Business Management Project Proposal

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Business
Management
Project
Proposal

July 23

2007

A project proudly presently by TA 29 Xing Dan, Xue Feng, Kim Man, Kenny,
Tracy, Hiu Tung

Angel VS
Devil
Restaurant

Angel VS Devil,

FEEL us, ENGAGE with us



2


1.

Introduction

In order to
start a business, we have to identify

the need
s

of the customers. The basic need for everyone
is food. Human being
s

need food to survive. This is especially true for Singaporeans who are famous for
going after delicacies

especially dishes like chilli crabs

and katong laksa are “must

try” food when
tourists visit S
inagpore
.

Research shows that cater trade in April 2007 increased by 5.3% compared to
April 2006.
1

By venturing into F&B industry, we are opening ourselves to more possibility of future
business
ex
pansion
,

Another trend that we have observed is that t
heme restaurant is

increasingly popular nowadays
. The
opening up of

Food republic
in Vivo Ci
ty is one good example to illustrate this point.

Food republic is a
food court owned by breadtalk group. The w
hole food court is designated the same way as the 30s and
40s traditional Singapore street style.
Even though the

price of the

food is slightly higher than the usual

price and the serving

proportion

is about the same as the other food courts.

F
ood republi
c is always
packed wi
th people and it is not common that if you have to spend more than 15 minutes

just to

wait

for

available

seats
.

And with the increasing number of both working adults in the family, often
after a
busy day at work, they do not have the t
ime to cook. Therefore their next option is to dine outside and
this in return, creates business opportunity for our restaurant. It also reveals that

nowadays,
Singaporeans

not only

willing t
o spend more
money
on quality food, they have

also become

more
choosy when comes to

ambience of the eating place.

Another reason to support our
plan to venture into

food and beverages

industry

is because in Singapore, we hold annual food festival which
will
attract

a lot
of tourist

from other country
. Therefore
we expected high turnover
in terms
of profits.

1.1

Nature of the business

After taken all the factors into consideration, we decided to
start our first business on

theme restaurant,
where customers are able to enjoy both good food and good ambience.
Thes
e are the few ideas on what
kind of theme restaurant we might consider investing and operating in:
:

-

Maid restaurant where
waiters and waitresses will dress like maids to serve you the food

-

Horror restaurant where you dine in a spooky environment

-

Condom r
estaurant to educate the young on safe
ty of
sex

-

Heaven restaurant to give the customers a feeling of fantasy.

-

Angel versus devil restaurant whereby the customers can choose which side they want.

-

Venting restaurant whereby then customers can vent their ang
er before or after their meal.

[by
griffin or throwing of available equipments] .

The maid and the horror restaurant are out because these two kinds of restaurant are already available
in Singapore.

Generally, the Sin
gaporeans are more conservative and are

greatly concern whether their
children are aware or have they acquired the knowledge of safety sex or danger of sex. Hence the
condom restaurant is a rather good idea as they will patronize us a lot and also maybe together with
their children as they want

to let their child to be educated about safe sex and the consequences of
getting AIDS and HIV

Angel versus devil restaurant is like there are two sides whereby the customers can choose to go.

One
side will be heaven whereas the other side will be hell.

The decorations, the appearance and the name
of the food, even the dressing of the service crew will be completely different from one another.

During
the night, the restaurant can be turned into a restaurant cum pub.

Setting up such a theme restaurant ove
r a normal restaurant is that to avoid duplications of existing
business models, use the strategy of indirect assult.
2

In another words, it’s not advisable to set up a
restaurant that has the same theme as other places. We have to create our own brand, our

own theme
for the restaurant. Thus Angel Vs Devil
will be

a more suitable choice.

Targeting Customers

We are targeting at the medium income group, especially those
working
adults, who are more willing to
spend more to enjoy quality life during their leisu
re time.
Tourists are

another group of customers
that
we are aiming at. However, we cannot ignore the main stream customers.

If your customer base is non
-
repeat, such as in tourist areas, you don’t have to execute well.

A extract from the “why theme
restau
rant failed” , from Wikipedia. In order to create long lasting competitiveness and generate more
profits,

we need to think of strategies that appeal to all range of customers.

1.2

Mission and Vision


Name of our organization

T
he name should be striking enough so that people can easily remember us.
We have decided that the
na
me of our restaurant and our organization is the same so that people can easier remember us.

Thus
we decided to have “Angel VS Devil, FEEL us, ENGAGE with u
s” to be craved at the signboard in front of
our restaurant.

