Options

Date: 2015-10-07; view: 596.

Task

Value for money 10 30 60

Quality / freshness of food 40 50 10

Food products bought most often

How often customers visit their restaurants

Customers

Consumer survey (summary)

Listening

Present situation

Unfortunately the company's share price has fallen recently by over 80 %. There has also been a strong pressure on Eva and Ramon Martinez to resign as co-chairmen of the business. At present, they own 40 % of the shares. The other major shareholder is a South African businessman, Martin Webb, who own 12 %. Eva and Ramon Martinez have called in a team of management consultants to advise them on their future strategy.

Listen to this interview on Business News, a daily radio program in which experts comment on topical business items. Note down four problems facing the business.

Texan Chicken recently did a survey to find out what its customers thought about its restaurants. Here are the results.

Age18 – 30 58 %

30 – 40 32 %

40+ 10 %

Sex Male 54 %

Female 46 %

StatusSingle 65 %

Married, no children 23 %

Married, with children 12 %

First visit 8 %

More than once a week 5 %

Once a week to once a fortnight 29 %

1. Quarter chicken, salad and rice

2. Chicken breast burger

Customers' opinions (%)

Good OK poor

Service 8 38 54

Cleanliness 5 14 80

Friendliness of staff 24 48 28

Decor 1 34 65

You are members of the management consultant team called in by Eva and Ramon Martinez to advise them on their future strategy. Discuss the options below. Consider any other ideas for improving profitability. Work out a plan of actions which will turn the company round.

The following options will be discussed by the management consultants at their next

meeting.

1. Persuade Eva and Ramon Martinez to resign. Appoint a new Chief Executive with extensive experience of franchising in the food industry.

2. Seek opportunities to merge with a large fast food company which could offer management expertise and financial resources.

3. Improve profits by expanding in Europe through joint ventures. A German supermarket chain has already shown interest in such a venture.

4. Make major changes in the business. For example:

a) Have more company-owned outlets. This would give greater control over the restaurants.

b) Offer special promotions (e.g. huge discounts on certain meals).

c) Launch a major advertising campaign.