ANALYTICAL REPORT OF WENDYS IN NEW ZEALAND

The purpose of this report is to create an analytical report on identifying organization’s root problems and suggesting the strategies of the solution including an alternative action plan. In this report we have attempted to identify the root problem by using the BCG matrix analysis and Cause & Effect analysis. Also we have shown the strategy for the solution of root problem. After identifying the root problem, we will go through the solution on how to rectify the problem and how we reach to a proper decision on which solution needs to be taken into action.

This report is divided into three sections. The first section includes the introduction of the report, purpose of study, structure of study and overview of report. In the next section one will find the main body which includes Cause and Effect analysis and BCG Matrix analysis of the Wendy’s Old Fashion Hamburgers Organization. It also includes identification of root problem, suggestion to use the specific solution to the root problem. In the last and final section one will find the learning outcome of the report, limitations of study and its recommendations and overall summary of the report.

The methodology used in this report is that we have collected information on the basis of work experience in the organization.

This report is only helpful to the readers who want to gain knowledge regarding specific organization’s root problem and its solution to solve the identified problem. It can also be used by the organization itself to see what needs to be done in a scenario where their company sale is going down. It will also help them to see through their problems and will be able to rectify in future.

INTRODUCTION

OVERVIEW

Wendy’s Old Fashioned Hamburgers is an international quick service restaurant (QSR) chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, US., and moved headquarters to Dublin, Ohio on January 29, 2006. As of March 2010 Wendy’s was the world’s third largest hamburger fast food chain with approximately 6,650 locations. Wendy’s menu consists primarily of hamburgers, chicken sandwiches, French fries and beverages, including the Frosty. The company does not have a signature sandwich, such as the Big Mac or the Whopper. Instead, the square burger patties it uses in its sandwiches are the signature item. The company also advertises that its burgers are made from fresh ground beef, not frozen patties.

As per our previous assignment, we would like to mention that we carried out the survey by Cause and Effect and BCG Matrix analysis. By going through the study we found out that the company was facing a root problems that were including untrained staff, management problem and dog products. Above all we found that the face problem with the organization was low sale of its products.

PROBLEM IDENTIFIED

REASONS

PERFORMANCE ANALYSIS :-

To get the real reason about low sale of Wendy’s we carried out performance analysis on the basis of actual sale versus desired results. For that we have compare last year sale with current year sale.

DEVIATION OF THE PERFORMANCE :-

Through detail analysis we found that the staff turnover started to increase gradually and also there was sudden increase in the wastage of products. For example, the total wastage should be around Â¼ pan of onions but now it is increase to Â¾ pan of onions. Also salads and baked potato are need to be thrown away as the company policy is not to carry over the product next day. So around 3 packets of salads and around 5 baked potato are thrown away.

The staff were are also getting slow in product service time. For example, the product that has to be delivered within 60 seconds from drive thru and 30 seconds from front line was been delivered in 80 seconds and 50 seconds respectively.

SPECIFIC PROBLEM :-

The actual problem in the organization is low sale as it has drop down by 40% according to last year sales. Last year in Lynfield Wendyââ‚¬â„¢s, Auckland, New Zealand they did 2 Million NZD amount of sale but at present time it reduce to approximately 1.2 Million NZD amount of sale.

PRECISE PROBLEM :-

To find out the precise problem we will be carrying out the cause and effect analysis.

LOW SALES

CAUSE EFFECT

1. Untrained Staff

1. Increase in customer complains.

2. Poor quality finished products.

3. Wrong order to the customer.

2. Management Problem

1. Unsatisfied staff

2. No Co-ordination between manager and staff.

3. Not proper products displayed in menu (dog products).

1. Increases the product cost.

2. Increase in wastage of goods.

ANALYSIS

In this section we will find out that on how we have reached to the causes of the organization’s low sale.

We have noticed in our study that the finished goods that are been given to the customer are not made in a proper manner and thus the quality of the product has gone down. Also due to that the organization started receiving complaints regarding their products. Some times we noted that the staff are taking wrong order and thus the product service takes time. While going through all these reasons we found that the root problem was staff were untrained. So due to this the face problem was caused.

Secondly, we found that the co-ordination between the managers and the staff was not carried out properly. Either the manager was not giving out the information to the staff or the staff was not listening to the manager. Also the staff was unsatisfied because in the store they were working under different managers and with different orders. So the staff were getting confused and this delay the process of proper product service time. Also due to this the face problem of low sales was caused.

