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Contact for assignment help at [email protected] BTECHND Assignment help MONDAY, FEBRUARY 9, 2015 Small Business Enterprise Small Business Enterprise 1. Investigate performance of a selected small business enterprise. 1.1 J&S furniture is a furniture manufacturing company owned by two brothers John and Smith. J&S started operations in 2006 and there is a satisfactory growth in this business since then. However there are fall in turnover in some months as well. J&S import wood from Asian countries and manufacture furniture. Company had been able to get massive discounts from its suppliers because of bulk buying so this had helped them to keep their cost under control. However government policies such as taxes on imports, interest rates and exchange rates have had negative impact on this business. Taxes on imports Since UK government is taxing heavily on imports from non EU countries this had affected J&S a lot therefore now J&S is looking whether they can find out a cheaper supplier from UK or EU. Interest rates Recent increase in interest rates affected J&S's profit margins. So J&S is thinking of increasing the price but if they increase the price the demand may fall. Exchange rate J&S is purchasing raw materials overseas and recent depreciation in pound had a negative impact on its cost of production. J&S currently have eight branches in London and their short term goal is to become a leading furniture manufacturer in UK by the end of 2009 and become a leading furniture manufacturer in EU by the year 2012. 1.2 J&S had been performing well from the start even though there is a fall in profits in some months. It is company's view that this is due to well trained staff and good customer service given and also company is enjoying purchasing economies of scale due to bulk buying. Competitor bench marking helped J&S to identify its minuses as well as competitor's therefore company took all possible measures to correct minuses. This is one reason why company sales rose up suddenly in last two months. J&S carried out a training program about two months ago and there seem to be a massive increase in production efficiency and workers are motivated. 1.3 Strengths *Being a leader in the furniture industry *Wider market share *Good customer service *Good offers at low prices *Attractive offers compared to competitors Weaknesses *Difficulties in finding out a reliable supplier from EU or UK *Limited budget *Place of outlet *Lack of strength to borrow as business is still small *Damaged reputation 2. Propose changes to improve management and business performance. 2.1 The main weakness of the company is difficulty in finding out a cheaper and reliable supplier from an EU country. Even though J&S tried they couldn’t. Therefore they should at least try to increase the discount in order to cover up their taxes. Company can examine the design of the product and make improvements. Since furniture is a product where the customers look at attractiveness management can develop alternative designs which are more attractive to the customer. Customers will have a wider choice and company can spread the risk. This is good for reputation as well. Company should try to identify what features in the design should be removed. If these unwanted features are removed then the cost of production will fall resulting in higher profits. When company is making more profits it has strength to borrow money to fund its operations. J&S should try to invest in new technology such as computer software to design the product so it may be possible to develop a design without errors. The Name Email * Message * Send CONTACT FOR ASSIGNMENT Home Contact Us About Us BTEC HND Course PAGES Unit 14 Tour operator manag Unit 14 Tour op This unit enables learners to of the tour operators industry UNIT 1: THE CONTEMPORA INDUSTRY UNIT 1: THE CONTEMPORA INDUSTRY Research project in health an UNIT 2: FINANCE IN THE HO INDUSTRY UNIT 2: FINANCE IN THE HO INDUSTRY Finance in the Ho Industry R/601/1789 4 15 LO sources o... UNIT 1: THE CONTEMPORA INDUSTRY Solution UNIT 1: THE CONTEMPORA INDUSTRY Get guideline her http://btechndcourse.blogspo contemporaryhospital... UNIT 9: HUMAN RESOURCE FOR SERVICE INDUSTRIES UNIT 9: HUMAN RESOURCE FOR SERVICE INDUSTRIES human resource managemen human resource manag... Unit 21: SMALL BUSINESS E Unit 21: SMALL BUSINESS E Business Enterprise H/601/10 investigate the performance o UNIT 5: FOOD AND BEVERA MANAGEMENT UNIT 5: FOOD AND BEVERA MANAGEMENT Food and Be Management L/601/1791 LO POPULAR POSTS 1 More Next Blog»

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    MONDAY,FEBRUARY9,2015

    SmallBusinessEnterprise

    SmallBusinessEnterprise1.Investigateperformanceofaselectedsmallbusinessenterprise.1.1

    J&SfurnitureisafurnituremanufacturingcompanyownedbytwobrothersJohnandSmith.J&Sstartedoperationsin2006andthereisasatisfactorygrowthinthisbusinesssincethen.Howevertherearefallinturnoverinsomemonthsaswell.J&SimportwoodfromAsiancountriesandmanufacturefurniture.Companyhadbeenabletogetmassivediscountsfromitssuppliersbecauseofbulkbuyingsothishadhelpedthemtokeeptheircostundercontrol.Howevergovernmentpoliciessuchastaxesonimports,interestratesandexchangerateshavehadnegativeimpactonthisbusiness.Taxesonimports

    SinceUKgovernmentistaxingheavilyonimportsfromnonEUcountriesthishadaffectedJ&SalotthereforenowJ&SislookingwhethertheycanfindoutacheapersupplierfromUKorEU.Interestrates

    RecentincreaseininterestratesaffectedJ&S'sprofitmargins.SoJ&Sisthinkingofincreasingthepricebutiftheyincreasethepricethedemandmayfall.Exchangerate

    J&Sispurchasingrawmaterialsoverseasandrecentdepreciationinpoundhadanegativeimpactonitscostofproduction.J&ScurrentlyhaveeightbranchesinLondonandtheirshorttermgoalistobecomealeadingfurnituremanufacturerinUKbytheendof2009andbecomealeadingfurnituremanufacturerinEUbytheyear2012.

    1.2J&Shadbeenperformingwellfromthestarteventhoughthereisafallinprofitsinsomemonths.Itiscompany'sviewthatthis

    isduetowelltrainedstaffandgoodcustomerservicegivenandalsocompanyisenjoyingpurchasingeconomiesofscaleduetobulkbuying.CompetitorbenchmarkinghelpedJ&Stoidentifyitsminusesaswellascompetitor'sthereforecompanytookallpossiblemeasurestocorrectminuses.Thisisonereasonwhycompanysalesroseupsuddenlyinlasttwomonths.J&Scarriedoutatrainingprogramabouttwomonthsagoandthereseemtobeamassiveincreaseinproductionefficiencyandworkersaremotivated.1.3Strengths*Beingaleaderinthefurnitureindustry*Widermarketshare*Goodcustomerservice*Goodoffersatlowprices*AttractiveofferscomparedtocompetitorsWeaknesses*DifficultiesinfindingoutareliablesupplierfromEUorUK*Limitedbudget*Placeofoutlet*Lackofstrengthtoborrowasbusinessisstillsmall*Damagedreputation

    2.Proposechangestoimprovemanagementandbusinessperformance.2.1ThemainweaknessofthecompanyisdifficultyinfindingoutacheaperandreliablesupplierfromanEUcountry.Eventhough

    J&Striedtheycouldnt.Thereforetheyshouldatleasttrytoincreasethediscountinordertocoveruptheirtaxes.Companycanexaminethedesignoftheproductandmakeimprovements.Sincefurnitureisaproductwherethecustomerslookatattractivenessmanagementcandevelopalternativedesignswhicharemoreattractivetothecustomer.Customerswillhaveawiderchoiceandcompanycanspreadtherisk.Thisisgoodforreputationaswell.Companyshouldtrytoidentifywhatfeaturesinthedesignshouldberemoved.Iftheseunwantedfeaturesareremovedthenthecostofproductionwillfallresultinginhigherprofits.Whencompanyismakingmoreprofitsithasstrengthtoborrowmoneytofunditsoperations.J&Sshouldtrytoinvestinnewtechnologysuchascomputersoftwaretodesigntheproductsoitmaybepossibletodevelopadesignwithouterrors.The

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    Unit14TouroperatormanagementUnit14TouroperatormanagementThisunitenableslearnerstogainunderstandingofthetouroperatorsindustry,t...

    UNIT1:THECONTEMPORARYHOSPITALITYINDUSTRYUNIT1:THECONTEMPORARYHOSPITALITYINDUSTRYUnit4Researchprojectinhealthandsocialcare

    UNIT2:FINANCEINTHEHOSPITALITYINDUSTRYUNIT2:FINANCEINTHEHOSPITALITYINDUSTRYFinanceintheHospitalityIndustryR/601/1789415LO1Understandsourceso...

    UNIT1:THECONTEMPORARYHOSPITALITYINDUSTRYSolutionUNIT1:THECONTEMPORARYHOSPITALITYINDUSTRYGetguidelineherehttp://btechndcourse.blogspot.in/2014/07/unit1contemporaryhospital...

    UNIT9:HUMANRESOURCEMANAGEMENTFORSERVICEINDUSTRIESUNIT9:HUMANRESOURCEMANAGEMENTFORSERVICEINDUSTRIEShumanresourcemanagementhumanresourcemanag...

    Unit21:SMALLBUSINESSENTERPRISEUnit21:SMALLBUSINESSENTERPRISEBusinessEnterpriseH/601/1098investigatetheperformanceofasele...

    UNIT5:FOODANDBEVERAGEOPERATIONSMANAGEMENTUNIT5:FOODANDBEVERAGEOPERATIONSMANAGEMENTFoodandBeverageOperationsManagementL/601/1791LO1Understand

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    qualityoftheproductwillbesuperiorandproductperformancewillbesuperior.J&Sshouldtrytoinvestonrobotsinmanufacturingbringtheproductintothemarketearlierthanthecompetitorthentheycanhaveanadvantageoverthecompetitor.Althoughthismayreducehiscashflowforsometimeitwillforsurebenefithiminthelongrun.2.2

    SinceJ&SisoneofthemarketsleaderinLondontheyshouldtrytobenumberoneandmaintainthatposition.Howeveritisnotaneasytask.Theyshouldadvertiseitsproductineverypossibleway.EcommerceisagrowingmarketandpresentlygrowingnumberofcustomersareusinginternettobuyproductsoifJ&Sdidn'tadvertiseintheinternetitwillbelaggingbehinditscompetitorsanditwillbeloosinglotofrevenue.SinceinternethasaglobalreachJ&Sshouldadvertiseintheinternetbecauseitwillhelpthemtoincreasetheirmarketshare.J&Sshouldcarryoutamarketresearchandfindoutcustomer'sneedsandgiveoffersaccordingtotheirneeds.IfthisapproachisusedJ&Scanmaximizeitssalesrevenueinallthebranches.3.Revisebusinessobjectivesandplanstoincorporateproposedchanges.3.1

    SinceUKisinaeconomiccrisiscompanyisplanningtoopenupatleasttwobranchesinanotherEUcountrysuchasFranceandGermanyinordertoincreasethemarketshareandspreadtheriskJ&Sisplanningtofundthesenewprojectsfromtheirretainedprofits.Actionplan

    1stNov2008Haveameetingwithallthepartnersanddiscusstheiropinionsinordertodonecessaryamendmentstotheplan.15thNov2008Explaintheworkersaboutthenewprojectandmakethemunderstandthebenefitsofthis.31stNov2008Examinethenewmarketandidentifytheneedsofthenewcustomers.15thDec2008Contactthesuppliersandordertherawmaterialsneededfortheproducts.1stJan2009Openuponlyonenewbranch.

    1stJune2009ComparetheactualresultsofthenewshopswithbudgetedfiguresofthefirstsixmonthsiftheyareachievedthetargetsthatmeansthecompanyisfunctioningwellIfnotamendtheplanaccordingtothechangingmarketconditions.IfthetargetsarenotachievedJ&Sshouldidentifyreasonsadversevariancessuchaschangesincustomer'swants.31stDec2009Aftertheendof1styearthecompanyshouldcarryoutamarketresearchandanalyzeallitssalesfiguresinordertogetaclearpictureaboutthecurrentpositionofthecompanyandsettargetsforthenextyear.15thJan2010Makearrangementtoopenupthesecondoutlet.1stJune2010carryoutamarketresearchandidentifyminusesandtakeremedialactions.31stDec2010Comparetheperformanceofthesenewbranchesandtocompeteinthemarket.4.Examinetheimpactandmanagementofchangeinthebusinessoperations.3.1

    WhennewbranchesareopenedthebusinessoperationsbecomemorecomplexandcompanywillnotbeabletofocusonservicesthereforeSmithmustmakesuretodesignitsbusinessplansinawaythatallobjectivesareachievedatthecorrecttime.Ifonethingwasneglectedthiswillaffectthebusinessplannegativelyresultinginheavyfinanciallosses.WhennewbranchisopenedSmithshouldrecruitmoreworkers.Theyshouldalwaysmakesuretorecruitpeoplewhohaveexperienceinthesimilarfield.Thisismoreeconomicalthantraininguntrainedpeopleandalsoworkinghoursshouldbearrangedinawaythatworkersdon'tfeelstress.Minorstaff'sopinionssuchascustomerserviceassistantsshouldbetakenintoconsiderationwhenmakingdecisionsbecausetheyarethepeoplewhoaredealingwiththecustomers.Sincethecompanyisenteringtoanewmarkettherearebarrierstoentrysuchasculturebarrier,languagebarrier.Smithshouldadoptthelocalcultureinthatmarket.Ifnottheymayfinditdifficulttosurvive.

