Dissertation: Operation Performance Improvement for AF-Courts' Success
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Thesis and Dissertation
AI Summary
This dissertation examines the competitive advantage of Andy Food Courts (AF-Courts) and its improvement through operational performance enhancements within the Andy Central Kitchen (ACK). The study delves into the food industry's competitive landscape, analyzing AF-Courts' business model, including its food products, competitors, and customer segments. It explores the strategic management of resources, capabilities, and core competencies, along with supply chain and operations management concepts, including lean and agile methodologies. The research methodology encompasses data collection and analysis to evaluate the impact of operational improvements on AF-Courts' performance. The dissertation reviews the literature on strategic management, supply chain, and operations management, while also considering factors like food waste and the role of marketing and sales. The objective is to identify strategies for enhancing AF-Courts' competitive position through improved operational efficiency, quality, and customer responsiveness.
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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
2
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
2
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
3
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
3
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;
4
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;
4
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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.
5
(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.
5
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”.
6
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”.
6
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).
7
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).
7
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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
8
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
8
skills within a firm is complex. Over the year, firms have made efforts in order to develop a
technique in order to assess the performance and skill of workforce.
Ansoff et al. (2018) viewed that competence is a set of qualities that is controlled by all and
different firms within different sectors. Competences originated through resources, technology,
and human know-how. For becoming above average within the food 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 and support the firm in order to
distinguish it in the food sector. These core competencies, which comprise superior efficiency,
superior quality, superior customer responsiveness, and superior innovation would desire
competitive advantageous for the companies (Jones and Hill, 2010).
2.1.1) Resources
Lasserre (2017) stated that there are different manners for assessing the resources by specificity,
by categories, and by performance. In this manner, categories would comprise financial
resources, physical resources, human resources, and intangible resources and then assesses it
qualitatively and quantitatively. Assessment by specificity is related to categorizing resources
into specific and non-specific resources.
Moreover, Meyer et al. (2017) stated that specific resources are related to ones that have
particular skills and knowledge as well as, non-specific are generally the ones i.e. basis for core
competencies. By performance, measures contribute to the internal and external performance of a
firm. The resources would have changed into the capabilities of the company since as themselves
they are not creative. Organizational capabilities are related to everything that aids a firm in
terms of keeping sound business and distinguish the firm in the industry. These capabilities as
well as, industry success factors would have to be considered in order to develop an effective
approach.
Good practices of capabilities of firm, and development of new approach would lead to obtaining
competitive benefits in the industry (Morden, 2016). 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 skills within a firm is complex and
9
technique in order to assess the performance and skill of workforce.
Ansoff et al. (2018) viewed that competence is a set of qualities that is controlled by all and
different firms within different sectors. Competences originated through resources, technology,
and human know-how. For becoming above average within the food 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 and support the firm in order to
distinguish it in the food sector. These core competencies, which comprise superior efficiency,
superior quality, superior customer responsiveness, and superior innovation would desire
competitive advantageous for the companies (Jones and Hill, 2010).
2.1.1) Resources
Lasserre (2017) stated that there are different manners for assessing the resources by specificity,
by categories, and by performance. In this manner, categories would comprise financial
resources, physical resources, human resources, and intangible resources and then assesses it
qualitatively and quantitatively. Assessment by specificity is related to categorizing resources
into specific and non-specific resources.
Moreover, Meyer et al. (2017) stated that specific resources are related to ones that have
particular skills and knowledge as well as, non-specific are generally the ones i.e. basis for core
competencies. By performance, measures contribute to the internal and external performance of a
firm. The resources would have changed into the capabilities of the company since as themselves
they are not creative. Organizational capabilities are related to everything that aids a firm in
terms of keeping sound business and distinguish the firm in the industry. These capabilities as
well as, industry success factors would have to be considered in order to develop an effective
approach.
Good practices of capabilities of firm, and development of new approach would lead to obtaining
competitive benefits in the industry (Morden, 2016). 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 skills within a firm is complex and
9
considers a longer time. Over the years, firms have made efforts to develop the technique for
assessing the workforce’s performance and skill.
2.1.2) Competitive Advantages Comprising Low Cost and Differentiation
According to Fosso Wamba et al. (2018), under low cost strategy, company should have
thorough knowledge regarding costs. Company should be willing for standardize its services for
managing expenses that imply exceptions requested through potential consumers must be
excluded and limited for keeping cost down.
Moreover, Feng-Seng (2015) opined that differentiation entails being observed by market
environment as having a moderately higher worth to consumers as compared to services of
competitors as well as, it is at the same and higher pricing level. Distinct customers are not
purchasing at the same market price. Moreover, under differentiation strategy, company should
totally comprehend the needs and preferences of consumers. It should be driven to be creative to
continually identify the needs and wants. Moreover, it should develop its brand for keeping its
transparency and position.
2.1.3) Environment
According to Heizer et al. (2017), human resources are closely associated with the culture of an
organization. Moreover, human skills should be in synchronization with the situation of the firm
in order to be competent for demonstrating its better performance. Additionally, internal
collaboration is closely influenced by firm culture. The culture of the firm could be associated
with sets of values, beliefs, and norms. Some of these factors can affect the culture of a firm such
as the philosophy of the founder; structure of the firm; management style used within different
departments; interpersonal associations; and the relationship with the employees.
Moreover, Hitt et al. (2016) stated that influencing factors are the nature of practices that
involves a firm; location of the firm; and the application of technology. The significance of
organization culture is effective for persuading different changes that are not always supposed.
These changes are employees’ attitudes; productivity; employee and industrial relations; morale
10
assessing the workforce’s performance and skill.
2.1.2) Competitive Advantages Comprising Low Cost and Differentiation
According to Fosso Wamba et al. (2018), under low cost strategy, company should have
thorough knowledge regarding costs. Company should be willing for standardize its services for
managing expenses that imply exceptions requested through potential consumers must be
excluded and limited for keeping cost down.
Moreover, Feng-Seng (2015) opined that differentiation entails being observed by market
environment as having a moderately higher worth to consumers as compared to services of
competitors as well as, it is at the same and higher pricing level. Distinct customers are not
purchasing at the same market price. Moreover, under differentiation strategy, company should
totally comprehend the needs and preferences of consumers. It should be driven to be creative to
continually identify the needs and wants. Moreover, it should develop its brand for keeping its
transparency and position.
2.1.3) Environment
According to Heizer et al. (2017), human resources are closely associated with the culture of an
organization. Moreover, human skills should be in synchronization with the situation of the firm
in order to be competent for demonstrating its better performance. Additionally, internal
collaboration is closely influenced by firm culture. The culture of the firm could be associated
with sets of values, beliefs, and norms. Some of these factors can affect the culture of a firm such
as the philosophy of the founder; structure of the firm; management style used within different
departments; interpersonal associations; and the relationship with the employees.
