Discuss about the Rational Natural and Open Systems Perspectives.
Café Paradiso is a café, which is situated at a very convenient place, which will, is a very good for starting a café. Brendan and Margaret Elliot want to start a new business. This café is located at a Victoria Garden shopping centre which is has a great number of passing shoppers. As there are very small number of café available near this location so this is going to be a great opportunity for them to start a business. They are well experienced with the café business, as they have successfully operated a number of cafes before, so they are not new to the business and know the details of the business. The start of this new café will increase their market share from 35%, which they hold previously to 40% within a year time (Altinay, Paraskevas and Jang, 2015).
When one is running a business, it is easy to be bogged down in day-to-day problems and forget the bigger picture. However, successful businesses invest time to create and manage budgets, prepare and review business plans and regularly monitor finance and performance.
Structured planning can make all the difference to the growth of your business. It will enable you to concentrate resources on improving profits, reducing costs and increasing returns on investment.
In fact, even without a formal process, many businesses carry out the majority of the activities associated with business planning, such as thinking about growth areas, competitors, cash flow and profit.
Converting this into a cohesive process to manage your business' development does not have to be difficult or time-consuming. The most important thing is that plans are made; they are dynamic and are communicated to everyone involved.
Benefits from the Budgeting Plan
There are a number of benefits of drawing up a business budget, including being better able to:
- To manage your money effectively
- To allocate appropriate resources to projects
- To monitor performance
- To meet the objectives
- To improve the decision-making
- To identify problems before they occur and such as the need to raise finance or cash flow difficulties
- To plan for the future
- To increase staff motivation
Brandon has knowledge in the past of working as a chef and well experienced in the field. He will work actively in the café and will contribute to the fullest. Margaret Elliot has a degree in the hospitality and has experience in that field. Both of them will contribute in the business and apart from that, they have agreed to retain two staff members who used to work in this café previously so that they could maintain relationship with the old customers. Other than, this they have planned to hire four new staff amongst them two will work on part time basis and two will work permanently (Armstrong and Taylor, 2014).
As the café is under a transition phase, it is very important to retain the old customers. The old staff members will play a key role in doing the work. The members have to understand the objective of the business and act accordingly. The objective of the company is to provide high quality coffee and other meals. The quality of service should be the highest priority for the café and it emphasizes on the satisfaction of the customers (Berthelsen et al, 2014).
The staff members should be very service oriented and they should maintain the service quality of the café. The members should provide the best service quality possible. They should try to analyze the need and want of the customers very accurately and render service adequately. They should be given proper training and be explained with the objective of the company in detail so that they could align their service accordingly (Blay-Palmer and Knezevic, 2015.). As the café is going through a transition phase, it is a very important time for the business. During this time, the owners and most of the staff members are changing while retaining only two of the old staff. During this time, the café will try to retain its old customer, whereas making new customers. The customers can only be retained through quality product and quality services. Therefore, the staff members should act accordingly. The aim of the business should always be kept in mind and the actions are to be conducted accordingly (Buttigieg et al, 2016).
Every member should be equally divided with particular task and it should be made accountable for that particular task. In addition, regular assessment should be carried out about the performance of their work (Chia and Round, 2015).
Impact of marketing initiatives and campaign
The company wants to successful transition of the business from the previous owner to the current owner and wants to retain their old customer base. They at increasing their market share in the industry, which previously was 35% to 40% so that they have a better grip in the industry. They also wants to generate a before tax margin of 20 % (Cokins, 2017).
The company in order to achieve their objective is taking some marketing measures such as they have retained two of the key staff members for the previously running business of that café as they have a relation with the customers, which will help the business to retain the old customers. Apart from that, they also plan to change or upgrade the signage of the café, which will help to attract the customers. Signage plays a very important role in attracting customers and they try to grab attention of the customers thereby increase the number of visiting customers. The company has thought not to increase the cost and to function on the previous price, which will help to grab the customers. As the customers are price oriented so this strategy will work to increase the base of the customers. However, there will be a up gradation will be done regarding the café but there will be no increase in the price of the items. This can only be done on controlling the cost. If the cost is controlled this will give them an advantage to compete on the price (Dai et al , 2014).