    PESTAnalysisPPolitical/LegalfactorsEEconomicfactorsSSocialandculturalfactorsTTechnologicalfactorsAllthese4factorsarefoundintheenvironment.ChangesinPESTfactorscanhaveanimpactoneeverybusiness.Ifmaybeapositiveornegative.Economicfactors

    Economicfactorsrefertochangeininterestrates,Exchangerates,Inflation,changesintheeconomicgrowthandchangesinthetaxrates.Allthesechangeswillhaveaneffectonthebusiness.

    Eg.IftheinterestratesincreasecostofborrowingwillincreaseandtheJ&Smayhavetocutdownontheborrowing.WheninterestratesincreaseoperatingcostwillincreaseandtheJ&Smayhavetoincreasetheprice.ThismayaffectJ&S's

    differentfood...

    UNIT4:RESEARCHPROJECTUNIT4:RESEARCHPROJECTProjectK/601/0941LO1Understandhowtoformulatearesearchspecification

    Unit12HOSPITALITYOPERATIONSMANAGEMENTUnit12HOSPITALITYOPERATIONSMANAGEMENTHospitalityOperationsManagementH/601/1795LO1Understandtheoperationalandeconom...

    Unit13CONFERENCEANDBANQUETINGMANAGEMENTUnit13CONFERENCEANDBANQUETINGMANAGEMENTConferenceandBanquetingManagementM/601/1797LO1Understandthenatureoft...

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    sales.

    Taxation

    Iftaxationincreasestherewillbeafallinprofits.DividendstoJ&SpartnerswilldecreaseandtherewillbefallininvestmentbutifthereisareductionintaxationJ&Scanmakehigherprofits.

    Inflation

    IftherateofinflationincreasestherewillbeanincreaseinthecostonandJ&Swillbecompelledtoincreasethesellingprice.J&Swillbecomelesscompetitiveinthemarket,consequentlyvolumeofsaleswillfallthereforeinflationaffectsales.

    Fromtheaboveegs.wecanseethatchangesineconomicfactorsmayhavefavorableoradverseimpactthereforeitisnecessarytoconstantlymonitorchangesintheeconomicfactors.Technologicalfactors

    Changesintechnologymayhaveanimpactonthebusiness.Technologyhaschangedhowservicesareprovidedtocustomers.IncreaseininternethadeenabledPeoplefromothercountriestoVisitJ&Swebsiteandsubmitapplications.ThiswillhelpJ&Stoattractmorecustomers.J&SuselatesttechnologyreplacingpapercommunicationtherebyLCMIThavebeenabletoshowbetterresultsbyusingbettertechnology.

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    SMALLBUSINESSENTERPRISE

    INTRODUCTIONAsmallbusinessisabusinessthatisprivatelyownedandoperated,withasmallnumberofemployeesandrelativelylow

    volumeofsales.Smallbusinessesarenormallyprivatelyownedcorporations,partnerships,orsoleproprietorships.Thelegaldefinitionof"small"variesbycountryandbyindustry,rangingfromfewerthan15employeesundertheAustralianFairWorkAct2009,50employeesintheEuropeanUnion,andfewerthan500employeestoqualifyformanyU.S.SmallBusinessAdministrationprograms.Smallbusinessescanalsobeclassifiedaccordingtoothermethodssuchassales,assets,ornetprofits.Smallbusinessesarecommoninmanycountries,dependingontheeconomicsysteminoperation.Typicalexamplesinclude:conveniencestores,othersmallshops(suchasabakeryordelicatessen),hairdressers,tradesmen,lawyers,accountants,restaurants,guesthouses,photographers,smallscalemanufacturing,andonlinebusiness,suchaswebdesignandprogramming,etc.

    Whydopeoplestartasmallbusiness?Somewanttospendmoretimewithfamily,andstartingabusinessallowsthemtodothat.Somefinditexhaustingtobeoutsidethehouseallday,dealingwithtraffic,coworkers,meetingsandinterruptions.Somepeoplehateansweringtoabossallthetimeneedingpermissiontoscheduleadentistappointmentortakethedayoffwhenthey'resick.Somepeopleareunmotivatedbythesecurityofaregularpaycheckandpreferthechallengeofthedirectrewardsorlossesthatentrepreneursseefromtheirefforts.

    Maybeyouwanttobuildanempireandbecomefamous,orcreateawealthgenerationmachinethatyoucanpassontoyourchildren.Orperhapsyoucan'tconvinceanyonetorecognizeyouruniquevisionandyou'vedecidedthatitwillnevercometofruitionunlessyoustrikeoutonyourown.Ormaybeyou'rethinkingofselfemploymentbecauseyou'vebeenunemployedforsolongthatyoufeelthatyou'veexhaustedalltheotheroptions.

    Becomingasmallbusinessownerhasuniquechallengesandrewardsthataren'trightforeveryone.Youmustbedriven,disciplinedandabletoidentifyaproductorservicethatpeopleneedonethattheywillpayenoughfortoallowyoutolivecomfortably.Youhavetodevelopmarketingskillsandbeabletofindyourownwork,becauseitwon'tfallintoyourlapuntilafteryou'rewellestablished.Businessownersneedtounderstandhowtobudget,keeprecordsandhandlesmallbusinesstaxes.Theymustfamiliarizethemselveswithemploymentlawsiftheywanttohirestaff.Theyalsoneedaplanforprotectingtheirbusinessandeverythingthat'stiedtoitifsomethinggoeswrong.TASKONE

    Usinganorganisationofyourchoice,explainthefollowing:DescribetheprofileofaselectedsmallbusinessHaabasbeautysaloon

    SMALLBUSINESSENTERPRISE

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    HaabasbeautySalonhasbeenservingtheGambianforover3years.Theowner,Haaba,has3yearsexperienceasahaircutterandasaprofessionalstylistforweddings,proms,andspecialoccasions.Thesalonhasafullservicestaffwithverylittleexperienceinhairandnailcare.HaabasSalongoalsaretocreateafriendly,relaxed,warm,andcomfortableplaceformenandwomen,children,andfamilies.Shealsoenjoysprovidingsalonservicesforpeopletoenjoyhavingtheirhairandnailsdone.Thesalonsinteriorprovidesanaturalenvironmentfilledwithbeautifulgreenery,soothingstereomusic,andcableTVtomaketheentirefamilyfeelcomfortable.Haabaisalwaystheretofinishupclientshairsoastogivethemthebestlooks.Thesalonservicesofferedarehaircuts,highlightcolouring,perms,updos,bridal,homecoming,specialoccasionstylesandnailcare.Makeanappointmenttodayandexperiencethefriendly,warm,andcomfortableserviceyoudeserve.

    ReviewandanalysetheperformanceofabusinessPerformancemeasurementcouldbeseenintwowaysmainly,*Organisationalperformancemeasurement*Individual/workforcemeasurement

    ORGANISATIONALPERFORMANCEMEASUREMENTUnderthesection,performancesaremeasuredunderthefollowingcharacteristicsorelement:*Levelofoutputisitbelow

    expectationsoraboveexpectation?Isthereanydeviationbetweenplannedresultsoractualresults?*Theprofitabilityoftheorganisation.

    *Thelevelofmarketshare.*Thesalesreturnandreturnoncapital.*Durabilityintermsoftime,frameandbusinessexistence.INDIVIDUAL/WORKFORCEMEASUREMENT

    Here,performanceismeasuredbytakingintoaccountsthefollowingelements:*Thelevelofovertimespentbytheindividualbeyondthenormaltime.*Howefficientandeffectiveistheworkforceorindividualefficiencyandeffectivenesstakesintoaccountperformingataskwithinashorterperiod,competencyreductioninerrorsandmistakes*Theoutputandthetimeframerequired.

    *Thelevelofpunctualityandcommitmentoftheworkforcetowardsmeetingobjectivesandgoals.*Themeetingofabenchmarkorayardsticksetbytheorganisationormanagement.

    IdentifythestrengthsandweaknessesofthebusinessSmallEnterpriseStrengthsPersonalTouch

    Customerswilloftenpayapremiumforpersonalizedattention.Inmanycompanieswhereproductsandpricesdifferencesareminimal,thehumanfactoremergesasaprimecompetitiveadvantage.GreaterMotivation

    Keymanagementofsmallenterprisenormallyconsistsoftheowner(s).Theyworkharder,longerandwithmorepersonalinvolvement.Profitsandlosseshavemoremeaningtothemthansalariesandbonuseshavetotheemployeesofamultinationalcompany.GreaterFlexibility

    Asmallenterprisehastheprimeadvantageofflexibility.Bigcompanycannotstopoperationwithoutoppositionfromorganizedlabor,orevenincreasepriceoftheirproductswithoutpossibleinterventionfromgovernment.Smallenterpriseshaveshorterlinesofcommunication.Theirproductlinesarenarrow,theirmarketlimitedandtheirfactoriesandwarehousesarecloseby.Theycanquicklyspottroubleoropportunityandtakeappropriateaction.Lessbureaucracy

    Insmallbusinessthewholeproblemcanbeunderstoodreadily,decisioncanbetakenquicklyandtheresultscheckedeasily.Butinamultinationalcompany,bogusmanagementstructurecanleadtodelayintakenactionandbureaucraticinfluences.Unobtrusive(LessConspicuous)

    Smallcompanycantrynewsalestacticsorintroducenewproductswithoutattractingundueattentionoropposition.Thisispossiblebecauseitisnotquiteasnoticeableasmultinationalcompany.Largecompanyisconstantlyfacedwithproxybattles,antitrustactionsandgovernmentregulations.Itisalsoinflexibleandhardtochangeorrestructure.

    WeaknessesofsmallbusinessenterpriseLocation

    Thelocationofmyshopisverybad.Duringtherainyseason,therearemassivepoolsofwaterandcarsrarelywanttocomearoundthatarea,therefore,Ihardlyhaveanyclientsduringthatperiod.Attitude

    Theattitudeofmystafftowardsaclientisexcellentbuttheyhardlycometowork.Iftheyevershowup,itsneverontime.I

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    havetoalwayscallthemandwakethemupbeforetheycometoworkandtheabsenteeismisveryrampant.Itisalwaysoneexcuseortheother.Managementstyle

    ThemanagementstyleIuseinmysalonislaissezfaire.Ioffernoorverylittleguidancetomystaff,amidstleavingthemtomakedecisionsontheirown.Asmuchasitcouldbeovertlyeffectiveinthosesituationswheremostemployeesormembershappentobehighlyqualifiedandskilfulintheirareaofexperience,ithasoftenledtopoorrolesdefinitionplusasheerlackinmotivation.Qualityofproducts

    Iuseverypoorqualityproductsinmysaloon.Ibuythecheapthingssoastogetmoreprofitattheendoftheday.TheshampooandhairlotionsIusehaveverypoorqualitytherebydestroyingmyclientshair.Thisthereforediscouragesthemtocomebacktomysaloon.ExternalOpportunitiesandThreats

    Situationalanalysesconsideropportunitiesandthreatsfromtheexternalenvironment.Externalopportunitiesincludethingssuchasgapsinthemarketthatnocompanyiscurrentlyserving,newmarketsandothercleargrowthopportunities.Externalthreatsincludenewproductreleasesfromcompetitorsandnewcompetitorsarisinginthemarket.Arangeofexternalfactorscanpresenteitheropportunitiesorthreats,dependingonthespecifics.Changesinthelaw,forexample,canprovidedistinctopportunitiestosomebusinessesinanindustrywhilethreateningthesurvivalofothers.Changingconsumerpreferencesandmarketchangingnewproductcategories,asanotherexample,cangivenewentrepreneursaworldofopportunitieswhileseriouslythreateningestablishedbrands.

    RECOMMENDATIONSTOOVERCOMEWEAKNESSESLackofexperience.Noteveryoneiscutouttobeanentrepreneur.Analyzethestrengthandweaknessesofstartingyourown

    business.Itisimportantforbusinessownerstobeselfstarterswhoaregoodatplanning,organizing,andmakingdecisionsthatcanbenefittheirbusinessinthelongterm.Itisalsoimportanttochoosetherightbusinessforyouwhichmaynotbethemostprofitable,buttheoneinwhichyouhavethemostinterestandskillsets.Networkwithothermoreexperiencedbusinessownersonlineandinyourcommunitytoobtainfeedbackonhowyoucanstartandmaintainasuccessfulenterprise.Poorbusinesslocation.Knowingyourtargetconsumerswillhelpyouidentifywheretobestmarketyourproductsandservices.Insufficientcapital.Manyentrepreneursarenotawareexactlyhowmuchtheyneedforstartupcapitalandhowlongitwilltakebeforetheirbusinessturnsasteadyprofit.Doyourresearchandplanaheadtoidentifyareaswhereyourbusinessmayfallshort.Investigatepossiblefundingsources,suchasventurecapitalists.Poorcreditarrangements.Acomprehensivebusinessplanwillhelpeliminatepoorcreditarrangements.Poorinventorymanagement.Keepupdatedandaccurateinventoryrecordstoavoidfutureproblems.Unexpectedgrowth.Althoughitisoftenhardtopredictthefutureeconomy,comeupwithaplanforwhattodoinbothpositiveandnegativesituations.Considerconsultingcompaniesthatspecializeinhelpingbusinessesdealwithsituationsinvolvingunexpectedgrowth.

