Organizational Planning and Development Case Study

Organizational Planning and Development Case Study

Note: This is only fictional case.

RESTO A

The Case

The Alabang Outlet of RESTO A has been experiencing very low sales particularly during weekends. The president has asked the operations director, branch manager and marketing manager for a meeting.

1. Situation Analysis/Investigation

1.1. Problem Definition

Very low sales of RESTO Afs Alabang branch especially during weekends.

1.2. Problem Diagnosis

In comparison to other restaurants, the problem of RESTO A is very unusual. It is generally expected that sales during the weekends would be higher than the outputs during weekdays.

1.3. Objective Identification

The meeting called upon by the president aims to address this problem through the conduct of a meeting with the operations manager, branch manager and marketing manager to improve sales output and save the branch from a possible closure or bankruptcy.

2. Developing Alternatives

In developing alternatives, brainstorming is one way/method of doing so, for the formulation of creative solutions to problems.

2.1. The Brainstorming Process

Since the problem had already been defined, which is the low sales output of RESTO A, the participants in the brainstorming process must first analyze the possible cause or causes of this problem.

Possible causes

• Product

The restaurant offers a limited variety of products.

• Price

The price of their products is less competitive in comparison to other restaurants in the area.

• Placement

The company may be located in a less accessible area.

• Promotion

There is low product awareness.

Criteria for selecting possible solutions for the problem

 The solution must increase the companyfs sales during especially during the weekend.

 The solution must facilitate product awareness and acceptance.

 The solution must increase the companyfs share in the market (for Alabang branch).

 The solution must maximize returns at the least cost.

 The solution must be SMART (Specific, Realistic, Attainable and Time bound).

3. Evaluation of Alternatives

Possible Solutions and their respective scores on the basis of the given criteria (0 – being the lowest and 5 – highest):

Solution 1: Closure/Discontinuance of Operations

If after feasibility study and it is proven that the company would continue to experience low sales for a very long period. The company must already close the branch to maximize their profit.

Score: 1

Despite the fact that this will minimize the companyfs opportunity losses, the solution is very drastic and is very pessimistic.

Solution 2: Product Variation

The company may have variations on their present products that will cater to the taste of the customers in the area (Alabang). Examples of these are seasonal offers.

Score = 4

This SMART solution will help increase the companyfs market share if it will be able attract other customers targeted by their product variance.