Effect of globalisation on fast food industry

Effect of globalisation on fast food industry As mentioned earlier in part 1.3, I will be using Porters Five Forces to analyse the external environment to obtain a comprehensive understanding of a given industry. My focus here will be the fast food industry. BK is my chosen company to evaluate the effect of globalisation has upon fast food industry. The analysis will be done in four areas as below and there may be some overlapping of points as they can be interrelated. Section 3.1 Threat of new entrants Section 3.2 Threat of substitutes Bargaining power of customers Section 3.3 Bargaining power of supplier Section 3.4 Rivalry among existing competitors To aid understanding in this analysis, charts and diagrams drawn using Microsoft Excel is provided. 3.1 Threat of new entrants There are six major sources identified as barriers to a market entry which include economies of scale, product differentiation, capital requirement, switching cost, access to channels of distribution and government policy (Porter, 1980). All these have had impact on BK especially as from the point of view of globalisation. 3.1.1 Capital Requirement In my observation, it is very possible to open one or two outlets but to globally have a chain of outlets with the same branding requires tremendous capital requirements. Thus globalisation has directly impacted BK in the way it structured its business model through franchising. BK could afford to do so as with agreements such as US- Canada Free Trade Agreement and North American Free Trade Agreement (Reference for Business, 2010). BK took advantage of the relative free flow of resources under globalisation to expand globally. Franchising is a relative low cost and low risk business model. Most of the US franchisors often use this method to enter a new market with diverse economical, cultural and political environment (Alon, 2006). For instance, 88% of BKs restaurants worldwide are franchised in fiscal 2009, contributing to $412.5 millions of total revenue globally (Burger King Holdings Inc., 2009). Franchising enables the business to develop in an unfamiliar market relatively quickly on a larger scale, allows the use of local partners who are familiar with local environment and also to create a standardised, global brand image, generating marketing economies of scale (McDonald et al., 2002). Charts below will provide further information on BKs franchise restaurants. Chart 1: Percentage of BKs Franchise Restaurants and Company Restaurants Worldwide ( Burger King Holdings Inc.,2009; SEC Info, 2007) Chart 2: Revenue Breakdown From BKs Total Revenue Worldwide (Burger King Holdings Inc., 2009) However with globalisation, competition is globalised and relentless. McDonalds is actually BKs largest competitor as it provides better menu variety with more valuable and affordable prices (CNN.com, 2009), biting into BKs revenue by securing a larger market share. McDonalds is also more a pioneer compared to BK because it opened its first restaurant in 1940 (Spiritus-temporis.com, 2005) compared to BK with its first restaurant in 1954 (WikiAnswers, 2010). Being a pioneer, McDonalds has many advantages which includes entrenchment of position in consumers minds, creating higher thresholds for later entrants in terms of quality, advertising and distribution support, enjoys long-term market share advantages and reputation benefits (Gass et al.,2003). It is the effect of globalisation where McDonalds has built around 32,000 outlets in more than 117 countries (McDonalds Corporation, 2010). With its expansion into international markets, the company is famous throughout the world and is the leader in this industry followed by BK only at second place. The difference in number of outlets worldwide which also translates into sales volume differences between these two fast food chain can be seen clearly in the diagrams below. Chart 3: The total number of restaurants worldwide for BK and McDonalds. ( Burger King Holdings Inc.,2009; McDonalds Corporation, 2009) Chart 4: Comparison of Sales Revenues Between BK and McDonalds (Burger King Holdings Inc., 2009, McDonalds Corporation 2007; 2009, SEC Info, 2007) Based on the charts, McDonalds is approximately 3 times larger than BK in terms of outlet and 10 times larger in terms of sales revenues. Substantial capital is also needed in terms of advertising to build up BKs brand. The advertising cost of McDonalds is approximately 8 times higher than BK thus creating a higher barrier entry when BKs brand name is lacking compared to McDonalds. To compete with McDonalds, BK needs more capital to increase its advertising as it is very much needed in globalisation to introduce BK in new markets and building up its image that they may otherwise not known about (Coulter, 2001). To ease comparison of the advertising cost, it is illustrated in chart below. Chart 5: Advertising cost of BK compared to McDonalds (Burger King Holdings Inc., 2009; SEC Info, 2007; McDonalds Corporation, 2007;2009) With these type of cost outlays, for other competitors to come into the same scale as these two companies is extremely daunting indeed, thus the threat of entrants is low, though for smaller players is possible to find niches that are under or not exploited as yet. Luckily the advertising costs have resulted in branding, which builds a better image globally and flows ultimately into higher sales and profitabililty. Table below provides Best Global Brand Ranking 2009 highlighting few of BKs major competitors and where BK succeeded in positioning its brand among top 100 in year 2009. 2009 rank 2008 rank brand country of origin sector 2009 brand value ($m) 6 8 united states restaurant 32275 61 64 united states restaurant 5722 79 81 united states restaurant 3876 90 85 united states restaurant 3263 93 new united states restaurant 3233 Table 1: Best Global Brand Ranking 2009 (Interbrand, 2009) It is clear that BK lags behind McDonalds though in many ways this is to be expected given its much lower advertising cost outlays, which besides outlet costs, form a significant barrier of entry as mentioned earlier. 3.1.2 Product Differentiation With globalisation, BK differentiates itself from other fast food giants by acknowledging culture and country specific needs. For instances, Pork-based Bulgogi Burgers are offered in korea and the ultra-spicy Rendang Double in Singapore (Wikipedia, 2010). Picture 1: Pork based Bulgogi Burger Picture 2: Rendang Double (flickr.com, 2008 ) (therealnurulle.blogspot.com, 2010) BK also keeps its promise of Have it your way with customers having 221184 possible ways of ordering a Whopper meal (Swabey, 2007). This will help to ease its penetration into new market with different local conditions. BKs response to globalisation is obviously to cater to local tastes, as the pictures above testify. Another response to globalisation has been the move towards becoming more healthy by offering healthier menu with less salt and also with its product innovation to provide food with higher nutrition contents. At all times, BK is trying to differentiate itself to meet customers demands. Further details regarding food offerings will be mentioned in later part. 3.2 Threat of Substitutes and Bargaining Power of Customers Various global fast food chains have successfully make inroads in diverse market settings around the world (Watson, 2006). These restaurants stand the most conspicuous symbol of globalisation and modernity in countries worldwide (Wilk, 2006). Hence, they are often viewed as the cutting edge of emerging global consumer culture which have caused societies worldwide to become increasingly homogeneous and deterritorialised (Friedman, 2000). Although the expansion of Western quick-service eateries outside America and Europe has done much to transform established notions of service, taste and lifestyle (Schlosser et al., 2001), their spread has also given rise to rival domestic chains whose extensive knowledge of local preferences offers real advantages in attracting and retaining customers (Matejowsky, 2008). It is the strong bargaining power of customers which intensify the competition among various food chains with more substitutes available. To deal with these forces on a global basis, BK resorted to differentiate itself through innovative marketing and menu items. 