1. Prudence Company Background Founded in 2002 and headquartered in leatherhead Surrey Prudence Consulting co. prides in providing our clients with a complete consulting expertise. We offer a wide range of industry standard methodologiesaccompanied with our consulting and implementation skills providing innovative, reliable, cost effective and time-saving solutions required to support individual company's business needs.
2. Mission and vision: Mission and Vision Vision: To excel in providing quality consulting globally through our headquarters and branches in the U.K , Middle East , Asia and Africa Prudence stands for known in Italian as prudential means Foresight using knowledge . P: promise R : respect U : united D : determination E : excellence N : novelty C : commitment E : exquisite
5. Introduction of CHF Country House Food Ltd henceforth CHF like many British Organizations is crafted with great pride of the British Tradition practising a ‘taylorist’ based management with an elite value structure. Its operation began in the 1950's with the country house restaurants and diverged over the years into Father Nature parlour and Haute Cuisine. Such divergences were aligned with its vision of creating “excellent meals from high-class ingredients” serving a large diversity of customers
6. Problem Statement The problems that arise are multifaceted. Some problems are primarily internal and external while some as noted on the diagram below are chameleons of both. OPERATION MARKETING
7. Methodologies Presentation flow chart Internal External Operation Culture Demographics Marketing Finance Integration of the consulting process
10. What is CULTURE??? It is the denominator of the entire organization’s process mechanism It is the social glue that assimilates shared values within a structure with the organization’s vision and mission statement creating a common mental model within employees beliefs of the organization’s goals.
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12. Why is such a value structure important? It is considered the Double-helix of an organization. Without the right value structure, CHF like any other organization runs the risk of, Intercultural differences Communication breakdowns Lose of value in stock markets Economic deficiency Employee resentment If there is a defect in the denominator the entire organizational process is upset
13. IS CHF’S VALUE STRUCTURE RIGHT? NO! Why? (i) Managers are portraying facades of conformity (ii) Employee Organizational Citizenship is in Question (iii) Decisions made by the board is not unanimous (iv) The Role of the Chairman is not fully utilized (iv) Job Satisfaction too is in question (v) Employees are not being Vocal
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15. It would make incorporating participative and total quality management easier
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17. CRS TEAM Micheal Russell Ian Russell Charles Robinson Gareth Davies Prudence Consultants Volunteers from Atoll Leisure Key Stakeholders Critical success factor- time PMO’S Frank Stephens Gina Edwards John Atkins All their Assistant Managers
18. The PMO’s are to begin the cycle by distributing the Value Survey leaflet to all the employees They are to collect and account for the participation of all employees within a time frame of 2 days
19. STAGE 2: A preferred culture is designed and defined
20. This particular preferred culture is then invoked. The PMO’s then get on with the process of effective assimilation while the CRST in particular the Directors and chairman fine tune the assimilation process We will then apply interpretation on the observations and semi-structured interviews we are going to conduct on the employee network and management respectively. 3 consultants from differing professional backgrounds will participate in this exercise individually to rule out any element of biasness
21. OBSERVATIONS 2 guidelines would be adhered to when we conduct these observations 1. The Basis by which we will conduct the observation 2. The framework we use to contain the data retrieved from the observation
22. B.Framework A. The Criteria by which we would conduct our observations would be 1. Characteristics of the employees in each division as individuals and as a group 2. Interactions 3. Non-verbal behaviours (are they learners or presenters) 4. Program leaders / presenters 5. Physical surroundings
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24. The interview is concluded with a conflict management style survey filled up by the Directors and Managers Such a survey would identify how managers and directorsrelate to one another and how they relate to their down lines. In short it spells the working environments providing intricate details as to why their units as whole behave the way they do
25. STAGE 3: A Culture Gap Audit This audit also further defines where the preferred value structure is already in practise and how it is progressing. A culture audit could help one identify if there is any incompatibilities between the current culture and their vision and mission statement and if there need to be certain reasonable modification’s made. It would also be a good opportunity to identify which of the values actually compliments their vision better. It also identifies the weakness of the management both individually and collectively. Each Divisional Manager also is encouraged by our consultants to provide a brief narrative entitled “Our Preferred Culture in Action” so that we can again understand how this new culture is being experienced. This is done 2 weeks into the implementation of the new culture
26. STAGE 4: LEADERSHIP MODELLING The divisional managers involved in making sure that the day to day activities are in congruence with the values It will force them to work as a team rather than each individually looking out for their own divisions Such team effort and cumulative brain storming on how to better each process will improve not only the organizational dynamics but also create better quality business strategies Higher management can then reward such commitment and congruence with promotions or assignments to highly visible and key roles. By rewarding these team members it also shows how serious the higher management is with the culture realignment efforts.