Mission
and vision
:

The purpose of our business organization is to create unique dining experience with the
best quality
food and service. Our business is aiming to provide the customers with a w
ide variety of choices, ranging
from the dishes, to the ambience of the restaurant
, making them feel cosy and comfortable
and the
difference experiences each time they will get when dining at our restaurants.


Our vision is to serve the custo
mers whole hea
rtly, go to the ex
tra mile to satisfy the need of our
customers and provide food of excellent quality.

1.3

Rational De
cision Making Process for Location

I
n order to establish a reputable restaurant, a good business location is necessary. In Singapore, most
of the restaurants are located in the central area.
(416 in downtown/central area, which include 100 in
orchard road, 46 in marina area)
3.

In Ngee Ann Ci
ty itself, there are altogether 19 restaurants.
4
The
Angel VS Devil,

FEEL us, ENGAGE with us



4


desire place will be the one with low rental fee yet able to facilitate our business well. However, as the
property
price
of Singapore is
escalating, it’s tough to find one ideal place.

We choose our loc
ation by weighting the following criteria, rental price, period of contract, crowd,
environment, renovation cost and accessibility.

Relative Comparison method is used to weight the
criteria.

Premises
Characteristics

RP

POC

C

E

RC

A

Rental price(RP)


+1

-
1

+1

-
1

+1

Period of
contract(POC)

-
1


-
1

-
1

-
1

-
1

Crowd(C)

0

+1


+1

0

+1

Environment(E)

-
1

+1

-
1


-
1

0

Renovation
cost(RC)

+1

+1

0

+1


+1

Accessibility(A)

-
1

+1

-
1

0

0


Total weight

-
2

+5

-
4

+2

-
3

+2


1.

Rental Price

Our business has just commenced, the amount of capital we have is limited. The profits

generated by the restaurant may not be enough to cover our daily expense. Furthermore, a lower
rent enable s us to gain more profits, which we can use to improve our
employees

welfare.

2.

Period of contract

Having a fixed place will help our regular
customer
to come to our place at much ease.
If we are
shifting too often, more money is needed to spend on renovation and advertisement.

Time is
wasted too.

3.

Crowd


There must
be a high crowd level so that our chance
s

of being notice
d

by the public is higher
and the crowd can act as another form of walking advertisement for our restaurant. This can be
done when members of the public walk pass our restaurant;
or after dinning at
our restaurant,
can help us
advertise by

sprea
ding words from mouth to mou
th on our good service provided
and the excellent food we provide
s
.


4.

Environment

The environment chosen is relatively important
as it will affect the customer’
s mood and
appetite. So
me customers prefer

to dine in area
s

where the atmosphere

is great
so that it can
help th
em to relax their mind and body after a busy day of work

5.

Renovation cost


We consider renovation cost as part of the criteria even though it may be just a onetime
expe
nses.
Again
our capital is limited, therefore we needed to save cost on some areas and put
it
into reserves

in case our
company suffers

a profit deficit.


6.

Accessibility


Having
our restaurant located at area

that is highly accessible makes it more conveni
ent

for our
customer to travel.
As it helps the customer saves time
,

the chances that they will return to
patronize our rest
aurant will be greatly increase
.

Candidate

Criteria

Rating

Weight



Clarke Quay

Rental price

4

15

60



Period of contract

7

25

175



Crowd

9

10

90



Environment(external)

8

20

160



Renovation cost

4

10

40



Accessibility

9

20

180

705


Candidate

criteria

Rating

weight



Orchard

Rental price

2

15

30



Period of
contract

9

25

225



Crowd

8

10

80



Environment

6

20

120



Renovation
cost

5

10

50



Accessibility

9

20

180

685


Candidate

criteria

Rating

weight



Causeway
point

Rental price

7

15

105



Period of
contract

4

25

100



Crowd

6

10

60



Environment

5

20

100



Renovation
cost

6

10

60



Accessibility

3

20

60

515


Clark Quay is the optimal choice that is available. By choosing not to locate our restaurant in the town
area, direct competition can be avoided. Clark Quay is also near city hall and Shenton way areas, which
are the nucleated office building areas.

1.4

Strategies

By entering into saturated market such as food and

beverage industry, it’s hard for

a newly established
company to survive. Thus we need to create a niche so that our restaurant can have its own uniqueness
which
wil
l attract customers to come and impossible for
other incumbents to
imitate

our product.

Angel VS Devil,

FEEL us, ENGAGE with us



6


Quoted
from Harvard Business review,
w
hen entering an attractive industry, companies should try to
close the door on the way in
.
11

Promotion

Discount can be given on sp
ecial dates when dinning in our restaurant. For example, when customers
patronize the angel side on thanks giving day, special discount will be given.
Discount can also be given
when the customers have spent above a certain amount. Additional items
or smal
l memorable gifts
can
be giv
en to customers whose outfit matches

the theme of our restaurant. This can give the customers
a
better sense of participation to the events of our restaurant.