Moreover, Hitt et al. (2016) stated that influencing factors are the nature of practices that
involves a firm; location of the firm; and the application of technology. The significance of
organization culture is effective for persuading different changes that are not always supposed.
These changes are employees’ attitudes; productivity; employee and industrial relations; morale
10
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and goodwill of workforces; and the attractiveness of the firm as an employer. These factors may
increase the chances of high business returns.
2.2) Supply chain-general perspective
Frynas and Mellahi (2015) stated that there are certain processes that are a key foundation for
food supply chain management such as transformation of raw material, processing,
manufacturing and semi-finished food products.
A supply chain has to interlink the firm and its suppliers in order to reduce cost, and avoid time-
consuming and tedious processes (Stadtler, 2015). Supply chain comprises inbound logistics,
operations, outbound logistics, marketing and sales, and customer services. Poor planning that is
based on outdated data, along with a plan that does not reflect present reality will generate issue.
The need of a quick response to customer demand requires optimized supply to the business
leading to a hundred percent satisfaction at minimal cost for a meal.
2.2.1) Primary activities
The primary activities comprise five activities. These activities directly consider selling and
production of actual product. They also embody the physical development of product, its sales,
transferring to the purchasers and after sale support. These activities are categorized into inbound
logistics, operations, outbound logistics, marketing & sales, as well as, services.
2.2.1.1) Warehouse
According to Fahimnia et al. (2015) under the food warehouse atmosphere, better warehouse
management is translated into better space utilization. A critical component to handle perishable
food items should be managed by the operations system with the promptness to prevent
contamination and spoilage. Additionally, high volume picks items could be strategically placed
together as well as, near the door. More logical space allocations, and leaner inventory can be
achieved, leading a decline in inventory levels and inventory holding costs.
Moreover, Swink et al. (2017) evaluated that inventory costs can be decreased through visibility
in the food warehouses through using the Warehouse Management System (WMS). This type of
11
increase the chances of high business returns.
2.2) Supply chain-general perspective
Frynas and Mellahi (2015) stated that there are certain processes that are a key foundation for
food supply chain management such as transformation of raw material, processing,
manufacturing and semi-finished food products.
A supply chain has to interlink the firm and its suppliers in order to reduce cost, and avoid time-
consuming and tedious processes (Stadtler, 2015). Supply chain comprises inbound logistics,
operations, outbound logistics, marketing and sales, and customer services. Poor planning that is
based on outdated data, along with a plan that does not reflect present reality will generate issue.
The need of a quick response to customer demand requires optimized supply to the business
leading to a hundred percent satisfaction at minimal cost for a meal.
2.2.1) Primary activities
The primary activities comprise five activities. These activities directly consider selling and
production of actual product. They also embody the physical development of product, its sales,
transferring to the purchasers and after sale support. These activities are categorized into inbound
logistics, operations, outbound logistics, marketing & sales, as well as, services.
2.2.1.1) Warehouse
According to Fahimnia et al. (2015) under the food warehouse atmosphere, better warehouse
management is translated into better space utilization. A critical component to handle perishable
food items should be managed by the operations system with the promptness to prevent
contamination and spoilage. Additionally, high volume picks items could be strategically placed
together as well as, near the door. More logical space allocations, and leaner inventory can be
achieved, leading a decline in inventory levels and inventory holding costs.
Moreover, Swink et al. (2017) evaluated that inventory costs can be decreased through visibility
in the food warehouses through using the Warehouse Management System (WMS). This type of
11
visibility endorses higher visibility of shipments of materials into the warehouse; and provides
better utilization of personnel and space. The WMS facilitates a constant stream of data for the
user that permits them to optimize their performance within the warehouse. Along with this, food
warehouse that uses WMS would achieve comprehensive transparency in their warehouse;
optimize warehouse activities, and increase productivity.
With the real requirement for promptly pushing fresh products by using WMS, it facilitates the
type of high-end functionality that could deal with large volumes of difficult orders (Meredith
and Shafer, 2019). With significant integration of advanced warehouse technology and
engagement of employees, food warehouses, particularly those managing fresh foods, would
become a vibrant center of productivity and efficiency; and error-proofing, making it favorable
for improved food materials storage and handling; and safety from mixed up; deterioration and
contamination
2.2.1.2) Transportation
Transportation is imperative field. It is known that vehicle selection and routing are important
because transportation could directly impact the delivery, in-transit storage and protection of
food materials from environmental elements such as heat, rain and dust would affect
organizational performance (Heizer et al., 2017).
Moreover, the food industry is usually confronted with operational problems that affect the
growth rate of particular products and services (Hitt et al., 2016).
2.2.1.3) Process and Technology Used
Warehousing and warehouse material handling equipment could be integrated through using
WMS, Order Management System (OMS), and Transportation Management System (Ballou,
2007; Harrison and Van Hoek, 2008).
In the immediate future, artificial intelligence and data assessment (Lynch, 2018), and ‘Internet
of Things’ would be used in business logistics functions together with smart devices
12
better utilization of personnel and space. The WMS facilitates a constant stream of data for the
user that permits them to optimize their performance within the warehouse. Along with this, food
warehouse that uses WMS would achieve comprehensive transparency in their warehouse;
optimize warehouse activities, and increase productivity.
With the real requirement for promptly pushing fresh products by using WMS, it facilitates the
type of high-end functionality that could deal with large volumes of difficult orders (Meredith
and Shafer, 2019). With significant integration of advanced warehouse technology and
engagement of employees, food warehouses, particularly those managing fresh foods, would
become a vibrant center of productivity and efficiency; and error-proofing, making it favorable
for improved food materials storage and handling; and safety from mixed up; deterioration and
contamination
2.2.1.2) Transportation
Transportation is imperative field. It is known that vehicle selection and routing are important
because transportation could directly impact the delivery, in-transit storage and protection of
food materials from environmental elements such as heat, rain and dust would affect
organizational performance (Heizer et al., 2017).
Moreover, the food industry is usually confronted with operational problems that affect the
growth rate of particular products and services (Hitt et al., 2016).
2.2.1.3) Process and Technology Used
Warehousing and warehouse material handling equipment could be integrated through using
WMS, Order Management System (OMS), and Transportation Management System (Ballou,
2007; Harrison and Van Hoek, 2008).
