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Strategic business management and planning
Strategic business management and planning
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Recommended: Strategic business management and planning
Organizational Planning and Development Case Study
Note: This is only fictional case.
RESTO A
The Case
The Alabang Outlet of RESTO A has been experiencing very low sales particularly during weekends. The president has asked the operations director, branch manager and marketing manager for a meeting.
1. Situation Analysis/Investigation
1.1. Problem Definition
Very low sales of RESTO Afs Alabang branch especially during weekends.
1.2. Problem Diagnosis
In comparison to other restaurants, the problem of RESTO A is very unusual. It is generally expected that sales during the weekends would be higher than the outputs during weekdays.
1.3. Objective Identification
The meeting called upon by the president aims to address this problem through the conduct of a meeting with the operations manager, branch manager and marketing manager to improve sales output and save the branch from a possible closure or bankruptcy.
2. Developing Alternatives
In developing alternatives, brainstorming is one way/method of doing so, for the formulation of creative solutions to problems.
2.1. The Brainstorming Process
Since the problem had already been defined, which is the low sales output of RESTO A, the participants in the brainstorming process must first analyze the possible cause or causes of this problem.
Possible causes
• Product
The restaurant offers a limited variety of products.
• Price
The price of their products is less competitive in comparison to other restaurants in the area.
• Placement
The company may be located in a less accessible area.
• Promotion
There is low product awareness.
Criteria for selecting possible solutions for the problem
The solution must increase the companyfs sales during especially during the weekend.
The solution must facilitate product awareness and acceptance.
The solution must increase the companyfs share in the market (for Alabang branch).
The solution must maximize returns at the least cost.
The solution must be SMART (Specific, Realistic, Attainable and Time bound).
3. Evaluation of Alternatives
Possible Solutions and their respective scores on the basis of the given criteria (0 – being the lowest and 5 – highest):
Solution 1: Closure/Discontinuance of Operations
If after feasibility study and it is proven that the company would continue to experience low sales for a very long period. The company must already close the branch to maximize their profit.
Score: 1
Despite the fact that this will minimize the companyfs opportunity losses, the solution is very drastic and is very pessimistic.
Solution 2: Product Variation
The company may have variations on their present products that will cater to the taste of the customers in the area (Alabang). Examples of these are seasonal offers.
Score = 4
This SMART solution will help increase the companyfs market share if it will be able attract other customers targeted by their product variance.
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
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This makes is challenging to develop creative alternates to solutions and meet participate objectives.
When an organization is looking for new creative ideas, they should ask their employees. The employees of the organization have an in depth look and are more understanding to the needs of the organization because it is where they work and are involved. Managers can call on a group of employees and together, they can come up with solutions for the organization. “Group decision making is a type of participatory process in which multiple individuals acting collectively, analyze problems or situations, consider and evaluate alternative courses of action, and select from among the alternatives a solution or solutions” (Group Decision Making, n.d.,para.1).
Design thinking is a process for practical, creative resolution of problems or issues that looks for an improved future result. It is the essential ability to combine empathy, creativity and rationality to meet user needs and drive business success. Unlike analytical thinking, design thinking is a creative process based around the building up of ideas. There are no judgments early on the design thinking (Simon, 1969, p. 55). Design thinking includes imagination and reason, a combination of convergent and divergent thought, and creativity. Design thinking might be thought of as dialectic, or conversation. It involves design wisdom, judgment, and knowledge. Lastly, design thinking is skill (Hegeman, 2008).
Suggest possible solutions to cope with the issues as well as recommendations for further improvement
It is imperative that company management address current sales decline in an open, inclusive and constructive manner. In order to do this, it is critical that the company adopt the recommended problem solving strategy. This will assist management in clearly defining the problem, getting a broad source of productive solutions, create a plan to implement the remedy and evaluation process to ensure success.