Implementing MBO System in a Burger King Franchise - Essay Example

The Burger King franchise in Maine has one owner, with four permanent staff and 28 part-time employees. The four permanent staff members are assistant managers, two of who are in the kitchen and two who are on the floor. Employees work in two shifts, each shift has a kitchen and a floor manager with fourteen part-time employees as cooks and waiters. Staff turnover is as much as 7 a year and may be contributed to working hours and/or work conditions. When looking at the income statement it is clear that profit is directly linked to sales, minus liabilities.

Now firstly looking at sales and taking into consideration that this is a fast food business, we know for certain the profit will depend on the amount of sales, and to sell we need customers. This the first key business goal must be customer satisfaction. Taking our customer into account, we need to find out what will satisfy their needs and make them come back for more, and being in the fast food business with a drive through, we know that speed of food delivery is important. Next customers like to have a choice and as Burger Kings strategic statement implies "Have it your way", it is important to cater for customer's choice.

Furthermore customers always appreciate a warm and friendly service from staff, which is one reason they will return. So our first goal of insuring customer satisfaction could be realised by objectives such as reduced turnaround time, offering the customer a wide verity of food, delivered in a warm and friendly manner. Customer satisfaction can then be measured by the retention and hopefully increase of customers base by the end of 2006, against past data.Next we need to look at liabilities which also impact the profit margin of the business.

Liabilities are expenses that are paid out of the net income of the business and if it can be reduced, the profit margin will be increased accordingly. It must also be realised that expenses such as advertising and promotion if implemented correctly, if increased could result in an increase in sales. Food cost including packaging, is the stock that has to be bought and maintained to ensure the ability of the business to deliver a product to its customers continuously. Is it possible to reduce these costs Yes, by looking at alternative cheaper packaging expenses could be reduced.

Then how much wastage takes place during preparation of the food, or during wrong orders. Just by cutting out wastage and through better food ordering and preparation processes food cost could be reduced by at least 5 percent. Improving these processes may also reduce the amount of staff that are needed currently and could result in reducing staff, in turn reducing wage expenses. Our second key goal is this to reduce expenses, and this we can achieve by setting a moderate target of reducing expenses by at