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Transcript of Hamburger Plus
Statement of the Problem:
Service dissatisfaction resulting to reduction of customers.
Areas of Consideration
Plan of Action
Due to Hamburger Plus’ global operations, it is planning to spend $1.5B over the next 5 years to make its operations digitally mastered through a system called Creative. This move is prompted by a rapid decline in sales and a bulk of customer complaints here and there, from one branch to another.
Creative is an ambitious multimillion dollar project which would allow Hamburger Plus management to monitor and actively see the physical count of the products produced at any of its stores at any time of the day. Furthermore, the management can see if customers are being served at the desired time.It is believed that Creative would bring Hamburger Plus back to what it is known for: fastest, most consistent service in the industry.
Despite of its very promising outcomes, there are members of the management team who are not in favour of Creative primarily because of its cost, which would mean 200% reduction in stockholder’s shares plus closing down at least 300 of its outlets within the next 5 years. These conditions are needed before Creative do its work and for the company to recoup its investments. Majority of the stockholders believe that the upcoming technology is not the cause of customers being sent away during lunch break but because of the sluggish customer service provided by the service crew.
A member pointed out that the faltering customer service is due to general slowdown of cooking burgers. It is also added that customers are so irritated by the long lines and long periods of waiting time before burgers are served. One stockholder said that Hamburger Plus hasn’t introduced another hit product in the likes of burger patty strips since 1985.
Despite the objections, the CEO is still very optimistic to invest in Creative. He believes that it would give the executives the opportunity to monitor operations and ensure product consistency and service that provides customer satisfaction.
Viewpoint: Top Management
• Hamburger Plus has a strong brand name
• It is known for its signature burgers
• The company has not introduced another hit product for over so many years since their ever famous “Jumbo Hamburger”
• Deteriorating quality of service.
Alternative Course of Action
Invest in Creative
• It would allow Hamburger Plus management to monitor and actively see the physical count of the products produced at any of its stores at any time of the day.
• Monitors the amount of time of servicing the customers
• Creative requires a high cost of investment.
• Indirect solution of faltering service quality
• Risk of shareholder’s withdrawal
• Closing down of 300 outlet’s would risk further loss of income
Therefore, we opt to consider developing new procedures of servicing customers rather than investing in Creative. It is more advantageous and requires lesser cost. Furthermore, it is more intact with the problem of the company which is the reduction of customers due to service dissatisfaction. We also have to consider the stand of the shareholders of the company which is not to support the idea of investing in creative. With the development of new procedures, we can expect a tremendous change in the customary way of servicing customers. It will resolve issues such as long waiting in queues, sluggish customer service and slow cooking of burgers. Hence, the company can now deliver the demands of its customers-fast service. With all of these, Hamburger Plus maintains its competitiveness in the market.
Alternative Courses of Action
Time Context: Present
1. To arrive in a decision which would bring back
the company to what it is known for: fastest,
most consistent service in the industry.
• Hamburger Plus is known worldwide.
• Customers long for new products
• Many fast food chains are being introduced in the industry.
Develop new procedures of servicing customers.
• It will reform the accustomed way of servicing customers.
• Also, it will result to an innovative and prompt way of servicing customers.
• It is a direct and efficient way of solving the faltering service of hamburger plus • It will require training
• Possible hiring/firing of employees
• It will require Research & Development costs
Plan of Action:
1. Evaluate performance of employees
2. Inefficient employees would be either sent to training or terminated
3. Develop and Invest on new ways on how to improve service quality or create new systems
4. All remaining employees would be introduced and trained to the new service quality or system
5. Evaluate the new system or service performance
Alternative Courses of Action
• Invest in Creative.
• Develop new procedures of servicing customers.
Adan, Kristine Melanie
Guiao, Edward Carlo
Lim, Ronald Renz
Mante, Edwin John
Mendoza, Kervin Paul
Recana, Christian Dominick