Price

The price range for ordinary items in our restaurant is from $2
0 to $70. This makes it affordable and
inexpensive for such a cosy dinning experience.

We can also create a contract with some banks
[example, DBS bank or CitiBank] by giving them some vouchers to their clients to enjoy discounts or
sales on special food d
ishes. Also, if the customer use the card to settle the bills, they will also be entitle
to some discounts [example, 10% discount off the whole bills]

Events

Special events can be organized on special days, e.g. thanks giving day, Christmas,
13 July. Part
ies will be
organized for customers on monthly basis.
We can hold competition like poster design competition for
students and school to participate in, and also for us to publicize our restaurant unique style.

2.

Environmental Factors

2.1 Specific Environ
ment


Customers component:

Our restaurant cannot exist without customer .Therefore we need to

provide quality service to

our
customers through two ways.
One of the ways that

we can engage in is through

reactive customer
monitoring to identify and address customer trends and problems after they occur.

For example
, we

can take note of what
is the preference of our regular costumers, so that we can address to their needs
accordingly.
I
dentify
ing

the probl
em by l
ogic, such as listening to the fee
dbacks provided by our
customer on whether the angel or the devil should remain the same o
r there is room for improvement,
what is lacking in our service and how can we improve further on our service.

It is vital fo
r us to listen
and respon
d to the customers in a way as it

indicates

to the customer

that our company is attending
closely to the customers’

concern, so that we can gain our

customers’ trust in our services.

The proactive customer monitoring to sense even
ts, trends, and problems before they occur.
Preventive precautions can be taken. For example, we can think of what are the possible problems that
may occur during our daily operation. The possible problem that may occur is that customers find our
service
unsatisfactory so that we can improve on that. Also, some of our customers may just like the
devil or angel side then the other side may be too packed and they might have to wait longer just for the
seats they want. They might feel bored of the same costum
es we are wearing everyday. Strategies such
as seasonal change of costumes can be adopted.

Competitors component
:

As for the competitors, we should keep track of the other competitors who are in the same industry as
us. This can be done using the competit
ive analysis that involves indentifying competitors, anticipating
their moves and determining their weaknesses and strengths.

We can find out other competitors
weaknesses and strengths by patronizing them and finding our answers from there.

We have two k
inds of competitors; the indirect and the direct competitors. Out direct competitors are
those that are having the same kind of business as us, the theme restaurant.

Example of our direct
competitors can be Indochine, Forbidden City, where modern Chinese c
uisines are served in the antique
empire like place.
We can find out what’s so special about their business and try not to be same as
them. This will let our customers have a wider choice to make and we hope to let them make the
obvious choice, our restaur
ant. We can also attack their weaknesses and make their weaknesses our
strengths.

As for our
indirect competitors, they are people
who are doing food and beverages business, regardless
of what kind of cuisines are their selling.
If their food and service
is good, we can make ours even better.
In this way, people will make our business their number one choice. That is because we provide a
different kind of service for them.

Supplier component:

By
establish
ing

go
od relations with our suppliers,

the relation
ship behavior can help both parties.
We
can make our payments on time so that they can deliver our goods on time.
Sometimes even though we
do not have enough money to make ends meet, they may even trust that we will have the money next
time and still deliv
er our goods on time.

Advocacy group:

We should establish good reputation so that we won’t offend our advocacy groups.

Also, we can make
sure that our food and service is at its standards so that others will not have anything against us. We can
also establ
ish good relationship with the advocacy groups so that they will not affect our reputation.
We
can even make friends with our advocacy groups so that they will not boycott us.

2.2
External

Environment


political component
:


Companies are now liable for products that caused harm, even when they are misused. We need to
ensure that food is safe for consumption, so as to maintain the reputable image of our restaurant and to
Angel VS Devil,

FEEL us, ENGAGE with us



8


increase the consumers’ trust in us. Only when we gain
more customers’ trust will our business prosper.
As prevention of violating the rules/law of managing business is the best way to avoid legal risk and
follow the law strictly.

Economy:

Economy has a large impact on most organizations. Growing economy means

that more people are
working, and so, they will have more money to spend. People will consume more, and thus increase our
sales. While shrinking economy means the population have less money to spend, and there will be fewer
customers patronize our restaur
ant.
4

This will directly affect our sales and profit, and in the end, the
company will suffer some loss. There is a need to adjust the price of our food from time to time
according to the economy or have promotions so as to match with the economy and reduc
e the risk of
suffering the loss. This ensures that the company monetary welfare is well taken care of all the time.

