You are on page 1of 15

BOH- Case Study

Resources
The Information
in this case
study is
Fictional and
was made up for
this exercise!

Management History
Whats Good?

The location is well known and seems to surpass the break even point
because the information states the business make good profits.

This location has been


here for years and is
making good profits
The Owner does very
little work and seems
quite lazy.
Rumour has it the
owners family has lots
of money.
Some employees seem
more motivated than
others

Some employees are motivated at the workplace.


What Can Be improved?
The owner could become more involved in the company; I presume the owner
plays the role of a theory Y manager. I say this because the employees have
motivation at first but then it seems to fade, this suggests the owner allows
employees participate in decision-making, as well as offer greater job
autonomy and job variety. I believe at the start employees take on these
responsibility but eventually take advantage of the owners lazy habits and do
less work themselves.
Plan to Improve
The manager must take a position of authority and begin instructing their
employees. They do not need to micromanage but should ensure that he
company's standards are being met. This means going around the store and
asking employees how theyre doing and if they have any questions or
concerns they may have so you can keep an eye on their work and know they
are carrying it out correctly. Another task that must be done is on occasion
tell the employees you appreciate them. This will make them feel as they are
contributing to the business and as a result work will be done with a lot more
care. Employees will feel a lot more motivated than if the owner was to offer
a pay raise as satisfied needs do no motivate.

Ethics
What is Good?
There is a clear corporate culture set that customer satisfaction is a must.

Customers are first priority

Customers are generally treated


well

Most employees are generally happy.


There is no discrimination a the workplace.
What Can be Improved?
As previously stated the owner could take on the role of a leader/motivator to his crew.

Staff happiness is not a priority


here

Not everyone is uplifting


Most employees are there to
make money and get the job
done.
Most employees are generally
happy. Some employees do not
like working here
Staff members often date one
another here
There is no staff-discrimination,
harassment, whistleblowers in
the company that we are aware

Plan to Improve
The owner must stop their poor working habits and begin taking action. They must ensure
their employees are motivated to work because if the employees arent happy and a rude
customer comes to order, they may not always respond the nicest way which could cost the
company business. If word got out to media that the business was not very ethical it could
endanger the good customer satisfaction reputation the owner once had. Instead the owner
should go around the business asking employees how they are, and how much they mean to
the business, as a teenager who has worked in some unmotivating environments, I can
honestly say when the business owner thanks you for your work it makes you want to work
for them even more.
I also believe in terms of the relationships in the workplace I believe that they should not be
forbidden but he owner should set strict guidelines such as having no cell phones or making
sure two partners arent missing work the same days to spend time together.
In terms of the environment it is a good idea to promote the ethical involvements the
business has with the environment. It is proven companies with good ethics have more
business so advertising anything they do could increase business as well.

Corporate Culture
What is Good?
Again the company has established a good corporate culture hat the customer must come
first.

Customer is always first

Treat customers with


respect and priority
some managers and
workers do not follow this
guideline
Low prices
Quality services but this
doesnt always happen.

Lack of Diversity

1 Mexican worker
Rest are white people
Only 1 male cashier (First
male cashier in 7 years)

There are lots of young

Customers appreciate low prices.


Quality service is also stressed like customer service.
New male cashier, shows the owner has knowledge of the lack of diversity but is changing to
improve it.
What Can be Improved?
The consistency of the corporate culture procedure could be improved.
The owner must have more diversity in the business.
Plan to Improve
The owner of the business must begin setting some guidelines to the process of dealing with
any problem that could possibly arise when serving a customer and if an employee encounters
something new require them to document it in a code of ethics for the company. Employees
can refer to the book so they can easily resolve all problems that may arise.
Another change on the priority list would be to hire a more complex group of individuals. By
hiring people with different races, sexes, religions etc. you can be a more well rounded
business because you have perspectives from many different individuals. This gives the
business more insight and this can actually help customer service because if for example one
employee could not understand a customer of a particular race then having an employee of
the same race could benefit the business because they could complete the transaction easily
also improving efficiency. With this being said when hiring the owner needs to be more
specific in the hiring process. Although you cant post an ad that says you dont want a
particular race when interviewing potential employees the manager could look for more than
just young white people.

International Business
What is Good?

Since the business is a franchise they have global advertisement.


There are Burger Kings in many different countries.

This is a
international
franchise

13,000 outlets
79 different countries
66% in the USA
99% are privately
owned
In Latin America, Burger
King delivers to doors.
Customers seem to be
mostly white

Has young and old customers.


