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Managing Food And Beverage Services

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Discuss about the Managing Food and Beverage Services ?

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This century is characterized by a population which is quite aggressive in different fields of commerce. Food and beverage industries are one of the leading business endeavors carried out the world. It is estimated that this kind of industry takes 78% of undertakings practiced in the world. It is prudent to state that this sort of trade is profitable and thus faced with a lot of competitions. Therefore, the people carrying it for sustainability must ensure its operations are quality so as to remain in the industry for a longer period. It will be possible with a clear modus operandi which applies the use of different theories in the corporate sector. Notably, Helo, Gunasekaran & Rymaszewska (2017) outlines that, the value chain approach works best if correctly used and one can reap richly in commerce by applying its knowledge. The method is employed in the formulation of the competitive strategies in which a manager of a restaurant can utilize so as to counter other competitors in the same field. More so, it enables one to have the tips concerning the competitive advantage and thus assisting in the integration of activities and their interrelationships in the corporation. The coordination is made possible through sharing of the activities in a friendly way between the organization and its sub-units. For a comprehensive understanding of the manner in which the managers in the hospitality industry can last longer and productive in trade, one has to delve upon, the vision, mission, competitive strategy, and competitive advantage. More so, value chain model, value chain analysis and strategic planning, implications of strategic planning, value chain analysis, conclusion, and recommendations will also be studied so as to cover the theory in an explicit way and come up with a report with is substantial to the designated people.

The Vision

The value chain approach was developed with the aim of guiding different business sectors in providing the goods and services which are quality in the world. Therefore, for the managers working in restaurants to achieve this vision, they should guarantee the purchasers outstanding services, hygiene, and safe foodstuffs as well as quality products. The impression of a well-done job from the consumer is very necessary (Armitage, Roberts & Sekhon, 2017). Therefore, the model gives the directors a piece of the well-formulated theoretical framework so that they can stick to the independent objectives of their companies while ensuring successful, healthy competition and long service in the industry while managing their several restaurants.


The mission

The purpose of the value chain theory is to make sure that the managers receive the best information which will help in developing the status quo of the business in which they exercise authority to be the best place for the human resource worldwide. This model provides guidelines in which one should apply so as to ensure that those people who work for the company finds the place attractive and thus cherish their stay and produce not only quality service but one with an impact thus influencing the consumer (Spiegler et al., 2016). Therefore, it will help in the creation of collateral for the future return into the same restaurant by the customer. Additionally, it provides rubric through which the managers can turn the restaurant into a place which supplies services with a well-developed operational system to the users. The resultant feature will give the company an opportunity to cherish the impetus which comes with being made priority and the most acknowledged in the business. Consequently, Rothaermel, (2015) outlines that; the sustainability of the endeavor will be upheld in the given trading zone if value chain theory is well utilized. Likewise, the theory enables the management to keep a continuous favorable direction in matters to do with branding in the market. It equips them with the innovative perspective which is crucial in ensuring continuity of the business in spite of the myriad of challenges emanating from the availability of the stiff rivalry in same business organizations.

Competitive strategy and competitive advantage

Profits form the basis of the attractiveness of any given business. This indicator shows that the company has a sustainable competitive advantage in the market. The managers in restaurants should ensure that the choices in which they make as per the position of the restaurant are strategic and that they translate them accordingly so as to realize an effective competitive advantage in the market. According to Moliner (2016), the use of role leadership or specialization should be put into consideration by the Managers so as to comprehend this functional unit of sustainability in the commercial activities. The board should put more energy regarding production and financial investment in those areas in which they view as having high returns. For instance, the bar owners should make purchases on the brand of beer in which the clients find it fond using. On the other hand, those managing hotels and guest rooms should put more efforts in ensuring that the rooms are fitted with the outfits most preferred by the guests concerning color and complexion (Menon & Yao, 2017). As well, the restaurant should make sure that the food served is worth and the unique regarding taste from other similar hotels since this will help in retaining the clients in the hotel. Consequently, the idea will ensure that a competitive advantage will reign in that particular hotel since the chances of having a significant number of consumers in daily basis will be experienced (Zhao, et al., 2017). Primarily, one can outline that distinctive competence and the aggressive benefit intermarry one another, and they have been found to be a key development strategy in the corporate world thus need to be embraced.