S
ociocultural component

P
eople are more health conscious nowadays, they will more likely to consume food in places where
there is sale of h
ealthier choice of foods. Thus, there will be an increase in demand for less oil and
healthier choices of food [e.g. salad etc]. We can add in to our

menu the more popular and healthier
choices, and improve the recipes of the food. We will let the public k
now that restaurant do prepare
healthy food and healthy food do taste great. People are also looking for an environment away from
stress from work/to relieve stress. Thus, it is necessary for us to provide such relaxing ambience in our
restaurant, though o
ur decoration and design of our restaurant, and also through presentation of our
food.

Technological component

T
echnology is the knowledge, tools and techniques used to transform inputs into outputs. We can have
one computer at each table for customers to
place their ordering. This will increase the efficiency of
ordering the food and reduce the possibility of taking the wrong orders by waiters. We can create an

online reservation for special occasion like during public holidays or wedding dinner. Customers

can
watch programs at their table with the computer system while having their meals, and we can create a
room for customers to use the internet service to go online and play games [this will be an extra services
provided by the restaurant]

3. Organizing:
Task and structure.



3. 1
Roles and functions of managers

A business is a complex organization formed by many staffs. In order to prevent chaos, the task each
employee performed must be clearly defined and instructed. There are 4 kinds of managers, the t
op
manager, middle manager, first line manager and the team leaders.

Top manager includes CEO, CFO, vice president and board of directors etc. Top managers are
responsible to chart the direction for the business and plan the future of the organization. CEO

is often
the most important figure in the organization; he or she holds the most power in deciding the fate of the
company. CEO has to make sure all the departments function well as what is reported by each
departmental manager. E.g. Each month, all the d
epartments will send their progress report to the CEO,
so that the CEO can get a clear view about the company. He will then use the information to make major
decisions and answer the questions to the board of directors. CEO have to play the figure head rol
e, that
is negotiate and interact with mostly the management staff from other organizations. He has the
attorney to sign the agreement on the behalf of the company. Thus CEOs are needed to have good
conceptual skills, the ability to make good judgment and
etc.

CFO is mainly in charge of the financial sector of the company. He or she needs to plan the budget of the
company for the year. Base on the reports gathered, he or she have to decide which part should the
restaurant should spend more on, is it advisa
ble to take up a loan to expand the business and etc.

Board of directors are less important unless the company is listed.

As our restaurant has just
commenced, it’s impossible to have board of directors now. It will be more applicable when we expand
furthe
r in future.

Board of directors make major decisions by voting. This helps to avoid monopoly by
the CEO in the business. So that the strategies adopted are not the CEO’s idea alone, is rather what is
good for the business. Appointment of managerial positio
ns is also another important task of the board
of directors.

Middle managers are managers in charge of a subunit of the company. In our case, our middle managers
are finance managers(who manage the cash flow of the company
, plan the budget for the restaur
ant
),
marketing and advertising manager(who think of ways to sell the company’s product
-
service), event
manager. As our business is theme restaurant, our winning strategy is our uniqueness. Creating events,
enhancing our uniqueness must be taken into accou
n
t. It will constantly attract

new customers as well
as retain old customers as each time our customer is experiencing something different from his previous
experience.

Marketing and advertising managers are people who try to reach out our product to the c
ustomers. Our
service and food can be the best in Singapore. But if nobody
notices

it
, we will not be able to survive

long. That is

where the marketing and advertising manager come into picture. Marketing and advertising
manager is responsible to sell the
product, to promote the product, to make more people know and
come to our restaurant.

First line managers are often called the operational managers. They are the supervisors of the non
managerial staff, often the service crew. In this case, since we are o
pening up a restaurant, the non
managerial staffs are the service crew, which includes the waiter, cashier and performer, the
operational crew like the chief, stewarding crew, electricians. The roles of the non managerial staffs will
be explained in detail
s later on. First line managers are to ensure the daily operation is smooth. Any
problems encountered by the service crew or the operational crews will be brought directly to the first
line managers. If there is a complaint is received from the customer, t
hen first line manager is going to
Angel VS Devil,

FEEL us, ENGAGE with us



10


deal with it before approaching any higher ranking stuff. Depend on the size of the restaurant, we will
most p
robably to have about 3 to 4 supervisors, 1 to 2

operational manager to in charge the overall
operation. The o
perational managers are usually made up of experienced service crew with good
leadership quality and
interpersonal skills. The

operational managers are usually promoted from the
supervisors

No matter where you go,
if there are managers, there

will alwa
ys
be people for them to manage
. Very
often, the basic crews play a more important part than the managers, especially in a service orientated
industry like restaurant. Good food and good service are two major factors that costumers will usually
look at when c
hoosing restaurant. In order to maintain quality food, good chief is needed. How do we
define a good chief? A good chief is not just someone who cooks well, but someone who can cook out
dishes appeal to the heart of the customers, so that they will be att
racted to come back again. The chief
must be innovative as well. Since we are a theme restaurant, he needs to create special dishes that suit
our theme.

