Organizational Planning and Development Case Study

Organizational Planning and Development Case Study

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Organizational Planning and Development Case Study

Note: This is only fictional case.


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.

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In a way also increasing product awareness over a period of time, but product development will be very costly for the company and would just add up to the companyfs expenses.

Solution 3: Sales Promotion and Advertisement
Sales promotion refers to the provision of incentives to customers or to the distribution channel to stimulate demand for a product. Like product combos/group packages, VIP discount cards and price discounts.
Advertising is any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema, flyers etc. Advertising is intended to persuade and to inform.

Score = 5
This solution will be the cheapest way of possibly increasing the companyfs sales as well as product awareness and acceptance. All the criteria given are met.

4. Implementation and Monitoring
The marketing manager may recommend the following sales promotions to help the branch manager as part of their action plan to address the problem.

 Specific Recommendations
Display huge, attractive, noticeable tarpaulin bulletin board advertisements of the restaurant at the mall entrance and/or a few meters away from their location so as to inform the public of its products and placement. The place may be rented for at least a month, enough for customerfs product retention and awareness.

Distribution of flyers may also be done within the vicinity for at least a month. To launch product promotions, this may be conducted a week ahead until its duration to attract the customers.

If the restaurant is located within a mall, advertisements may also be considered in the movie houses.

After every month, the branch manager must provide progress reports to the operations manager to check the affectivity of the chosen solution, after evaluation, necessary adjustments should be done to maximize results if it be positive and discuss the matter during follow up meetings, otherwise, the group must re-plan their strategy.
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