3.2.1 Innovative Marketing BK has adopted a strategy which helps to differentiate them from their competitors. The company appointed TMP Worldwide Advertising Communications to create an exclusive company-wide employer branding campaign based on the concept Fun with a Future which concentrates on brand recognition, employee engagement and delivering on brand promise. BK decided to differentiate itself through its product and people with its employee as brand ambassador where all employees at all levels are linked to the company brand featuring in BKs advertisements and posters (Business and Finance Week, 2008). This is in line with the concept of globalisation where people of different races, culture and family background will have a common global identification as BKs brand ambassador. Pictures below feature BK employees who are of different races and cultures. Picture 3: Employees of BK in Tokyo Picture 4: Employees of BK in U.S. (associatedcontent.com, 2010) (farsons.com, 2010) BK also uses a creative marketing strategy by building an edgy, hip image with young men, who are targeted consumers (Jargon, 2006). For instance, in November 2006, BK began offering BK Xbox and Xbox 360 games with their value meals. After one month, 20 million of BK Xbox games had been sold. The games could only be bought with a value meal which means that BK attracted a lot of customers with this promotion, earning a nice profit from it. Comparing with BK, McDonalds on the other hand only places Nintendo mascot toys in their Happy Meals (Mattie, 2007). A picture of both BK Xbox and McDonalds Nintendo toys can be seen below. Picture 5: Burger King Xbox Picture 6: McDonalds Nintendo Toy ( blogs.ft.com, 2006) (toadcastle.net, 2006) The successfulness of BKs innovative marketing was already proven in 1999 in a TV campaign where Whopper was proclaimed as Americas Favourite Burger. That claim was based on the result of a research where 700 consumers were asked to name their favourite burger. 33% of them picked Whopper and only 12% chose McDonalds Big Mac (Cebrzynski, 1999). Having innovative marketing is a response to the threat of substitutes and bargaining power of customers as BK tries to embed itself on consumer consciousness globally. 3.2.2 Menu Options and Changes BK tries to reach out more customers through its menu to reduce threat of substitutes, which of course with globalisation is a full time and relentless force. As mentioned in part 3.1, health consciousness was rising among people with the obesity crisis hitting globally. It was found that United States tops the hierarchy for obesity with 30.6%, followed by Mexico and United Kingdom with 24.2% and 23% (NationMaster.com, 2010). Even though BK tries to blunt customers bargaining power and the threat of substitutes through aggressive marketing as seen above, in truth they are obviously much stronger with no switching cost. New Products Thus a response from BK is to try to be almost all things to customers. For instance, provide healthier food options. The company in its social responsibility statement promises to work with its trained chefs and nutritionist to develop new menu options that meet customers nutritional needs globally (Burger King Holdings Inc., 2010a). BKs efforts could be seen when it unveiled a healthy eating adaptation of its Have It Your Way strategy where posters in restaurants tell customers how to order a low carbohydrate, low fat and low calorie meal (Walker, 2004). The famous Whopper can also be served without the bun, mayonnaise and ketchup (MacArthur, 2004). BK also launched a new salad line offering shrimp and sirloin steak with grilled peppers and onions on it (Walker, 2004). Besides, health drive was initiated by BK by reducing salt and fat content in burgers and fries. Even children are targeted where childrens menu also comes with a choice of apples or grapes, milk or fruit juice (Forte, 2006). In 2008, BKs kids meal underwent makeover with the introduction of apple fries as part of the meal (Burger King Holdings Inc., 2010b). A list of BKs healthier options with their calorie contents are provided in Appendix 3. Pictures below show two healthy options from BK. Picture 7: Kids meal with Apple Fries Picture 8: Bunless Whopper (fastfood.ocregister.com, 2009) (hungry-girl.com, 2010) In addition, BK also later launched its Joe Coffee. This made-to-order coffee processed from 100% Arabica coffee beans (The Franchise Mall, 2005). This is actually a response to global economic crisis where it was found that consumers were trading down from more expensive coffee such as starbucks into lower ranking choices, providing a perfect option for BK. Thus even though globally the economic situation was dire, for instance it was found that 2009s world economic growth rate was only half percent (International Monetary Fund, 2009). BK found a new market segment to exploit to further reduce the threat of substitutes and bargaining power of customers. Latest initiatives include where in February year 2010, BK decided to replace its own coffee brand BK Joe with Seattles Best Coffee, a brand owned by Starbucks to increase falling sales by improving its product offerings (Tice, 2010). Pictures below show BKs Joe Coffee and its replacement, Seattles Best Coffee. Picture 9: BK Joe Coffee (ebay.com, 2010) Picture 10: Seattles Best Coffee (myalohavibe.com, 2010) BK also imitated a McDonalds breakfast item. BKs Breakfast Muffin Sandwich was promoted through an advertisement where a cleverly disguised BK breaks into McDonalds Headquarters to steal the Top Secret Blueprints for the Sausage McMuffin With Egg (Dave, 2010). Picture below shows the contrast between the two breakfast offering from McDonalds and BK. Picture 11: McDonalds Sausage McMuffin with Egg Vs BKs breakfast Muffin (davescupboard.blogspot.com, 2010) New Pricing It is not just menu changes were offered but also menu pricing as well. To meet the changing economic conditions as an impact of global recession, BK also announced that it will offer $1 double cheeseburger in order to gain market share back from McDonalds (Johnson, 2007). This has cause BKs franchisees to file a law suit challenging BKs right to dictate maximum prices as the products costs is at least $1.10 per sandwich (Glover, 2009). Thus even though BK tries to satisfy customers other stakeholders may not be happy, showing the complexities in managing relationships in the era of globalisation. Further in many ways, as seen in breakfast, and even in pricing, since the RM $1 cheeseburger, BK is imitating McDonalds. 