Another important factor is service. Service crews are crucial as they are the ones representing the
re
staurant. Simple jobs, yet of high importance.

3.2
Organizational

Structure

CEO: Xing Dan

Finance
Manager: Kenny

Accountants

Advertising&
Marketing
Manager: Tracy

Marketing Staff

Event Manager:
Kim Man

Event Managing
staff

Operation
Manager:Xue Feng

Supervisor A

Bartender:Hiu
Tung

Service Crew

Supervisor B

Dish Washers

Chefs

Functional departmentalization is chosen to be the organizational structure for our business. By
adopting this form of departmentalization, our employees can focus on their job w
hich they are highly
specialized in.
Employees also can learn more skills from

their colleagues.

This helps our business to
provide the best job performance. Thus, achieve our goal.

It’s clearer for our managers to monitor the job performance of the employ
ees. Supervisor A is needed
to check on the service crew and bar man. He doesn’t need to monitors on things that he is not familiar
with, for example, the accounting department. With the right set of functions in place, managers are in
good position to dev
elop strategies that allows the organization to respond to a particular situation.
6

For a more effective management, th
e chain of command is shortened, so that time wastage can be cut
down. For example, when the waitress received a complaint from the guest
, she can approach her
supervisor for help instead of wondering whom to look for.

In order to avoid creating barriers between employees and managers due to the top
-
down
organizational structure, employees should be involved in the decision
which affects th
eir job. At every
decision making point you need to ask the questions
-
how does this affect the business? And how does
this benefit our employees and staff?
5

4.
Leading and Motivation

4.1
Organizational

Culture

In our organization, we want to establish such
a culture whereby every employee is able

to take pride in
their own job, s
ee themselves as part of the organization and
treat the company as their own is highly
emphasize in the organization. It will keep the employees

constantly be reminded of the organiz
ational
belief and values.
Each employee is treated fairly regardless of their status, whether he is manager or
waiter.
Equal

opportun
it
ies

are given to the employees to unleash their hidden potential as well as to
empower their job.
The entire organizatio
n is able to work as a whole team and moving towards the
direction of success
.

Always regard the costumers as the top priority regardless of whatever the situations it might be. Use
the
maximum strength to solve each single problem that our costumer menti
oned. Non
-
stop pursue of
high standard customer service and quality food.
It’s similar to what the fonder of McDonald, Ray Kroc
believes. Kroc was dedicated to achieving perfection in McDonald’s quality, service, cleanliness and
value for the money.
7

4.2

L
eading

According to Hersey and Blanchard’s Situational Leadership theory
, there are mainly four type of
leadership style. Deciding the right leadership style isn’t easy, we have to take the various components
into consideration.

Worker’s readiness

Angel VS Devil,

FEEL us, ENGAGE with us



12


Job Rea
diness

We are new into the area of F&B, so it’s our workers, especially those ground level crews. Most of them
are lacking of specialized knowledge, experience and skill. This creates a R1 situation, thus a S1 style,
which is the telling style is needed to

be used. Our leaders have to guide the employees and teach them
from the most basic things, e.g. how to serve the customers, what will you do when the customer
complains. It ensures our daily operation will run smoothly without arising any problems.

Howe
ver, some of the crews may have more expertise in this area as they have been previously
employed in F&B industry, the managers cannot use the same style towards them. Otherwise hostility
and unhappiness will be resulted between employees and the manager.
Toward this type of employee,
the selling leadership style will be a more suitable choice. The managers need to motivate the workers
to buy into what they are doing and what they believe will be good for the business.

Regardless of the nature of the leade
rship style, a combination of the four will be the best choice. The
leaders have to actively participate in completion of the task. This allows the workers to see the
readiness in our managers, thus have more confidence in their leading and guiding.

By ma
intaining closeness and showing emotional support when needed to the employee, a better
employee and employer relationship will be established. This would be beneficial to the business as the
workers will be more
willing to commit

themselves

to work in our

restaurant. They will see themselves
as part of the business rather than just working for the sake of money.