The price of gas is low so the price of goods will be cheap.
What Can be Improved?
The diversity in the customers could be improved upon to generate more profits at the store.
Plan to Improve
Although the owner can not control the franchises in other countries, he could follow use
some of their services to his advantage. Knowing Latin Americans are delivered food, it
could be a good idea to hire a delivery person to increase the amount population of Latin
American customers; this would also be something new that is introduced so who says it
wouldnt work on other foreign customers? By delivering food the business has a competitive
advantage over other Burger Kings in the area.
Another improvement that could be made would be the advertising and food selection.
Knowing that people of other races dine differently than Americans, updating the menu to be
more internationally friendly could greatly increase the profits made at the company. And
what better way to promote new products than a commercial showcasing how multicultural
the food and service is at Burger King.
In regards to the businesses being 99% privately owned Im going assuming this Burger King
is privately owned. I think if the owner could contact one of the owners of a publically owned
Burger King to compare sales and profits. If there is enough evidence to prove the business
could benefit from changing to public(low interest rates, high stock price, etc.) I believe it
would be a good idea to make the switch.

Entrepreneurship
What is Good?
I believe there is nothing good.

People can buy the franchise


and start-up their own
restaurant at their own
location.
Individual employees have
no freedom to create their
own methods, or business
within the restaurant they
work at. No motivation to be
creative
The owner does very little
and is quite lazy
Some of the employees work
really hard while others do
not. It doesnt seem right?

What Can be Improved?


The owner of this Burger King has no control over who starts a Burger King but since anyone could
do it this could affect competition.
Employees should be given creativity to a certain extent.
The owners work habits should change.
A disciplinary procedure for employees who do not comply with being asked to work.
Plan to Improve
I believe the owner should schedule monthly meetings where they discusses with the employees
what is happening at the business; sales, customer satisfaction, work schedules, everything. Then
at the very end have an improvement session where employees can contribute ideas to the
company. This will maximize input levels because you will have feedback from all employees, any
new ideas that are approved could be added to the business with a little bonus to the creator. This
will not only improve sales but increase motivation because employees will now truly feel they
have an impact on the store (they feel empowered).
Again I also think it is a good idea for the owner to monitor the store. This will prevent quite and
laziness by forcing interactions with employees where he can then take note of who works hard
and who does not. Using this information he can make a three step process where if an employee
is not working and is reported by another co-worker (owner must ensure all reports are private to
prevent workplace drama), then they are warned not to do it again. If the same employee
continues to negatively impact the business they should be talked to one on one and told that if
they cant keep up with their job requirements they must find employment elsewhere. And if it
keeps happening fire the employee, this removes bad workers from the business which will better
the environment.

Information and Decision Making


What is Good?

The store keeps track of scheduling, sales, left over food, and payroll.
What Can be Improved?

Only managers are notified of


the numbers behind the
business
Data is tracked for:

Scheduling
Sales
Amount of leftover food
Payroll

Company
Information/Payment
Systems

No direct deposit for payroll (cheques


are given at the workplace)
Scheduling is done on paper, by hand
(no digital spreadsheets)

The owner could improve how the data is tracked to ensure no theft is taking place at the
business.
The payments should be done by direct deposit.
Scheduling should be done on a online documentation site where information cant be lost.
A check list should be established to create guidelines for employees to avoid chaos.
Plan to Improve
The owner of this store should concern themselves about the data that they are being
given. If managers are the only ones who see the numbers then they could be altering the
schedule to benefit the managers, lying about sales to possibly increase payrolls, and
even stealing leftover food. The owner needs to hire financial accountant they can trust or
investigate the data themselves to prevent embezzlement.
I believe the company should start scheduling on a computer and switch their payroll
scheme to direct deposit. I say this because this way the owner can know exactly how
much money is going in and out of the store. Once the owner tracks the data and
scheduling online they can accurately calculate how much money they should be spending
on a daily basis. Tracking the data online is a safe way to make a budget because
managers wont be able to erase or add something to a sheet of paper. Also direct deposit
avoids legal issues because some employees claim they never got or lost cheques which
can also alter payroll or end in a lawsuit.
The world is turning digital and people are selfish. Knowing some employees are not
happy at the workplace who says they wouldnt change statistics to make a few more
dollars.

Planning and Controlling


What is Good?

The store has a clear goal set.

The owner provides a plan to their employees that all are aware of.
The companies results are being calculated daily to provide accurate data.
Always have stock/inventory.