3.3 Bargaining power of suppliers With globalisation, BK is required to maintain the quality of services in its restaurants worldwide. As a measure of quality control, BK will evaluate before approving the existing or potential manufacturers and distributors of food, packaging and equipment products used in the restaurants. Evaluation is done based on their delivery, timeliness and financial conditions. To ensure consistency, franchises are required to purchase their products from approved suppliers. (Burger King Holdings Inc., 2009). 3.3.1 Purchasing Power of BK Restaurant Services Inc. (RSI), a not-for-profit independent purchasing cooperative leverages purchasing power of the BK system in United States by negotiating the purchase terms for most equipments, food, beverages, toys and paper products used in the restaurants (Burger King Holdings Inc., 2009). RSI currently involves in the negotiation of purchase with BK for more than $3 billion a year in goods and services, managing supply agreements with over 300 suppliers and 27 distributors (Sterlingcommerce, 2009). For company restaurants and franchise restaurants in Canada, a subsidiary of RSI is responsible to purchase the products. However, there is currently no appointed purchasing agent that represents franchisees in other international regions. BK will work closely with their franchisees to implement programs that leverage their global purchasing power and to obtain lower product costs outside the United States and Canada. (Burger King Holdings Inc., 2009). Globalisation has increased the purchasing power of BK and therefore reducing bargaining power of suppliers with the ease of selection of suppliers who meet the company criteria 3.3.2 Suppliers of BK Food As a global fast food chain, it is important for BK to maintain its brand name worldwide. The image of the global brand could be destroyed in a day due to globalisation where news travels billion times faster than it used to be in the past. BK was labelled Murder King by animal activists forcing the company to implement new policies that are more closely monitor its suppliers. Thus by 2001, there were guidelines that require the egg suppliers battery cages to contain two water bottles, allowing the birds to stand upright and be at least 75 square inches (Detweiler, 2001). BK further discourages its suppliers from trimming chickens beak and breaking their wings to save packing space when transporting (Detweiler, 2001). Reports in media of one or more cases of food-borne diseases in one of BKs restaurant also negatively affect its sales worldwide when being highly publicised (Burger King Holdings Inc., 2009). During an earlier case in year 1997, BK cut off its ties with one of its biggest beef supplier, Hudson Foods Inc. as its beef supplies were contaminated with E.coli..Hudson voluntarily recalled the beef after the severity of E.coli contamination was discovered at its plant in Columbus, leaving some BK restaurants without sufficient beef supply for 24 hours to 48 hours (Papernik et al., 1997). Soft Drinks In fiscal 2000, BK decided to enter into a long term contracts with The Coca-Cola Company and Dr Pepper/Seven-Up Inc to supply all restaurants of BK in United States with their product (Burger King Holdings Inc., 2009). BK prolonged its long term liaison with The Coca-Cola Company as an approved soft drink supplier for its international region covering Greater Europe, Latin America and Asia-Pacific (PRNewswire, 2003). With the effect of globalisation, consumers in around 200 countries enjoy Coca-Cola products of more than 1 billions servings per day (The Coca-Cola Company, 2010). BK International President believes that with this renewed alliances, Coca-Cola Company, recognised as the worlds best known brand (The Coca-Cola Company, 2010) will help to grow the BK brand rapidly by providing the best burger experience to their consumers in all restaurants globally (PRNewswire, 2003). Getting into alliances with suppliers is a good way to also set up higher barriers of entry. From my analysis, bargaining power of food suppliers are strong but over soft drinks especially in terms of dealing with companies with strong brand name is weaker. Obviously, the extent to which the other party uses branding and distribution network as leverage globally as well. Employees Other than external suppliers, internal supplier is also an important piece of puzzle which without, BKs supplier network would not be complete. Hence, the bargaining power of its employees should not be shoved aside. BK had approximately 41320 employees in its company restaurants, field management offices and global headquarters as at 30th June 2009 (Burger King Holdings Inc., 2009). As mentioned in part 3.2.1, there are diversity of employees with different backgrounds, race, religion and cultures. It is clear that like globalisation, the factors in Porters Five Forces are interlinked and do not stand alone. The success of BK is highly dependent on its ability to attract general managers with necessary competences to be part of the management team to motivate the employees to sustain high service levels and maintain sales growth. The competition for the right employee candidates causes higher payment of wages featuring the high bargaining power of employees (Burger King Holdings Inc., 2009). However, where boundaries between countries became narrower and communication made easier with globalisation, the search for the right employee is more efficient and effective through online application, which could perhaps reduce their bargaining power. The selection of employees is important as a wrong choice would lead to negative publicity. In one of the cases, a BK employee in Jacksonville had tried to poison a customer as he was pissed due to his suspension for misconduct (Morbid, 2010). In another case, a Washington State Deputy, Edward Bylsma after discovering a spit on his Whopper ordered fr om a BK employee decided to sue BK seeking $75,000 of compensation (Ryan, 2010). No doubt with globalisation, these news would definitely spread fast and adversely impact the companys brand. Further, since a large portion of outlets are franchised as a result of BKs decision on this bus model to move globally, employees become even more important as front link assets to keep sales and profits up. With payroll expenses on the increase as seen in the chart below, it is clear that for employees, their bargaining power is, in my opinion, rated medium to high. Chart 6: Payroll and Employee Benefits for BK ( Burger King Holdings Inc., 2009) 3.4 Rivalry among Existing Competitors Globalisation has increased the competition among the fast food chain. With various quick service restaurants mushrooming worldwide, other than competing on a national or regional basis, they are competing with each other globally. As an effect of globalisation causing increases in degree of awareness among consumers, there has been intense competition among the competitors globally to gain market share. Increasing prices of raw material, agitation by social organisations, slow down of U.S economy and also increasing fuel prices has prompt many fast food chain to divert their attention to eastern part of the world especially China ( Naim, 2008). Although globalisation has ease the expansion of fast food chain worldwide with the ease of information transfer and seeking global suppliers, entry into China and other Asian countries still pose logistical and political challenges. As quoted from Martin (1994) in Nation Restaurants news Among the most frustrating obstacles are the scarcity and inordinately high cost of prime locations in most markets as well as the steep tariffs and patchwork of inconsistent regulations that impede imports of commodities and equipment. 