    Benchmarking:Ifonepersonlagsbehind,theorganizationcan'tmoveforwardasaunit.Itisdifficulttoevaluateanemployee'sperformanceifyoudon'tknowwhatstandardsyoushoulduse.Benchmarksarestandardsforemployeeworkthatthecompanyrequires.Theemployee'sabilitytomeetthosebenchmarksshouldbethefoundationoftheperformanceevaluation.Setbenchmarksinseveralareasandcommunicateyourexpectationsformeetingstandardstoemployees.BenchmarksforProductivity

    Employeesshouldknowexactlyhowmuchworktheyareexpectedtodoinaworkday.Theoptimumsituationiswhenthisproductivitycanbemeasured,suchasinproducinganumberofunits.Evennonmanufacturingproductivitycanbemeasured,however,intermsofsales,publicityarticleswritten,contactsinitiated,successfulnegotiationsandsoforth.Setspecificbenchmarksinanyareaofproductivityinwhichyouwanttomeasureanemployee'seffectiveness.BenchmarksforQuality

    Qualityofworkmustbeapartofaperformanceappraisal.Establishlevelsofexpertiseyouexpect,andusethoseasbenchmarks.Youcanmeasureerrorrateinproductsproduced,customersatisfactionandeffectivenessofprojectsagainstastandardyouestablish.Thiscanbestatedasapercentage.Example:Employeemeetsqualitystandards85percentofthetime.BenchmarksforLivingUptoCompanyValues

    Eachcompanyshouldhaveamissionstatementandasetofvaluesbywhichitoperates.Yourperformanceappraisalcanassesshowoftenandhowwellanemployeelivesuptothosevalues.Setabenchmarkthatdemandscomplianceintheneighborhoodof90percentofthetime,andseehowyouremployeesarealignedwithcompanyvalues.BenchmarksforProductorServiceEffectiveness

    Ifyourproductorservicedoesnotliveuptocertainstandards,youwillsoonbeoutofbusiness.Thisisatleastpartiallytheresponsibilityofemployees.Evaluateemployeesagainstaproductorserviceeffectivenessbymakingthemresponsiblefor

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    improvements.Youcansetbenchmarksformakingimprovements,suchas:Employeecontributesqualityimprovementsuggestionsfrequently.Theword"frequently"wouldbeyourbenchmarkinthiscase,andthoughitissomewhatsubjective,atleastitgivesyouastartingpointforevaluations.Definitionofjobprocedures:Establishedworkprocedureshaveproventobebeneficialinmanyways.Theyplayanintegralroleinperformingjobssafely,providingstandardizedtrainingandbeingassistivewithinvestigations.Jobproceduresaredefinedasastepbystepdescriptionofhowtoproceed,fromstarttofinish,inperformingataskproperly.Whereconfusionseemstorunrampantisindeterminingwhetherajobrequiresanactualjobprocedureorshouldbeconsidereda"task"whichisasegmentofworkwhichrequiresasetofspecificanddistinctactionsforitscompletionorifitshouldbea"practice"whichisasetofguidelineshelpfulforaspecifictypeofworkthatmaynotalwaysbedoneinthesameway.Planning

    Planningisanessentialbusinessfunctionthatrequiresadedicatedeffortfromthecompanysmanagementteaminordertofullyrealizethebenefits.Companiesoftenhaveanannualplanningprocesswherebythestrategiesandbudgetfortheupcomingyeararedetermined,but,ideally,planningshouldbeapartofeverydaymanagementthinking.Itisamindsetofcontinuallylookingforwaystomaketheenterprisemorecompetitive.Duringtheplanningprocess,goalsaresetforboththeshortandlongterm.Oncegoalsareset,strategiesaredeterminedtoreachthegoals.Informationistherawmaterialthatfuelstheplanningprocess.Managementmustgatherdetailedinformationaboutthestrengthsandweaknessesofcompetitorsinordertocomeupwithstrategiesthatcreateacompetitiveadvantageforthecompany.Marketresearchisalsokeyunderstandingyourcustomerswillallowyoutobetterattractandservethem.Consumersneedschange,theirtasteschange,andwhattheyarewillingtopayforproductsorserviceschangesdependingontheeconomicenvironment.Planningrequiresvision,ortheabilitytoseesuccessforyourcompanybeforeitoccurs.Knowingwhereyouwantthecompanytobeinthreetofiveyearsandwhatyouwanttoachieveduringthattimeisanessentialingredientofsuccessfulplanning.Companiesmustallocatetheirresourcestowhattheydeterminearetheirbestopportunities,andshouldbeconstantlyseekingoutnewopportunities.Acompanysbestopportunitiesresultfromacombinationofitscapabilities,orwhatitdoesparticularlywellincomparisontoitscompetitors,andwhatthemostcriticalcustomerneedsare.ThebusinessownermustanticipatethisandbringinadditionaltalentaswellasbuildtheskillsoftheexistingteammembersthroughadditionaltrainingandeducationSOURCESANDAVAILABILTYOFPROFESSIONALADVICE

    Amanagementofanorganisationmightnotbeinabetterpositiontosolveorovercomethefundamentalweaknessesofbusinessperformance.Therefore,shareholdersandmanagementmayprefertocallonexternalpartiesbasedonareaofspecialty.Whateverconcreteadvicesaregivenandimplementedwithintheorganization.

    Externalsourcesofprofessionaladvicesusuallycomefrom:Financialconsultant:provisionofsalientadvicesonfinancialstatement,cashflowstatement,tradingprofitandlossaccount.

    Managementconsultantprovisionofadvicesonmanagementstructure,planningandcoordinatingofactivities,taskallocationanddefinitionofjobs,humanresourcesplanning,whichwouldbebasedondivisionoflabourandspecialization.Legalconsultanteveryorganizationhasalegalpractitionerthathandleslegalmattersoftheorganization.Thepractitioneradvicesonappointmentofstaff,legalrelationshipbetweenthegovernmentandtheorganization,betweenmanagementandstaffandbetweenbusinessandbusiness.Itistheresponsibilityofmanagementtoimproveonitsexistingfinancialrecords.Keepingtrackrecordsondebtcollection,payrollsystem,andfinancialauditingandbalancesheetstatementwilldefinitelyimproveonexistingweaknessesoftheorganization.Failuretoabidetothisfinancialdisciplinewilldefinitelycreatebankruptcyandliquidationoftheorganization.Failuretoabidetothisfinancialdisciplinewilldefinitelycreatebankruptcyandliquidation.

    USINGTHESAMEORGANISATION,SUGGESTNEWARESOFEXPANSION:ANDINVESTIGATEWAYSOFSTRENGTHENINGEXISTINGPERFORMANCE.FindingnewcustomersisthemajorchallengeforSmallbusinessowners.Smallbusinessestypicallyfindthemselvesstrappedfortimebutinordertocreateacontinualstreamofnewbusiness,theymustworkonmarketingtheirbusinesseveryday.Commonmarketingtechniquesforsmallbusinessincludenetworking,wordofmouth,customerreferrals,yellowpagesdirectories,television,radio,outdoor(roadsidebillboards),print,emailmarketing,andinternet.ElectronicmedialikeTVcanbequiteexpensiveandisnormallyintendedtocreateawarenessofaproductorservice.*2.2)investigatewaysinwhichexistingperformancecouldbemaintainedandstrengthenedAstherearelotofsmallbusinessesacrosstheglobe,itisnecessarytomaintainsustainabilityandsurvival.Theactofmaintainingandstrengtheningexistingbusinessbymanagementandshowproprietorshipisquitedifficultandcomplex.Butnevertheless,itisaresponsibilitybestowedonownerstomaintainandstrengthentheirprojectsororganisations.Thesefactorsorelementsarecharacterizedwiththemaintenanceandstrengtheningofexistingbusiness:MARKETSHARE/POSITIONING:marketshareisthenumberofcustomersportfolioattachedtothatbusiness,anditisalwaysdeterminedinpercentage.Agivenpercentagemustbemaintainedasamarketshareinorderforsustainabilityandgrowth.BUSINESSPENETRATION:thestrengtheningofabusinessrequiresconstantandpersistentmarketpenetrationinallcornersofthesegmentedmarketsbyreducingthepriceforproductsandmaintainingqualityproductanddelivery.CUSTOMERRELATIONSHIP:existingbusinessmustestablishcordialandfriendlyrelationshipbetweentheorganisationanditscustomers,regardlessofwhetherthecustomerisanexistingorpotentialone.MAINTAINING

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    APPROPRAITEPERFORMANCERECORD:themanagementmustcloselymonitortheperformanceoftheworkforce.Theperformancerecordtakesintoaccountabsenteeism,highlabourturnover,punctuality,productivityandefficiency,etcADVISORYRELATIONSHIP:businessesmustreceiveadvicesfromexpertsinallcornersinordertoprotectthebusiness.Someofthefundamentaladvisorscomefromlegalpractitioners,financialconsultants,managementandmarketconsultants.PRODUCTQUALITYANDDELIVERY:theresearchanddevelopmentshouldconstantlyworktomaintainandprovidequalityproductandservices,plusquickdeliveryandaccessibilitybycustomers.HowdoIStructureaPerformanceReview?

    Theperformancereviewiswrittentomeetseveralgoals.Thosegoalsincludejudgingtheviabilityofyouremployeesperformance,benchmarkingthatperformanceanddevelopingacareerpathforyouremployee.Whiletheinformationwithinthereviewwillvarybyemployee,thestructureofeachperformancereviewshouldbequitesimilar.GeneralPerformance

    Theemployeesgeneralperformanceincludesbasicworkplaceresponsibilities,suchasattendance,punctualityandpolicyadherence.Generalperformancealsoincorporatesthesoftresponsibilities,includingattitude,cooperativeness,approachabilityandtheemployeesoverallabilitytotakecleardirection.Althoughtheseaspectsarenotimmediateaspectsoftheemployeesspecificjobresponsibilities,theseaspectscangreatlyaffecttheoverallsuccessorfailureoftheemployeesjobsuccess.Therefore,itisimportantthatyounotonlyaddresstheseaspects,butprovidesupportingexamples,suchasanattendancerecord,customercomplimentorcustomercomplaint.SpecificJobResponsibilities

    Thespecificjobresponsibilitiesaretheimmediateitemsinwhichtheemployeeisresponsibleforcompletingeverydayandwithoutfail.Dependingontheposition,theseresponsibilitiesmayincludecustomerservice,sales,inventoryandevenresolutions.Thesearetheresponsibilitiesthatdirectlyaffectthebusinesswhentheyarenotcompleted.Yourreviewofthesespecificsshouldincludeacloseanalysisofyouremployeesproductivityandsuccesswithintheposition.Likethegeneralperformancesection,youshouldsupportyourfindingsandcommentswithsupportinginformation.Thiswillmaketheinformationandfindingseasierfortheemployeetounderstandduringyourperformancereviewdiscussion.YeartoYearComparison

    Ifyouareevaluatingatenuredemployee,yourperformancereviewshouldincludeasectionthatprovidesayeartoyearorevaluationtoevaluationcomparison.Thecomparisonshouldreviewthecontinuedprogress,aswellastheareasthatneedimprovement.Thisevaluationcomparisonwillalsobegintoshowapatternofexpectancyfromyouremployee.Intheeventofapoorevaluation,acomparisonofevaluationswillhelpyoutoidentifyifyouremployeeisjusthavingasubparyear,strugglinginacertainareaorsimplyneedingachangefromtheposition.Comparisonsalsohelptoidentifyemployeesthathavegrownthroughtheirpositionwithhopesofadvancementorpromotion.

    GoalSettingsGoalsettingisanessentialforceintheperformancereview.Thegoalsthataresetwithintheperformancereviewarebased

    onthefindingsoftheaforementionedsections.Thisindividualizedsectionwillprovidetheemployeewithstepstowardimprovingtheirpositionandsuccesswithinthecompany.Thegoalsshouldincludeitemssuchasimprovedattendance,refinedmetricsadherenceandimprovedaccuracy.Thegoalsshouldbeclearlystatedandwithintheemployeesreach.Considerations

    Itisimportantthatyouprovideanunbiasedreviewoftheemployee.Theperformancereviewshouldbebasedonfactsthataresupportedwithevidencethathasbeencollectedthroughouttheyear.Avoidusingrumors,innuendosandguessworkwhencompletingtheperformancereview.Itisalsoadvisedthatyoucompletethereviewwhenyouareclearheaded,wellrestedandwithoutangertoensurethatyouprovidingafairreview.

    *2.3)SUGGESTNEWAREASINWHICHTHEBUSINESSCOULDBEMAINTAINEDANDSTRENGTHENEDJUSTIFYINGSUGGESTIONS.

    Newopportunitiesarebenefitedandcompetitivemeritsopenedtoexistingbusinesses.Whethersmallorlarge,businessfacesopportunitiesduringtheirstayinoperationorbusinessactivities.Someofthenewopportunitiesavailabletoexistingbusinessesareasfollows:

    IDENTIFICATIONOFAREAOFEXPANSION:itistheresponsibilityofmarketerstoexpandtheirmarketingactivitiestoareasoutsidecentralmarketing,butrathertoevaluateandtargetmarketthatfallsoutsidetheirgeographicallocations.Thissimplymeansthattargetinglocationsisinstrumentaltomarketshares,customerportfolioandprofitability.

