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Eastern Foods has a lot of restaurants and fast food outlets in some countries, and as for its expansion, the company is mapping out to build its outlets in the United Kingdom. Building work is planned to be finished by first of July, so directory boards have given the task to start up business development planning procedure from first of May. The board has also required that all major issues in terms of HRM, Accounting, Marketing, and Operations Management should be found and addressed accordingly.
In some core areas of the Eastern Foods, there is going to be discussion upon overview of the challenges in HRM, Accounting, Marketing, Operations Management, and after getting familiarized with these issues, solutions will be suggested as required.
Human Resource Management
First issue: HRM is going to face challenges in the sphere of recruitment as there is no employment contract signed. Absence of this documentation can wake legislative sanctions against the Eastern Foods. In addition to that, hired employees after taking their money beforehand will have an opportunity to leave the work in any time without employment contract. Second issue: obviously the company will be in tough moments at the starting stage as for deficiency skills in newly employed staff. Managers intensively seek to good employees but they do not easily find them as there are very few people with good skills and experience left unemployed in current job markets. Third issue: over exploitation of employees will drastically minimize job satisfaction degree of employees which also in turn, will make them very tired. This has always been considered as one of the major issues of any organizations.
First issue: accounting machines and computers will not always operate as proper as intended. So, account department will be more worrying on this potential issue. Second issue: First and foremost problem for the Eastern Foods is undoubtedly keeping correct transactions. When every outlet depends on the main financial branch, it will not always be easy to cope with various and massive numbers of financial statements. For instance, gross sales of one outlet might be 20, 500 Euro, but other outlets may be presenting less than that amount such as 13, 874, or 12,743 Euro respectively. In this case accountants will probably make mistakes in writing them. This usually happens when accountants are not well-qualified or tired of fixed working hours.
First issue: Marketing department will be facing several challenges in terms of promotions and building relationships with customers as marketing system will have to first see the outcomes and statistics of other restaurants’ trends and then decide to which target segment promote. Second issue: Provided that the Eastern Foods sets up strategies such as discounts, free drinks, and so on, it will be adversely affecting the income level, and will lead to the failure of strategic plan, thus demolishing profits gained. Second issue: External and internal designs of outlets can be unattractive to the customers. As well as ingredients and types of meals may not be liked very much. For example, clocks on the walls, color, posters, and such attractive items might not be suitable to preferences of the customers.
First issue: Operations managers will have been undergoing challenges with regard to controlling and relationship with staff at the outset.
Second issue: Sudden technical problems and damages are inevitable which can
put the organization in urgent case
Third issue: As there is a considerable discrepancy between jobs and tasks as well as in qualifications of the whole working unit, there will appear some misunderstandings when jointly decision making activities are needed. Part (B) The two most problematic areas and their solutions
First area: Human Resource Management
Absence of employment contract will not only cause internal issues, but it will get down reputation of the Eastern Foods in the eyes of customers. For example, there are lots of news agencies that are ready to publish and show any such issues that occur in famous areas such as restaurants, and at the same time, governmental courts will be thinking of cessation of the Eastern Foods’ operation. Furthermore, it will be easy for employees to make frauds inside the outlets because they feel confident of slipping away in any time they wish if they have not been hired based on legal contract. Moreover, if there will be no procedural justice system in the organization such as not conveying information to the employees, then, definitely communication gap will appear. Unfortunately, job advertisements newspaper is not as effective as it was before, so the managers will have been experiencing difficulties in finding proper employees. Whoever feels over exploited, no matter, whatever is price or reward, they will start to show their disagreement to HRM departments. This can be explained when managers neglect to employees’ personal or health related issues, that time, they need some time but, they do not want to lose their jobs as well. Late working hours can be one of the crucial reasons for the job dissatisfaction.