Goal: To satisfy the customers by


providing quality food and
service, so that the company can
receive more money from more
sales.
Plan: Provide fast, friendly, and
quality food/service for all
customers, everyday.

Everyone is aware of goal


and plan

Not everyone works to


achieve the goal, including
some managers
Managers assess the results of
the day, every night
Discipline System:

No discipline or reward
systems present
Contracts are not signed

What Can be Improved?


The store owner should take more time to set goals of employee satisfaction.
The store must stress the plan to all employees even managers to ensure the corporate culture is achieved.
The policy of having managers assess all results must be changed.
The owner must ensure all legal documentation is properly filled out by new employees to prevent legal issue.
Plan to Improve
As stated before the owner needs to take time to appreciate his employees while still maintaining the companies goal by
thanking them for putting the business ahead of themselves; this way everyone works to achieve the goal.
The owner must hire a financial accountant to analyze the information being recorded each day. Even if everyone is happy
you could easily lose data so it is better to have a professional take care of the statistics; gain this prevents embezzlement
and lawsuit.
There should be a discipline system but not one strict enough to unmotivated the employees. I believe a warning should be
issued out to inefficient employees, then if the behavior persists issue a second and final warning that if they cant do their
job effectively they will be replaced. Finally if all else fails termination. There is no need to constantly discipline employees,
If an adult can not do their job well you dont want them working for you in the first place. This ensures only the most
efficient and motivated employees are working at the business.
A contract signing system needs to be established at the very beginning of employment. This way the owner can ensure a
potential employee has a social insurance number, a residence for mailing information, and a bank account for direct
deposit. The contract should also establish all of the businesses rules and expectations as well as a page stating that if they
can not perform their assigned duties then they will be fired. This prevents any law suits because everything is documented
and legal.

SWOT Analysis
What is Good?

Weaknesses

Strengths
Well known
Great Location and parking
Low Prices
Good deals

Inconsistent
Slow service
Managers are not trained
to deal with difficult
situations

The business is in a well known location and seems to be a popular establishment.


Customers appreciate low prices and good deals.
There are many potential customers passing by each day.
Businesses with high proteins seem to be popular amongst customers
What Can be Improved?
The owner could provide proper training to prevent inconsistencies, slow service, and problems
involving manager who are uneducated on the situation.

Opportunities
Busy intersection
Room to expand
High Protein diets good
for burger business

SWOT
Threats
Competitors are very
competitive
McDonalds and Wendys
dominate the industry

The business could advertise a lot more to help beat out competitors that are trying to achieve
monopoly.
Plan to Improve
A proper training procedure needs to be dealt with immediately, improperly trained employees leads
to chaos in the workplace. The owner needs to train all employees upon employment to prevent
mishap, This means ensuring everybody feels safe and confident fulfilling their responsibilities. All
employees including managers should be trained on dealing with all possible scenarios at Burger
King. If a new problem arises the employee who resolves it reports their findings in the book I
mentioned earlier. That way you can have an organized training process making all employees
educated on the workplace improving efficiency (such as slow service).
The business is located on a busy intersection and has room to expand, with Wendys and McDonalds
dominating the industry it would be a very wise idea to advertise the business. The store owner could
buy a billboard which could be placed along the street; this will attract more customers to the store. I
believe at this point in time the owner should not expand his business, purchasing another Burger
King could put the owner in debt. Although it is believed the owner is very wealthy, I think this store
has enough problems as it is and opening another one could create more issues and even put the
owner in bankruptcy.

Strategic Management

Goal is to make more money and


provide quality food/service.
Major Competitors
McDonalds
A&W
Wendys
Harveys
Core Competencies
Flamed broiled
Lower prices (some products)
Bigger and better deals (Whopper
Wednesdays)
Industry Potential
Fast food industry is declining
(According to Business Insider),
high protein meals

What is Good?
The business has a goal.
There are competitors but this brings attention to the fast food industry.
What Can be Improved?
The business needs to promote their name to become as popular as Wendys
and McDonalds.
Begin offering meals other than high protein to increase customer base.
Plans to Improve
The business seems to be doing well but rival competitors seem to be owning
the market this is known as a duopoly. Burger Kings needs to build a website,
get a billboard, and produce some commercials to raise customer awareness.
The fast food industry is declining so knowing this the business should take
advantage of this opportunity. Menu changes involving lower protein foods
that have a lot less cholesterol could greatly benefit the business because
they have another point to add to the list of core competencies. If the product
being offered failed the store owner would just stop ordering it but if it
succeeds it could potentially make a lot of profit.
By following these instructions I believe the business can beat out
competitors.