    EXPORTMARKETING:Localmarketingdoesnotrequiretheexpectedgrowthandprofitorganisationandmarketersneedtoventureintoexportmarketknownaninternationaltrade.Exporttradeincreaseprofitabilityandgrowth,butfallduetosomeobstaclesrangingfromroomlanguagebarrier,conversionofcurrency,governmentregulation,climaticconditionandcultureofthepeople.

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    MARKETDEVELOPEMENT:accordingtoAnsoff,onenewopportunitiesofbusinessisthroughmarketdevelopment.Itisaprocessthatmarketersandorganisationsundertakebynotonlylookingatcontemporarymarket(existing)butrathertolookatnewmethodsthroughmarketdevelopmentthattargetsnewcustomers,newlocations,newperceptionsandcultureandaboveallproductappreciations.

    RESEARCHTECHNIQUES:Inthemoderncompetitiveenvironment,researchtechniquesanddevelopmentplayacrucialroleincreatingopportunitiesforbusiness.Theserequiretechniquesbasedonquantitativeandqualitative.Qualitativetechniquesdealwithsoundopinions,views,andperceptionsofpeoplebothwithinandoutsidetheorganisation.Onthecontrary,qualitativetechniquesevaluateissuesorprovideinformationtoorganisationintheformofpercentage,comparingperformances,assessingactualandplannedobjectivesorresults.Attheend,criticalanalysisismadeandsounddecisionstakenonaparticularproblem.

    REBRANDING:thishasbeenanopportunityfororganisationandmarketers.Whentheproductisrebranded,itbecomesappealingtonewcustomers.Italsocreatesmarketpenetrationbytakingarebrandingproducttothesamecontemporarymarket.Thisaddsvaluetotheorganisationintermsofcustomerconfidence,customerretentionandcompanysimageandreputationisbestowed.

    IDENTIFYBUSINESSOBJECTIVESANDPLANS,ANDPREPAREACTIONPLANSTOTHECURRENTIMPLEMEMTATION(BASEDONTHESITUATIONANSOCIETY)*3.1)REVIEWEXISTINGBUSINESSOJECTIVESANDPLANS

    Animportantpartofyourbusinessplanistostatewhatyourgoalsasacompanyare.Ifyouareastartup,thenyoullwanttoprojectoutforseveralyears.Forinstanceyouwouldstateyourcurrentpositionandwhereyouplantobeinsixmonths,oneyear,andsoon.Youdlistyourproductorservicesandexplainyourgrowthplansforthelistedperiods.Ifyoureanexistingbusiness,youwouldshowyourcurrentposition,andthendothesametypeofprojections.Abusinessplanisnotaonetimedocument,atleastitshouldn'tbe.Mostbusinessesputtogetherabusinessplanduringtheirstartupphasetoorganize,attractpartnersandemployees,andtotryandgetaloanorfinancialinvestment.Thisisagreatuseofabusinessplan,howeverfartoooftenoncethecompanyhasstarteduptheplanisn'ttouchedagain.Ultimately,abusinessplanisaboutresults,aboutmakingyourbusinessbetter.Ifyoudon'tthinkdoingabusinessplanwillimproveyourbusiness,thendon'tdoone.Planningforplanning'ssakeisawasteoftime.Whereaplanismostlikelytomakeyourbusinessbetterisbyallowingyouto:1.Setprioritiesproperly.

    2.Trackplanvs.actualresultsandmakecoursecorrections.3.Planandmanagethecriticalnumbersthataren'tintuitive:notjustprofitandloss,buttherelationshiptocashflow,balancesheet,andratios.4.Communicateyourplantoothers:partners,employees,lenders,andinvestors.Youmayhaveagreatplaninyourhead,butassoonasyouneedtoexplainittoothers,youneedtowriteitdown.ReviewingYourPlan

    Sohowdoyoumaintainyourbusinessplan?Wehavetofirstestablishthatwithoutregularreviewmonthlyoratleastquarterlyreviewofyourplannedvs.actualresults,withpracticalanalysisofthereasonsforvarianceplanningislikelytobeawasteoftime.Realplanningrequiresregularreviewsjustasmuchasnavigationrequiresknowingwhereyouareaswellaswhereyouwereandwhereyouwantedtogo.Everyrealplanneedstobefullofspecificdates,budgets,forecasts,andmanagementresponsibilities.Peopleinvolvedhavetoknowtherewillbetrackingandfollowinguponspecifics.Thenthatplanmustbereviewedagainstresults,andthosereviewsshouldproducecoursecorrectionsandfinetuning.Generallyabusinesshopesforaconsistentlongtermstrategybuiltonshortstepincrementalchanges,notmajorrevisions.Consistencyisimportanttostrategy,andthebusinessshouldavoidthetemptationtojumparoundfromonestrategytoanothersoquicklythatnostrategyiseverreallyimplemented.Rememberthatevenamediocrestrategywellandconsistentlyimplementedismuchbetterthanabrilliantstrategythatwasn'timplemented.However,businessesdocometocrossroadsdemandingmajorrevisionsintheirbusinessplan.Thesearesomesignsthatindicateitstimetoreviewyourplan:Majorchangesinmarketsituation.Lookespeciallyforchangingmarketfactorsandchangingmarketbehavior.*Haveyourunderlyingbusinessassumptionschanged?Asanexample,theInternethaschangedthebusinesslandscapesoenormouslythatinsomeindustriesalmostanyplanthatwasdevelopedwithoutaviewoftheInternetmayneedrevisions.Thatmaynotbetrueforalandscapearchitectorrestaurant,butforatravelagent,graphicartist,ormarketresearcherit'sobvious.*Doyouhavenewcompetition?Havenewcompetitorsemerged,orexistingcompetitorschangedthebusinesslandscapesomuchthatyouneedtoreviewandrevise?*Hastheproductorservicepicturechanged?Forexampleanewtechnologymayhaveemerged,changingthemarketperceptionofwhatyousell.Theremaybenewproductsorservicesofferingrelatedsolutionstothesameuserneedsyousatisfy.Majorchangesininternalsituation.Themostobviousmajorchangesarechangesinownership,whicharefrequentlytheresultofchangingpartnerships,divorces,deaths,andinvestment.Thecompanytakesonnewpartners,orsellsouttoalargercompany.Onamoreominousnote,thecompanysufferssignificantdeclinesinsales,profits,andfinancialhealth.Alwayskeeptherevisioninperspective.Whileyoudowanttoreviewandcorrectconstantly,youdon'twanttochangeastrategyunlessyouaresureitisn'tworkingoryouseerealchangesintheunderlyingassumptionsthatformed

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    PostedbyAssignmenthelpUSQBlogspotat6:49PM Nocomments:

    Labels:SMALLBUSINESSENTERPRISE

    thefoundationsofstrategy.MaintainingYourPlan

    Thepurposeofmaintainingyourplanistousebusinessresultstoguideyourfuturedecisions.Theplanitselfhasnovalueifitdoesn'thelpyouimprovebusiness.That'sregardlessofhowgoodorbad,howbrillianttheideas,writing,orhowelaboratethetablesandcharts.Itsvalueisthedecisionsitleadsto.Thatmeans,ofcourse,thattomakeaplanworththeeffortofdevelopingit,you'llwanttofollowitup.Whetherthat'severymonthoreveryquarter,youneedtotrackresults,analyzethedifferencebetweenplanandactualresults,andmanage.Changethingsthatneedtobechanged.Comparewhatyouplannedtowhathappenedinreality.Askyourselfthefollowingquestions:*Whatwentwrong,andhowcanwefixit?

    *Whatwentright,andhowcanwetakeadvantageofit?*Whatchangestookplaceinthecompetitivelandscapethatcouldbeupdatedintheplan?*Whatchangestookplace

    affectingourmarketthatcouldbeupdatedintheplan?*Whatchangestookplaceinternallyinourorganizationthatcouldbeupdatedintheplan?Afteryou'veansweredthesequestions,updateyourplanaccordingly,setnewbudgetsandmilestones,adjustyourfinancials,andrepeattheprocesswithanotherreviewofyourplanagainnextmonthornextquarter.Updateyourplanaccordinglyagain,andkeeprepeating.You'llfindthatmaintainingyourbusinessplangivesyouabettergrasponyourbusiness,yourmarket,andeverythingelsethathappenswithyourcompany.

    Conclusion

    Startingasmallbusinessiscomplex,timeconsumingandlifealtering.Therearemanymorethingsthatgointorunningitthanjustprovidingtheproduct(s)orservice(s)thatyourbusinessoffers,however.You'llalsoberesponsibleforyourbusiness'sfinances,protectingyourbusinessandpersonalassets,keepingyourbusinesslegal,payingtaxes,keepingrecords,managingemployeesandmore.Ifyouunderstandwhatyou'redoingandknowhowtominimizetherisksandchallenges,theindependence,personalsatisfactionandfinancialrewardsyoucanachieveasanentrepreneurcanmakestartingasmallbusinessthebestdecisionyou'llevermake.(Makeyourdreamareality.Findoutwhatyoucandotoreachthisfinancialgoal

    Recommend this on Google

    SUNDAY,FEBRUARY8,2015

    Foodandbeverageservices

    LO1Understandtheoperationalandeconomiccharacteristicsofhospitalityoperations1.1analysesthenatureoftheproductandservicearea1.2Evaluatethedifferentinfluencesaffectingpatternsofdemandwithinhospitalityoperations.1.3Comparecustomerprofilesandtheirdifferingexpectationsandrequirementsinrespectofhospitalityprovision1.4AnalyzefactorsaffectingaveragespendingpowerinhospitalitybusinessLO2understandproductdevelopmentwithinahospitalityenvironment2.1evaluatethekeystagesinproductandservicedevelopmentappliedwithinahospitalityoperations2.2analysesthefeatureswhichcontributetowardsthecustomersperceptionofproductsandservices2.3assesstheopportunitiesandconstraintsaffectingproductandservicedevelopmentwithinahospitalityenvironment2.4evaluatedifferentmerchandisingopportunitiesforhospitalityproductsandservicesLO3understandpricingandprofitabilityconceptswithinhospitalityoperations3.1evaluatedifferentmethodsofpricingtakingintoaccountadditionalpricingconsiderations3.2assessthefactorsinhospitalityoperationswhichaffectrevenuegenerationandprofitabilityLO4beabletouseappraisaltechniquestoanalyseandimproveoperationalperformanceandmakeproposalsforaction4.1applydifferentperformancesmeasuresandappraisaltechniquestoindividualaspectsofhospitalityoperationstheproductandthewholeoperations4.2determinetheeffectivenessofdifferentquantitativeandqualitativeappraisaltechniquesandtheirapplicationtohospitalityoperations4.3applyapproachestobusinessanalysisevaluationandplanningappropriatetohospitalityoperation,makingproposalsforactions.

    IntroductionIreadoutwholecasestudyandIfoundachevalierishospitalityestablishmentwhichissituatedonbeachandbecauseof

    manyproblemstheirsalesgoingdown.Ifoundthatthereisnomanagement,servicesarenotthatmuchgood,badconditionofrestaurant,nosignage,lackofstafftraining,noexperiencedpersonsinestablishmentandpropercleaning.Customersbecomelessdaybydaybecausetheyarenotsatisfiedwithservicesandatmosphere.Chevaliersgeteasilymakemoneyfromrestaurantbuttheydonthaveproperplanningandexperiencedpersonstorunbusinessingoodwayormakingmoreprofits.Theirrestaurantsituatedonthebeachanditisreally

    FOODANDBEVERAGESERVICES

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    verygoodlocationforbusinessbecausecustomersattractfromnaturalthings.Peoplelovetoseeviewsandenjoyingfoodwhilewatchingseaviews.Chevalierssituatedonbeachwiththreestoriedrestaurant.Inthisrestauranttheyhavebeachlevelkiosk,lacarterestaurantanditcancoverupto100coversandtheyalsodoingoutdoorcateringfacilitywith200covers.Inthisestablishmentmostofthepeoplecomefrommiddleclassfamilies.Differenttypesofcustomerscomeheretoenjoyfoodlikeparentswithchildrens,walkers,joggersandcouples.Fromthelastoneyearchevaliersbusinessinlossbecauseoflesscustomers.Thesuccessofanyhospitalitybusinessdependsmainlyonitsdevelopmentplans.Businessdevelopmentincludesawiderangeofactivitiesthatcreateneworchangedofferings,organizationsprocess.Itenhancessales,improvescustomersatisfaction,augmentsquality,diminishescostsandachievesnumerousbenefitsfororganizationstobesuccessfulandhereIimplementdifferentstrategiestoimprovebusiness.Therearenumbersofthingstorunbusinessandmakemoreprofitslikepricingoffandb,accountingandmaintenanceetc.