Psychological readiness

Even if most of our subordinates are experienced in the area of operation, the probability of them being
psychologically
unprepared still exist. Staff can be too used to be working together with other people
and being instructed by the managers. This creates a problem when the managerial level tried to change
its leading style, especially in time of promotion, e.g. a service

crew being promoted to captain or
operation manager. These also affect the leadership style.

Postheroic leadership style can be incorporated into our business. It is said that most top executives, no
matter how good they are, are limited in what they can
do to solve problems, so that leadership
responsibilities are spread throughout the firm. Postheroic leadership spread leadership responsibility to
throughout the firm instead of centralizing leadership in key individuals.
8

By doing so, more authority
and
responsibility is given to the employees, even the ground level crews. Rewards are given according
to their ability. It gives our employee a sense of belonging to the organization, so that they can
contribute 101% to the business, thus provide better servi
ce in return.

However, sometimes the managers have to enforce their authority through various means. Otherwise
the regular employees who have been working in the restaurant for long may develop bad habits that
are undesirable for the business. Some exampl
es can be service crew eating customers’ food at the back
of the kitchen when the managers are not around, employees stay out for break for too long. It’s very
hard to punish or discharge those employees. A discharged employee can help give the organizatio
n “a
bad name” and create dissatisfactions among employees with whom he may interact socially.
9

In order
to counter attack this problem, the managers can adopt reward system. Instead of punishing those who
are at fault, giving rewards to those who performe
d exceed the standard.


4.3
Motivation

We can follow the Maslow’s Hierarchy of Needs. It states that people are motivated by the following,
and according to the five level of needs. They are Physiological needs, Safety needs, Belonginess needs,
Esteem need
s, and Self
-
actualization needs.

Physiological needs
: we can provide our crew with the uniforms so that they will feel united. Also, it is
necessary for us to provide staff meals and tea breaks for our hardworking crews to relax and take a
break after work
ing for the peak periods.


Safety needs
: Managers need to give all the crews the necessary emotional security, so that they will
enjoy working and not worrying about other small or minute maters. Also, managers must ensure that
there are no bad rumors spr
eading among the crews, which might threaten their job security. For
example, we should not allow anyone to spread rumors that our organization is cutting down cost, and
one of the measures is to sack useless staffs. When we found out that the some of the

crew are not
getting along well with others or the relationship with others is very bad, we will try not to put them in
the same shift or same working schedule.


Belonginess
needs: managers need to ensure that there is no personal conflict among the crews
. This is
because group coordination and group work is very important during peak period, such that information
can be communicated among the crews much faster and much more efficiently. We can organize
outings during off days to strengthen the bonds among

the crews and with the managers.


Esteem needs
: if the crew have a lot of improvements in certain areas or out in a lot of efforts, there is a
need for the managers to recognize their accomplishments and to promote the crew. The minimum that
a managers
should do is to praise that particular crew and recognize his hard work and effort he put in
for the organization.


Self
-
actualization needs
: M
anagers should give the crew some power to make certain decision for the
organization. Also, we can appoint some
senior crew to train the new comers some new skills and share
with the trainees their experience while working in F&B industry. Also, managers should give some
control to crew over their job. We can allow the senior crew to make their own decision [example

is to
give discount to customers] without seeking the permission from the managers all the time.


It is important and necessary for the managers to attend to the employees’ level 1 and level 2 needs
because only by attending to their physiological and
safety needs will we be able to motivate them and
encourage their drive to learn and improve.

5.Controlling

5.1 Area to control

Angel VS Devil,

FEEL us, ENGAGE with us



14


Financial perspective
, we need to control our budget so that we will have enough capital to set up our
restaurant. We can limit
our budget to the lowest price so as to ensure that we do not use up too much
of our capital. We also need to control our business’s cash flow by overseeing our expense and our
profit very closely so that we have minimum expense and earn more profit. The
re is also a need to
manage the economic value added. Our income statement and balance sheet have to be very accurate
as in our expense and our profit; our assets etc. have to be accurate including every adjusting entry. We
need to ensure and educate our c
rew [service crew and kitchen chef] to cut down on wastages. We can
also put up notice on the wall of the restaurant to remind customers not to waste on food [example
only open the sugar sticks if they are using it for their drinks and not to play with the

sugars.] if the chef
make a mistake by cooking the wrong dish or cooking extra serving of food, we can ask the service crew
to promote these food item or reuse the food in other similar dishes so as to reduce wastage [as cooked
food cannot be kept for too

long, and may turn bad].