In the immediate future, artificial intelligence and data assessment (Lynch, 2018), and ‘Internet
of Things’ would be used in business logistics functions together with smart devices
12
Moreover, smart devices will replace the traditional method of payment that uses cash or cheque
has taken a turn with the feasibility of artificial intelligence in the market today. Hawker centers
or a central kitchen, different methods of e-payment is rising. With payment made easy through
phone and card, no customers have to worry about not having cash on them (Feng-Seng, 2015).
Hundreds of hawker stalls have started accepting cashless payments via multiple approved
methods as initiated by the Singaporean government, unifying cashless payments nationwide.
Moreover, central kitchens already profoundly apply a cashless payment system into their
operations. Although cash payment remains available at every stall and central kitchens, the
availability of cashless payment options makes the transfer of money error-free and safe between
a customer and the establishment
2.2.2) Support activities
The support activities, comprise firm infrastructure, human resource management, technology
development, procurement. These activities improve the performance of the primary activities
that constitute the supply chain. Thus, with the support activities, the organization is able to
elevate its supply chain to become the value chain.
2.3) Operation Management Concept
Operations management is the initiation of business practices that developed the highest form of
efficiency in a company. The aim is to use transforming resources to convert transformed
resources into valued-added products and services (Slack et al., 2016) through minimizing cost,
and maximizing the organization’s profits and achieving the customer’s order winning criteria. It
is the responsibility of the operations manager to manage the operations and organize quality
inspections, supervise, recruit and train employees (Kiehtreiber et al., 2018). Moreover, the
employees are to create value, maximize the use of technology to increase the efficiency of
producing products and services as well as of equipment. This is to assist employees in finishing
their respective activities to deliver value so as to achieve the order winning criteria, and achieve
the operations performance objectives.
13
has taken a turn with the feasibility of artificial intelligence in the market today. Hawker centers
or a central kitchen, different methods of e-payment is rising. With payment made easy through
phone and card, no customers have to worry about not having cash on them (Feng-Seng, 2015).
Hundreds of hawker stalls have started accepting cashless payments via multiple approved
methods as initiated by the Singaporean government, unifying cashless payments nationwide.
Moreover, central kitchens already profoundly apply a cashless payment system into their
operations. Although cash payment remains available at every stall and central kitchens, the
availability of cashless payment options makes the transfer of money error-free and safe between
a customer and the establishment
2.2.2) Support activities
The support activities, comprise firm infrastructure, human resource management, technology
development, procurement. These activities improve the performance of the primary activities
that constitute the supply chain. Thus, with the support activities, the organization is able to
elevate its supply chain to become the value chain.
2.3) Operation Management Concept
Operations management is the initiation of business practices that developed the highest form of
efficiency in a company. The aim is to use transforming resources to convert transformed
resources into valued-added products and services (Slack et al., 2016) through minimizing cost,
and maximizing the organization’s profits and achieving the customer’s order winning criteria. It
is the responsibility of the operations manager to manage the operations and organize quality
inspections, supervise, recruit and train employees (Kiehtreiber et al., 2018). Moreover, the
employees are to create value, maximize the use of technology to increase the efficiency of
producing products and services as well as of equipment. This is to assist employees in finishing
their respective activities to deliver value so as to achieve the order winning criteria, and achieve
the operations performance objectives.
13
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2.3.1) Operations Performance Objectives
The following are basic operations performance objectives:
a) To enhance the Quality of operators
b) To increase the Speed of operations
c) To enhance the Dependability of operation
d) To improve the Flexibility in operations
e) To reduce the Cost of operations
2.3.2) QSDFC (Quality, Speed, Dependability, Flexibility, and Cost)
2.3.2.1) Quality
Operations management helps in improving the quality of the operations output such that the
quality of food and services consistently conform with the quality expectations of consumers.
This conformance has a major impact on customer satisfaction and confidence that leads to
customer retention.
2.3.2.2) Speed
Operations management helps to increase the speed of product or service delivery. Speed needs
to be faster the moment the customer request for products and services. The key advantage to
customers for speed in delivery of products and services is that the customers would receive the
products and services in shorter time, cutting down their waiting time for the business
transactions.
Fast responses in services would help to achieve superior efficiency and superior customer
responsiveness, thus enhancing the organization’s competitive advantage.
2.3.2.3) Dependability
Operations management helps in improving the dependability of the operations. It shows that
dependability indicates doing things on time for customers that is exactly when they are required
or at least as they were promised. Additionally, customers may only judge the dependability
operations from the delivery of the products and services.
14
The following are basic operations performance objectives:
a) To enhance the Quality of operators
b) To increase the Speed of operations
c) To enhance the Dependability of operation
d) To improve the Flexibility in operations
e) To reduce the Cost of operations
2.3.2) QSDFC (Quality, Speed, Dependability, Flexibility, and Cost)
2.3.2.1) Quality
Operations management helps in improving the quality of the operations output such that the
quality of food and services consistently conform with the quality expectations of consumers.
This conformance has a major impact on customer satisfaction and confidence that leads to
customer retention.
2.3.2.2) Speed
Operations management helps to increase the speed of product or service delivery. Speed needs
to be faster the moment the customer request for products and services. The key advantage to
customers for speed in delivery of products and services is that the customers would receive the
products and services in shorter time, cutting down their waiting time for the business
transactions.
Fast responses in services would help to achieve superior efficiency and superior customer
responsiveness, thus enhancing the organization’s competitive advantage.
2.3.2.3) Dependability
Operations management helps in improving the dependability of the operations. It shows that
dependability indicates doing things on time for customers that is exactly when they are required
or at least as they were promised. Additionally, customers may only judge the dependability
operations from the delivery of the products and services.
14
2.3.2.4) Flexibility
Operations management helps in improving the flexibility of the operations. It includes
competency to change the operations; how it is performing; and when it is performing it.
Flexibility improves customer responsiveness, and thus enhances the competitive advantage of
organization.
2.3.2.5) Cost
Operations management helps in reducing the cost of operations. The reduced cost of producing
products and services by ACK would reduce the price to their consumers. Thus, with reduced
cost, the competitive advantage of low-cost leadership for the organization can be achieved.
2.3.3) Business Logistics Management: Transportation, Warehouse, Distribution for
Inbound and Outbound Logistics
Logistics is the flow in the management of materials or finished goods from origin to
consumption and meeting the customer requirements. Logistic management is important as it
helps to reduce unnecessary costs related to logistical activities. Food industry gets the
opportunity to partner with other businesses offering warehousing and transportation facilities.
Successful management of logistics demands the company to coordinate its goals and policies in
between several stakeholders across a supply chain (Fosso et. al., 2018). It aids in the
performance of a supply chain by improving overall management.