    Lo1understandtheoperationalandeconomiccharacteristicsofhospitalityoperations.NatureoftheproductandservicesareasBuffetservice

    ABuffetServiceisaselfserviceservingstylewheretheguestsservethemselves.Thisstyleisagreatmethodforfeedinglargenumbersofpeoplewithminimalhelp.Thedinnerbuffetisthemostpracticalandcongenialwayinwhichtocareforyourguests.TherecanbemanyvariationsoftheBuffetService.Itcanbeeithercountrycasualorsemiformal.Itprovidesamorerelaxedmethodofdiningandamorevariedmenuthanafullservicemeal.Theentertainingbuffetpresentationoffoodcanbeplacedononeormoretablesclosebutawayfromthetableswheretheguestswillbeseatedduringdinner.Theguestswillgotothebuffettablesandservethemselvesfromavarietyofmenuitems.Therearehotbuffetsandcoldbuffets.Coldbuffetsaretypicallysaladsandsandwiches.AlsothebackyardbarbequecanbeaBuffetService.Anentertainingdessertbarcanbeusedforanafternoongatheringoffriends.TheBuffetServicecanhaveastaffwheretheguestsbringtheirownplatealongthebuffetlineandaregivenaportionfromaserveratoneormorestations.Anadvantageofbuffetsisthatguestshavetheabilitytoreviewfoodbeforeselectingitandtakingonlythequantityneeded.SinceabuffetinvolvespeopleservingthemitislesselegantthanTableService.BuffetServiceisusedanytimetherearelargegatheringsevenatmanyformalweddingreceptions.Buffetmeanstofeedlargenumberofpeopleatonetime.Inchevaliersweprovideabuffetserviceforcustomers.Therearedifferenttypesofbuffetservicesinthisworld.Chinesebuffet,Indianbuffet,Italianbuffetetc.buthereIdecidedtoimplementedFrench,continentalbuffetforcustomersbecauseofEnglish,kiwipeoples.InNewZealandmostofthepeoplelovetoeatcontinentalfoodsotheFrenchbuffetisbestoption.Inbuffetsystemweprovidemanydisheswithonecostandguestenjoyfoodwithbulkquantity.Customershavetoservethemselvesfromdifferentstationslikeasaladbar,hotitems,desertstationandallentre,mains.Hereweprovideoutdoordinning,friendlyenvironment,privatepartiesetc.accordingtocustomerneeds.

    (http://restaurants.about.co)Bestlocationforbuffetandsetup

    Buffetsettingrequiresplanningwithregardtolayoutandeasyaccessforeveryguest.Buffetbestlocationisnearkitchen.Sothatifdishesemptyneedsrefillingitwonttaketimeaschevalierskitchenisneartomainhall.Moreoveritwillbeeasierforguestsaswellastheydonthavetowaitlongforfoodanditwilleffectonchevalierssaleasifcustomershappythentheywillcomebackagain.Trafficflowandafoodareessentialtothesuccessofabuffetline.TheRightWaytoSetUpaBuffetTable

    *Stackplatesattheheadofthetableandsilverwareandnapkinsattheend.*Allthefoodshouldbeaccessiblefrombothsidesevenforsmallgroupsandalllidsandcoversshouldbecompletelyremovedonceservingstarts.*Beveragesshouldbeservedonaseparatetablethat'sfarenoughawayfromthemainbuffetsoasnottocausetrafficcongestion.*Dessertshouldalsobeservedseparatelyonitsowntableandshouldnotbeputoutuntilafterthemaincourse.*Providetongsandladlesinsteadofforksandspoonsforservingwheneverpossible.*Refilloftentomaintainfreshnessandflavor

    BenefitsforchevaliersbyBuffetsserviceThemostobviousbenefitofarestaurantbuffetisthatchevaliersfeedalargequantityofpeoplewithminimalamountofstaff.

    Thisisgreatforpayroll.Italsoallowsrotatingthefoodintherestaurantkitchenfaster.Itisbeneficialfortheestablishment.Buffetasspecialpromotionscandrawincustomersonabudgetwhomaynotroutinelydineoutatrestaurant.Andalsoitoffersagreatwaytocutfoodcostsandincreaseprofitmargin.Ithelpstogeneratemoreincome.Layoutofthekitchen

    Themainconsiderationisdesigningakitchenisthatthelayoutshouldalloweasycleaningandcontinuousworkflowfromreceivingrawmaterialthroughpreparationandcookingtofinalpresentation.Equipmentsshouldbemovableorplacedoncleanarea.InthekitchenservingfoodandtheremustbeadivisionofpreparationareasForexample

    Vegetablesstorageandpreparationshouldbeneartodeliveryasvegetableshavesoilonthemwhichcarriescperfringenssporesandifthevegetablesarecarriedthroughthekitchendustfromthevegetablesmaysettleoncookedfood.Sectionofraw

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    meatpreparationshouldbeseparatedfromcookedfoodpreparationtoavoidcrosscontaminationbecauserawmeatisfrequentlycontaminatedwithsalmonella.Ventilation

    Adequateventilationinakitchenisveryimportantfortworeasonsfirstlytokeepthetemperatureandhumiditydownandsecondoneistoremovecookingsmellssteams.KitchenfloorItshouldbemadehardwearing,mats,easilycleanedmaterialwhichwillnotabsorbmoistureandwillnotaffectedbyfoodsuchasgreaseetc.Dcorinteriordesigninrestaurant

    Dcorplayveryimportantroleinrestaurantsalesandpopularity.Dcorshouldbeaccordingtolocationandsetparticularthemeondcorlikeflowering,sportsetc.indcorsomanythingsincludedlikeceiling,flooring,furnishingandtheinteriorshouldbeairconditionerorheatingfacilityaccordingtoseasons.Aswearealreadyobservingthatwithourpresentdcorofchevaliersweenabletoattractcustomerssothatswhyweneedtochangeourdcorsuchaslighting,aslightshouldbechangedaccordingtothetimeofday.Alsosameaswithsound/musicvolumeduringdaytimeitshouldbelowvolumeascustomersneedlowvolumetheywantcalmmusicatthattimeinlunchtimecustomerswantloudmusic.Andindinnertheyareforfinediningsotheywantromanticmusiccollections.Alsowewillputflowersoneachtableacompliedwithcandles.Andalsoweputoutdoortablesforthosewhowanttoenjoytheirfoodwithsea.Barsetupinrestaurant

    Barshouldbelocatedinonearea,thefoodbuffetandthedinninginanotherarea.Itwillhelporworkeasescongestionandreducespotentialfoodanddrinkdisasters.Abarplacedatthebackofarestaurantmoreintimateawayfromthehustleandbustleofthefrontofthehouse.StockRestaurantBarwiththeRightEquipment

    Barsneedtheirownreachincoolers,icebins,hygienesupplies,papertoweldispenser,liquorwells,glassracks,wineracksanddrystorage.Coolersshouldbebigenoughtoholdbottledbeer,whiteandblushwinesaswellasbackupsofjuice,milkandotherbeveragesusedtomixdrinks.Arestaurantbaralsoneedsabeertowerandaplacetokeepkegscold.Youmayhavetorunbeerlinesfromthewalkincoolerifyourbardoesnthaveenoughspaceforkegs.Barfloorsshouldbecoveredwithrubberfloormatsforemployeecomfortandsafety.Barshouldbehandledbybartender.itshouldbecompulsorybarpersonavailableallthetimeduringrestauranthours.BarSetMoodwithLighting

    Lightinginthebarshouldbesubtle.Notsodarkcustomerscantreadthemenubutdefinitelynottoobright.Recessedlightingandtracklightingwithdimmerswitchesallowcontrollingthelight,adjustingitforthetimeofday.Signage

    Thesignageneedtobereplacewithanewsignboardinadditionwithcontactnumber,nameoftheestablishmentandalsoinbarweneedputbarsignagesrequiredasperlaw.Weneedputsignsforrestroomsandalsoputsignsforwetfloors.Cleaninginrestaurant

    Thereisonlyonerubbishbinsoweneedtobuynewbinsandcleaningequipmentsforcleaningpurposes.Iftherestaurantalwayslooksbeautifulthanpeopleattractfromplaceandcomeagainandagain.(Restaurantmanagementandoperations)

    1.2.EvaluatethedifferenceinfluencesaffectingpatternsofdemandwithinhospitalityoperationsPatternsofdemandinrestaurantHappyhoursforrestaurant

    Differentpeoplescomesondifferenthourslikesomepeoplecomeforbreakfasttimeandtheywillneedquickserviceandtheirdemandslikefruitjuices,cerealsandcoldfoods.Andalsosomepeoplecomefordinnerandtheywilldemandhotfoods,moreformalservie.soitisvariespersontopersonaccordingtotheirdemandsrestaurantprovideservice.Itisgoodifrestaurantopensforwholeweek7daysbecauseitgeneratesmoremoneyandpopularity.Openinghoursasearliertheyopenat7andcloseearlysothisthinghastobechangedbecausetherewasnocustomeratthattimebutifwechangedtimingthanitsafeotherexpenseslikeelectricity,staffwageetc.openinghoursshouldbeat8to9amandclosinglatetodependonbusiness.Seasonality

    Specialpromotionalideasforrestaurantstakeadvantageofonholidaysandotherspecialeventsthathappenthroughouttheyear.Specialmenusprovideandtakereservationsforbusytimes,likeNewYearsEveandMothersDay.Theinfluenceofweathertemperatureoneatinganddrinkinghabitschangingbyseasons.Seasonalityoffoodalsowillappealtobudgetconsciousasinseasonfoodisusuallymoreabundantsowillbelowerincost.Restaurantprovideslowcostfoodandwithdiscounts.Insummersthesaleismoreaspeoplewouldliketospendtimeonbeachonotherhandinwintersasitscoldpeoplewouldlikestayawayfrombeachsowehavemakeadifferentmenuforwinterstocustomersandasitsnotgoodbusinessinwinterstocutcostwecouldjustmakeourmenuslimited.Forwinterswecouldalsoarrangeoutsideheatingandinsideheatingforcustomercomfort.Toachieveourtargetwecouldalsoprovidespecialofferstoattractcustomersduringoffseason.(SeasonalFactorsAffectingtheRestaurantIndustry)

    Socialeatingpatterns

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    Thefamilymealwasthefocuspointattheendofthedaywherefamilymembershavebeenawayfromhomeduringthedaytheycametogetherformealtimestodiscussthedaysactivitiesandtomakeplansforthenextday.Whiletimeandconveniencehavehadaneffectonthesocialaspectoffooditstruetosaythatfoodstillbringspeopletogether.Peoplesmeetuponparticularoccasions,weddingparties,ceremonyandonfestivals.Peopleenjoypartiesaswellasfood.(Foodhabitsandsocialchange,2008)

    FoodandfashiontrendsThehospitalityindustryischangingrapidlybecausecustomersarechangingandtechnologyischangingandmarketsare

    changing.Likefashion,restaurantoperationshavetrendsandfashionsthatretreatandflowwithtimerecalltherollerskatingwaitressesatdriveindinersduringthe1950s.Listedbelowaresomepopularrestauranttrendsthatarentlikelytodisappearforawhileyet.Therenumbersoftrendsinrestaurantforcustomersandtopromotetheirrestaurant.Toattractcustomerssomeofthemaintrendsarefollowing:1)Offeringdiscountsandcoupons

    Offeringdiscountsandcouponstoregularcustomersorduringoccasionslikefestivals,newyearetc.Nowdayspeoplelovetobargainanditisgoodifrestaurantgivediscountsandcouponstocustomers.Restaurantsprovidedifferenttypesoffoodsaccordingtocustomerneedsandalsoprovideoptionsinmenuslikefoodplusdrinkfreeitwillmakemoremoneyandpopularityinparticularregions.2)Publichealthconcerns

    Nowdayspeopleareveryconcernabouttheirhealthsandrestaurantsarebeingpressuredtocreatehealthiermealswithsmallerportions.Restaurantneedtocareaboutcustomersandprovidenutritiousfoodwithcleanliness.Differentpeoplehavedifferenthealthproblemssoaccordingtheirdemandsorneedsrestaurantprovidefood.Restaurantsalsoprovidechildrensmenuwithhealthierfood.Inkidsmenutheyprovidesaladsandfruitswithuniquepresentationsokidseasilyattractfromfood.Forexample:Americansareoverweightandplaguedbychronicdiseasesuchasdiabetes.Inresponsetopublicdemandrestaurantsprovidesmallerportionssizesandhealthierfoodoptionsontheirregularmenu.