Customer perspective
, we have to carefully spot the customers who are leaving due to their
dissatisfaction on our restaurant. Thus, we can adopt a strategy that is relationship marketing. It is all
about understanding our custome
r’s needs and wants and provides them with the service and food
accordingly to meet their needs. We can also create a customer service survey online or provide
customers with feedback form so that customer could make some feedbacks or comments on our
resta
urant so that we can improve on it. This will improve our customer relationship.

Internal perspective,
we need to control our food quality and the quality of our service. It can be done
by working very closely with our worker producing the food and providi
ng the service. We can also
provide training for them to provide the best quality food and services. This would ensure that our
restaurant provides service and food that are of high standard and quality and that no other restaurant
would be able to provide

a better quality food and services than our restaurant. Therefore, the
presentation of food is important in order to improve the appetite of our customers. Then will our
customer would feel worth it to spend in our restaurant and to share their dining exp
erience with us.
We also need to educate our staffs with our restaurant’s vision as a source of inspiration. Example, we
can keep reminding our staff with our restaurant’s vision, which is
to serve the customers whole
heartedly, go to the extra mile to sa
tisfy the needs of our customers and provide food of excellent
quality.

This would ensure that our staff knows what is our vision and work together to achieve it.

Innovation & learning perspective
, we have to always create more recipes and new type of fo
od, drinks
and desserts so that our customers would always have a wide variety of food and drinks to choose from.
Not only that, we also need to improve on our recipes and relearn and redesign in the way that our food
is produced and how we could design or

decorate new appearance for our food. However, there is also
a need for us to control waste and pollution before they occur or minimize them if they occur. There is
also a need for proper disposal of the waste produced by our restaurant.

5.2 Controlling
Methods

Bureaucratic control


W
e can produce an organizational rules and policies for the employees to comply with, provided that it
is clear to all. The rules can consist the employees’ responsibilities, duties and resignation. Policies can
include
organizing systems for the effective and efficient delivery of information and records
management services,

establishing information management standards,
establishing standards for the
use of information technologies, including computers and communication
s systems and
establishing
systems to ensure the security and physical protection of information and records. If the employee does
not comply with these rules and policies they will be punished and if they comply, they would be
rewarded. This will enable t
he efficiency of our employees to be high. Advantages is that it may be
useful if the way we punish our workers are reasonable and also, our rewards are attractive enough to
make the workers comply with the rules and policy. Disadvantages is there might be

over reliance on
chain of command authority relationship may result in the inability to deal with unexpected events.
Crew may feel that their actions are restricted and no freedom to make any decision, not even on simple
things.

Objective control,
:

B
ehavi
our control
, we have to make some rules regarding the behaviour and actions that workers
perform in our restaurant. Such as targeting the amount of profit we will earn in a day, limiting the
amount of customer complains in a day and workers should always p
rovide the best service for the
customers and should not chat with other staff in front of our customers. If the workers meet these
requirements, they would be rewarded with an increase in their salary for that day. If they failed to do
so, they would face

with a decrease in salary.
Advantages

are it will be able to shape the employees
performance.
It will also improve on the services provided to the customers.

Disadvantages

is that it is
similar to
Bureaucratic control, whereby managers still have to use p
unishment and rewards to control
the employees which may not be effective and may result in slow respond to the competitors and
customers. Often, it is too late to apply the punishment since what is done cannot be undone. Crew may
feel too stress to contin
ue to work in this environment, thus may quit from the job. As a result, we may
lost an experience crew, and also it may cost us more to employ new staffs [as in time needed to train
new staffs etc]

Normative control


I
n order for our restaurant to success
, the quality of our workers has to be good. We have to set our
requirements on workers and conduct a screening on them before they are hired.
Example

their
education status, experience, residency and their additional skills, if any. This is to find out if

they have
the required attitudes and value and if they have a similar mindset. After the employees have been
hired we need to constantly remind and educate them on what they should and should not do based on
their previous experience with other employees.

Advantages

is we would be determined by strong
organizational cultures. Employees can understand more about our company.
Disadvantages

is that they
may not have the same beli
ef
s conflict may arise, and they may not blend well in our
business and
operati
ng style.

Concertive control

Angel VS Devil,

FEEL us, ENGAGE with us



16


W
ithout managers, employee can come up with their own or even better ideas on how to make
improvement in their own task or duties and also employees will learn to take initiative and making their
own decision whenever problems arises during their work.
Adva
ntages

is when employees have the
chance to make their own decision, they would feel a greater sense of belonging to the company.
Disadvantages

are that it will be chaotic if there is no leader to lead the employees and also no
standardization in the work
process.