Logistics is the management of the flow of goods between the point of consumption and point of
shipment for accomplishing needs of the firms and customers (Addo-Tenkorang and Helo, 2016)
The logistics of physical items generally entails a combination of data flow, production,
packaging, transportation, warehousing, security, material handling, and inventory. The
difficulties faced by logistics management could be assessed, modeled, visualized, as well as,
optimized through dedicated simulation software.
15
Operations management helps in improving the flexibility of the operations. It includes
competency to change the operations; how it is performing; and when it is performing it.
Flexibility improves customer responsiveness, and thus enhances the competitive advantage of
organization.
2.3.2.5) Cost
Operations management helps in reducing the cost of operations. The reduced cost of producing
products and services by ACK would reduce the price to their consumers. Thus, with reduced
cost, the competitive advantage of low-cost leadership for the organization can be achieved.
2.3.3) Business Logistics Management: Transportation, Warehouse, Distribution for
Inbound and Outbound Logistics
Logistics is the flow in the management of materials or finished goods from origin to
consumption and meeting the customer requirements. Logistic management is important as it
helps to reduce unnecessary costs related to logistical activities. Food industry gets the
opportunity to partner with other businesses offering warehousing and transportation facilities.
Successful management of logistics demands the company to coordinate its goals and policies in
between several stakeholders across a supply chain (Fosso et. al., 2018). It aids in the
performance of a supply chain by improving overall management.
Logistics is the management of the flow of goods between the point of consumption and point of
shipment for accomplishing needs of the firms and customers (Addo-Tenkorang and Helo, 2016)
The logistics of physical items generally entails a combination of data flow, production,
packaging, transportation, warehousing, security, material handling, and inventory. The
difficulties faced by logistics management could be assessed, modeled, visualized, as well as,
optimized through dedicated simulation software.
15
Moreover, logistics focuses on practices of handling products that entail transportation,
distribution, storage, packaging, and processing. Although business logistics entail different
practices, it is related to sectors of transportation, inventory planning, and logistics services
(Camerinelli, 2016).
2.3.4) Concepts- Operation management concept
2.3.4.1) Lean concept
Lean manufacturing adds value for the consumer due to the product or service producer spending
less work and time; and incurring minimal waste in resources (Kusi-Sarpong et al., 2015).
Toyota developed the principle of lean manufacturing which could be practiced in other
industries, such as banking, and healthcare. One of the major industries that could make a great
application of lean manufacturing is the foodservice industry. This concept is effective for
improving food preparation that uses resources with reduction or avoidance of wastage in
material, material handling, and quality rejects (Kusi-Sarpong et al., 2015).
In reducing waste, it is essential to evaluate the available ingredients, and materials stock in
regard to meeting different consumer preferences (Stadtler, 2015). Moreover, the examination of
food to be prepared could provide a way for the organization to make suitable decisions in favor
of producing certain food items.
2.3.4.2) Agile concept
Agile concept is related to responses of fast-moving flow of food products in the current food
sectors. Through application tools and training, and procedures, lean concept can focus promptly
in responding to consumer needs, while producing higher output of quality
(Trigeorgis and Reuer, 2017).
Agile concept addresses the complex challenges that are often overcome by face-to-face
communications (Morden, 2016). It is a more significant mode for work. Agile does away to a
lot of busywork. It does not avoid the documentation and associated procedures. Additionally, it
is more about taking actions than streamlining.
16
distribution, storage, packaging, and processing. Although business logistics entail different
practices, it is related to sectors of transportation, inventory planning, and logistics services
(Camerinelli, 2016).
2.3.4) Concepts- Operation management concept
2.3.4.1) Lean concept
Lean manufacturing adds value for the consumer due to the product or service producer spending
less work and time; and incurring minimal waste in resources (Kusi-Sarpong et al., 2015).
Toyota developed the principle of lean manufacturing which could be practiced in other
industries, such as banking, and healthcare. One of the major industries that could make a great
application of lean manufacturing is the foodservice industry. This concept is effective for
improving food preparation that uses resources with reduction or avoidance of wastage in
material, material handling, and quality rejects (Kusi-Sarpong et al., 2015).
In reducing waste, it is essential to evaluate the available ingredients, and materials stock in
regard to meeting different consumer preferences (Stadtler, 2015). Moreover, the examination of
food to be prepared could provide a way for the organization to make suitable decisions in favor
of producing certain food items.
2.3.4.2) Agile concept
Agile concept is related to responses of fast-moving flow of food products in the current food
sectors. Through application tools and training, and procedures, lean concept can focus promptly
in responding to consumer needs, while producing higher output of quality
(Trigeorgis and Reuer, 2017).
Agile concept addresses the complex challenges that are often overcome by face-to-face
communications (Morden, 2016). It is a more significant mode for work. Agile does away to a
lot of busywork. It does not avoid the documentation and associated procedures. Additionally, it
is more about taking actions than streamlining.
16
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Agile focuses on customer associations and customer feedback. It applies insights about every
internal procedure. It could provide effective results when used with modern technologies
(Frynas and Mellahi, 2015).
2.3.4.3) JIT
Just-in-time (JIT) inventory is a strategy which producers utilize for gaining efficiency as well as
declining waste by receiving products since they are required in the manufacturing process. As a
result, it aids in reducing inventory levels and holding costs (Meyer et al., 2017).
Moreover, JIT eliminates the waste related to overproduction, waiting for material, as well as,
holding the excess inventory. Additionally, JIT requires that the manufacturer produces only
what is required; when it is required; and what amount is required (Hill, 2017).
JIT inventory lets producers to decrease their overhead expenses while ensuring that inventories
are available to produce their products (Lasserre, 2017). This can permit a customer of the
company to be better served at reduced cost. Moreover, through practicing the JIT model, a
producer has better control over its whole manufacturing process, making it easier to respond to
customer needs (Morden, 2016). Additionally, the company would achieve reduced cost on any
unsold inventory as the inventory level is already low (Ansoff et al., 2018).
2.5) Food waste
The growing population and technological advancement had overshadowed the issue related to
food waste for a long time. From household to restaurants, unconsumed food was wasted on a
large scale. The Singapore food industry is championing sustainable methods and developing
innovative dining solutions. Food waste is a bigger issue than before with the increasing
population (Pirani and Arafat, 2016). It is important to understand that restaurants and food
courts must not only focus on evolving business but also adapt to new ideas and technologies to
minimize food waste in the recipe of food items on the menu.
2.6) Marketing and Sales from Supply Chain Perspective
Marketing and Sales play an important part in the supply chain process through building good
customer relationship for the supply chain operations. Marketing and Sales assist in providing
17
internal procedure. It could provide effective results when used with modern technologies
(Frynas and Mellahi, 2015).