Value chain model

This model is used in the conceptualization of the activities required in the provision of goods and services to the patrons. It was advanced by Michael Porter which is based on competitive advantage while one is operating the business. It depicts the manner in which product gains value from the industrial processes such as designing, production, advertising and delivering of services to the clients (López-Gamero et al., 2016). The phenomena encourages the mangers to have inbound logistics through development of a realistic and lasting relationship with the supplies. Besides, the value chain theory emphasizes that all the operations in the firm should be developed into output so as to apprehend gains necessary for its growth. Therefore, managers must be creative enough to establish this in the company. According to Michael, the managers should engage in ensuring that the infrastructural, technological, human resource and procurement development is standardized due to that they aid in the smooth flow of products from different levels of production within a given segment in the bistro. In the absence of such mechanisms in the business, one is assured of the fall of the company regarding profits caused by low turn up of the clients. The theory further outline that, the managers should make certain that the facility is equipped with a good parking slot, a modern swimming pool and that their services should be delivered by use of current technology so as to reach the punters in good shape and at the right time. Moreover, the executive body should ensure that their procurement unit is good all round. They must be a body which ensures that the supplies section adheres to the quality of the products in which they deliver in the restaurant (Thompson et al., 2013). Besides, the procured goods and services should be economical so as to avoid over-spending on the profits realized. Likewise, the board of directors should guarantee that the human resource unit is quality. It is crucial to state that eminent personnel are one way to the hearts of most of the clients and thus ensuring the sustainability of the commerce. Contrary, Jogaratnam (2017) allude, an enterprise whose workforce is substandard is subject to failure. For that matter, the human resource should employ only those job seekers who have the necessary qualification without prejudice of their background and so forth. Application of this theory is  significant since it encourages the movement of products from the primary to secondary level so as to allow for a framework whereby output and input are well accounted for in the hotel.


Value chain analysis and strategic planning

The value chain analysis is one of the key functions applied in the improvement of the competitive platform of the industries more so in the hospitality sector. It provides rich descriptions and numerical analysis of the important role in the corporation (Wan, & Wu, 2016). If well synthesized, the managers of restaurants can realize better revenues which can sustain the business in the best way possible. The managerial class in hotel and restaurant industry should exercise this parameter since it equips one with strategic formulation and planning of values which are very necessary for making decisions pertaining different activities in running the organization. The managers should divide various activities in the firm so as to pave the way in understanding their impact in the business unit. This scenario is used in measuring the differentiation and cost behavior of the company (Koc & Bozdag, 2017). The proposal will enable one to come up with diverse ideas concerning the various units in the enterprise. For instance, one will be equipped with the knowledge of making assumptions based on the actual results received from the workload. The sub-divisions will have different profitability capacity; therefore, subjecting the executive body on the discussion concerning what ought to be done or not so as to improve the areas with massive challenges. Conversely, the information will also form the basis on how to boost the flourishing activities in the company so as to maintain their rank for an extended period. Furthermore, the administrative body can use the result obtained in coming up with coherent and an explicit forecast in the firm (Jifa, Haiyan & Hang, 2015). The method is necessary because it exposes one into understanding the sources of the competitive advantages experienced in the restaurant. The supervisors should delve upon guarding, nurturing, and building of those areas which facilitate the sustainability of the company. In a summative way, a well-synchronized framework and understanding of the Michael Porters value chain theory and strategic competition of the enterprise enable the management to ensure that the corporation thrives richly in profits and consequently longevity is experienced. This method of ensuring the long-term prosperity of the company allows the decision-making team to understand the constraints and the talents available in the workplace. The leadership should have a greater efficiency which counters the competition from other companies (Humphrey, 2014). The firm is entitled to create a parallel chain for the competitor so that they can achieve such. The developed route will enable one to create the system of running their restaurant while monitoring how far behind or in front of its competitors. Therefore, the information received will form the basis for a mechanism to be employed for the state of rivalry. 


Implication for strategic planning

Diverse corporations work under the influence of calculated planning so as to monitor the manner in which the achievements are made in different sub-units in the business functional systems. Moreover, Hill, Jones,& Schilling (2014) contributed that; one can use this parameter in measuring of the overall output of the entire society. Decisions made concerning the individual units in the store are made to spearhead the development of the strategy to be used in the organization of the whole business enterprise. The managers are entitled to use such since dealing with small sections of the association is simple in making the diagnosis of challenges and the capabilities within them contrary to the entire system (Zamora, 2016).They give the clear image since one view on sub-section in the endeavor can bring the clear image of what should be exercised to provide a clear modus operandi for combating competition unlike from a wider spectrum. The managers are encouraged to utilize the use of this method since it is rich in information and also can offer one with the ideas concerning what is central to the business, and therefore its implementation becomes much easier. Likewise, Grant (2016) reiterates that, value chain theory gives one room to make free choices concerning the way trade should be commercialized. The idea of the creation of sub-section and finally merging them together as been explicated and if the managers work out the formula on this initiative, they are assured of better profits making an organization which counteracts opposition from other businesses in an open approach. Also, Heizer & Barry, (2013) outlines that, the managers should employ the use of network interrelations so as to achieve the desired goals and ensure long-term sustainability in the corporation. For a company to achieve this, the management should apply the use of several organizational mechanism and practices. This approach entails the use of a lateral device which enables the company in solving of past problems in which it had encountered (Menon & Yao, 2017). In brief, the supervisors should identify, manage, and coordinate new methods of administering relationships within a corporation as highlighted by the value chain conjecture. 



