Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Examining distinct food supply chain approaches in the industry and highlighting key stakeholders..................................................................................................................................1 P2. Discussing key principles associated to effective procurement and sourcing procedures for operation of food service.............................................................................................................3 M1.Analysing different approaches of food supply along with strategies of procurement which improves business effectiveness..................................................................................................4 TASK 2............................................................................................................................................4 P3. Assessing application of analytical tools...............................................................................4 P4. Evaluating various management practices which assist successful business operations......6 M2. Criticalevaluationof toolsandpracticesthatmanagersusestosupportbusiness operations.....................................................................................................................................7 D1. Providing justified addition to valid recommendation to support practices and strategies of management which enhance operations of company...................................................................7 TASK 3............................................................................................................................................7 P5. Discussion on ethical practices uses in particular food service company and impacts of them..............................................................................................................................................7 M3. Analysing different ethical practices and impacts they have on entire success of firm.......8 D2. Critical analyses of ethical practices and impacts they have on overall objectives of enterprise......................................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION The term food service management could be said to a broad process which have responsibility towards any kind of meal that is cooked outside the house. Food service industry engrosses outlets, restaurants, hotels and others which serve snacks, meals, etc for the purpose of proximate consumption on site. The purpose behind food service is supplying palatable food which is cooked under acceptable benchmarks of hygiene, sanitation along with aesthetically that is served within specified cost(Ali, Tan and Ismail, 2017). The report is all about PizzaExpress which is chain of international acclaimed restaurant group that have clients and customers in domestic and global market. It is a popular restaurant group that is UK based and has more than 470 restaurants in the nations along with nearby 100 in overseas market. Present report investigates approaches related to food supply chain addition to principles of procedures of procurement and sourcing. It also assess application of several analytical tools together with different management practices in food service companies. At last, the report explores significance of ethical management in company's success. TASK 1 P1. Examining distinct food supply chain approaches in the industry and highlighting key stakeholders Overview of various food service contexts The another name of food service is catering industry that specify those companies, businesses or any other establishment which prepares meals and delivers to end consumer. PizzaExpress is restaurant group in the industry that serves diverse number of meals and beverages to target population. Some of food service contexts are defined below: ï‚·Casual Dining:It is defined to full service restaurant which offers food at affordable price with fun and laid back atmosphere. Casual dining provides good experience to its diners with friendlier and relaxing ambience(Becken and Dolnicar, 2016). PizzaExpress is a kind of casual dining which provides its customers a relaxing, comfortable, and laid back surrounding with moderate priced menu. ï‚·Fast food and take away: The concept of fast food refers to commercial term that is restricted to food which is offered in restaurants or stores. Similarly, take away is cooked 1
meal that is purchased from food service company with intention to eat elsewhere. It is kind of food service which is prepared and served fastly.Fine dining: The food service type is sort of sit down restaurant which have dress codes and offers wide variety of meals at table of customer. PizzaExpress is fine dining restaurant which caters to upscale population together with serves quality food. Food supply chain approaches The word food supply chain or system is a process which defined about how food ends up from farmer to table of restaurant(Givens and Dunning, 2019). In respect to PizzaExpress, food supply chain covers all practices which are part of transforming foodstuffs into ready to eat food. Certain types of approaches related to food supply chain of PizzaExpress are below: Final supply chain: It is an approach of food supply chain that comprises participation of all members within flow or movement of products, capital, information and services that starts from suppliers and ends at consumer. In PizzaExpress, the approach is used as it includes equal participation of all organisational members in the process. Extended supply chain: The approach includes supplier's supplier, organisation, buyer along with main supplier in the process. The main focus of the chain is towards planning, developing, making, delivering along with returning. It extends scope of management beyond process of business that covers entire supply chain. Key stakeholders Stakeholders refers to member of groups that support business and its activities to gain success. In relevance to PizzaExpress, the stakeholder that are part of fully supply chain process are mentioned below: Farmer: The stakeholder is a person that is actively engaged in livelihood, economic or agricultural activities. In supply chain process of PizzaExpress, farmer is vital source to collect agricultural products. Processor: The stakeholder preserves together with process raw material to organisation so that consumers get food products in edible together with safe condition(Hall and Gössling, 2016). In PizzaExpress, processor have responsibility to preserve and further process the demanded products to the company in fine situation. 2