2.3.4.3) JIT
Just-in-time (JIT) inventory is a strategy which producers utilize for gaining efficiency as well as
declining waste by receiving products since they are required in the manufacturing process. As a
result, it aids in reducing inventory levels and holding costs (Meyer et al., 2017).
Moreover, JIT eliminates the waste related to overproduction, waiting for material, as well as,
holding the excess inventory. Additionally, JIT requires that the manufacturer produces only
what is required; when it is required; and what amount is required (Hill, 2017).
JIT inventory lets producers to decrease their overhead expenses while ensuring that inventories
are available to produce their products (Lasserre, 2017). This can permit a customer of the
company to be better served at reduced cost. Moreover, through practicing the JIT model, a
producer has better control over its whole manufacturing process, making it easier to respond to
customer needs (Morden, 2016). Additionally, the company would achieve reduced cost on any
unsold inventory as the inventory level is already low (Ansoff et al., 2018).
2.5) Food waste
The growing population and technological advancement had overshadowed the issue related to
food waste for a long time. From household to restaurants, unconsumed food was wasted on a
large scale. The Singapore food industry is championing sustainable methods and developing
innovative dining solutions. Food waste is a bigger issue than before with the increasing
population (Pirani and Arafat, 2016). It is important to understand that restaurants and food
courts must not only focus on evolving business but also adapt to new ideas and technologies to
minimize food waste in the recipe of food items on the menu.
2.6) Marketing and Sales from Supply Chain Perspective
Marketing and Sales play an important part in the supply chain process through building good
customer relationship for the supply chain operations. Marketing and Sales assist in providing
17
data about product availability, price, track, marketing campaigns and sale data (Kozlenkova, et
al., 2015). When the partners of the supply chain have the right kind of market cognizance, it
adds up to the value and plays the role of the proactive element in offering products and services.
2.7) Evaluation Framework for Strategic Options
2.7.1) Suitability
It is the key for whether or not the strategic option would do what the company wishes it to
perform. It is usually evaluated through distinct criteria, which is generally significant for the
company and business-like expectation suitability, capability suitability, as well as,
environmental suitability. These individual categories related to suitability should be classified
further in order to demonstrate the specific needs of company.
For assessing the suitability about business strategy, different questions could be asked, such as
“does strategy uses the strength of firm significantly; does the approach overcome the
complexities that were addressed in assessment and does the strategy fall in line with business
goals that it wants for achieving?”
2.7.2) Acceptability
The acceptability concept of Suitability, Acceptability, feasibility (SAFe) framework is related to
measuring risk, return as well as, stakeholder reactions that resulted from the specific approach.
Along with this, returns would be identifying according to the advantage that stakeholders are
expecting, and can be financial and non-financial. Calculation of return could be performed
through any specified techniques like real-options analysis, profitability analysis, cost-benefit
analysis as well as, stakeholder value analysis. With respect to risk, the chances of failure of the
strategy and any financial losses, corporate impact can be increased should be considered.
Moreover, risk could be identified by the effect on sensitivity and liquidity analysis as well as,
stakeholder reactions for addressing how acceptable strategy is.
2.7.3) Feasibility
In the context of feasibility, the SAFe framework could be highly used by firm. It helps to
identify the business resources, abilities, and aptitude in order to execute the strategy as it is the
18
al., 2015). When the partners of the supply chain have the right kind of market cognizance, it
adds up to the value and plays the role of the proactive element in offering products and services.
2.7) Evaluation Framework for Strategic Options
2.7.1) Suitability
It is the key for whether or not the strategic option would do what the company wishes it to
perform. It is usually evaluated through distinct criteria, which is generally significant for the
company and business-like expectation suitability, capability suitability, as well as,
environmental suitability. These individual categories related to suitability should be classified
further in order to demonstrate the specific needs of company.
For assessing the suitability about business strategy, different questions could be asked, such as
“does strategy uses the strength of firm significantly; does the approach overcome the
complexities that were addressed in assessment and does the strategy fall in line with business
goals that it wants for achieving?”
2.7.2) Acceptability
The acceptability concept of Suitability, Acceptability, feasibility (SAFe) framework is related to
measuring risk, return as well as, stakeholder reactions that resulted from the specific approach.
Along with this, returns would be identifying according to the advantage that stakeholders are
expecting, and can be financial and non-financial. Calculation of return could be performed
through any specified techniques like real-options analysis, profitability analysis, cost-benefit
analysis as well as, stakeholder value analysis. With respect to risk, the chances of failure of the
strategy and any financial losses, corporate impact can be increased should be considered.
Moreover, risk could be identified by the effect on sensitivity and liquidity analysis as well as,
stakeholder reactions for addressing how acceptable strategy is.
2.7.3) Feasibility
In the context of feasibility, the SAFe framework could be highly used by firm. It helps to
identify the business resources, abilities, and aptitude in order to execute the strategy as it is the
18
key to its success. Hence, financial feasibility requires the organization to be evaluated by
assessing and forecasting its cash-flows, developing break-even analysis as well as, a number of
other financial measurements.
Other questions that should be asked with respect to feasibility of strategy is related to how much
equipment, manpower, materials, and management power a firm has and asking themselves that
do they have organizational structure as well as, markets required to create a feasible strategy
work.
2.8) Research Methods
2.8.1) Qualitative method
Qualitative research method is illustrated as a procedure that emphasizes on creating information
via open-ended as well as, conversational interaction. Qualitative research techniques are
intended for researching the behavior, and perception about target respondents with respect to
specific topic. There are several kinds of qualitative research techniques such as focus groups, in-
depth interview, content analysis, ethnographic investigation, as well as, case study
investigations. The outcomes of these qualitative techniques are highly descriptive, and
inferences could be drawn easily from information that are collected.
2.8.2) Quantitative method
Quantitative method focuses on objective measurements as well as, statistical, mathematical and
numerical assessment of data gathered via polls, surveys, questionnaires, and, by manipulating
pre-existing statistical information using computational tools. This investigation deals in logic,
objective stances, and, numbers. Along with this, quantitative investigation emphasizes on
numeric and unchanging detailed information; and convergent logic as compared to divergent
reasoning.
2.8.3) Mixed method
Mixed method research is a methodology for conducting investigation that entails gathering,
assessing, and integrating quantitative and qualitative investigation. Through integrating the both
19
assessing and forecasting its cash-flows, developing break-even analysis as well as, a number of
other financial measurements.
Other questions that should be asked with respect to feasibility of strategy is related to how much
equipment, manpower, materials, and management power a firm has and asking themselves that
do they have organizational structure as well as, markets required to create a feasible strategy
work.