Self
-
control

W
e can set goals to ourselves so that we will not side track and knowing our goals, enable us to monitor
our own progress. However, we need to educate and lead the workers on the importance on setting
goals that are realistic, constructive and beneficial to

our company. Advantages are employees can have
better bonding with their managers and when there are problems that the employees do not know how
to solve; they can easily approach the managers. Disadvantages are conflict and confusion might arise
due to d
ifference in thinking on whether the goals set are important or not. Employees might not be
able to have the determination and not enough perseverance to work towards the goal.

Concertive control

is our
main control
method as we can build up a more bonded

company through this
control. Our staff will also be more independent as our staff manages the company through work groups
which is a very efficient method to control our company. This control method will somehow help our
company to save cost in salary ex
pense since there is no need to hire a manger for our company. As we
are newly set up company, so we do not have much capital to spend on. Furthermore, there is a need to
train our staff to be able to make their own decisions and also contribute more to ou
r company so that
they would be more up
-
to
-
date regarding our company’s information. Also, they would feel more
connected to our company and will not feel that they are very far apart from our company.

Regarding the problem of chaos when there are no mana
gers in our company to guide

our staff. We can
provide
training for our staff to undergo how to manage our compa
ny through work groups. S
ubsidies
will be given to our staff to

encourage
them to work in a work group. These are the reasons why we
chose conce
rtive control
.

5.3

Rules

Straight rules are imposed on the employees to ensure that the employees are in good discipline.
However,
as we want our employee to dedicate themselves into the job, we must be flexible.

1.

Employees must be wearing proper attire all

the time, this applies to even the dish washing
staff.

2.

When encountered complaints from the customer, report to manager or supervisor on duty
immediately.

3.

If you are late for more than four times in a month, a salary deduction of $100 will be
conducted.
Likewise, if you are on time for the whole month, a incentive of $50 will be given as
reward.

4.

Greet the customer, be polite at all times.

Treat customers with respect, b
ear in mind that
customer is always right.

5.4 Backup plans

If our control methods did not give us our desire results and performance of our restaurant, we
can
carry out our back up plan
only when we meet the worst scenario that we encountered during our
operation.
Bureaucratic control

is used as our backup plan. T
hough it’s not good for our organizat
ional
culture

to grow, our main objective as a business is still to generate profits.

6.

Future Plan
s

In three years time, we hope
to reach an annual turnover of $3.6 Billion
. If our business is good, we will
get some

feedback from our customers, whether they like the idea of this concept, or they would like
something of different concep
t and we will open more outlets locally. Making our
organization a
“brand” that is highly popular among ever
yone is our dream.

We hope

that our restaurant will attract
people of all ages. Furthermore, as we expand our business, we hope to make our organiza
tion
(company) a listed company, thus we can have more funding to invest in other areas. However, this can
only be done several years
later when our organization reach
es

the stage of maturity growth.

In this
way, we can recruit more shareholders. Public can also buy shares from us. We also hope to have a lot
of regular customers who will patronize us very often. They will tell their fri
ends about our business and
the brand of our organization will be able to spread around. This can also be a way of publicizing our
restaurant which, on the other hand, saves our a
dvertizing costs.

Nevertheless, our aim is still providing good food, service

and entertainment
. W
e hope to conquer more
customers heart with our

sincerity. Our next target will be winning of the food and beverage award of
the year.
This will allow our future customers to have more confidence in us. Thus more people are able
to rec
eive our service.








Angel VS Devil,

FEEL us, ENGAGE with us



18


Bibliography

1.

Singapore statistics,
monthly retail sales and catering trade indices, Apr 2007.

http://www.singstat.gov.sg/pdtsvc/pubn/softcopy/mrs.pdf

2.

David
J.Bryce, Strategies to crack well
-
guarded markets, Harvard Business Review, May 2007.

3.

Restaurant.com.
http://www.restaurants.com/World/WCity.asp?Country=SG
.

4.

Ngee Ann city,http://www.ngee
anncity.com.sg/shopdirectory/index.html

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ACROD, Improving Performance
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Good practices for the future,Case study 2: Sustaining
performance characteristics of a well functioning organization, pg 22

6.

Gareth R.Jones & Jennifer M. George, Contemporary Management,
Chapter 9, Managing
organizational strcture, pg 299.

7.

Gareth R.Jones & Jennifer M. George, Contemporary Management, Chapter 10, organizational
control and culture, pg 353

8.

Gomez
-
Mejia Balkin, Management international edition, chapter 12, Leading and managing
, pg
299.

9.

Albers, Henry Herman, Management: the basic concepts. Second edition 1982. Chapter 14, Pg
250.

10.

Lecture Notes

11.

David J.Bryce, Strategies to crack well
-
guarded markets, Harvard Business Review, May 2007.