At last, we found that the other root problem was regarding dog products i.e. the products displayed on the menu are not ordered by the customers as they are bit expensive than the competitors. Due to this there was increase in the wastage of these products which indirectly increased its cost. This all triggered in high budget and low profit.

Above all the stated problems we have also identified other problems that has affected because of face problem and those are:

1. Regular staff not getting more hours.

2. Company growth is going down.

BCG MATRIX

REF:- http://www.quickmba.com/strategy/matrix/bcg/

Cash Cow = Beef Segment

Start Product = $5 Meal and Baconator Meal

Question (?) Mark = Chicken Bites and Grill Chicken

Dog Products = Baked Potatoes and Salad

Cash Cow:- In our chosen business, we have find out that Beef Segment is a Cash Cow. Beef segment is the fast selling product and if we compare with other products all types of customer like beef segment because it is very popular, cheap, healthy and favorite product by customer’s demand. For example, if we serve 1000 customers in a day, then 700 customers order from the Beef Segment and that’s a massive 70% demand of the beef segment products.

Star Product:- In our chosen business, we have found that $5 Meal and Baconator are Star Products, as this products is the organization’s second fast selling and also popular with most of the time. Mostly customers like to buy $5 meal and Baconator meal because in these meals the business provides burger, fries and a drink of customer’s choice. We think that to convert it into cash cow product, they need to advertise it properly and if the company is launching any new product then the launching time of new product should be correct. It shouldn’t affect the market of current star product.

? Mark:- During our study we came to an conclusion that Chicken bites and Grilled Chicken are considered to be ? mark product. The reason behind this is that, these product are neither cash cow nor star product. So to convert in star product, they have to do proper advertisement and they should also start selling these products as promotion or in a special deal.

Dog Product:- At last in out findings we have found that Baked Potato and Salads as Dog Products because these product are there in the menu for long time but are not been sold or ordered. So they should replace these products with other product or modify the present product. They can also bring back the products which where in demand earlier and has been stopped due to the supply of the raw material like chicken stripes.

SOLUTION

In this section we will be providing the solution for the causes that has affected the organization’s sale. We will be giving solution as mentioned below:-

1. UNTRAINED STAFF :-

We will suggest the organization to retrain their untrained staff because in our finding we found that they are not taking the order properly and misplacing the order sometime. They are also behaving bit rude to the customers. By doing so there will be an improvement in customer service and quality of the product. Also they will manage to take correct orders from the customers. This will increase the customer satisfaction and the sale will gradually go up.

2. MANAGEMENT PROBLEM :-

In this section, we have come to the conclusion that the managers are not passing the information to the crew member in a proper manner. Also during the time where there are two managers working, if one manager tells the crew to carry out certain duties and during the same time the other manager tells the same crew to do other things than the crew member is confused and don’t understand whose order to follow. So we would suggest that there should be a hierarchy of passing the information to the crew. To solve this issue we would recommend the organization to communicate with their managers and tell them that they pass on the information to the staff in a proper procedural manner. By doing so the staff will understand what their managers are saying and it will reduce the product service time. Also we will train them accordingly.

3. DOG PRODUCTS :-

In this section we have found that certain products are as Dog Products, because these product are there in the menu for long time but are not been sold or ordered. So they should replace these products with other product or modify the present product. They can also bring back the products which where in demand earlier and has been stopped due to the supply of the raw material. To resolve this problem we would suggest the organization to re-organized their product menu. We would also recommend them to remove the dog products and add new products if possible. This will bring the customers in and the sale will start going up automatically.

STRATEGIES FOR THE SOLUTION

In this section we will be mentioning the strategies for the solution. The same are mentioned below.

1. UNTRAINED STAFF :-

In the organization there is an appropriate procedure to carry out product preparation and customer service. These procedure includes videos, books, training under training manager and at last carrying out exam/test of the staff. We would recommend the organization to redo these procedures again with their staff. We would suggest them that out of 100% of the training procedure they should give 30% emphasis on videos as by seeing the videos they will understand the procedure. Later 25% emphasis on books to learn about the order taking and customer service procedure and how to up-sell the products to the customers. Next around 25% emphasis on training the staff under trained staff or training manager. At last, they should give the rest 20% criteria to carry out exam/test that will let them know where the staff stand and what needs to be done to improve the knowledge and ability of the staff.