2.8) Research Methods
2.8.1) Qualitative method
Qualitative research method is illustrated as a procedure that emphasizes on creating information
via open-ended as well as, conversational interaction. Qualitative research techniques are
intended for researching the behavior, and perception about target respondents with respect to
specific topic. There are several kinds of qualitative research techniques such as focus groups, in-
depth interview, content analysis, ethnographic investigation, as well as, case study
investigations. The outcomes of these qualitative techniques are highly descriptive, and
inferences could be drawn easily from information that are collected.
2.8.2) Quantitative method
Quantitative method focuses on objective measurements as well as, statistical, mathematical and
numerical assessment of data gathered via polls, surveys, questionnaires, and, by manipulating
pre-existing statistical information using computational tools. This investigation deals in logic,
objective stances, and, numbers. Along with this, quantitative investigation emphasizes on
numeric and unchanging detailed information; and convergent logic as compared to divergent
reasoning.
2.8.3) Mixed method
Mixed method research is a methodology for conducting investigation that entails gathering,
assessing, and integrating quantitative and qualitative investigation. Through integrating the both
19
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qualitative and quantitative research, an investigator can gain depth and breadth knowledge and,
corroboration when offsetting the weaknesses to use each approach. It also facilitates more
inclusive and complete knowledge regarding research issue as compared to either quantitative or
qualitative approaches. It facilitates the strengths that may offset to weaknesses about
quantitative and qualitative investigation.
2.9) Cochran Formula:
N= 4 P(100− p)
L2
The Cochran formula permits the calculating of the ideal sample size at a desired extent of
precision; estimated proportion of attribute available in population; and at the desired level of
confidence, such that
N = No. of observations
P = Percentage of activity of interest
L = degree of accuracy
20
corroboration when offsetting the weaknesses to use each approach. It also facilitates more
inclusive and complete knowledge regarding research issue as compared to either quantitative or
qualitative approaches. It facilitates the strengths that may offset to weaknesses about
quantitative and qualitative investigation.
2.9) Cochran Formula:
N= 4 P(100− p)
L2
The Cochran formula permits the calculating of the ideal sample size at a desired extent of
precision; estimated proportion of attribute available in population; and at the desired level of
confidence, such that
N = No. of observations
P = Percentage of activity of interest
L = degree of accuracy
20
Chapter 3: Methodology
3.1) Research approach
The research approach uses secondary research supported by qualitative research to determine
the views, experiences and feedbacks by the people who patronizes AF-Courts.
The abundance of sources of information would help to complete the study with effectiveness
(Thornhill, 2015).
3.2) Data collection methods
The methods used in the completion of the study are primary as well as secondary data collection
methods. Primary data will be collected by conducting surveys, whereas, secondary data will be
gathered from researching various sources such as journals, articles, and books.
3.2.1) Primary data collection method
3.2. The questionnaire sampling technique comprises 30 customers. The provision of a set of
questions to be filled by the customers in the form of feedback will help to analyze the
effectiveness of the company. The qualitative approach would yield respondents’ responses
which are analyzed through using descriptive statistics. While the descriptive statistics are basic
in nature, and does not seek to establish hypotheses, they are adequate for summarizing the
views, experiences, and feedback that are expressed in the survey responses.
3.3) Sample
Sample sizing: The Researcher had sent a pilot question to 30 respondents based on purposive
and convenience sampling. It would aid to enhance the understanding regarding improving the
competitive advantage of AF-Courts through operations performance improvement in ACK.
3.4) Data Analysis Method
The information collected after using the mixed method to uncover the views, experiences and
feedback in order to improve the operations performance of ACK and how this performance
would improve the competitive advantage of AF-Courts.
21
3.1) Research approach
The research approach uses secondary research supported by qualitative research to determine
the views, experiences and feedbacks by the people who patronizes AF-Courts.
The abundance of sources of information would help to complete the study with effectiveness
(Thornhill, 2015).
3.2) Data collection methods
The methods used in the completion of the study are primary as well as secondary data collection
methods. Primary data will be collected by conducting surveys, whereas, secondary data will be
gathered from researching various sources such as journals, articles, and books.
3.2.1) Primary data collection method
3.2. The questionnaire sampling technique comprises 30 customers. The provision of a set of
questions to be filled by the customers in the form of feedback will help to analyze the
effectiveness of the company. The qualitative approach would yield respondents’ responses
which are analyzed through using descriptive statistics. While the descriptive statistics are basic
in nature, and does not seek to establish hypotheses, they are adequate for summarizing the
views, experiences, and feedback that are expressed in the survey responses.
3.3) Sample
Sample sizing: The Researcher had sent a pilot question to 30 respondents based on purposive
and convenience sampling. It would aid to enhance the understanding regarding improving the
competitive advantage of AF-Courts through operations performance improvement in ACK.
3.4) Data Analysis Method
The information collected after using the mixed method to uncover the views, experiences and
feedback in order to improve the operations performance of ACK and how this performance
would improve the competitive advantage of AF-Courts.
21
The process of inspecting, collecting and transforming the responses that were collected from the
field survey would be analyzed to see how they would contribute to increasing the competitive
advantage of AF-Courts.
3.5) Research Questions
The collection of the above-mentioned survey responses is dependent on the dissertation
objectives, and the research questions (RQs), and Survey Questions (SQs). The resultant RQs are
presented as follows:
RQ1: How would operations performance in ACK improve the competitive advantage of
AF-Courts?
Rationale: To explore how operations performance in ACK would improve the competitive
advantage of AF-Court.
Underpinning concept
Different concept would be used for improving the ACK’s operations performance which
comprises Quality, Speed, Dependability, Flexibility, and Cost (see paragraph 2.3.1 and 2.3.2).
With improved ACK’s operations performance, ACK would be able to supply cooked food and
beverages to AF-Courts to help them achieve the core competencies for gaining competitive
advantage.
RQ2: Which aspect of ACK’s operation performance would improve the competitive
advantage of AF-Courts?
Rationale
To enhance the operations management in ACK by improving its operations performance.
Underpinning concept
Different concepts (see paragraph 2.3.1 and 2.3.2) in operations management would be used for
improving ACK’s operations management, resulting in their applications through RQs and SQs.
RQ3: How would AF-Courts operation be improved by ACK’s value chain?
Rationale
To enhance the AF-Court operation through the ACK’s value chain
Underpinning concept
22
field survey would be analyzed to see how they would contribute to increasing the competitive
advantage of AF-Courts.
3.5) Research Questions
The collection of the above-mentioned survey responses is dependent on the dissertation
objectives, and the research questions (RQs), and Survey Questions (SQs). The resultant RQs are
presented as follows:
RQ1: How would operations performance in ACK improve the competitive advantage of
AF-Courts?
Rationale: To explore how operations performance in ACK would improve the competitive
advantage of AF-Court.