3.4.1 New Geographical Regions and New Ventures Taking a closer look, even though globalisation has blurred boundaries, there are still differences in cultural issues between United States and other countries resulting in different eating habits of consumers ( Glazer, 2007). From consumer point of view, globalisation has resulted from development of sophisticated media contributing to the creation of a borderless market but it does not mean it is without internal differences or local tastes (Ziedman, 2003). When a company goes global, they are bound to satisfy the demands of local customers. For example in India, cows are sacred and worshipped by the Indians, beef could not be served and the muslims, they could not consume pork (Kulkarni et al., 2009). Hence, it is a must to substitute the beef and pork in the product offerings. To further compete globally, BK invested in Whopper Bars. BK opened their first Whopper Bar in Orlando during spring 2009, and the first in Asia in Singapore during September 2009 (International Wire, 2009). It offers a specialised burger menu with more than 20 toppings (Ruggles, 2010). On 8th February 2010, BK further announced that beer sales will be added at a new unit opening in South Miami. ( Ruggles, 2010). BK changes may not be rapid enough to obtain further market share from McDonalds but the company has been spending more effort in improving its sales in this global competition ( Anderlini et al., 2010). Competing on a global scale gives rise to global income streams. This would help BK to sustain the worldwide competition where the profit from a restaurant would balance the loss in another. The pie charts below show the distribution of revenue from different geographical region. Chart 6: BKs Geographical Sales from Year 2007-Year 2009 (Burger King Holdings Inc., 2009) In a way, the company is more dependent on its home market, as showed in the pie chart above where most portion of global stream income is generated. In a recent case in 2009, BKs advertisement for Texican Whopper burger in Europe had angered the Mexicans where a small wrestler featured in the advertisement was dressed in a cape resembling a Mexican flag. Mexicans have high respect for their flag and therefore could not tolerate such an insult from BK ( The Assiociated Press, 2009). This adverse publicity could have adversely impact its profits. Still, the company had not done unduly badly as seen in the charts below. Chart 7: Revenue, Gross Profit and Net Profit of BK from Year 2005 2009 (Burger King Holdings Inc., 2009, SEC Info, 2007) It is clear that BK has done well as seen in increasing absolute figures of all sales, gross profit and net profit. A look at gross profit and net profit margin also shows that on a relative basis the company is handling itself well in the world of globalisation. Chart 8: Gross Profit Margin and Net Profit Margin of BK from Year 2005- 2009 (Burger King Holdings Inc., 2009, SEC Info, 2007) Even though Gross Profit Margin has been decreasing slightly, its net profit margin has been increasing with a drastic improvement from year 2006 to 2007. This is definitely a good sign. 3.5 Conclusion and Recommendation Globalisation can be a threat to the company and also it may help its expansion. Being a global brand, BK has a lot benefits which include cost-efficiencies, sharing of resources and ability to attract partners, employees and customers on entering new market. It all depends how the company took opportunities and work towards their goals. Management of globalisation is the key to success and most importantly, BK need to balance between global and local control (Samli, 2008). The company has retreated back to the US market, which is why the share prices have been sliding back down in recent times as seen below. Chart 9 : BKs Share Price Ups and Downs from 2001 till 2010 ( Yahoo Finance, 2010) Recommendations made to companys performance are as follows: Moving In Developing countries, Especially India and China Aggressively: India and China both has a steady high economic growth rates of 8.8% and 10% in 2010 (India Brand Equity Foundation, 2010) and will probably be the major players in the world economy. It is definitely a wise option to expand BKs growth in these two countries by using local partners, local employees and local ingredients. Furthermore, BK could also offer limited promotions during festive seasons or special events, for instance during Chinese New Year or Deepavali as this will help to attract more customers during that period. Broader Menu Selection: As mentioned earlier in the project, BK should continuously provide more choices of menu which allow customers to pick from wider choices. This step should be taken to also reduce threat of substitutes from new entries and existing competitors. Its product offerings must also be ensured to meet the local taste. As mentioned by the officials of market research firm of the NPD Group, quick service operators who are expanding their brands outside the United States must customise each unit to meet the specific needs of consumers in the country and region they seek to enter (Glazer, 2007). Promotions and Advertising: As observed so far, BKs advertising has been giving positive impact on its sales. Hence, BK should continuously invest in its promotions and advertisement to gain market share. BK could perhaps invite its employees to give their opinion as they are also the brand ambassadors. This would allow a fresher and a more creative in flow of idea and to boost the motivation of the employees as they are invited to participate in the companys program. However, BK should avoid price wars with its competitors ie. McDonalds as this would pull down the profits of all burger chains. BK should choose to differentiate from its competitors. There is only one winner in cost strategy but there may be more than one winner in differentiation strategy. Relationships with Franchisees: There has been cases where the franchisees are not happy with the decisions of BK Inc..The most obvious example is the sale of doublecheese burger at $1. BK should strengthen its ties with the franchisees by encouraging them to provide ideas and feedbacks on how to improve sales. When there is a disagreement between them, BK should understand the reason behind and to solve it on a win-win situation. If this could be practised, law suit against BK Inc. could be avoided. In conclusion, Porters Five Forces Analysis that was used to analyse BKs stand in the industry gives a birds eye view of the company and industry globally. Globalisation plays a major role in pushing and shaping the company. The survival of BK is dependent on its ability to adapt to constant changes in business environment due to globalisation. With BKs effort in improving its performance, it will definitely survive in this field and could perhaps be the number one fast food chain worldwide in the future.

