Due to a rapid decline in sales and bulk of customer complaints from branch to another, the Hamburger Plus, along with its global operations, is planning to make its operations digitally mastered through a system called Creative. Creative is an ambitious multimillion dollar project which would allow Hamburger Plus management to monitor and actively see how many of its products are being consumed at any of its stores at any time. Furthermore, management can see if a customer in a particular outlet is being served at the desired number of minutes. However, creative’s cost would mean a 200% reduction in stockholders’ shares plus closing down at least 300 of its outlets within the next 5 years.
Target Market Identification
Analysis of Case
To undertake or do not undertake Creative Project.
Hamburger Plus is known worldwide. The company has not introduced another hit product for over so many years since their ever famous “Jumbo Hamburger” which is already 35 years old. Hamburger Plus has a strong brand name. It is known for its signature burgers but it involves to sluggish customer service and slow flipping of burgers.
As the consultants of the Hamburger Plus company, we opt to recommend to undertake the alternative course of action which is to develop new procedures of servicing customers rather than investing in Creative project.Upon weighing its benefits and cost it gives more advantage and requires a lesser cost. Hence, it is more efficient in addressing the company’s problem regarding the reduction of customers due to service dissatisfaction. Furthermore, with the development of new procedures we can expect a remarkable change in the customary way of servicing customer. It will resolve issues such as long waiting queue and slow cooking of burgers.Company can now attend to the demand of its customers. With all of these, Hamburger Plus can salvage its image as the ever known fastest and most consistent service in the industry. Decision Criteria
• Hamburger Plus has a strong brand name
• It is known for its signature burgers
• The company has not introduced another hit product for over so many years since their ever famous “Jumbo Hamburger” • Deteriorating quality of service.
• It would allow Hamburger Plus management to monitor and actively see the physical count of the products produced at any of its stores at any time of the day.
• Monitors the amount of time of servicing the customers
• Creative requires a high cost of investment.
• Indirect solution of faltering service quality
• Risk of shareholder’s withdrawal
• Closing down of 300 outlet’s would risk further loss of income
Alternative Course of Action
1. Evaluate employees performance
2. Inefficient employees would subject to either termination or training. 3. Develop and invest on new ways on how to improve service quality. This would apply company’s total quality management. They may use quality tools such as PDCA in implementing such way to continuously improve.s 4. Evaluate the new system or service performance. This may apply the use of survey questionnaires provided to customers in order to know their feedbacks and suggestions.
After gaining back its sales and good service quality, Hamburger Plus can now launch new products which can further improve their sales. Customers long for new products .Many fast food chains are being introduced in the industry To bring back its sales and to arrive in a decision which would bring back the company to what is known for: fastest, most consistent service in the industry.It will improved the accustomed way of servicing customers. A direct and efficient solution in solving the faltering service of Hamburger Plus. Additional learning and harnessing employees skills Requires minimal cost. Develop new procedures of servicing customers Conclusions
Therefore, we opt to consider developing new procedures of servicing customers rather than investing in Creative. It is more advantageous and requires lesser cost. Furthermore, it is more intact with the problem of the company which is the reduction of customers due to service dissatisfaction. We also have to consider the stand of the shareholders of the company which is not to support the idea of investing in creative. With the development of new procedures, we can expect a tremendous change in the customary way of servicing customers. It will resolve issues such as long waiting in queues, sluggish customer service and slow cooking of burgers. Hence, the company can now deliver the demands of its customers-fast service. With all of these, Hamburger Plus maintains its competitiveness in the market References