2. MANAGEMENT PROBLEM :-

For this we will like the managers to be trained in an appropriate manner so that they carry out their duties properly. We will recommend the organization that they put at least 50% concentration on showing the managers the managerial videos and training session again so that they are clear about their role in the organization. We will suggest them to put 30% emphasis to carry out manager and staff meeting on regular basis as this will increase confidence within the managers and staff and also their queries will be heard and solved. This will increase co-ordination between the staff and managers during their work schedule. And at last we will tell them to apply 20% emphasis on practical training as this will help the managers to carry out specific task properly and also not indulge in other manager’s task as this will mislead the staff.

3. DOG PRODUCTS :-

To make sure that this strategy works out we will recommend the organization to put at least 70% emphasis to carry out survey on what customers demand from the organization. Like, there are customer feedback forms available with in the store, so they can ask customers to fill up the feedback form. If the products demanded by the customers can be included in the menu than it should be included as soon as possible. And later 30% emphasis on the products that were in demand earlier and has been stopped due to the availability of the raw material, should be made available to the customers. This will bring back the customers to the store and the sale of the organization will increase gradually.

ALTERNATIVE ACTION

Alternative action is a suggestion, which we can be used if the main strategy of solution to resolve the problems is not effective. Some alternative actions are mentioned below.

Change staff:-

If in case the strategies that were used earlier like training the current staff did not work out than we will recommend to change that said staff with the new staff. We will suggest them to go through the training procedure again. They should motivate the new staff and by doing so the staff will be more dedicated towards its work.

Change Management:-

After providing the training to the present manager, If they still continue to behave rude with the staff and also not passing the required information to the staff than they should either get the manager from another store or hire a new manager and provide them sufficient training.

Change product:-

If the dog product is not selling then we will change the product because these product are there in the menu for long time but are not been sold or ordered. So they should replace these products with other product or modify the present product to ? Mark product or star product which will increase the sale. They can also bring back the products which where in demand earlier and has been stopped due to the supply of the raw material.

CONSEQUENCES OF ALTERNATIVE ACTION

If we change the staff there will be some consequence like it can increase the cost of the company as more time will be spend on the training of the new staff and more time will be taken in the product service. After training the new staff, if the organization understand that the new staff is under performing than they will have to more efforts and time to make that staff more efficient and reliable to the work assigned. For doing that they might have to keep that staff under training manager’s observation and this will increase the cost which can lead to more loss. Also there can be a situation where the old staff that has been removed from the organization might report to the union and this will increase time to deal the issue, as they do not have time and money to spend on these matters. The good consequence can be that it can solve the problem of the trained staff that were not performing up to the mark.

Same as staff,if we change the manager,it will create some consequence for company like it will increase cost of company because the new manager has to be given managerial training and also they have to remain under the trained managers till the time they are suitable for the role. There will be two managers at the same time and the organization has to pay both the managers instead of one. Also there can be a situation where the old manager that has been removed from the organization might report to the union and this will increase time to deal the issue, as they do not have time and money to spend on these matters. Also hiring a new manager is not an easy task as one has to organize interviews and then choose perfect manager for management. The good consequence is, new manager can solve the problem and help the company to achieve its goal.

If we change the products there will be some consequence like it will increase company’s cost as they never know what sort of product is demanded by the customer and more training has to be given to the staff and manager in the preparation of the new product. Also, if the expiry date of product is less then it will increase company cost. Only good consequence is that the new product might increase company’s sale.

FINAL DECISION

After carrying out the survey, we have decided that we cannot suggest the alternative action as by doing so the cost of the organization will increase and the organization is not in a situation right now to carry out such an increase, as the sale of the organization is low. So will stick to the solution that is provided in the full survey i.e. providing training to the staff, also train the managers again and remove the dog product by replacing them with ? mark products or star products, also try re-introducing the products that were there in demand earlier.

CONCLUSION

With the help of this analysis we would like to conclude that the organization have list of problems but the main problem is of sales. In this report we have identified the root problem of the organization and suggested the necessary solution as well as alternative solution that can be carried out to solve the root problem.

Overall this was a good experience conducting a analysis on identifying the core problem within the organization. But if some one needs any help through this analysis he/she can be valued going through the detailed report. They can also understand about the various solution to the said root problem that can be there with in the organization and how to create a strategic solution to resolve these problems.

This report contains only one limitation that is solely on our experience and can differ in other methods of report.

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