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Customer: The stakeholder is key for an organisation as they buys meals from food service industry. PizzaExpress serves millions of customers every week. It plays main role in supply chain process as their decisions, needs and opinion impacts supplier's decision. P2. Discussing key principles associated to effective procurement and sourcing procedures for operation of food service Procurement: The act or activity to obtain products for business purposes is termed as procurement. It is generally last act of buying and involves process to find addition to agree with terms and conditions to acquiring products from external source. In PizzaExpress, procurement is seen as core business function as it is nuanced as well as interwined with multiple core activities. While procuring material or any products, major principles of procurement that are followed mu managers of PizzaExpress are below: Principle of transparency: According to the principle, there must be openness as well as clarity among all parties that are part of procurement process(Jung, Kim and Bae, 2017). In PizzaExpress, managers follow principle of transparency so to ensure that there is clarity and opennessamongallpartiesinvolvedinprocurementprocess.Transparencyreflectsthat information related to procuring should be available to everyone that are contractors, suppliers, organisational management and service providers. Principle of Integrity:The principle states that these should be no collusion and corruption with suppliers or other stakeholders that are part of procurement process. It translated to reliability. Operational department of PizzaExpress works with principle of integrity in order to assure confidence in procurement process. The principle fosters the company to perform with honesty along with truthfulness. Sourcing: Finding balance among quality of materials addition to affordability is defined as sourcing. It arises prior making purchase and includes locating sources of products that business requires to meet customer satisfaction. In PizzaExpress, sourcing emphasis towards searching best together with least expensive supplier for products. Certain principles of sourcing process adopted in PizzaExpress are as discussed: Principle of value for money: The principle says that sourcing procedures should be carried out in proportion to the potentiality and requirements to manage outcomes, deliver better 3
results and calibrate for maximising efficiency(Kim, Choe, and Lee, 2016). In PizzaExpress, principle of value for money is adhered to obtain products as per monetary value that is paid by company and other related people in the process. Principle of traceability: It is one step back one step ahead principle that is adhered to determine origin and sources of food particularly art the time when ingredients of food are found faulty. In PizzaExpress, managers believes in sourcing quality food and for this purpose they initiates workings with the help of following principle of traceability so to have details of origin of food, sources and ingredients that are to be used or to use in the future. M1.Analysing different approaches of food supply along with strategies of procurement which improves business effectiveness In food supply organisations, there are various approaches that are used to supply food to end consumer. Some of food supply chain approaches that helped managers of PizzaExpress to improve effectiveness in performance are extended supply chain and final supply chain. At same time, food service contexts adopted in the restaurant group are casual dining and fine dining to servecustomerswitheffectiveness.Thekeyprocurementstrategieswhichimproves organisational efficiency to operate in competitive food service sector are risk management, total qualify methods, green purchasing, vendor development and global sourcing(Lee, 2017). TASK 2 P3. Assessing application of analytical tools Business managers uses various analytical tools to assess business performances. In context to PizzaExpress, assessment of application of various analytical tools are as follows: SWOT Analysis The strategic analytical tool which provides information about strengths, weaknesses, opportunities and threats of company. In restaurant group, the tool is applied for analysing internal environment and position in market. SWOT analysis of PizzaExpress is below: STRENGTHS ï‚·PizzaExpresshavealotofstrong aspects such as it is established a long ago and because of that it captured a large share of market. WEAKNESSES ï‚·It becomes complex for the restaurant group to find prime locations for the purposeofstructuresetofgolden arches(Ling and Wahab, 2020). 4
ï‚·It also serves variety of products that are different from the competitors like handmade pizzas, pizzas that are gluten free, etc. ï‚·The company can't cut down its prices as low as the others because it has more expenses so as to meet them the prices cannot be slashed. OPPORTUNITIES ï‚·As it is a known brand so it can take advantage of it by increasing sales in the online market. ï‚·PizzaExpresshaveopportunityof changing its menu and adding variosu dishesthatattractspeoplefrom overseas market. THREATS ï‚·Due to many rules and regulations, the firmhastodoitsworkingin accordancewithgovernmentlaws which can be changed so it posses as a threat for the firm. ï‚·Therestaurantisfacingastiff competition as more and more firms are entering this business and giving their products at cheap rates so as to lure customers. PESTEL Analysis Another strategic tool is PESTLE Analysis which aids in analysing external business factors and then incorporating strategies and programs for reaching identified organisational objectives. In PizzaExpress, the tool is applied for tracking environment wherein the company operates. PESTLE analysis have 6 factors that are assessed below in context to PizzaExpress: Political:These are factors which are related to the government like its stability, policies, rules and regulations, etc. PizzaExpress is a well established brand and it is operating since very long but if the government factors are not favourable it can affect its working and vice-versa. Economic:Itincludesfactorslikerateofemployment,exchange,inflation,etc. PizzaExpress is affected by these factors in a broader term as it can be very crucial in its working. If the economic factors are in favour it can have FDI and other major things that can help it in the long run(Lunkes, Rose and Lattanzi, 2020). Social:These are those factors which are related to the society like its growth rate of population, average age, etc. The firm that is PizzaExpress is directly related to these factors as it 5