Apart from these common strategies, the company is planning to take some more aggressive strategies in order to make some marketing plans to give some advantage to the business. The aggressive marketing strategies will help to fetch business and will create a platform for the company, which will help to compete with its competitors. These will strengthen its position in the market and people will be more aware about the company. Such a marketing strategy will create a advantageous positioning for the company. Aggressive strategy may include advertisement on digital and print media and other initiatives such as discounts and offers (Dewe,2016).
The staff of the restaurant is to be divided into two shifts and the workforce should be divided equally according to their skills.
Shift 1 - Comprising of 6 members that include 2 waiters, 1 cooks, 1 Receptionist and 1 Manager, 1 cleaning staff (Shift timing Morning 10 am – 4 pm)
Shift 2 - Comprising of 6 members that include 3 waiters, 1 cooks, 1 Receptionist and 1 cleaning staff (4 pm – 10 pm)
The table, sheets, and the room should be cleaned every day so that they look clean and tidy.
The cleaning staff should clean the toilet twice every day.
The receptionist should see that there is change in the billing counter.
The kitchen staff should see that the kitchen stays clean and all the materials are available or not. If there is a shortage of a particular material then it is to be made known to the manager (Elsawah et al, 2015).
The manager is responsible for the smooth functioning of the restaurant. It is the duty of the manager to solve any problem that may arise and to see that each member carries out his or her respective duties properly.
Waiter should see that the customer are provided with best service possible as they play a great role as getting into direct contact with the customer. They need to provide swift services in the best possible way.
All the members should come one hour early to get the briefing of the day.
The restaurant wants to increase their sale by 10% so the waiter should try to sell the products.
The marketing strategy should be simple and they should focus on the target customers. To attract the customers the café should have an attractive signage and they should offer attractive discounts and offers so that it can pull customers (Gal, Stewart and Hanne, 2013).
Up gradation of facilities
The facilities are to be upgraded in comparison to the modern day café so that it can compete with its competitors. Better services are to be provided with better ambience. The café should be well decorated with comfortable seats and good lighting which soothing to the eyes.
There should be only one shift that is maintained the staff members should work from 10 am in the morning and until 10 pm in the right.
The briefings for all the members are to be done by the manager every day.
The cleaning staff will see that everything including kitchen is clean. Proper cleaning is to be done.
It is the duty of the manager to see that all the duties are to be performed by the members.
If any problem arises by their respective person who is responsible for that particular situation, in that case the particular person should take care of that situation.
The kitchen staff should do the procurement for any kind of kitchen stock or raw materials.
The waiter should see that the ambience should be maintained properly.
Manager will not be responsible arising and any such problem is to be solved by the respectable person in relation to that particular work (Zurich, 2017).
The restaurant wants to establish itself as the best Chinese restaurant in the town as they have good chief for Chinese food. So more focus should be given on it
The marketing strategy should be aggressive in nature and they should give advertisement on local digital and print media so that more number of customers is attracted towards the café. This will help to develop a customer base for the business and shall also help to stabilize the business after the change that is going to take place.
The café should focus on the up gradation of the quality, they should try to improve the quality of their food products and beverages, so that it helps to compete with others café.
There should be some changes made in the work practices, the customers should be given high priority and they should be provided with the highest quality of services possible so that they stay satisfied. In this way, it will help the café to retain its customers and thereby help to increase its business (Haimes, 2015).
Waste of time
To create a budget is very important as it gives us an idea about what are the total expenses that can be incurred. The budget may not exactly match with the reality but they give us a fair idea what amount of expenses will be faced by us.
The budget is created by taking the previous year expenses keeping in mind. The expense that is incurred previous financial year gives us a fair idea about how much budget is to be calculated this year (HakemZadeh et al, 2016).
In order to modify a budget there are many factors that are needed to be considered. We need to consult the budget of the previous year and accordingly formulate the budget. It is hard to understand the factors that will play a role in the budget and what changes are to be made from the budget of the previous year (Kline, 2015).
Budgeting is a very sensitive thing, it is a calculated assumption, so we cannot be one hundred percent sure about the budget but we need to go as close as possible. Every year the amount of expenses, changes and accordingly the changes are to be made in the budget. What are the factors that will change is hard to understand and predict. Through budgeting, we try to go as near as possible to the exact expenses (Norton and Schofield, 2017).
The Funds that is being allocated for a particular set of things are to be allotted accordingly keeping it as same as possible. If there is, an extreme need to change the amount that is allotted in the budget is to be changed as minimal as possible. It is to be kept in mind that budget is a whole plan or framework upon which the business function of the financial year will be based and it is keeping many factors in mind. Therefore, if we make massive change in the budget, in that case it may have negative effect on the business (Scott and Davis,2015).