    3)SocialmediaforrestaurantTherearenumbersofsocialsitesforexamplefacebookandtwitterforrestaurantmarketandfoodintroductionwiththeir

    benefits.Itisformarketingandadvertisingtogrowuprestaurantbusiness.Manypeopleinterestedininternetsotheyalwayscheckwheretoeat?Whichisbestplacetoeat?Ininternetpeoplecanfindrestaurantnamesandcontactdetailsalsomenuavailableonrestaurantwebsite.Customersordersonlineoronphonecallandwillgethomedeliveriesfromrestaurant.Facebookandtwitterisamediumtopromotespecialsandeventsanditwillreallywork.Regionalandethnicinfluence

    Inthisworldtherearesodifferentcountriesandpeoplesandtheyhavetheirtraditionsregardingfood.DifferentpeoplehavedifferentneedsforexamplepeoplefromIndiaalwayspreferIndianfood,ChinesepeoplepreferChinesefood.PricingandeconomicfactorspricingwillbesetaccordingtotimeofyearMarketconditions,climateandchangesingovernmentlegislationallhaveaneffectonfoodcosts.Thechoicesmadeinsourcingfood,preparingorbuyingreadymadefoodwillalwaysinfluencedbyprice.Foodneedstobewithinapersonalbudget.Anditchangesbytheseasonwillbechanged.Elasticityofdemand

    Elasticityofdemandisthesensitivityofthesalesvolumetochangesinprice.Demandfluctuatesinresponsetofactorssuchasachangeinpricing,foodqualityortheenvironmentforexamplerefurbishment.(http://www.ehow.com)

    1.3Comparecustomerprofilesandtheirdifferingexpectationsandrequirementsinrespectofhospitalityprovision.Achievinghighlevelsofsatisfactionatarestaurantthroughgoodcustomerservice,qualityfoodandmakingdinersfeelvaluedisimportantbecausesatisfiedcustomersaremorelikelytoreturn.Onaverageasatisfiedcustomerwilltelltwotothreepeopleaboutgoodfoodandservicewhereasanunhappyonewilltellfivetotenpeopleshowdissatisfiedhewas.Customersatisfactionorexpectationsurveysareanimportanttoolthatwillaidyouinreachingyourhighcustomersatisfactiongoals.Therearenumbersofrestaurantsaccordingtodifferentcustomerslikefamilyrestaurant,couplesrestaurantslikevalentines.(Customerexpectationanddelight)

    FamilyrestaurantsFamilyRestaurantisthatdesignedtoaccommodateallages,largegroups,loudpartiesandwhosemenureflectsfamilystyle

    dining,childportionsandperhapsevenreasonableprices.Accordingtotheneedsoffamilythefamilyrestaurantdesigned.Forexample:elderpeopleinfamilydemandlessspicyfood,lowernoiselevelandformalserviceValentinerestaurants

    Valentinerestaurantisdesignedforyoungpeopleswhodemandromanticplacesandsilenceandthewholerestaurantdecoratedwithdimlightsandlightmusic.Customerprofilesinrestaurant

    Customerprofilesalsohelpyoudeveloptargetedmarketingplansandhelpyouensureyourproductsandservicesmeettheneedsofyourintendedaudience.TherearetwobasictypesofcustomerprofilesDemographicprofiles

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    Demographicsprofilesarebasedoncharacteristicslikeage,gender,incomelevels,maritalstatus,placeofresidence,etc.Inmarketingtermsdemographicprofilestendtobreakdowncustomersintoage,socialclass,andgender.Forexample:youngerbuyersmaymakebuyingdecisionsbasedonhowtheyfeelthepurchasewillcausethemtobeperceivedandolderbuyersmayfocusonqualityorsafety.Wealthycustomersmaybewillingtopayabestforserviceorforaperceivedvaluewhilelowerincomecustomersmaybemorelikelytofocusonprice.Itsalldependonpersonstatusifthereisarichpersonbuysomethingthansurelyhewillpaymorewithoutthinkinganythingbutotherlowerclasspersonfirstseethepriceandthendecide.Behaviorprofiles

    Behaviorprofilesfocusonactionsandfocusontypesofitemswerepurchasedhowfrequentlyitemsarepurchasedandtheaveragetransactionvalueorwhichitemswerepurchasedinconjunctionwithotheritems.(Customerprofiles)

    Typesofcustomers1)LoyalCustomers

    Naturallyweneedtobecommunicatingwiththosecustomerswhoonaregularbasisbytelephone,mail,emailetc.Thesepeoplearetheoneswhocanandshouldinfluenceourbuyingandmerchandisingdecisions.NothingwillmakeaLoyalCustomerfeelbetterthansolicitingtheirinputandshowingthemhowmuchyouvalueit.Inmymindyoucanneverdoenoughforthem.Customerrecommendstoothersandasaresultbusinessgrowthinclined.2)DiscountCustomers

    Thiscategoryhelpsensureinventoryisturningoverandasaresultitisakeycontributortocashflow.Thissamegrouphowevercanoftenwindupcostingrestaurantmoneybecausetheyaremoreinclinedtoreturnproduct.3)ImpulseCustomers

    Clearlythisisthesegmentofourclientelethatweallliketoserve.ThereisnothingmoreexcitingthanassistinganImpulseshopperandhavingthemrespondfavorablytoourrecommendations.Wewanttotargetourdisplaystowardsthisgroupbecausetheywillprovideuswithasignificantamountofcustomerinsightandknowledge.4)NeedBasedCustomers

    Peopleinthiscategoryaredrivenbyaspecificneed.Whentheyenterthestoreandtheywilllooktoseeiftheycanhavethatneedfilledquickly.Ifnottheywillleaverightaway.Theybuyforavarietyofreasonssuchasaspecificoccasionandaspecificneedoranabsolutepricepoint.AsdifficultasitcanbetosatisfythesekindofpeoplesandtheycanalsobecomeLoyalCustomersiftheyarewelltakencareof.Salespeoplemaynotfindthemtobealotoffuntoservebutintheendtheycanoftenrepresentyourgreatestsourceoflongtermgrowth.5)WanderingCustomers

    Formanystoresandrestaurantsthisisthelargestsegmentintermsoftrafficwhileatthesametimetheymakeupthesmallestpercentageofsales.mostlykindofpeopleattractfromthelocationoftherestaurant.Keepinmindhoweverthatalthoughtheymaynotrepresentalargepercentageofimmediatesalesandtheyarearealvoiceforrestaurantbusinessinthecommunity.ManyWanderersshopmerelyfortheinteractionandexperienceitprovidesthem.Shoppingisnodifferenttothemthanitisforanotherpersontogotothegymonaregularbasis.Sincetheyaremerelylookingforinteractionandtheyarealsoverylikelytocommunicatetootherstheexperiencetheyhadinthestore.ThereforealthoughWanderingCustomerscannotbeignored,thetimespentwiththemneedstobeminimized.Pricingconsiderationexpectations

    Pricesplaymainroleinbusinessbecauseinrestaurantdifferenttypesofcustomerscomesomearefromrichfamiliesandsomefrommediumclass.Forexample:richcustomerspendslotsofmoneyonfoodbutthemiddleclasscustomerthinkswhattoeatandtheylookonprice?AndAlwaysfindreasonablepricessothethingisthisifrestaurantdesigntheirmenuaccordingtothecustomerspendingpowerthanitwillgoodforbothbusinessandcustomer.Pricesshouldimplementaccordingtothetargetmarketthanbusinessgrowup.Customerneedthefoodpricesarereasonableaccordingtotheirspendingpowerdifferentoptionsprovidedtocustomersinfoodsocustomerwillbehappyandsatisfied.1.4factorsaffectingaveragespendingpowerinhospitalitybusiness.Typesofhospitalityoutlets,menurange,pricingconsiderationFirstlythetypeofmenuofferedbyanestablishmentandthevarietyofmenuchoiceshouldalsoenhancethetotalmealexperience.Foralowerlevelmarketfirstpriceoffood.Ifthecustomerispaying$50forthreecoursemealtherangeofmenuitemsthatcanbemadeavailablewithinthecostlimitsofsuchanoperationisobviouslymorelimitedthaninoperationswherethecustomersaveragespendingpowerishigher.Secondly,theamountoftimetakentoconsumemealsatthislevelofthemarketmayvarybetweenhalfanhourtoonehourbutwillrarelyexceedthis.

    Themenuchoiceofferedbyarestaurantisthereforedependentonanumberofinterrelatedfactorslike*Pricethecustomeriswillingtopay*Theamountoftimeavailableforthemealexperience*Thelevelofthemarketinwhichrestaurantsituated*Theproductionandservicefacilities

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    *SkillsandstaffExpectationsandrequirements

    Asinglecustomerorgroupofcustomersarrivingatarestaurantforamealbringwiththemaseriesofexpectationsregardingthatrestaurantandthetypeofservicetheywillreceiveandthepricetheywillpay,theexpectedgoodatmosphereandmoodoftherestaurantetc.Thecustomerexpectationmaybevariedandnumerous,rangingfromtherestaurantwhichthecustomerfrequentsbecausetheywanttobeseenthereandparticipateinitssocialatmosphere,tothesmallquietrestaurantwherethecustomermaygobecauseofitsintimateandpersonalnature.Ifcustomerssensedisharmony,howeverbetweentheirexpectationoftherestaurantandtheactualproducttheyfindforexample,itistoointimatefortheoccasionandtheymaynotentertherestaurantbutchooseanother.Ifdisharmonyisnotrealizeduntilcustomersareseatedatthetableanditisunlikelythattheywillleavebutwillhaveahurriedanduncomfortablemeal.Levelofservice

    Thehigherthecostofthemealtothecustomerandthemoreservicethecustomerexpectstoreceive.Thecostofthemealtocustomersincreasessowilltheamountofservicetheyreceive.Itisnecessaryforarestauranttoidentifythelevelofservice.ifarestauranthasaveryformaltypeoffoodandbeverageserviceusuallyassociatedwithhighclassoperations,theotheraspectsoftherestaurantserviceshouldbeequallyformalthespeed,efficiencyanddressofstaff,thedegreeofpersonalizationandcourtesythecustomersreceives,andsoon.Itisimportantforarestaurantoperationtoconsidernotonlytheserviceofthefoodandbeverageforwhichthestaffsareusuallyadequatelytrained,butalsotoremembertheindirectserviceaspectoftheoperationwhichareallpartofthecustomersmealexperience.

    ThemealexperienceEatanddrinkexperience

    Themealexperiencemaybedefinedasaseriesofeventsbothtangibleandintangiblethatacustomerexperienceswheneatingout.Tangiblewhichcanbefeelingbytouching,seeinglikerestauranttables,chairsetc.Intangiblewhichcanbeonlysensed/feltlikerestaurantatmosphereetc.Itisdifficulttodefineexactlywhereamealanddrinkexperienceactuallystartsandendsalthoughitisusuallyassumedthatthemainpartoftheexperiencebeginswhenacustomerentersarestaurantandendswhenheleavestherestaurant.Theseriesofeventsandexperiencescustomersundergowheneatingoutmaybedividedintothosetangibleaspectsoftheproductthatisthefoodanddrinkandthoseintangibleaspectssuchasservice,atmosphere,mood,etc.SoitisnecessaryforthetangibleandintangiblecomponentsoftherestauranttocombinetogetherandtobeseenbythecustomerasonetotalproductThemenuisthecenterpieceofanyrestaurantestablishment.itisnotafoodlistitemsforsalebutthereasonbehindtheestablishmentexistManagementissues

    Staffing1)Floormanagementinstaffing

    Itincludesfloormanagingstaffandtheyprovidesservicetoguestsorcustomersinrestaurant.Staffallocatesondifferentjobsfromopeninghourstoclosinghours.Managerisresponsiblefortheirstaffandallsafetyandhealthregulations.Mangermotivatesallotherstaffinfrontofficeandtakecareallareas.Manageralsoprovidestrainingfortheirstafftomakemoreprofitfromtheirservingskills.2)KitchenManagement

    Inkitchenmanagement,kitchenstaffworkinginthekitchenonly.Therearedifferentrolesinkitchenmanagementlikechef,headchef,dishwasherandkitchenhand.Kitchenistheplacefoodpreparedandservedfoodtocustomers.Managingthekitchenstaffhelpstocontrolfoodquality.Kitchenisplacewherestaffgetstiredbecauseitneverstopsintradinghours.Kitchenmanagementisresponsibleforfoodcost,budgetingandprofitsOrganization(administration)inrestaurant

    Allstockcontrolling,budgeting,laborcost,balancingcost,schedulingrotations,profitsaccordingtoseasonality,surveysandhiringstaffwithmaintainceofthekitchenequipments.Marketing

    Managementwilldecideaboutmarketstrategies.Marketingisasourcetoattractcustomersandsatisfiedcurrentcustomers.Withthetargetmarketexpandingnewproductsandservices.Therearenumbersofwaytopromoterestaurantlikemedia,commentcards,emailsandsocialsites.Marketingplanswillbedesignedfortoincreasecustomervisit,increaseaveragechecksandsendprofitsskyhighfrominsidestooutsidestherestaurant,themarketingplanistheroadmaptoachievesspecificsalesobjectives.itincludestv,radiobillboardsorlocalizedneighborhoodprogram.Inchevalierswewillimplementsetupfrequencydinningprogramsanddatabaseprogramsthatinstantlytellwhoiscustomerinrestaurant,theirbirthdays,andanniversariesandwheretheyliveFinance

    Moneyplaysveryimportantroleinanybusiness.Anditisalsoimportanttoknowhowtomanagefinance.Managementalwaysreadytomanageallsituationslikewhenseasonofftherestaurantsalesautomaticallydownandmanagementknowshowtohandlethatparticularsituation.ManagingdaybydayexpensesinrestaurantbusinessandPOSsystemhelpstomanageallsalesandinventory.Controlsystems

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    Abigemphasisisbeingplacedonextensiveresearchintothequalityandintegrityofrestaurantproducts.Restaurantmanagementwillconstantlytestedforhighstandardsoffreshnessandpurity.Foodcostsandinventorycontrolwillbehandledbycomputersystemandcheckeddailybymanagement.Servicestandards

    Therearedifferenttypesofservicesprovidedinrestaurantslikebuffetservice,silverservice,tableserviceandtrayservice.Astheservicelevelincreasesthelabourcostsincreasesbecauseoftheincreasedskilllevelandthequantityandqualityofequipmentincreases.Ahigherstandardofcustomerservicerequiresahigherstandardofdcor,foodquality,equipmentandstaff.Morefacilitiescostmore.Thedeliveryofaconsistentlyhighstandardofservicerequiresahigherproportionofproduct,staffandequipment.Qualitysystems

    Thequalityofserviceisanotherfactorthatcontributestorestaurantcustomersatisfaction.Thisisaparticularlyimportantfactortofullservicerestaurantsbecausetheyaretypicallymoreexpensiveandslowerthanquickservicerestaurants.Manyfactorsgointotheoverallqualityofserviceatarestaurantsuchashowpositivelycustomersfeelabouteachmemberoftherestaurantstafftheyinteractwith.Somecustomersmaybemoreconcernedwiththesocialinteractionswiththewaitstaff,whileothercustomersaremorefocusedonhowquicklydishesareremovedandglassesarerefilled.Therelativeimportanceofthesedifferentfactorsoftendependsonthestyleofrestaurantandtheoutlookofaparticularcustomer.Teamworking

    Allmembersofateammustfeelempoweredtoworktowardsquality.Thismeansifawaitressdoesnotfeelthatamealisuptostandardthatshehastherighttorefusetotakethedishtothecustomer.Staffshouldbeencouragedtosharetheirideasabouthowtoimprovethequalityoftheorganizationoftenastheyaretheonesdealingdirectlywiththecustomerstheyhavemoreusefulideasthanmanagement.Training

    Managementwilltrainemployeesinfoodservicesanitation.Eachemployeeshallbetrainedinfoodservicesanitationquarterly.