Applications of Information Technology Essay

ABSTRACT Restaurants are built of complex systems for buying, storing, preparing and selling food. Cuban Pete’s is a popular independently owned restaurant located in Montclair, New Jersey. The restaurant offers a dynamic menu of Cuban ethnic items and has received renowned recognition. The restaurant has 285 seats — 195 of them in three sprawling dining rooms and 90 on an outdoor patio decked; takes reservations only for groups of six or more; and boasts that two-hour waits not uncommon; employs 40 PTE’s and 15 FTE’s; serves 500 patrons on average a day; and generates $400K in revenue monthly. Over the past 16 months, there has been a decrease in revenue and repeat customers. Cuban Pete’s needs to improve operation efficiencies, reduce cost, decrease customer wait and sit times, increase customer satisfaction, and improve marketing. With no current automated systems, this paper will discuss how  the strategic, managerial, and operational control of a small restaurant business can improve with the implementation of management information systems which coordinates everything from scheduling personnel to customer service. Systems to be discussed include Point of Sale Systems, Customer Service Management (CSM) systems, and social media for marketing and promotion. BRIEF COMPANY HISTORY Cuban Pete’s is an independently owned restaurant located in Montclair, New Jersey. It was established in 2006 and is owned by Dominick Restaino. With a history as a restaurateur and in honor of his Cuban heritage, Mr. Restaino named the restaurant after the hit 1946 Desi Arnaz films and as an establishment that would evoke the fevered, anything-goes 24-hour fiesta that was pre-Castro Havana, Cuba. Mr. Restaino hired a staff of affable waiters and dressed them in bright Cuban sport shirts and narrow-brim Panama hats. He brought in a designer, Tony Ortiz, who had the exposed-brick and distressed-plaster walls painted in tropical yellows and reds and aquas. The menu consists of tapas and entrees that top out at $16.95. Although well sought for its dynamic list of sangria offerings, Cuban Pete’s does not have an alcohol license. BUSINESS PROBLEM Restaurants are built of complex systems for buying, storing, preparing and selling food. The business problems to be solved will include a restaurants need to improve operation efficiencies, reduce cost, decrease customer wait and sit times, increase customer satisfaction, and have real-time performance monitoring. Although Cuban Pete’s has received press accolades, there business issues that need to be addressed immediately. In 2006, Mr. Restaino was arrested, pleaded guilty, and paid a fine for serving alcohol in sangria without a license. Then, the original and well-known chef, Carl Ruiz, left the in 2008 and since the team of cooks have yet to achieve the same level of customer accolades. In addition, over the past 16 months, although there has been a recessional recovery, Cuban Pete’s has not experienced an increase in business revenue and has experienced a decrease in repeat customers. Wait times are long and all reservations, seating, order processing, and reconciliations are done manually and payments are not reconciled to orders. Although the business has a website with a widget that  allows visitors to be added to the company’s mailing list, there is no in-house practice of obtaining customer information, request of online customer satisfaction participation or web follow-up. Finally, most marketing and business promotion is done mostly via word of mouth and in local newspapers. Cuban Pete’s needs to improve operation efficiencies, reduce cost, decrease customer wait and sit times, increase customer satisfaction, and improve marketing. Major business problems to be resolved are: * Increase in revenue * Attract new customers * Retain and engage repeat customers * Establish practices to streamline and automate business practices With no current automated systems, Cuban Pete’s to implementation of Point of Sale Systems, Customer Service Management (CSM) systems, and social media for marketing and promotion to demonstrate better strategic, managerial, and operational control. HIGH LEVEL SOLUTION Strategic decisions are characterized by uncertainty and unstructured decision. These areas will include budgets, target markets, policies, and business objectives. Cuban Pete’s needs to implement automated systems that provide data in real-time on food items ordered and comparisons of weekly sales totals versus food costs, allowing planning for tighter cost controls. The management also needs to implement automated operational controls of specific tasks through appropriate technology such streamlining the customer transaction process including order tracking, order processing, machine control, scheduling, and compensation. Further, to experience a return on investment, increase customer satisfaction, improve the financial reporting process, and enhance strategic planning and performance monitoring efficiencies, Cuban Pete’s needs to implement a Point of Sales System and utilize social media for marketing and promotion. BENEFITS OF SOLVING THE PROBLEM Automation has its advantages. By implementing MIS, Cuban Pete’s will experience a reduction in manual labor and human error, an increase customer feedback to help waiters service the customers, and improved   capabilities for view of sales figures, menu planning, and cost accounting details. By implementing the following systems, Cuban Pete’s will attract more customers, improve wait times, streamline processes, and ultimately experience an increase in revenue and customer satisfaction. TECHNICAL APPROACH Innovation continues to improve the way companies do business. As a relatively small establishment, Cuban Pete’s needs a low-cost solution   improve business. The best way to improve business would be the implement a Point of Sales System (POS) and utilize social media channels. * POS This team suggests Revel iPad POS. Considered the cash register for the 21st century, this mobile POS software provides up-to-the-minute reporting to track the sales, orders, payments, staff and patrons in real time. There is no back-of-the-house server needed, no mandatory contracts, and no hidden fees or charges. Revel Systems’ POS System provides: * Employee Login. Each employee has a secure login that is different from managers. This allows owners to track not only when employees clock in and out but also what they do in the system. * Order Taking. The order taking process is simple; just choose your items from the categorized list and build the customer’s order. * Order Details. Details about the order, such as item voids, deletions, special requests, discounts, holds, etc. are always available. * Payment Processing. Customers can pay using all major credit cards or gift cards and choose if they want receipts e-mailed or printed. * Cook View / Expedite View. If you want to go completely paperless, orders can show up on the iPad in the Cook View rather than printed in the kitchen. An Expedite View is also available so servers can see what has been cooked and ready to be served. This POS also provides Back Office support that will improve business as well. Some of the features include: * Flexible Menu and System Configuration. Cuban Pete’s will have the ability to customize the categories and items of their menu to suit their needs. As well as tailor the layout of receipts, specify tax rates to meet local requirements, set surcharges, set discounts and much more. * Real-time Inventory Control. As items and ingredients are sold, Cuban   inventory levels will automatically be deducted and available for inventory count comparisons to quickly detect theft, loss or waste. * Employee Scheduling and