Underpinning concept
Different concept would be used for improving the ACK’s operations performance which
comprises Quality, Speed, Dependability, Flexibility, and Cost (see paragraph 2.3.1 and 2.3.2).
With improved ACK’s operations performance, ACK would be able to supply cooked food and
beverages to AF-Courts to help them achieve the core competencies for gaining competitive
advantage.
RQ2: Which aspect of ACK’s operation performance would improve the competitive
advantage of AF-Courts?
Rationale
To enhance the operations management in ACK by improving its operations performance.
Underpinning concept
Different concepts (see paragraph 2.3.1 and 2.3.2) in operations management would be used for
improving ACK’s operations management, resulting in their applications through RQs and SQs.
RQ3: How would AF-Courts operation be improved by ACK’s value chain?
Rationale
To enhance the AF-Court operation through the ACK’s value chain
Underpinning concept
22
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These concepts are primary and supporting activities (See paragraph 2.2.1 and 2.2.2) of value
chain that help to improve the core competences of AF-Courts. These core competences are
superior quality; superior customer responsiveness; superior efficiency; and superior innovation
(see paragraph 2.1.1).
RQ4: How would ACK’s value chain improve the competitive advantage of AF-Courts?
Rationale:
To enhance the competitive advantageous of AF-Court by ACK’s value chain.
Underpinning concept:
Inbound and outbound logistics, manufacturing, and distribution and sales (see Paragraph 2.2,
2.2.1, 2.2.1.1, 2.2.1.2, and 2.2.2)
RQ5: How would technology introduction in support activities for AF-Court improve the
customer service management?
Rationale:
To identify the process through which technology introduction in support activities for AF-Court
could improve the customer service management
Underpinning concept:
Lean concept, agile concept, and JIT (see Paragraph 2.3,.4.1, 2.3.4.2 and 2.3.4.3).
23
chain that help to improve the core competences of AF-Courts. These core competences are
superior quality; superior customer responsiveness; superior efficiency; and superior innovation
(see paragraph 2.1.1).
RQ4: How would ACK’s value chain improve the competitive advantage of AF-Courts?
Rationale:
To enhance the competitive advantageous of AF-Court by ACK’s value chain.
Underpinning concept:
Inbound and outbound logistics, manufacturing, and distribution and sales (see Paragraph 2.2,
2.2.1, 2.2.1.1, 2.2.1.2, and 2.2.2)
RQ5: How would technology introduction in support activities for AF-Court improve the
customer service management?
Rationale:
To identify the process through which technology introduction in support activities for AF-Court
could improve the customer service management
Underpinning concept:
Lean concept, agile concept, and JIT (see Paragraph 2.3,.4.1, 2.3.4.2 and 2.3.4.3).
23
Appendix 2
Survey questionnaire
RQ1: What would operation performance in Andy Central Kitchen (ACK) improve the
competitive advantage of Andy Food Courts (AF-Courts)?
SQ1: In what way with operation performance in ACK improve the competitive advantage
of AF-Courts?
a) Quality of food and beverage
b) Speed of delivery
c) Dependability in delivery
d) Flexibility
e) Cost of food and beverage
f) Others, please specify
SQ2: How would quality of food and beverage improve the competitive advantage of AF-
Courts?
a) More customer to come back
b) Customer will like the food
c) Customer will recommend it to others (Free promotion)
d) Customer willing to pay for the quality food
e) Others, please specify
SQ3: How would speed of delivery improve the competitive advantage of AF-Courts?
a) Speed up communication with ACK
b) Help in simplify internal processes
c) Customer prefer prompt service
d) Eliminate waiting time
e) Others, please specify
SQ4: How would dependability improve the competitive advantage of AF-Courts?
a) Customer to trust the service, food and beverages provided by AF-Courts
b) Dependability in workers helps in consistent work
24
Survey questionnaire
RQ1: What would operation performance in Andy Central Kitchen (ACK) improve the
competitive advantage of Andy Food Courts (AF-Courts)?
SQ1: In what way with operation performance in ACK improve the competitive advantage
of AF-Courts?
a) Quality of food and beverage
b) Speed of delivery
c) Dependability in delivery
d) Flexibility
e) Cost of food and beverage
f) Others, please specify
SQ2: How would quality of food and beverage improve the competitive advantage of AF-
Courts?
a) More customer to come back
b) Customer will like the food
c) Customer will recommend it to others (Free promotion)
d) Customer willing to pay for the quality food
e) Others, please specify
SQ3: How would speed of delivery improve the competitive advantage of AF-Courts?
a) Speed up communication with ACK
b) Help in simplify internal processes
c) Customer prefer prompt service
d) Eliminate waiting time
e) Others, please specify
SQ4: How would dependability improve the competitive advantage of AF-Courts?
a) Customer to trust the service, food and beverages provided by AF-Courts
b) Dependability in workers helps in consistent work
24
c) Workers who are dependable can apply company policies and business strategies evenly
d) Business owner who do everything they say will be trustable
e) Others, please specify
SQ5: How would flexibility improve the competitive advantage of AF-Courts?
a) It builds trust between employer, employee, and customer of AF-Courts
b) It creates diversity of AF-Courts
c) It helps in connect people from your staff, until your customer
d) It supports the successful of one food court, until one company
e) Others, please specify
SQ6: How would cost of food and beverage improve the competitive advantage of AF-Courts?
a) Customer will come and visit again when the food and beverage are in reasonable cost
b) Customer will indirectly help to promote to others because the reasonable cost
c) Different cost offer will attract different kind of target customer, depends on the place
d) Others, please specify
RQ2: Which ACK primary activities’ operations would improve the competitive advantage
of AF-Courts?
SQ7: What are the ACK’s primary activities that would improve the competitive advantage of
AF-Courts?
a) Transportation Management
b) Warehouse Management
c) Inbound and Outbound logistics
d) Inventory Management
e) Others, please specify
SQ8: How would ACK transportation’s operations improve the competitive advantage of AF-
Courts?
a) Efficient planning helps to reduce unnecessary transportations between ACK and AF-
Courts
b) Effective execution and optimization of the physical movements of goods
25
d) Business owner who do everything they say will be trustable
e) Others, please specify
SQ5: How would flexibility improve the competitive advantage of AF-Courts?
a) It builds trust between employer, employee, and customer of AF-Courts
b) It creates diversity of AF-Courts
c) It helps in connect people from your staff, until your customer
d) It supports the successful of one food court, until one company
e) Others, please specify
SQ6: How would cost of food and beverage improve the competitive advantage of AF-Courts?
a) Customer will come and visit again when the food and beverage are in reasonable cost
b) Customer will indirectly help to promote to others because the reasonable cost
c) Different cost offer will attract different kind of target customer, depends on the place
d) Others, please specify
RQ2: Which ACK primary activities’ operations would improve the competitive advantage
of AF-Courts?