    Lo2understandproductdevelopmentwithinahospitalityenvironment2.1evaluatethekeystagesinproductandservicedevelopmentappliedwithinhospitalityoperationsSpecialpricingMarketsegmentation(identifydemandofthemarket)

    Marketsegmentationisoneofthestepsthatgointodefiningandtargetingparticularmarkets.Itistheprocessofdividingamarketintoadistinctgroupofbuyersthatrequiredifferentproductsormarketingmixesittargetsspecialtymarketsthatwillpromoteproductsandservicesmoreeffectivelythanabusinessaimingaveragecustomer.Itiseasiestwayofmarketingingroupsandithelpstogetknowledgeaboutcustomersneedsandwants.Marketissegmentedindifferentgroupsofconsumers.Forexample:

    *Behaviorbaseslikeproductknowledge,usage,responsesandattitudesofcustomers*Demographicbasislikeage,occupation,ageandfamilysize*Psychographicbaseslikelifestyles,valuesandpersonality*Geographicbaseslikestates,regionsandcountries

    Marketsegmentationisimportantforbusinessandfordevelopment.Wedobecausewewanttoknowaboutcustomerthinkingaboutfoodandbeverages.Accordingtocustomersneedsandwantsrestaurantestablishmentdeveloped.Designtheproduct

    Menuplaysveryimportantinrestaurantbusinessandestablishmentdesignstheirmenucanincreasesales,turnoverandensurethemenuremainsbalancedintermsofsalesmixandpopularity.Themenucandesignedinsuchwaystoseduceandconvincethedinerstochooseaspecificmenuitembythewordingandhowthedishdescribed.Finedinningrestaurantprovidemenuwithlesswording,namingexoticingredients.Restaurantshouldclearexplanationaboutcustomerperceptionsandaccordingtofamilyrestaurantenvironmentshouldbeattractiveforkidsandkeepinmindthevalueofmoney.

    ThemeoftherestaurantThemeforrestaurantisverypopularanditeffectonrestaurantsalesanddevelopment.Therearenumbersofthemesfor

    restaurantlikeflowerdecorations,sports,heritageandcolorfulthemes.Itincreasesthesaleofrestaurant.Themedescribestherestaurantandcustomersattractfromtheme.Arestaurantthemeisablendoffood,atmosphereandservice.Restaurantthemedecidesaccordingtolocationandlocalcompetition.Themewilldecideaccordingtocustomers.Needtosurveyofthatplacewhereyourrestaurantsituatedandthendeciderestauranttheme.Forexample:ifyourcustomersarefamilieswithyoungerchildrenyoudontneedtobeopenuntilmidnightorhaveafullservicesportsbar.Advertising

    Restaurantadvertisingcomesinmanyforms.Radiospotsnewspaperads,TVcommercialsevencouponsareallwaystoadvertisearestaurant.WecanhireaPRagencytohelpyougetyourmessageoutoryoucandoityourself.Advertisingisnotaonesizefitsalldeal.Advertisingplansvaryfromyeartoyear,seasontoseason.Like

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    wehaveabusysummerseasonandlessbusinessinthewinterandwewillneedtwodecisivelydifferentadvertisingplans.Whileadvertisingwecanshowdiscounts/couponsandspecialoffersforcustomerssoitcandevelopbrandimageintheeyesofcustomers.Customerswilldefinitelythinkaboutrestaurantanddefinitelyplantogothatparticularrestaurant.Websitesisanotheroptionwhereweputnewoffersandmenusforcustomers.Customerswilldirectlyorderfrominternet.Ithelpstogenerateincomefromcustomers.Foodandbeverageplanning

    *Thewidevarietyandchoicesinfandb*TheprocesshastocomplywiththeHACCPpolicy

    *Thefastturnoverofsomefoodlikeitemsdeliveredfreshinthemorningmaybepreparedandservedtothecustomeratlunchtimeandtherevenuesavedbyafternoon.*Theproductcannotbestoredforanylengthoftime

    *Differenttypesofcustomershandledinsameestablishment

    FoodcontrolpointsTherearesomecommonfeaturesarefoundinfoodproductionprocessesinallfoodandbeverageoperations.Productgoes

    throughtheproductionprocess.Itfirstentersintheestablishmentwithrawmaterialorpreservedproductandthenstoredinstorearea.Processingofthisproductmustthentakeplacepreparationoffoodandcookingfood.Aftertheproductreadyitwillpresentedinplatesandservetocustomers.Foodcontrolprocess

    Typesoffood |Storage |Preparation |cooking |Holding |regeneration |Presentingandservefood| |Refrigerate |cutting |boiling |Chill |Steamer |Plates |Fresh | |chopping |grill|Freeze |Microwave |Trolly |Canned |Freeze |Weight |Baking |Hot |Traditional |

    Buffet |Frozen | |peeling |Microwave |Cold |Oven |trays |Preserved |Drystore |Slicing |Frying |Sousvide | |wrapping | | |Measure |Boilroast | | | |

    | |Filet/blendandmix | | | | |

    EmployerssatisfactionEmployeesoforganizationplayveryimportantroleinhospitalityindustry.Restaurantdevelopmentdependsonemployees

    satisfaction.Therearenumbersofthingstakepartinemployeessatisfactionthatisjobsecurity,providingpayattime,opportunitiestouseskillsandabilities,feelingsafeintheworkingenvironmentsandalsowithgoodcommunication.Moreovertheemployeesrelationshipwiththeircoworkersorsupervisorandmanagementrecognitionofemployeejobperformance.Iftheemployeenotsatisfiedwiththeirjobthenhowcanhe/sheworkproperlysoitisveryimportantthatanemployeesatisfiedfromtheirjob.

    RiskmanagementWhileworkinginrestauranttherearenumbersofriskinvolvedbutrestaurantownerandmanagerfacethatrisks.Inrestaurant

    shouldbeprovideasafeworkingenvironmentaswellaspreparefortheunforeseeableaccidents,damagesoranydisasterthatmightimpactrestaurantbuilding.Restaurantneedtrainedtheirstafftohandlethiskindofsituation.Safetyproceduresimplementintodailyprocedures.Restaurantawareandinsuringaboutlawsuitsoranykindofdamagetobusiness.Protectingrestaurantfromfire

    ProtectingrestaurantfromcrimeProtectingstaffandcustomersfromaccidents

    Understandinglegislationthateffectsonbusinesslikefoodhygiene,employers,liability,healthandsafetyinrestaurantsareallrelevantwhenanyonerunningbusinessTherearesomeactsthatimplementwhensomethinghappenlikethisThefireact

    Everybuildinghavefireserviceact,fireevacuationprocedureshouldbeinplace.Fireequipmentsmustbeinplaceandservicedregularly.Thefoodhygieneact1974

    Itisforhealthofeachcustomeranditimpliesonrestaurant.Everyrestaurantshouldbeneatandclean.Storageareashouldbeclean.Foodhygieneregulation1974actsaysthatregulationsaresafestorageandalsothereshouldbesafepreparation.

    2.2analysesthefeatureswhichcontributetowardsthecustomersperceptionofproductsandservicesWheneveraguestentersarestaurantorhotelorafoodandbeveragesectionofanyplace,he/sheexpectssomethingmorethanjustwhatisserved.Theexpectedthingsincludequality,timelinessaswellascosteffectivenesshoweverwhatifyoucangivetheguestmorethanwhathe/shehasexpectedFoodhygieneinrestaurant

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    Goodfoodhygieneinrestaurantisofvitalimportanceforthepleasureofcustomersandthecontinuedsuccessofrestaurantbusiness.Customeralsoexpectswheretheyeattheplaceshouldbeneatandcleanandkitchenshouldbecleanwhilepreparingfoodsothereisnoharmtohealth.Whyfoodhygieneisimportant?

    Everydaypeoplegetillfromthefoodtheyeat.Microorganismsincludingbacteria,virusesandmouldsfoundinfoodcancausefoodpoisoning,leadingtoawholehostofunpleasantsymptoms,suchasstomachpains,diarrhoeaandvomiting.Itisforcustomersgoodhealthifthereisnofoodhygienecustomerunhappyandtheywillblameonrestaurantsohygieneisveryimportant.Restaurantcleanlinessattractscustomersandithelpstoincreasemorecustomers.Typeofgreetingandwelcoming

    Greetingandwelcomingisthefirstimpressionsowhencustomerentersintherestauranthostresponsibilitytohandlecustomerswithsmile,eyecontactandwelcoming.Politelyspeakwithcustomerandoffersomethingwaterfirstthanprovidemenuortellthemtodaysspecialmenuormenuofthedaywithspecialoffersetc.Physicalappearancematters

    Guestsexpecttobeservedbyagoodlookingandwelldressedstaff.Staffcannotbeuntidywilltheirface,hairorclothes.Theguestsshouldnotfeelthattherestaurantmanagementistooharshonthestaffintermsofsalariesordutysuchthattheycannotaffordaproperuniform.Thiscreatesawrongimpression.Servethefoodinwarm,wellwasheddishes/containersandallplates,bowlsusedshouldbewellwashedandcleaned.Increaseknowledgeabouttheproduct:Theguestscouldhaveaqueryaboutthefoodandbeveragetheyareconsumingorareabouttoorder.Theservicestaffshouldbewellequippedwiththeknowledgeoftheproductsoastohelptheguestsmakeadecision.Speedofserviceandtheirtypes

    Speedofserviceaccordingcustomerslikeyoungpeoplewantveryformalserviceandoldpeoplelikequickserviceandontime.Serviceisveryimportantpartofanyrestaurant.Restaurantdependsonthebestservice.Iftheservicedoesnotmeetthecustomersexpectationsandcustomerfelttheserviceverygoodthentheydefiantlycomebacktorestaurant.Customerservicecoversmanydifferentpartsofrestaurantsdaytodayoperationsandgoingfarbeyondthefrontofthestaff.Inchevaliersthereisnoproperserviceprovidetocustomerssotheywillnotcomeagainbecauseofpoorservice.Ambience(goodenvironment)

    *GoodEnvironment*Clean*Organized*Safe*Lowpressure*Energylevelappropriatetoclientele*DecorationBrandloyalty

    Brandloyaltyknownasreputationoftherestaurantanditisveryimportantthatrestauranthavegoodreputationinmarket.Brandloyaltyisdependingontheirserviceandgoodqualityoffood.Customerswanttofeelimportant

    Theyknowthatrestauranthavelotsofothercustomersandclientsbuttheyjustloveitwhenstaffmakesthemfeelspecial.Flexibility

    CustomershatetohearthewordNooritcannotbedone.Itsnotalwayspossibletosayyestoacustomerordoexactlywhattheywanthoweveritisimportanttobeasflexibleasyoucan.Staffneedstomotivateandconvincecustomertotakeanothermealorservice.Ifsomeonetoknowtheirname(namesofcustomers)

    Acustomernameisoneofthesweetestsoundstheywilleverhear.Ifyouuseacustomersnamewhenyoutalktothemitindicatesthatyourecognizethemasanindividual.Don'tuseittoooftenasitcanbecomeirritating,butdefinitelyatthestartandtheendofaconversation.2.3assesstheopportunitiesandconstraintsaffectingproductandservicedevelopmentwithinahospitalityenvironmentFoodandnutrition

    DietaryrequirementsProteinsarerequiredthroughoutlifetocreate,maintainandrenewhumanbody.Theamountofproteinsrequiredchangeswith

    age,duringgrowthperiodsanddependingonhealthofhumanbody.NowdayspeopleareveryhealthconscioussoaccordingtotheirneedsrestaurantprovidefoodoftheirchoicesForexample:restaurantsprovidesspecialkidsmenuage2to12andthesearefoodsthatkidstendtolikeandwhichmeetkidsdietaryrequirementslikefruits.ForStrictvegetarianRestaurantsdonotmixanyanimalproductslikebeef,chicken,fish,eggsandtheyprovidepurevegetarianfoodtocustomers.Theyprovidedifferentkindsofsalads,othervegedishes.Regulationsactsinimplementonrestaurantandemployerliabilitytowardsthecustomersareasfollows(classwork)Healthandsafetyact

    Therearelawsandsystemsthathavebeenestablishedtohelpensurethatthefoodservedinrestaurantsissafe.Bacteria

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    growveryeasilyifgiventhechance.ThelocalHealthDepartmentwillsendoutinspectorstomakesurethatthechefsandserversarefollowingtheproperguidelines.Inspectorswillissuefinesforminorviolationsandcanshutyoudownformajorviolations.Thisactstatesthattherelationofguestandstaffprotectedfromhealthissues.Duringworktheenvironmentshouldbeneatandclean.Peopleshouldworkincleanenvironmentandmakefoodincleanplace.Inrestauranttheycanusecleanandrightequipmentsandcutlery.