Reporting. With high employee turnover and seasonal doldrums, Revel Systems provides the capability to view metrics on employee data, such as work scheduled versus work performed number of voids, discounts by employee, and employee productivity and sales volume. * Real-time Reporting and Analytics. Revel Systems provides a variety of reports to help Cuban Pete’s run business, including sales summaries, transaction details, ingredients sold, and much more. Cuban Pete’s also needs to improve and manage customer satisfaction. Revel Systems POS also provides Customer Relationship Management (CSM). This system will allow the business to acquire your customer’s e-mail addresses from e-mailed receipts and export these addresses to a spreadsheet. Other necessary technical features that this POS provides include: * Real-time Reporting. Revel Systems provides a host of reports that are instantly available and accessible from anywhere, with the ability to grant access to managers, accountants or other professionals. * Centralized Management. With an established website, Revel Systems will allow Cuban Pete’s to centrally manage and monitor business from one website. All information is captured in real-time, and will get instant visibility to track sales volume, staff productivity, and help manage business effectively and efficiently. * Cloud Computing. Data management and storage can be expensive for a small business. The Revel System POS also provides secure Cloud Computing. This System reduces the information technology burden on Cuban Pete’s business in both time and money. There is no longer a need for a back office server to store data or to worry about software upgrades and maintenance. * Payment Card Industry Compliant. But security is also a major issue of business and customers. Revel Systems is Payment Card Industry (PCI) Compliant. Revel Systems built security and compliance into its products from the onset to ensure that everything from the hardware, software, and network were all PCI compliant. * SOCIAL MEDIA Social Media allows businesses to engage timely and direct end-consumer contact at relatively low cost and higher levels of efficiency than achieved with more traditional communication tools. Thus, this team suggests   Cuban Pete’s utilize standard social media platforms such as Facebook and Twitter, but also implement mobile social media (MSM). According to Juniper Research, the market for mobile web 2.0 evolutions will grow from $5.5B to $22.4B by 2013. MSM applications are expected to be the main driver of this evolution and are estimated to account for over 50% of the market. Further, Pew Research, a Washington, DC based think tank, estimates that by 202, a mobile device will be the primary internet connection for most people in the world. Therefore, this team suggests that Cuban Pete’s, combined with the Revel System POS, adopt a MSM application. This permit opens standards (e.g. a transition to the TCP/IP protocol) and flat-rate systems. It also allows for upgrades to Radio Frequency Identification (PFID) tags that will be able to automatically connect to mobile phones and send URLS to them, similar to text messages. BUSINESS PROCESS CHANGES Cuban Pete’s is a manual business. Although they have a website, the business relies on manpower for all of its business transactions. Customers are checked in manually – wait times are long. Waiting staff takes orders manually, paper orders are handed off to cooking staff, credit card payments are entered manually – none are aligned or reconciled to management, distributors or protect the privacy and security of customers. The business needs to improve operation efficiencies, reduce cost, decrease customer wait and sit times, increase customer satisfaction, and have real-time performance monitoring. OVERALL RECOMMENDATION Today everything is about the ability to provide business effectively and efficiently. Over Cuban Pete’s boast about long wait times as an indication of the high great the business performs, most customers want good food, access and great service as well. To do this proficiently, effectively, and in the most cost efficient manner, Cuban Pete’s needs to secure a POS and utilize social media channels. Some industry specialists claim that if business is not participating in Facebook, YouTube, and Second Life, it is not part of cyberspace anymore. Social Media allows firms to engage in timely and direct end-consumer contact at relatively low cost and higher levels of efficiency than achieved with more traditional communication tools. HIGH-LEVEL IMPLEMENTATION PLAN The technical approach involves management information software designed by POS Professionals. Revel Systems is a user friendly point of sale designed by hospitality professionals. This software was designed by end users who have worked in the bar and restaurant industry. This particular software is designed specifically with the end user in my mind. Expectations are an easy and transparent transition to the new software system. New POS system will have the following features: * HostHostess functions including reservations, waiting listguest paging * Online food ordering * One touch order split and combine * Multiple check tender Support * Visual Floor Management * Advanced CRM such as gift card, house account and frequent buyers * 100% Touch Operated Point of Sale Communication Systems and Mobile Devices. * Key Inventory system that is visible to you and suppliers. This will increase order shipment efficiency, ensure better decision making regarding scheduling, purchase orders, shipments and invoices. * Transportation tracking will give the location of shipments as they are en-route and send out alert messages when shipments are late. * Invoice visibility will allow invoices, payments, and credit arrangements and limits to be viewed with a single touch. Social Media. Sites such as Facebook Places, Four Square and Latitude give Cuban Pete’s a great opportunity to take advantage of social media. By uploading photos of the live entertainment, atmosphere and videos of satisfied customers, potential customers can gain a â€Å"live†, up and close perspective of the restaurant. We can offer customers a small discount for â€Å"checking in† at Cuban Pete’s. Just â€Å"check in† on your Facebook Page and you get $4 off your bill and or 5% off your next visit if made within 30 days. This additional exposure is marketing the restaurant without spending large sums of money on advertising. SUMMARY Cuban Pete’s needs to improve operation efficiencies, reduce cost, decrease customer wait and sit times, increase customer satisfaction, and improve marketing. With no current automated systems, by implementing strategic, managerial, and operational control this small restaurant business can improve with the implementation of management information systems which coordinates everything from scheduling personnel to customer service. Two primary systems to immediately improve business includes of a Point of Sale Systems that will automate business and include Customer Service Management (CSM), cloud computing, real-time reporting, and secure Customer Payment Industry (CPI) payments. Another means to greatly improve business would be to utilize social media for marketing and promotion. REFERENCES Corcoran, D. (2006). Crowds in Search of a Fiesta. New York Times. Retrieved from http://travel.nytimes.com/2006/08/13/travel/13njdine.html?_r=0 Draft, R.L. & Legel, R.H. (1986). Organizational information requirements, media richness, and structural design. Management Science, 32(5), 554-571 Kaplan, A. (2010). Users of the World Unite! The challenges and opportunities of social media. Business Horizons. 53, 59-68 Toffler, A. (1980). The third wave: The Classic Study of Tomorrow. New York, Bantam Books. www.cubanpetes.com

