Andy Food Court | Research Report

Dissertation

Table of Contents
Chapter 1: Introduction................................................................................................................... 4
1.1) Andy Food Court & Nature of Business..................................................................................4
1.2) Types of Food Products Sold by AF-Courts............................................................................4
1.3) Competitors......................................................................................................................... 5
1.4) Customers........................................................................................................................... 5
1.5) Process and Technology used................................................................................................6
1.6) Dissertation Objective..........................................................................................................6
1.8) Rationale for selecting the dissertation topic............................................................................7
1.9) Dissertation report structure..................................................................................................7
Chapter 2 Literature review............................................................................................................. 8
2.1) Strategic Management..........................................................................................................8
2.1.1) Resources, Capabilities, Core Competencies.....................................................................8
2.1.2) Competitive Advantages Comprising Low Cost and Differentiation..................................10
2.1.3) Environment................................................................................................................... 10
2.2) Supply chain-general perspective.........................................................................................11
2.2.1) Primary activities......................................................................................................... 11
2.2.1.1) Warehouse............................................................................................................... 11
2.2.1.2) Transportation........................................................................................................... 12
2.2.1.3) Process and Technology Used........................................................................................12
2.2.2) Support activities......................................................................................................... 13
2.3) Operation Management Concept..........................................................................................13
2.3.1) Operations Performance Objectives...............................................................................14
2.3.2) QSDFC (Quality, Speed, Dependability, Flexibility, and Cost)..........................................14
2.3.3) Business Logistics Management: Transportation, Warehouse, Distribution for Inbound and
Outbound Logistics............................................................................................................... 15
2.3.4) Concepts- Operation management concept.........................................................................16
2.3.4.1) Lean concept............................................................................................................ 16
2.3.4.2) Agile concept............................................................................................................ 16
2.3.4.3) JIT........................................................................................................................... 17
2.5) Food waste........................................................................................................................ 17
2.6) Marketing and Sales from Supply Chain Perspective..............................................................17
2.7) Evaluation Framework for Strategic Options.........................................................................18
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2.8) Research Methods.............................................................................................................. 19
2.9) Cochran Formula:.............................................................................................................. 20
Chapter 3: Methodology............................................................................................................... 21
3.1) Research approach............................................................................................................. 21
3.2) Data collection methods......................................................................................................21
3.2.1) Primary data collection method.....................................................................................21
3.3) Sample.............................................................................................................................. 21
3.4) Data Analysis Method........................................................................................................ 21
References................................................................................................................................... 30
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Chapter 1: Introduction
1.1) Andy Food Court & Nature of Business
The food industry is an ever-growing sector. Andy Food Courts (AF-Courts), a pseudonym,
connects people who like to have different local, western food dishes, etc. AF-Courts is a chain
of seven food courts that is a profit-based organization and the profitability comes from revenues
that are generated from customers who consumed food at the food-courts, take-aways and on-
line food orders and deliveries (Kandampull, et. al., 2015). AF-court is supported by its affiliate
Andy central kitchen (ACK) which serves as its food supply chain.
With the stupendous business growth in food sector, the level of market competition also
increases as smaller restaurants and other hawker-centers have started to establish numerous
outlets across Singapore island, covering the business district and housing estates. And it
becomes important for AF-courts to formulate discount and other attractive services for
customers who usually patronize their favorite restaurants (Bharwani and Jauhari, 2017).
Promotional food items offered to the regular consumers is a strategy to generate productive
outcome and retain a customer base in a competitive market. Advertisement is another strategy
over the competition in order to spread awareness about the AF-Court from time to time.
ACK is located in Senoko, the food manufacturing hub in northern part of Singapore. It is the
supply chain for all the four AF-Courts suppliers. As a food supply chain business, ACK is lean
in its primary and support activities for supplying and distributing of food supplies to all the AF-
Courts. Thus, ACK receives a variety of food supplies from local farmers and small distributors
through direct partnership with organic farms, local butchers, and other sources so as to receive
fresh products at lower costs.
1.2) Types of Food Products Sold by AF-Courts
The following are the types of food products that AF-Courts would prepare, cook, and sell:
(a) Economy rice with dishes comprising vegetables, fried eggs, various types of meat, and fried
fish;
(b) Local cuisines that are cooked based on ala-carte menu;
(c) Western food outlet that prepares chicken chop and pork chop;
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(d) Rice served with meat from chicken, duck, and beef;
(e) Beverages comprising tea, coffee, chocolate and soft drinks
(f) Local cake, snacks;
(g) Japanese food like teppanyaki; sushi comprising Japanese rolls and raw seafoods
(h) Vietnamese cuisine
(i) Malak, comprising Chinese spicy cuisines;
(j) Korean barbecue, comprising pork, chick and beef;
(k) Indian food, comprising Roti Prata, Mutton soup;
(l) Malay food like coconut rice, noodles, satay;
(m) Local pizza; and
(n) Laksa (curry noodles), and Yong Tau Foo (local bean curd food)
Please see Appendix 2 for more information.
1.3) Competitors
The following are different competitors of AF-Court:
a) Food Republic Singapore;
b) NTUC Food Fare;
c) Koufu;
d) Breadtalk, which is a local chain that sells breakfast and lunch dishes, and operates
Chinese restaurants.
