November 2019 CASE STUDY ON ‘STAR DINING’ Question: Identify the potential strategy implementation problems of ‘Star Dining’ restaurant and advice on the corrective measures to be taken by it to revive its dwindling fortunes. In the situation of ‘Star Dining’, the cause of poor sales, low customer footfall, billings, and profits are can be due to the poor strategy implementation by the restaurant. Some of the possible challenges faced during the strategy implementation are: 1. Weak Strategy: The point of a strategy is a new vision. This is an opportunity to create a roadmap with broad buy in and narrowed focus. There should be distinct milestones, clear timelines, and precise roles for employees. Strategic planning for the restaurant is weak, where the restaurant cannot work effectively and efficiently to fulfil the demands. 2. Ineffective training: A new strategic initiative will never get off the ground without the proper training for employees who are expected to execute. There are many reasons companies skimp on proper corporate and learning opportunities for employees. The restaurant did not give proper training to the employees to work effectively. 3. Lack of resources: The most common direct costs of executing a new strategy are associated with the consultants or board members brought in to plan, execute, and provide training, as well as the cost of any new associated technology. This can be prohibitive for a company of any size, especially small- to mid-sized companies and non-profits. The key resources of a business are man, machine, money and time which the restaurant must have taken into consideration. 4. Lack of communication: Communication is key in the execution of any new strategy. An effective communication plan must be initiated from the top down. Transparent, honest communication is not only the quality of an effective organization, but it is a necessary step for any new roll out. Lack of communication results in disjointed teams and widespread uncertainty. For the restaurant, there must be clear communication from the customers to the waiters, to the kitchen staff to ensure that the demands are fulfilled in timely manner. 5. Lack of follow through: Truly, the execution of any new strategy is never over. There should be regularly scheduled formal reviews of the new strategy to review processes, ensure the plan is performing as designed, and make any necessary tweaks. Restaurants should monitor on regular basis to ensure that the implementation is done as desired, reviewing the process.
The measure taken to rectify the problem are-
Value Your Employees: Showing your employees that you value what they do and care about them goes a long way towards the success of the restaurant. Happy employees transmit their happiness to their customers. They don't even realize they're exuding joy; it's just natural because they're happy to be at their jobs. Train every employee in their jobs, so they are certain of their responsibilities and how to perform them. Teach Customer Service Techniques: Train employees in effective customer service techniques, not just in the legally-required food handling and safety procedures. Encourage them to think in terms of customer care, which goes beyond basic service. The care concept includes such simple steps as looking customers in the eye, smiling at them and greeting them promptly, as well as measures such as anticipating their needs: refilling water glasses before they're empty or bringing extra napkins for customers who order messy finger food, for example. Encourage Customer Interaction: Observe your wait staff’s interactions with the customers. Identify both areas for potential improvement and aspects of the job the employee is handling well. Follow up with him to provide constructive feedback on his performance and note specific changes you want him to incorporate, such as helping to seat female customers or suggesting appropriate choices for young patrons when there is no children's menu offered. After implementing the strategy, they should have a strategy control where the management takes efforts to track a strategy as it is being implemented, detect problems or changes in its underlying premises and make necessary adjustments. The type of strategy control for the restaurant is the implementation control where it involves that the implementation of the strategy is working effectively and assess if the strategy should be adjusted or changed due to the outcomes caused by incremental changes. The appropriate type of implementation control for the restaurant is milestone review where it involves identifying milestones such as critical events, major resource allocation etc.