Solution to the first stated issue is quite simple, that is setting up legal employment contract, and other legislative documents. By doing so, the Eastern Foods will raise their satisfaction degree. In a rule, employees should feel that their rights will not be violated by the organization as well as they need to make sure if they can be one of the important parts of the organization. This means when they have power in decision making process and when they are allowed to put their candidate in leadership positions, and when they actively take in part in elections held inside the organization. Likewise, journalists from mass media such as TV channels, and Radio can take interviews from employees about their jobs and other related themes which will increase employees’ interest toward their jobs, feeling important is great indeed. Solution to the second mentioned issues is not easy, or impossible to take into control all the time because nobody will confess their inner criminal desire, therefore, Human Resource Management must fix security cameras in each area of operations so that it will be able to observe any deeds executed inside the organization. In addition to that it will help HRM managers to sort out efficient employees, and accordingly, those employees will be rewarded in a faith way. Moreover, when work units feel that they are under observation, then, they will not likely be spending their time out of their work place and offices, and will be doing their works respectively. The third issue can be addressed by not only publishing job advertisement on newspaper but, also, by building a good rapport with fresh graduates of universities, especially, who study in tourism faculties as they are taught well on how to communicate with customers. Also, it will be easier way to involve them in free job places as they are full of energy, and do not usually, require high level of wages, and compensation. They may not have practical skills, but they can bring in a new atmosphere, and a new look inside the organization. Usually, customers do not like being waited, so, when the staff is younger, then, they will probably take and bring the orders faster. However, these graduates involvement should not include discrimination and unethical payment rate which can also lead to legal challenges.
Second area: Marketing department
Marketing department can be put into difficulties if it cannot renovate and execute its role as required. When marketing, especially, promotion strategies do not work; the Eastern Foods will not be visited by high number of customers. In this globally competitive world, all restaurant businesses are striving to offer their special promotions in various forms, for example, some of them offer cheaper prices for more order while others offer high quality and service. Accordingly, it will not be easy for the Eastern Foods to create special ways to draw customers’ attention. One mistakenly launched promotional program can be costly for the organization that in turn, may lead to imprint not interesting view on potential customers’ minds. What is more, the organization may not be able to persuade the main finance department to budget some money for launching promotional programs. For instance, if some discounts offered at the outset will not prove it unless the intended amount of profits comes. As a result, damage cannot be covered, and marketing department will have to ask another amount to launch a second program, in this case, directors of the Eastern Foods will not be very happy, and can put pressure onto the marketing department. Design of the outlets might not be suitable to tradition, culture and religion of the country. If so, disagreements from the local people will ruin authority of the whole organization, no matter how well it is cooking, and how health and cheap prices are, simply one mistakenly chosen design, and pictures on the wall can decrease potential clients’ anticipation. More than that, differences on the course of meals and drinks may be absent, so, customers will probably be demanding new types and new tastes, and if their demand cannot be met as early as possible, then, they will likely prefer to change their regular restaurants. This issue might happen starting from the third month of operation when people start too fed up with unchangeable dishes.
The first problem can be solved by using various types of promotions. For instance, the company can choose direct advertising in which the Eastern Foods will send messages and letters directly to the potential customers. However, direct advertisement is getting more unfavorable, so, the company can address another type that is “public relations” in which the owner of the company will talk about his incipient activities, and what he has experienced, in short, life story of the company. It will increase awareness of the customers about the company which means success. Moreover, taking in part in business conferences and events can help the organization to be known in the regions, and here the store managers must get valuable advices from marketing department on what kind of preparations should they do beforehand they participate in business events. As for mass media, the Eastern Foods should hold some charity, and celebration events, and should invite radio and the TV correspondents. Additionally, famous actors, actress, and singers should be invited once in a week to each outlet, as we know, youngsters are keen to meet with their favorites, so they will automatically become regular clients of the Eastern Foods if they are given such kind of chance. Also, famous show programs should also be invited to lead their programs in one of the outlets once in a month. Another noticeable target area is football fans, if facilities such as television sets, special cozy cabins, and discounts are provided in every football match of the region, and then the company will undoubtedly succeed with only this market segmentation.
In general, the Eastern Foods’ primary focus should be pointed to the marketing areas and HRM because once the staffs employed are well qualified, have satisfactory skills, and do their jobs very well, then, the company will not have to be concerned on this issue in the future. Likewise, if marketing can find out how to attract customers, and deal with design, taste issue, then, customers’ number will be relatively high. Accounting personnel should not neglect to any tiny number and details in the calculation process, and all operations managers should be responsible for providing needed help, advice, and supply always on time. Moreover, technical advancements such as security cameras can lessen the number of crimes and frauds inside the company.
It can be concluded that HRM and Marketing are the two key issue areas, and the other areas such as accounting should be interminably checked, and operations managers should evaluate, observe, and control all works accordingly. Legal aspects have been discussed as well, and the roles of mass media in the success of the Eastern Foods have been found to be significantly important.
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