Enterprising management ( food care ltd-quality caterer must cut a bigger slice of the profits cake) - Essay Example

Another ploy used by rivals is the offer of other services unrelated to catering to suggest as a bundle of services to customers who prefer to devolve these to a single party for sake of convenience and overall lower costs. Yet another worry for FCL is the rumour that it is likely to be taken over by a larger rival. This puts off the prospective or existing customer in the belief that their quality will be affected adversely. This also affects the workforce as they feel threatened by these takeover prospects.

There are three issues that need to be dealt with. (1) A definitive business strategy needs to be designed to take the business forward; (2) Profitability has to increase from the present low of 2%; and finally the (3) Self-esteem, especially of the workforce, has to be boosted. Strategy can be planned by understanding the nature and need of competitive advantage; increase in profits requires a business plan; and raising self esteem in the workforce requires motivation. (1) Business strategy has to revolve around acquiring and then maintaining customers.

This has special application in the catering business where the customer is retained for very long periods. In such organisations the orders are repetitive and require tailor made executions that must continue to satisfy the customer. Customer satisfaction rests on the principles of quality, price and service. The customer has to be convinced that quality will mean long-term health and nutritious value of the meals supplied. Price has to be competitive and for this the strengthened supply chain will ensure lowest costs.

Still some price escalations may happen and it is here that the element of strong service comes into play. Service can include some peripheral services like running of the catering centre from the customer premises or providing some extras to augment tastes and preferences. These services must however relate to the core competency of the organisation as it is here that they will be