27. STAGE 5: Manage Priority Culture Realignment Levers Can be in practice concurrently with STAGE 4 in the endeavor to ensure value congruence There are 2 levers in question; (i) Instrumental Lever – influences behaviour (ii) Symbolic Lever – Influences attitude and thinking These 2 levers act as a check and balance in the culture change process
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29. STAGE 6: Promoting Grass Roots Efforts The PMO’s and the CRS team sets outs the bench mark in ensuring that every single employee has partaken this whole process and is reassured that their contribution and presence is accounted for in the further development of the organization
30. STAGE 7: Integrate into Priority Strategic Initiatives At this stage necessary Reviews are carried out on all the strategic initiatives and alliances that were proposed so that necessary modification and adaptations can be made aligning it with the new preferred culture The CRS Team and the PMO’s work in line with the leaders to provide such leverage
31. STAGE 8: PROGRESS ASSESSMENT This is conducted 18 months into the implementation of the new culture It is compared to the initial Culture Audit Usually at this stage the consultants will conduct a less tedious process of observation and interviewing The CRST will also be involved in this process as they will be the key communicator to their respective divisions This second audit also provides an opportunity for the higher management to then see the progress that has been made since the change of the value structure
32. The Risk and limitation of the suggested methodology Applying the combination of such multiple methods if not well integrated could create method slurring compromising the rigor of the research conducted.
33. The Benefit and targeted outcome of this methodology We are able to apply the purposive approach rather than the literal approach with this research method as change is situational and the organization is dynamic. The targeted outcome is effective value congruence ensuring that CHF still possess the characteristics required of being in a blue ocean.
42. 1-Fault tree analysis: works backward it identifies all possible causes and therefore the origins of that failure. Example: of food being served cold at a restaurant
43. 2-Balanced Scorecard The scope of measurement should include external as well as internal, long-term and short-term, “soft” as well as “hard” Scorecard is the best way to reach such approach made by Norton and Kaplan since it represents the overall picture of the organization. It also includes customer satisfaction, internal processes, innovation, and improvement. It attempts to provide the important reflection of the organization strategy by addressing the following questions: 1.How do we look to our shareholders (financial perspective)? 2.what must we excel at (internal process perspective)? 3.How do our customer see us (external, the customer perspective? 4.how can we continue to improve and build capabilities (growth perspective)
44. The measure used in the balanced scorecard Teams of managers are often used to develop a scorecard which reflects their organization’s specific needs.
46. 4-SWOT analysis 1-Country house restaurant:this chain of branches is basically running its restaurant on the aspect of luxury dinning for the ones who want to enjoy the experience of leisure, recreation, relaxation.
47. 2. Father’s nature dinning parlor : The policy that is restaurant is running one is based on healthy food, and promoting better eating habits for people, it’s therefore directed towards the healthy food market. The branches are 9 located near town centers.
48. 3. Haute Cuisine newly established with a new service trends that will provide high quality food in locations where there are limited or no catering facilities. There system is basically on pre-prepared food that is previously cooked in the kitchens of Father Nature and sent for customers. The price ranges are affordable comparing it to the Country house restaurants.