Introduction. Cognitive And Contextual Perspectives Are

Introduction Cognitive and contextual perspectives are two of the major prospective of childhood development. Jean Piaget was a major proponent of cognitive perspective. Cognitive perspective emphasizes how changes or growth in people play into how they learn and perceive their world. While Lev Vygotsky, and Urie Bronfenbrenner were the driving forces behind Contextual Perspective. Contextual perspective takes into account the environment surrounding children and how our relationships effect ones growth. Within this paper we will be discussing the different theories that Piaget, Vygotsky, and Bronfenbrenner believed that aided children with learning thought childhood and adolescence. Piaget Jean Piaget believed that our brains†¦show more content†¦The three main components of Piaget’s theory are scheme, assimilation, and accommodation. Scheme is defined as organized group of similar actions or thoughts that are used repeatedly in response to the environment (Ormrod, p.27). Assimilation is dealing with the objects or events in the way that is consistent with an existing scheme. Accommodation is the process of modifying a scheme when a new object event. They may make modifications to existing schemes, or form a new one (Ormrod, p. 27). Bronfenbrenner Whereas Piaget believed that children constructed their own knowledge about the world, Bronfenbrenner believed that the world surround a child was what influenced how they learned. Urie Bronfenbrenner believed that children had different layers that surrounded them. They first was the family, the most intimate daily interactions. The second layer consisted of neighbors, teachers, peers. People that were around regularly, but not in close as family. The final layer is state/government that by way of laws and policies dictate development. Vygotsky Les Vygotsky believed that adult in any society foster children’s cognitive development in an intentional and somewhat systematic manner (Ormrod, p.36). He believed that the first few years in a child’s development where the most critical for cognitive learning. He had hisShow MoreRelatedThe Theories That Best Resonate With Me Essay1179 Words   |  5 PagesIntroduction In analyzing my development, the two theories that best resonate with me are the cognitive theory of Baxter Magolda’s Model and the moral theory of Rest’s Approach. I plan to first begin explaining Baxter’s cognitive model and relate it to my personal development through personal examples. I will transition to talk about Rest’s moral development approach and how the approach applies to my personal development. Baxter Magolda’s Model The Baxter Magolda’s Model focuses on the epistemologicalRead MoreCognitive Theory : Baxter Magolda s Model And The Moral Theory Of Rest s Approach Essay1321 Words   |  6 PagesIntroduction In analyzing my personal development, the two theories that best resonate with me are the cognitive theory of Baxter Magolda’s Model and the moral theory of Rest’s Approach. I plan to first begin explaining Baxter’s cognitive model and relate it to my personal development through personal examples. I will transition to talk about Rest’s moral development approach and how the approach applies to my personal development. Baxter Magolda’s Model The Baxter Magolda’s Model focuses on theRead MoreLifespan Development : Cognitive, And Personal And Social Development1717 Words   |  7 PagesLifespan Psychology Introduction Lifespan Development is the field of study that examines patterns, modes of growth, change, and stability in behavior that occur throughout the entire lifespan of an individual. There are so many things to keep in mind about Lifespan Psychology; 1. Lifespan Psychology is a scientific, developmental approach that focuses on human development. 2. Scientists who study the lifespan know that neither heredity nor environment alone can account for the full range of humanRead MoreImportance Of Selection Measures And Performance Management Practices1463 Words   |  6 PagesIntroduction In today’s business world, there is an increasing trend of diversification. Diversity contributes a multitude of benefits to an organization’s success and competitiveness. Even though many companies fully understand the advantages of being a diverse organization, they still subconsciously or intentionally engage in practices that may lead to discrimination in the workplace. In this paper, we will take a close look at diversity and discrimination separately, and provide valid answersRead MoreA Critical Reflection on Information Processing Theories of Trauma Response1613 Words   |  7 PagesExam number: CLPS11045 Word count: 1099 Introduction Cognitive theories that focus on information processing have been the most influential theories of trauma in terms of generating testable hypotheses and directing current treatments (Salmon Bryant, 2002). For this reason, we will attempt to critically evaluate this area of trauma theory with reference to other popular theories, the research evidence, clinical practice and developmental factors. Information Processing Theories of TraumaRead MoreOpen Learner Model As A Tool For Self Regulated Learning1603 Words   |  7 Pagesof expert knowledge that can be used as a standard to evaluate learner performance or to detect errors (Nkambou, Bourdeau, and Mizoguchi, 2010). Student model, the central component of an ITS, contains knowledge about the students including their cognitive and affective states, their learning progress, and optimal pedagogical strategies based on the knowledge (Nkambou, Bourdeau, and Mizoguchi, 2010). Tutoring model decides tutoring strategies based on the input from domain model and student model.Read MoreEvaluation Based On Their Episodic Memory1745 Words   |  7 PagesIntroduction Eyewitnesses are required to provide testimony based on their episodic memory to aid the investigation in courtroom. Idealistically, eyewitnesses are able to provide details of crime scene accurately. However, the interference during the process of encoding and retrieval of episodic memory may impair eyewitnesses’ memory. In Megreya and Burton (2008) research, it was found that witnesses were less capable to encode faces in traumatic events. Because of flashbulb effect, some witnessesRead MoreOne of the Main Divisions Between Mainstream and Critical Social Psychology Is That of the Methods Adopted. Discuss with Reference to the Cognitive Social and at Least One Other Social Psychological Perspective.1698 Words   |  7 Pagesand critical social psychology is that of the methods adopted. Discuss with reference to the cognitive social and at least one other social psychological perspective. Social psychology has existed for about 100 years, before which psychology was a branch of philosophy. Social psychology studies individuals in their social contexts. It is a diverse discipline made up of many theoretical perspectives and variety of different methods are used in social psychological research. This assignmentRead MoreThe Is Still At An Exploratory Phase802 Words   |  4 PagesIntroduction Interpreting between two languages, whether the practitioner interprets in a simultaneous or consecutive manner, is a task that incorporates many complexities. Not surprisingly, even with the plethora of research on various aspects of the interpreting process, empirical research into team interpreting is still at an exploratory phase. To date, investigation into team interpreting has been confined to focussing on courtroom and conference team interpreting situations. This current studyRead MoreDescribe What Comprises a Comprehensive Cbt Case Study – Evaluate the Use of Case Studies in Therapy.1735 Words   |  7 PagesDescribe what comprises a comprehensive CBT case study – Evaluate the use of case studies in therapy. Cognitive Behavioural therapy is a based on the fundamental idea that emotions are experienced as a result of our interpretation and appraisals of events (Dryden 2004). Case studies are a method of inquiry used in theory development, education as well as client evaluation. Case studies in CBT therapy help document the therapeutic process for both the client and therapist, as well measures, tests