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can affect it largely as any change in preferences, trend, culture, and belief have the potential to shift the market share on either side. Technological:Thefactorsliketechnologicaladvancement,updation,useofnew technology, etc. comes in it. PizzaExpress has to do research and analysis so as to chose the best alternative of technology that it can use for better product and services as it can have a major impact in the long run. Environmental:These include factors relating to environment. The firm PizzaExpress must shift towards the sustainable use of its resources as well as it must adopt new methods which are eco friendly. Legal:These are important factors which include laws, license, permits to do work, etc. PizzaExpress must work in accordance with the laws that are standardised. The firm must comply all the guidelines laid down for working so that it would not become a contender of breach of laws which can have a bad impact on the firm. P4. Evaluating various management practices which assist successful business operations Management practices-It refers to the activity that are undertaken by the management to ensure that the business must perform effectively and efficiently(Neto and Caldas, 2018). PizzaExpress is a big firm so it has to look after many things that can help in the growth and profitability of the firm. Some practices that support are explained in detail below- Selection-It is the most common method of selecting a candidate. In this type the best applicant is selected from various. PizzaExpress uses it as it needs a large employee base due to its size and it is very helpful in getting genuine candidates that are interested in doing job with the firm. It is beneficial for the firm as management can get candidates with the specific quality that they want in their employees. It has negative effect too as nepotism and favouritism can affect the selection of a candidate because management can try to get the candidate they like in the job. Rota management-It can be defined as the system in which candidates are employed for a specific period of time or for a part of a year in which customers are more than usual. PizzaExpress need large number of employees for a specific period in a year in which demand for pizzas are maximum so the firm uses this type of recruiting process. It can be negative for the company as people might be reluctant to work because it is of part time nature and individual chose a firm in which there is job security. 6
M2. Critical evaluation of tools and practices that managers uses to support business operations With food service entities, wide number of analytical tools and management practices are popular that support all kinds of operations of the business. In case with PizzaExpress, managers uses two analytical tools that are PESTLE analysis along with SWOT Analysis. As perTutu and Anfu(2019),ithavebeenevaluatedthatSWOTanalysisbenefitsincapitalisingon opportunities, understanding business better and developing resources. In contrary, the tool lacks prioritising issues and produce wide information which is many times not required. The other tool is PESTLE analysis that facilitates understanding for wider external business situations and encourages strategic thinking. However, as perQi and Roe (2017), it is critically evaluated that the tool fails to provide clear picture about what is happening in external world and includes risk of mishandling data. Management practices used within PizzaExpress are selection and rota management that support overall performance of the company. D1. Providing justified addition to valid recommendation to support practices and strategies of management which enhance operations of company To human resource managers of PizzaExpress, recommended practice is developing employee as when managers will train and improve knowledge of manpower then employees will work with higher morale and dedication to increase effectiveness of all categories of operations. At same time time, the management of food service establishment is recommended to adopt strategy of total quality management as it includes wide efforts for setting and making permanent surrounding in which all operations are improved with desired quality standards. TASK 3 P5. Discussion on ethical practices uses in particular food service company and impacts of them Ethical practices-It refers to the moral values that an individual must follow. Pizza Express is a big firm and the ethical practices followed are explained below- Corporate socialresponsibility-It refers to the responsibility of a company towards society and environment and they often include it in their planning and operation. This is an important part as firms try to contribute as much as they can which leads to overall growth (Neto and Caldas, 2018). Pizza Express fulfil their social responsibility by providing better product and services, increased employment opportunities, reduced price, special attention to disabled people and also giving equal opportunities to them that impact positively on the company and its 7
performance. It can fulfil its responsibility towards environment by using eco friendly ways in its production that can help in reducing the amount of carbon footprints. Also some part of profit can be given in charity to NGOs that are consistently working for the betterment of society and environment. Development of employees-It is a part of ethical practice in which overall development of employees are focussed. Pizza Express use it because it has a huge number of employees working for it so the firm must provide better training and development program to the workers. It must focus on improving the sill set of employees as it is beneficial for the company as well as from the individual point of view. As the employees are well developed it help in improving the productivity of the company as well as it help the individual in his future endeavours. M3. Analysing different ethical practices and impacts they have on entire success of firm AS per(Weber and Saunders-Hogberg (2018), it is analysed that ethical practices are concerned with beliefs related to moral right and wrong. Some ethical practices influence an organisation to make higher performance and impacts widely. For example, CSR is one of ethical practice followed in PizzaExpress that impacts on attracting customers that shares essential values. Moreover, other practice is of developing employee that impacts positively on growth and development of all staff members that are true organisational assets that have loyalty and attachment to contribute in business success. D2. Critical analyses of ethical practices and impacts they have on overall objectives of enterprise Ethical practices are guidelines for moral daily living that assist in improving business outcomes. According toHall and Gössling (2016), developing employee and CSR are major ethicalpracticethatsupportsobjectivesofPizzaExpress.Theseimpactsonbusinessby improving skill sets, handling unexpected situations and fulfilling responsibilities that business have towards society. All ethical practices impacts negatively and positively on a company. CONCLUSION As per the report, it is concluded that management of food service controls cost and encouragesprosperouseatery.Themanagementaidsorganisationalprofitabilitythrough preparing standards, sourcing distinct suppliers and serving customers with most healthy and tasty dishes. Food service contexts are fine dining, causal dining, fast food and take away. Key 8
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principles that are part of procurement stages are Principle of transparency, Principle of Integrity, at same time, principle of Sourcing are Principle of value for money and Principle of traceability. Management practices and ethical activities supports all operations of business and helps in reaching towards recognised objectives. 9
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