Organizational Structure
What is Good?

Owner

A second level manager is there to ensure the managers are doing


their jobs correctly.

Head
Manager
Manager
Cashiers
Cashiers

Manager
Cleaners

There are managers for every aspect of the store to assist in training
and managing the groups.

What Can be Improved?

Manager
Cook
Cook

The owner could remove the head manager and take on that
responsibility themselves.
The owner should add a financial accountant to the organizational
structure.
Plan to Improve
The owner must remove the head manager from their business. By
doing this you eliminate an unnecessary paycheck and confirm that
the statistics being provided are accurate and havent been
tampered. A
I believe a financial accountant could greatly benefit the corporation.
The store wouldnt even lose money because they have removed the
head manager but would get much more use out of a professional
budgeter. Having a financial accountant would allow the other
managers to perfect their job and training skills since they wont

Leading/Leaders

What is Good?
A training program is established to inform employees on their expected duties.
An orientation manual also exist to assist employees.
The managers at the store do have leadership qualities and ensures employees are on task.

Training:

Employees are supposed to have 18 hours of


training on the computer (called Guru) and
then two training shifts on the floor.

What Can be Improved?

However, Many get 10 hours of computer


training

Employees also supposed to have an


orientation manual but often never receive
one from my managers.

Leading:

The managers are leading from their title.


They will tell what to do and if employees are
doing something wrong, they will condemn
staff for it verbally.

The managers do not know customer service;


they can be short with customers as well as
staff.

The managers also seem to gossip about other


employees, too.

The amount of training each employee gets needs to be changed so everybody has the required
training.
The owner must make sure all employees are given their orientation manual in case they have
any questions.
Managers should be re-trained to fix the customer service issues. They also should not be
condemning employees or gossiping at the workplace.
Plans to Improve
The owner should be ensuring that all training is done correctly. Having the required training
assists staff members in completing their tasks efficiently. If members are being shorted their
training there is a much higher chance of conflict. The owner should also be giving out
orientation manuals to every employee so they can be up to date with all changes being
happening at the store. Once they have all the training they will be effective team members
increasing motivation at the company as well since everybody knows what their doing.
I believe a big problem in this store lies in the management, many managers are lazy and
ineffective leaders. The store should retrain managers on how to deal with social interactions
whether it be customer or employee and they need to be trained not to publically humiliate
employees as it diminishes their motivation factor. They also must not gossip about other
employees or face consequences such as termination because all drama in the workplace does
is divide co-workers causing an impact on employee satisfaction, customer service, and
customer satisfaction. By retraining managers on their skills you can provide current
management methods that will improve productivity.

Motivational Theory
What is Good?

The managers at Burger King


will applaud you for good work
if they see it.
They will also inform us of
customers that are happy with
their service.

Management applauds employees for their positive


habits, this is known as the law of immediate
reinforcement.
The owner is informed when customers are satisfied
with their service. This helps identify good workers
and provide accurate data on customer satisfaction.
What Can be Improved?
The owner themselves must be involved in the
business more.
Plan to Improve
The owner should also do what the managers do and
applaud the employees for good work. Every time
something good is done a minor reward (compliment)
should be issued as soon as possible. The more
immediate a reward is given after a good job will
influence employees to do good more often. By being
involved in your business your employees feel more
valued which produces a better quality product.

Other Important Information


What is Good?
I believe there is nothing good.
What Can be Improved?

When

legal issues of not having newly acquired employees sign


staff get hired by The
contracts must be resolved immediately.
this Burger King they The store safety should be taken more seriously to prevent failed
safety tests.
do not sign any
Plan to Improve
The business must start taking into consideration that is they do
contract papers
not require legal documentation of employment than they can be

Burger

sued a lot of money if an employee was ever fired. To prevent this


proper signings must be done with the employer and employee to
ensure all legal standards are being met.

King Welland
failed their health and In terms of the safety I believe this is a result of a lack of training,
employees should be trained how to properly sanitize and do
job with caution to prevent the spread of bacteria. By doing
safety test the last time there
this the store can stay clean because cleanliness should be added
to there corporate culture. In todays society media can destroy a
they came in
business and a health violation is a great way to do it; if a
customer was ever sick at the stores fault this could negatively
impact how ethical the business really is which could lose many
sales.

The End
BY CODY MCKEOWN