    Employmentact1992Thehealthandsafetyinemploymentact1992statesthattopreventharmto

    thealltheemployeewhoallareworkinginthepremisesandforotherpersonwhoisintheneighborhoodofworkshouldalsobeprotectedmoreoverthecustomerwhoallcometodineinthepremisesshouldalsobetakencareoff.Restaurantstaffneverprovidedfoodwhichcanharmfulforguestandtheyshouldpreventthemfromfood.Theyneedtocheckexpirydatesandfoodstorageinrighttemperatureandthereshouldbesystemwhichfollowedbybusinessfromfooddeliveriesintherestaurantontime.Italsoincludeproperreceiving,storage,preparation,cookingandservingfood.Stafftrainingshouldbecompulsorybecauseoftheirknowledge.Restaurantshouldpreventcustomersfromhazards.TheprivacyactAccordingtothePrivacyactstatesthatindividualprivacythereforeispersonaldetailsoftheguestshouldnottobedisclosedtoanyoneatanypointoftime.Customerprivacyactimpliesinrestaurantoperations.Noonecandiscloseanyinformationaboutcustomers.HumanrightsactAccordingtotheHumanrightsact1993saysthatnobodycandiscriminateanyoneonthebasisofRace,color,ethnicorigin,disability,gender,maritalstatus,age,religion,politicalopinion,employmentstatus,sexualorientation.TradingactShoptradingrepealact1990definesaboutthehoursofopeningthebusinesswhichalsohelpthecustomertobeawareabouttheirpurchasingtime.2.4evaluatedifferentmerchandisingopportunitiesforhospitalityproductsandservicesAcombinationoflocalmediaandlocalstoremarketingprogramswillbeutilizedateachlocation.Localstoremarketingismosteffective,followedbyradio,thenprint.Assoonasaconcentrationofstoresisestablishedinamarketthenbroadermediawillbeexplored.Advertisingisbestformtopromoterestaurant.Byprovidinganentertainingenvironmentwithunbeatablequalityatanunbelievablepriceinacleanandfriendlyrestaurantthanitautomaticallyincreasessales.TherearesomemethodsofadvertisingsuchasTV,radiocommercialsandnewspaperadscanbeveryexpensive.Ifanypersonreadytoopenanewrestaurantorpromoteexistingrestaurantandtheydonthaveaverybigadvertisingbudgetthantherearestillseveralwaystopromoterestaurantevenonalowbudget.RestaurantWebsite

    Oneofthemostpowerfultoolsarestauranttheirownwebsites.MoreandmorepeopleareturningtotheWorldWideWebforinformationratherthantheyellowpages.Maintainingawebsiteiscrucialforanybusinesstoday.Itissimplestwaytoattractcustomerandgetsalesprofit.Peoplesellproductsdirectlytoconsumersanditshouldgivethebasicinformationofrestaurantandabouthours,telephonenumber,directionsandacopyofmenu.Restaurantalsoadvertisesonwebsitecustomerpromotionsonweeklypromotionssuchasanearlybirdmenuorhappyhourdetails..Oneofthebestwaystogetbusinessthroughrestaurantwebsiteislinkingwithotherbusinessessuchaslocalhotels,thechamberofcommerceandlocaltouristinformationsites.MenuFlyers

    Creatingamenuflyeroratakeoutmenuisanotherwaytogetthewordoutaboutrestaurantwithoutbreakingthebank.Placetheseflyersatlocalhotels,chambersofcommerceandtolocalbusinesses.Menuflyersplacedonpopulartouristdestinationsaswellsuchskimountains,parksorwhateverplaceintheareathatdrawsacrowd.Onflyersmenuwearenotabletoputwholemenusoitisokifwepostsomepopulardishesandincludinghoursandanyspecialpromotionslikehappyhours,directionandcontactnumber.Newspapers

    Newspaperadvertisementisverycheapestwaytopromoterestaurantbecauseifwedonthaveenoughmoneytopromoteonhighlevel,likebiggeradvertisementsthanweadvertiserestaurantonnewspaperwithinlessamount.MenuInserts

    Menuinsertsareagreatwaytoadvertisenewpromotionsorservicestoexistingcustomerbase.ForexampleifthereisaintroducinganewpromotionsuchasawinetastingdinneronthefirstFridayofeachmonth,wecanplaceaninsertadvertisethatisinregularmenu.Themenights

    ThemenightslikeparticularthemeonthedaywhicharenotpreparinginrestaurantbeforebutnowrestaurantdecidetocreateFrenchmenuwithfloweringthemeandbeautifuldecorationwithcandles.AccordingtocustomerinterestifsomeonelikeFrenchfoodorfloweringthemethantheywilldefinitelycometorestaurant.Customerlikefunlovingnights.Itincreasesthereinteresttocomeagainandagain.WhentoSpendMoreonAdvertising?

    Restaurantsshouldplantoincreasetheiradvertisingbudgetsduringtheholidayseason.InOctoberorearlyNovember,runanewspaperadremindingthepublictobooktheirholidaypartiesandordertheirpartyplatters.IftheplacewhererestaurantlocatedtouristdestinationthenitisagoodideatoplaceanadinthelocalpaperandortouristpaperpriortothebusyseasonMayforthesummermonths,Novemberforthewintermonths.Manychambersofcommerceorlocaltourismassociationswillpublisha

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    newspapergearedspecificallytowardtourists.Ithighlightsallthesightsandactivitiesofanarea.Advertisingiskeytogainingnewbusinessforyourrestaurant.However,youdonthavetospendafortunetoattractnewbusiness,whenyouthinkoutsideofthetraditionaladvertisingbox.Lo3understandpricingandprofitabilityconceptswithinhospitalityoperations3.1evaluatedifferentmethodsofpricingtakingintoaccountadditionalpricingconsiderationsItisallaboutproductandhowmuchtochargeforproductorservice.Therenumbersofstrategiestoovercomeprobleminmanageproductpriceormenuprice.TherearesomePricingstrategiestosetthepriceofproductandservicelikecost,positioningandmaximizingquantity.Correctpricingisveryimportantinrestaurantbusinessoranyotherbusiness.Therearefourmethodstocalculatethepricing.Someofthepricingmethodsarefollowing:Methodsofpricing

    1)CostpluspricingCostpluspricingisthesimplestpricingmethod.Thefirmcalculatesthecostofproducingtheproductandaddsona

    percentage(profit)tothatpricetogivethesellingprice.Thismethodalthoughsimplehastwoflawsittakesnoaccountofdemandandthereisnowayofdeterminingifpotentialcustomerswillpurchasetheproductatthecalculatedprice.Setthepriceatyourproductioncost,includingbothcostofgoodsandfixedcostsatyourcurrentvolume,plusacertainprofitmargin.Forexample,widgetscost$20inrawmaterialsandproductioncostsandatcurrentsalesvolumeoranticipatedinitialsalesvolumeandfixedcostscometo$30perunit.Totalcostis$50perunit.Thendecidethatwanttooperateata20%markup,soadd$10(20%x$50)tothecostandcomeupwithapriceof$60perunit.Solongasyouhavecostscalculatedcorrectlyandhaveaccuratelypredictedyoursalesvolumeanditwillalwaysbeoperatingataprofit.2)Psychologicalpricing

    Hittingpricepointsthataresignificantforexamplepricingitemsat$14.99insteadof$15customerperceivethemasbeingbettervalue.Itiseasywaytoattractcustomersandmakemoremoneyfromthisstrategy.Andalsocoverspricingitemstoolowonamenuincomparisontootherdishes3)Breakevenpricing

    Itmaydefineasthatvolumeofbusinessatwhichtotalcostsareequaltosalesandwhereneitherprofitnorlossismade.Totalsalesandtotalexpensesareequalandthereisneitherlossnorprofit.4)Popularpricepoints

    Therearecertainpricespoints(specificprices)atwhichpeoplebecomemuchmorewillingtobuyacertaintypeofproduct.Forexampleunder$100isapopularpricepoint.Enoughunder$20tobeunder$20withsalestaxisanotherpopularpricepoint,becauseit'sonebillthatpeoplecommonlycarry.Mealsunder$5arestillapopularpricepoint,asareentreeorsnackitemsunder$1noticehowmanyfastfoodplaceshavea$0.99valuemenu.Droppingpricetoapopularpricepointmightmeanalowermarginbutmorethanenoughincreaseinsalestooffsetit.5)Fairpricing

    Sometimesitsimplydoesn'tmatterwhatthevalueoftheproductisevenifwedon'thaveanydirectcompetition.Thereissimplyalimittowhatconsumersperceiveasfair.Ifit'sobviousthatourproductonlycost$20tomanufactureevenifitdelivered$1000invalue,itisahardtimechargingtwoorthreethousanddollarsforitandpeoplewouldjustfeelliketheywerebeingsqueezed.Alittlemarkettestingwillhelptodeterminethemaximumpriceconsumerswillperceiveasfair.6)Positioning

    Poisoningmeanspricingaboutproductanditisakeypartofpricing.Forexampleifanybodyrunningdiscountstorethanhealwayssettheirpriceslowerthantheircompetitors.Thepricinghastobeconstantwiththepoisoning.Customersalwayswantreasonablepriceandgoodqualityoffood.

    7)CostbasedpricingInhospitalitythisinvolvesaccuratelycalculatingthefoodorbeveragecostofperunitusuallydonebyusingastandardrecipe

    thanapercentageisaddedforgrossprofittoarriveatthesellingprice.Itisimportanttoensurethatthegrossprofitpercentageaddedisenoughtocoverallfixedandvariablecostaswellasthedesiredprofitmargin.8)Marketorientedpricing(Qualitative)

    Thismethodlooksattherelationshipbetweenpriceandvalueformoneylikehowmuchpeoplearepreparedtospendandwilltakeintoaccountthewholemealexperiencefromdcorofrestaurant,menuitems,staffserviceandcleaning.Factorseffectsonpricing

    Pricemustalwaysbeconsistentwiththecustomersperceptionofvalue.Thehigherpricethegreaterthecustomersexpectationanditistodisappoint.Iftheproductisperceivedtobetooexpensivethecustomerwillfindsubstitutes.Iftheproductispricedtoolowthecustomermayfeelitreflectsinferiorquality.Budgetperspectiveapriceneedstoincludethecosttothebusinessaswellastheprofitexpectations.GSTcost

    Itisavaluewithaddedtaxanditiscompulsoryforeveryonewhobuysproductandservicefromseller.Forexamplewhenchefcostingthemenuhewillincludetaxcostwithdishcost.(pricingmethods)

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    3.2assessthefactorsinhospitalityoperationswhicheffectrevenuegenerationandprofitabilityPricingisoneofthefourelementsofthemarketingmix,alongwithproduct,placeandpromotion.Pricingstrategyisimportantforcompanieswhowishtoachievesuccessbyfindingthepricepointwheretheycanmaximizesalesandprofits.Companiesmayuseavarietyofpricingstrategies,dependingontheirownuniquemarketinggoalsandobjectives.

    PortionControlOnereasonthatchainrestaurantsaresosuccessfulisthattheyhaveafirm

    handleonportioncontrol.Thecooksinthoserestaurantsknowexactlyhowmuchofeachingredienttoputineverydish.Forexample,shrimpscampimayhaveaportioncontrolofsixshrimpperdish.Therefore,everyshrimpscampithatgoesoutofthatkitchenwillhavesixshrimpinitnomore,noless.Thisisportioncontrol.Inordertopracticeportioncontrolinyourownkitcheneverythingshouldbemeasuredout.Chicken,beefandfishshouldallbeweighed,whileshreddedcheesecanbestoredinportioncontrolcupsandameasuringcupcandishoutmashedpotatoes.Onceyoufeelcomfortablecookingaboutmenu,thenservingamounts(sortoflikeRachaelRay)butintheearlystagesofyourrestaurant,erronthesideofcautionandmeasureeverythingout.Anotherwaytopracticeportioncontrolistopurchaseproportioneditems,suchassteaks,burgerpatties,chickenbreasts,andpizzadough.Theymaybemoreexpensivebutcansaveyoumoneyinlaborandfoodwaste.Salesmix

    Salesmixisacombinationofdifferentsalesproductslikebeverages,food,desertandsidecoffees.Totalofbrunchsales,dinnersalesisequaltototalrevenue.Customerservice

    Goodcustomerserviceisthelifebloodofanybusiness.Inafinediningrestaurantcustomerspayforservicetoenjoyfoodandatmosphere.Awaiterorwaitressservescustomerfoodandbeveragesanditisuptostaffthatthecustomerbackagaintotakeservice.Itmeansifthestaffprovidesfineandattractiveservice.Goodcustomerisallaboutbringingcustomersbackandaboutsendingthemawayhappyandhappyenoughtopasspositivefeedbackaboutbusiness.Staffknowledge

    Staffshouldknowaboutmenuitemsontipswiththeirdescriptionsan