49. Management (Internal operation) Varied opinion: some of the directors want diversification while others are reluctant to do so. Administrative directors: Those who have shares in the company and have salaries also. Those will be motivating to increase their profits Values and experience: differences in the age of directors and divisional managers which will lead to high differences in values and differences which lead to lack of harmony or agreement between big heads in the company.
61. He had worked in a number of medium sized companies which were not a food business
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63. PROPERTY PRICES ESCALATING The Country House Restaurant’s strategy was successful by the late 1970s and they tried to satisfy their customers by providing good food, simply cooked, with excellence service in a charming, traditional ambiance and all of these which were exceptional in those days. Unfortunately this successful strategy wasn’t work for a long time. The reason is the rapid escalation of property prices. That’s why the restaurant’s menu price was too high as they wanted to cover the cost of buying, leasing and other additional properties and of course it gave bad affect to business by loosing clients. For example: “Haute Cuisine” this restaurant were not a success because people were not prepare to pay us much as they would for meals at a country house restaurant, so the volume was lose.
64. ECONOMIC RECESSION In the good times when cash flow is good, banks are happy to lend, and customers are waiting at the door, it may be easy to whether a factory fire or an office flood. Banks will extend credit, new customers can easily be found, and everybody will expect the company to continue in business. A company may well succeed in "muddling through" after an incident. In bad times this isn't the case. It may be difficult or impossible to arrange temporary financing against a non-operational business; customers may be few and far between and intolerant of delay. Investors will be unwilling to invest extra money. The expectation that a company may fail could easily turn into a self-fulfilling prophesy.
73. Meeting the needs of key audiences limited number of customers in the market. essential to retain people once they have become customers. Customers are not the same. Market research identifies different types of customers.
74. Customers Empty nester Better off empty nester A business customer(working managers) Wedding/Function Pre family It’s a place to eat (good food) Working women
75. Customer Behaviour Study Based on the statistic of frequency of eating out, lifestyle and role in UK in March 2003, 944 adults who have eaten out:- Pre family 40% 377 Working Managers 30% 283 Better off empty nester 25% 236 Families on budget 25% 236 Empty nester 20% 188 Working women 18% 169
81. Marketing Objectives A marketing plan must be created to meet clear objectives. Objectives guide marketing actions market share Sales Goals Target audience Creating awareness in the marketplace
83. PRODUCT Offering menu items to customers-they have a choice Customers have ways of spending their money A lot of places to spend it at CHF’s emphasis on a menu, customers want Customers’ requirements change over time CHF has to introduce new items/phase out old ones Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalise sales from the existing one (trade off).
85. PRICE The customer’s perception of value is an important determinant of the price charged Customers draw their own mental picture of what a product is worth. A product is more than a physical item. It also has psychological connotations for the customer.
86. PRICE Danger- using low price as a marketing tool- customer feel that quality is being compromised. Important when deciding on price- aware of the brand and its integrity. Consequence of price reduction is that competitors match prices resulting in no extra demand
88. PROMOTIONS Covers all types of marketing communications. Advertising - TV, radio, cinema, online, poster sites and in the press(newspapers, magazines). Sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, door drops, demonstrations.
100. Demographics External factors. Cost and expenses: People’s percentage of dinning outside home has increased by 30% which makes them spend more at the end of the day. Age segment: In terms of socio-demographics, there is an increase in older groups who tend to spend more than save. Health: Consumers have increasingly become more health conscious Healthy food is the new trend in UK and Europe. Health food restaurants have grown by 88% between 1997-2007
101. Environment of Industry: More investments in leisure facilities.. Competition is intense and customer loyalty is low Catering industry is connected with healthy economy. In order to remain as a competitor your business must be operated with innovation and ambience to remain dominant specially in the UK environment. Chilled meals percentage has grown by 52% between 2000 - 2002 The contract catering sector will also soon benefit from further penetration into newer markets.