1.4) Customers
Customers of AF-Courts are segmented in Singapore, based on their age and income in certain
township such as 25 to 35 years old customers whose income would categories them as middle-
income group. These customers are located in Sengkang, AMK, Toa Payoh, Woodlands, Jurong
East & West, Clementi Housing Estates as shown in figure 1.1. The main reason for eating at
food court by these customers are convenience, prompt cooking; competitive and affordable food
prices; fast and efficient services; no-smoking environment; and ample seating capacity.
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1.5) Process and Technology used
The use of a process approach is a strategic choice of a company. The process is a mixture of
interrelated functions that help to transform inputs into outcomes. The resources used in these
functions are manpower, and food ingredients. While inputs are food ingredients, man, machine,
method and the environment, the outcome is fast, good local food at affordable prices. The
process is measured in efficiency as well as effectiveness. It can be evaluated by the quality of
experience a customer has in fulfilling the service provided according to the requirements
(Ballou, 2007).
Maintaining the process helps to develop insight and tools that control business operations across
the departments for achieving desired goals. The effectiveness of process application reduces
stress and waste of resources while promoting consumer experience in the facility. With
technological advancement and changing demand of customers, food courts are resorting to
automate operations. Productive application of technology optimizes different business
operations, processes and it is cost-effective in the long run (Hurst, et. al., 2016). Booking a
table, bill payment, inventory control and so many other aspects are made easy through
technology. Technology is helpful to reduce errors and promote customer satisfaction.
Recognition technology is a significant emerging technology trend. However, its potential
practices in the hospitality industry are particularly interesting. In specifically, biometrics is
being implemented for ushering the new age for unified validations and it could benefit to hotel
procedure as well as, customer purchases (Cecil, Bozarth, and Handfield, 2008). Customers can
expect to be competent for interacting with hospitality firms across the different digital channels
as well as, receive hasty responses (Ballou, 2007).
1.6) Dissertation Objective
The dissertation objective is:
“To improve the competitive advantage of Andy Food Courts (AF-Courts) through operations
performance improvement in the ACK”.
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1.7) Dissertation Title
The dissertation title is “Improving the competitive advantages of AF-Courts through Operation
Performance Improvement in ACK”.
1.8) Rationale for selecting the dissertation topic
In the current market of increasing competition, projects that are strategically planned are
important to grow business activities and retain a higher business position. In this regards, AF-
Courts’ business operations have been chosen to reflect how by gaining support from ACK
operation performance improve in the primary and support activities, AF-courts would be able to
increase its competitive advantage.
1.9) Dissertation report structure
In this dissertation, different chapters would be written comprising introduction, literature
review, research methodology, data analysis, analyses and findings, evaluation, and conclusion
and recommendation.
In the introduction chapter, the researcher would focus on objective, research background,
research rationale, and company background. In Chapter 2, the researcher would review different
literatures through several secondary sources such as journal articles, textbooks, and online and
offline websites (Ethiraj et al., 2018).
In Chapter Three, Research Methodology would consider research philosophy, the research
method and its survey questionnaire would be formulated. Data collection method, data analysis
method, sampling and ethical consideration would be discussed. In Chapter Four, the researcher
would analyze the data. During the data analysis, findings would be supported by the literature
review. In chapter 5, analyses and findings would come out. In Chapter Six, key findings are
identified. In Chapter Seven, evaluation of the key findings would be done. In Chapter Eight,
recommendations are made. In Chapter Nine, Conclusion is presented. Personal development is
presented after the Conclusion in chapter 10 (Gans and Ryall, 2017).
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Chapter 2 Literature review
2.1) Strategic Management
Strategic management of resources and environment provides direction to an
organization. Strategic use of existing resources that are easily feasible helps to exploit
opportunities instead of trying new skills for every business operation. It further helps to gain
competitive advantages over other restaurants by offering greater and better value to customers
(Hitt and Ireland, 2017). The environment becomes an essential element of strategic management
in promoting competitiveness. Marketing products and services with lowered prices or providing
the higher quality would raise customer interest.
According to Ansoff et al. (2018) competence is a set of qualities that are controlled by all and
different firms within different sectors. Competences originated through resources, technology,
and human know-how. For becoming above average within the sector, a firm should possess a
key competence that is specific for the company. When a firm has implemented its resources and
competencies then a core competence would arise which would support the firm in order to
distinguish in the food sector.
2.1.1) Resources, Capabilities, Core Competencies
Moutinho and Vargas-Sanchez (2018) stated that resources could be addressed in different
manners within a firm. It could be tangible such as human, physical, operational, and financial.
Intangible factors are brand names, patents, know-how, registered designs, and legal rights.
These factors could be supportive of a firm in order to perform its actions. The food industry
shows that there are different free resources and other resources. Additionally, the food industry
has these resources such as conflict and competition, seasonality, low rewards and time,
immobility, and ownership and control.
According to Morden (2016) good practices of capabilities of firm and development of new
business approach would lead to obtaining competitive benefits in the industry. Another
significant part of resources is human resources that have knowledge, skills, and decision-
making competence of a firm. The competency for comprehending and assessing the human
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