Gender Differences Between Women And Men Speak - 981 Words

â€Å"Sex Differences† is an essay written by a professor of linguistics named Ronald Macaulay. In the essay, he pointed out that there were no gender differences regarding to language development. He talked about various stereotypes about how men and women speak. He also explains in depth about how social environment made an impact on the talking between men and women. He also concluded that those linguists who still believe in that theory only continue to do so even if what they found in their research is not statistically significant. In many ways, Macaulay’s essay is persuasive. Through this essay, one would agree with him that there is no different form of language in which women and men speak. In Macaulay’s essay, he started it off by saying that there are many â€Å"nonsense† (308) regarding to language development between women and men. One example to prove his thesis was an excerpt from a Danish linguist named Otto Jespersen. The book was written in the 1920s called â€Å"Language: Its Nature, Development and Origin†. The quotation was about how women tend to speak in the ordinary way and use simple languages and follow what they learned. While men tend to speak in a difficult manner and even create new words. He also said that women response quicker than men. Men usually hesitate because he waits to respond appropriately. Macaulay argued that it is a stereotype and Jespersen should have known better because in Denmark, women are independent just like men too. AnotherShow MoreRelatedGender Differences Between Men And Women1058 Words   |  5 PagesGender differences between men and women Abstract Gender difference can be expressed in many ways. In our daily life, there are many phenomenon can be explained by gender difference. For example, man always like to pay attention to political news, but women focus on gossip news; Women like shopping very much but men never want to go shopping; for the same thing men and women will make different evaluations. These entire phenomenons are because of gender difference. How the gender difference showRead MoreDifferences Between Genders And Communication Essay1613 Words   |  7 Pages When you think of gender differences you probably automatically consider anatomical and biological differences. Perhaps you contemplate about differences in appearance or maybe occupation. Gender differences are relevant in politics, the workplace, domestic commitments, etc. One large gender difference that appears to be prevalent is that of communication. I believe that gender communication holds many advantages and disadvantages within discussions as wel l as in distinctive settings. When lookingRead MoreGender, Gender And Gender Bias1429 Words   |  6 Pages Language and gender has become an increasingly popular topic of study over recent decades, most likely due to the second wave of feminism in the 1960s and 70s. This can also be seen in the fact that goals of linguistic studies shifted at this point, to not just look at grammatical differences between males and females but to examine sexism and gender bias in language. The wording of such studies becomes increasingly important in the modern era, as gender is now recognised as a socially constructedRead MoreDifferences Between Men And Women1746 Words   |  7 Pages Gender Differences in Communication Have you ever thought someone wasn’t listening to you? Or that your request is being ignored because the response wasn’t framed in a way it should have been? Maybe it’s because you were speaking to a person who was of a different gender. Men use short direct speech, while women use indirect dialogue. Therefore, when genders meet up there’s a gap in communication. Men and women unconsciously communicate differently in numerous ways, so by understanding each other’sRead MoreCross-Gender Communication as a Form of Intercultural Communication1007 Words   |  5 PagesExam 1 June 16, 2011 Cross-Gender Communication as a Form of Intercultural Communication In our daily life we face male/female differences. We can hear almost every day a questions like: Do men and women speak the same language? Why doesnt he/she listen when I talk? He/she is like from another planet, isnt he/she? Men and women communicate and behave differently. Many factors like stereotypes and cultural backgrounds are included in creation of differences in gender communication. Good communicationRead MoreBehavioral Differences between Homosexuals and Gay Men1052 Words   |  4 PagesThere are many people who believe that gender is little more than a social construct. One of the most convincing arguments for this stance is the issue of homosexuality, especially male homosexuality. When boys are born, there is no doubt that they share the same gender. Yet as they grow up and diverge to become homosexuals and heterosexuals, they begin to demonstrate a host of different characteristics that makes one clearly distinct from the other. A close examination of typical homosexual andRead MoreGender Is A Social Construct Rather Than Of Biological Origin1732 Words   |  7 Pages Gender is a social construct which is regarded as a sociolinguistic variable that affects language use in society. This contributed to characterizing many different aspects of life that were thought to be understood to be of social construct rather than of biological origin. Language as a crucial communication tool, not only reflects the reality of the society, but also has various functions to strengthen and maintain social existence. Males and females use different ways of thinking, processingRead MoreGender Differences in Communication Essay747 Words   |  3 PagesGender Differences in Communication Every race, culture, civilization, and society on this planet shares two things in common: the presence of both the male and female sex, and the need to communicate between the two. The subject of gender differences appears to have engaged peoples’ curiosity for as long as people have been writing down their thoughts, from as far back as the writing of the creation of Adam and Eve, to its current popular expression in books such as Men are from Mars, WomenRead MoreDiscussing The Playing Field Of Gender And Communication1541 Words   |  7 PagesGender and Communication Eftagine Fevilien Miami Dade College Author Note Generalizations that can be valued when communicating across the gender line. Abstract Men and women practice enormously different identities and communication curriculums, even if they are raised by the same parents, well sophisticated in the same faculties, have the same career and live in similar state. The reason for that is because there are dissimilar rules of communication that are distinctive to each other. These instructionsRead MoreBiography Of Richard Dawkins s Meme 914 Words   |  4 Pagesunknown. Gender can be defined as expectations, relationships between, and behaviors fitting to women and men which steam from cultural shaped thoughts and behaviors. Gender is a way to organize the culture, it can be used to describe expected jobs, feelings, and behaviors based on the sex of the individual. In the readings about gender there were a lot of examples of memes. In the Introduction by Bem, she speaks about the history of the western culture and how there are three beliefs about women and