approach to determine the many variables that can affect resource workload, productivity and efficiency. ii. Prioritization This involves comprehending organizational objectives and priorities, designing flexible scoring systems that can include all discretionary work and comprehending the connections between projects and products on the general roadmap (Correll and Herbert, 2009). iii. Optimization In optimization, organizations can maximize their resources by concentrating them on the most vital processes, reducing the volume of core demand objectives; focusing the resources on minor objectives; and addressing efficiency challenges identified during the entire system analysis (as a component of the visibility aspect). During this stage, alternate staffing mechanisms can also be assessed (Brady and Monk, 2013). iv. Iteration Iteration involves planning demand and capacity at different levels of detail at various stages in the planning horizon. For example, in the initial phases, top-down high-level processes are suitable, with more comprehensive planning happening as the process approaches (Jacobs and Chase, 2010). The two views should always be married during all planning iterations. Just like all planning, demand and capacity planning are not a single-process activity. 3. Conclusion This paper shows how Dobbies can embrace its competitive priorities through its departments and use it to increase visibility as well as returns. The company should employ these priorities to streamline all its processes if it wants to remain relevant and competitive vis-à-vis its rivals. Most competitors are using innovative tools like advanced processing systems, and Dobbies can adopt and then refine these systems to make its sales, hiring and cafeteria divisions the key drivers of the business. References Brady, J., & Monk, E. (2013). Concepts in enterprise resource planning. Australia: Course Technology. Collier, D., & Evans, J. (2009). OM 3. United States: Cengage Learning. Correll, J., & Herbert, K. (2009). Gaining control: Managing capacity & priorities (3rd ed.). Hoboken, N.J.: John Wiley & Sons. Evans, M. (2009). Practical business forecasting. Malden, MA: Wiley. Hitt, M., & Ireland, R. (2013). Strategic management: Competitiveness & globalization. (10th ed.). Mason, OH: South-Western Cengage Learning. Hoskisson, R., & Hitt, M. (2012). Competing for advantage. Mason, Ohio: South-Western/Thomson Learning. Jacobs, F., & Chase, R. (2010). Operations and supply chain management. New York: McGraw-Hill Irwin. Manas, J. (2014). The Resource Management and Capacity Planning Handbook: A Guide to Maximizing the Value of Your Limited People Resources. New York: McGraw-Hill. Morlidge, S., & Player, S. (2010). Future ready how to master business forecasting. Hoboken, N.J.: Wiley. Musaibah, A. (2011). Perception on Competitive Priorities and Competitive Advantage. Los Angeles: LAPD Lambert Academic Publishing. Ord, J., & Fildes, R. (2013). Principles of business forecasting. Mason, OH: South-Western Cengage Learning. Pez, F. (2013). Handbook of strategic e-business management. New York: Springer-Verlag. Putsis, W. (2014). Compete smarter: A process for developing the right priorities through strategic thinking. Hoboken: Wiley. Schlickel, M. (2013). Strategy Deployment in Business Units Patterns of Operations Strategy Cascading Across Global Sites in a Manufacturing Firm. Dordrecht: Springer. Wright, S. (2012). Competitive intelligence, analysis and strategy: Creating Organizational agility. London: Routledge. Read More