The stakeholders are to be informed about the budget of the organization, so that they have a fair idea about the company’s act and so that they can act accordingly. This will help them aligning with the budget and they will also have an idea about how much the company is willing to invest on what and act accordingly (Trishkina, 2014).
The resources are to be divided under some categories according to their expenses. There are some resources upon when expenses are regular in nature and there are some expenses, which are not frequent (Van der Wagen and Goonetilleke, 2015) .There are also some expenses that happen in an organization, which occurs at by chance. These expenses are categorized and each category is then allotted with a budget and then this budget is divided amongst the expenses (Vincent et al, 2014).
The budget built a frame work of how the company and its stake holders will function and this also gives a guideline of how far the company is willing to bend in terms of expenses and what are its limitation. Budgeting is a very important factor in terms of functioning of the company. Without the help of the budget, it will be extremely difficult for the company and its stakeholders to function. So the budget is to be given outmost respect and maintained strict as much as possible and if the rules are to be bend in that case it is to be seen whether it is good for the organization or not, so that there is no negative effect to the organization (Ward, 2016).
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism. Routledge.
Armstrong, M., and Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Berthelsen, R.M., Barkley, W.C., Oliver, P.M., McLymont, V. and Puckett, R., 2014. Academy of Nutrition and Dietetics: Revised 2014 standards of professional performance for registered dietitian nutritionists in management of food and nutrition systems. Journal of the Academy of Nutrition and Dietetics, 114(7), pp.1104-1112.
Blay-Palmer, A. and Knezevic, I., 2015. 22. Building sustainable communities through alternative food systems. Handbook on the Globalisation of Agriculture, p.446.
Buttigieg, S. C., Buttigieg, S. C., Gauci, D., Gauci, D., Dey, P., and Dey, P. (2016). Continuous quality improvement in a Maltese hospital using logical framework analysis. Journal of health organization and management, 30(7), 1026-1046.
Chia, A.,and Round, H. (2015). A Developmental Learning Framework for Business Report Writing: Guidance for Management Educators”. Journal of Adolescent and Adult Literacy, 45(7), 556-566.
Cokins, G., 2017. Strategic business management: From planning to performance. John Wiley & Sons.
Dai, J., Jiang, W., Liu, G., Xu, J., Zhao, L. and Liu, A., 2014, June. Rating Aware Route Planning in Road Networks. In International Conference on Web-Age Information Management (pp. 223-235). Springer, Cham.
Dewe, M., 2016. Planning public library buildings: Concepts and issues for the librarian. Routledge.
Elsawah, S., Guillaume, J. H., Filatova, T., Rook, J., & Jakeman, A. J. (2015). A methodology for eliciting, representing, and analysing stakeholder knowledge for decision making on complex socio-ecological systems: From cognitive maps to agent-based models. Journal of environmental management, 151, 500-516.
Gal, T., Stewart, T., and Hanne, T. (Eds.). (2013). Multicriteria decision making: advances in MCDM models, algorithms, theory, and applications (Vol. 21). Springer Science & Business Media..
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
HakemZadeh, F., HakemZadeh, F., Baba, V. V., and Baba, V. V. (2016). Toward a theory of collaboration for evidence-based management. Management Decision, 54(10), 2587-2616.
Kline, R. B. (2015). Principles and practice of structural equation modeling. Guilford publications.
Norton, S. B., and Schofield, K. A. (2017). Conceptual model diagrams as evidence scaffolds for environmental assessment and management. Freshwater Science, 36(1), 231-239.
Scott, W. R., and Davis, G. F. (2015). Organizations and organizing: Rational, natural and open systems perspectives. Routledge.
Trishkina, O., 2014. Marketing plan for company X.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy and Operations. Pearson Higher Education AU.
Vincent, K., Dougill, A.J., Dixon, J., Stringer, L.C., Cull, T., Mkwambisi, D.D. and Chanika, D., 2014. Actual and potential weather and climate information needs for development planning in Malawi: Results of a Future Climate for Africa pilot case study. Future climate for Africa pilot case studies. Retrieved from https://cdkn. org/resource/climate-information-decision-making-malawi.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.
Zurich, L. B. (2017). Service Operations and Management.