The restaurant business cuts across different business activities summed into one by the owners. The management involved has to be very creative due to the constant change in taste and preference from the consumers as a result of the fast changing technology. The creative and the innovative aspect will enable the business to counter its competitors as well remain in operations in the market for a long duration while maximizing profits. The use of value chain theory is thus pivotal in ensuring the business holders realize this at all times. The use of different linkages found within the business and monitoring on the way in which one's competitors are performing should always be exercised so as to avoid collapsing of the endeavor. Apart from providing views, one gets the momentum of applying several measures both already established and innovating new ones to improve their production.


The business of dealing with direct human consumption is faced with some challenges due to its nature which requires constant upgrading and care. It is crucial for the managers to have extensive research concerning the running of this kind of business. The information found will then be applied in uplifting the working standards which consequently will lead to prolonged existence of its operations. Additionally, the management should develop teamwork in the company. It is always believed that if one wants to walk faster, one should stand alone whereas, if they want to go far, they should be in a group (Rothaermel, 2016). Therefore, the manager should involve other employees in the decision-making process in the company. The different ideas collected from various levels in the corporation will help the firm in providing better services to the consumers and thus obtaining a plethora of advantages which comes with improved revenue in production. Additionally, the managerial body should utilize the use of brands which are unique in the market. For instance, they should decorate their restaurant by use of distinct features which are full of a chivalrous impression to the clients (Simatupang, Piboonrungroj& Williams, 2017). Such methods will uplift the spirit of the consumers and thus frequent the place as well market the restaurant. Likewise, the manager should encourage the application of corporate social responsibility (CSR). The community around will facilitate its marketing and thus increase their sells ultimately staying at the top as far as competition is concerned. With the possible recommendation and the application of the value chain theory, the company will be able to solve its problems amicably, counter competition, and stay eternally in business.



Armitage, J., Roberts, J., & Sekhon, Y. K. (2017). Luxury Products and Services and the Sustainable Value Chain: Six Management Lessons from Gucci. In Sustainable Management of Luxury (pp. 259-279). Springer Singapore.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Heizer, R., & Barry, R. (2013). Operation Management, Sustainability and Supply Chain management (Vol. 11). Pearson, UK.

Helo, P., Gunasekaran, A., & Rymaszewska, A. (2017). Value Chain Effects. In Designing and Managing Industrial Product-Service Systems (pp. 83-87). Springer International Publishing.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Humphrey, J. (2014). Internalisation theory, global value chain theory and sustainability standards. In International Business and Sustainable Development (pp. 91-114). Emerald Group Publishing Limited.

Jifa, W., Haiyan, A., & Hang, C. (2015). The Research of Chain Structure and Value Realization Mechanism Based on Innovation Chain in S&T Service Industry. Science & Technology Progress and Policy, 15, 012.

Jogaratnam, G. (2017). The effect of market orientation, entrepreneurial orientation and human capital on positional advantage: Evidence from the restaurant industry. International Journal of Hospitality Management, 60, 104-113.

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López-Gamero, M. D., Pertusa-Ortega, E. M., Molina-Azorin, J. F., Tarí-Guilló, J. J., & Pereira-Moliner, J. (2016). Organizational antecedents and competitive consequences of environmental proactivity in the hotel industry. Journal of Sustainable Tourism, 24(7), 949-970.

Menon, A. R., & Yao, D. A. (2017). Elevating Repositioning Costs: Strategy Dynamics and Competitive Interactions. Strategic Management Journal.Pereira-Moliner, J., Font, X., Tarí, J. J., Molina-Azorin, J. F., Lopez-Gamero, M. D., & Pertusa-Ortega, E. M. (2015). The Holy Grail: Environmental management, competitive advantage and business performance in the Spanish hotel industry. International Journal of Contemporary Hospitality Management, 27(5), 714-738.

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Zhao, E. Y., Fisher, G., Lounsbury, M., & Miller, D. (2017). Optimal distinctiveness: Broadening the interface between institutional theory and strategic management. Strategic Management Journal, 38(1), 93-113.

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