SQ7: What are the ACK’s primary activities that would improve the competitive advantage of
AF-Courts?
a) Transportation Management
b) Warehouse Management
c) Inbound and Outbound logistics
d) Inventory Management
e) Others, please specify
SQ8: How would ACK transportation’s operations improve the competitive advantage of AF-
Courts?
a) Efficient planning helps to reduce unnecessary transportations between ACK and AF-
Courts
b) Effective execution and optimization of the physical movements of goods
25
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c) Prompt delivery of products or materials
d) Reduced pollution and congestion
e) Others, please specify
SQ9: How would warehouse management helps ACK’s operations to improve the competitive
advantage of AF-Courts?
a) Adopt lean warehouse operations practices
b) Conduct thorough employee training
c) Create omni-channel fulfillment centers
d) Review effectiveness
e) Others, please specify
SQ10: How would inbound and outbound logistics management helps ACK’s operation to
improve the competitive advantage of AF-Courts?
a) Able to help in keeping a sizable inventory at warehouse
b) Help to build a strategic relationships with supplier partners
c) To provide a value logistics
d) Others, please specify
SQ11: How would inventory management helps ACK’s operations to improve the competitive
advantage of AF-Courts?
a) Contingency planning
b) Regular auditing
c) First-In First-Out (FIFO)
d) Manage relationships
e) Others, please specify
26
d) Reduced pollution and congestion
e) Others, please specify
SQ9: How would warehouse management helps ACK’s operations to improve the competitive
advantage of AF-Courts?
a) Adopt lean warehouse operations practices
b) Conduct thorough employee training
c) Create omni-channel fulfillment centers
d) Review effectiveness
e) Others, please specify
SQ10: How would inbound and outbound logistics management helps ACK’s operation to
improve the competitive advantage of AF-Courts?
a) Able to help in keeping a sizable inventory at warehouse
b) Help to build a strategic relationships with supplier partners
c) To provide a value logistics
d) Others, please specify
SQ11: How would inventory management helps ACK’s operations to improve the competitive
advantage of AF-Courts?
a) Contingency planning
b) Regular auditing
c) First-In First-Out (FIFO)
d) Manage relationships
e) Others, please specify
26
RQ3: How would AF-Court operations be improved by ACK’s support activities in the
value chain?
SQ12: Which support activities in ACK’s value chain would help to improve the AF-
Courts operations?
a) Marketing & sales
b) Technology
c) Firm infrastructure
d) Human resource management
e) Purchased input
f) Others, please specify
SQ13: How would marketing and sales in ACK’s value chain improve the AF-Courts’
operations?
a) Feedback from customers help in improving ACK value chain effectively
b) Can make effective promotions to help in attract new customers
c) Able to know what the existing customers’ needs
d) Others, please specify
SQ14: How would technology in ACK’s value chain improve the AF-Courts’ operations?
a) Technology helps in provide efficient service, food and beverage delivering
b) Technology helps in better communication between AF-Court and ACK
c) Computerized shipping and tracking helps in provide the accurate data for delivering
d) Others, please specify
SQ15: How would Human Resource Management in ACK’s value chain improve the AF-
Courts’ operations?
a) Help to increase employee competency and development
b) Able to give proper training to each respective employee which help in provide ACK’s
value chain
c) Helps in maintaining good working conditions
d) Others, please specify
27
value chain?
SQ12: Which support activities in ACK’s value chain would help to improve the AF-
Courts operations?
a) Marketing & sales
b) Technology
c) Firm infrastructure
d) Human resource management
e) Purchased input
f) Others, please specify
SQ13: How would marketing and sales in ACK’s value chain improve the AF-Courts’
operations?
a) Feedback from customers help in improving ACK value chain effectively
b) Can make effective promotions to help in attract new customers
c) Able to know what the existing customers’ needs
d) Others, please specify
SQ14: How would technology in ACK’s value chain improve the AF-Courts’ operations?
a) Technology helps in provide efficient service, food and beverage delivering
b) Technology helps in better communication between AF-Court and ACK
c) Computerized shipping and tracking helps in provide the accurate data for delivering
d) Others, please specify
SQ15: How would Human Resource Management in ACK’s value chain improve the AF-
Courts’ operations?
a) Help to increase employee competency and development
b) Able to give proper training to each respective employee which help in provide ACK’s
value chain
c) Helps in maintaining good working conditions
d) Others, please specify
27
SQ16: How would Purchasing in ACK’s value chain improve the AF-Courts’ operations?
a) Market Purchasing
b) Purchasing by Requirement
c) Scheduled Purchasing
d) Purchasing for Specific Future Period
e) Others, please specify
RQ4: How would ACK’s value chain strategies improve the competitive advantage of AF-
Courts?
SQ17: Which ACK’s value chain strategies could be used to improve the competitive
advantage of AF-Courts?
a) Lean concept
b) Agile concept
c) JIT
d) Others, please specify
SQ18: How would resources, capabilities, and core competencies improve the competitive
advantage of AF-Court?
a) Identify its strengths and weaknesses with respect to its competitors
b) Customer focus and innovation
c) Inspiring leadership
d) Agility and speed
e) Others, please specify
RQ5: How would technology introduction in ACK improve the customer service
management?
SQ19: How would technology be used in ACK’s support activities for improving customer
service management?
a) Artificial intelligence able to provide less error service
b) Virtual reality helps the planning group to plan accordingly to provide value chain
c) Internet of things helps in better communication between employer, employee, and
customers
28
a) Market Purchasing
b) Purchasing by Requirement
c) Scheduled Purchasing
d) Purchasing for Specific Future Period
e) Others, please specify
RQ4: How would ACK’s value chain strategies improve the competitive advantage of AF-
Courts?
SQ17: Which ACK’s value chain strategies could be used to improve the competitive
advantage of AF-Courts?
a) Lean concept
b) Agile concept
c) JIT
d) Others, please specify
SQ18: How would resources, capabilities, and core competencies improve the competitive
advantage of AF-Court?
a) Identify its strengths and weaknesses with respect to its competitors
b) Customer focus and innovation
c) Inspiring leadership
d) Agility and speed
e) Others, please specify
RQ5: How would technology introduction in ACK improve the customer service
management?
SQ19: How would technology be used in ACK’s support activities for improving customer
service management?
a) Artificial intelligence able to provide less error service
b) Virtual reality helps the planning group to plan accordingly to provide value chain
c) Internet of things helps in better communication between employer, employee, and
customers
28
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d) Others, please specify
29
29
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