Report on Managing Food and Beverages: Lion Organisation Analysis

This business report delves into the food and beverage management practices of the Lion organisation, a prominent company in Australia and New Zealand. It assesses the key elements contributing to a memorable meal experience for customers, including delicious food, atmosphere, and quality service. The report critically reflects on various management functions such as purchasing, daily operations, strategy making, marketing, cost control, and budgeting. It also evaluates the skills and resources required for effective food and beverage operations, emphasizing customer service, problem-solving, management, and communication skills, along with financial, technological, and human resources. Furthermore, the report examines the changing nature of external trends like environmental, legal, and social factors influencing the food, hotel, and beverage sectors. Finally, it distinguishes between the tangible (products) and intangible (services) aspects of the food and beverage industry, providing a comprehensive overview of Lion organisation's operational landscape.

Assessment 1
Managing Food and Beverages
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Table of Contents
Introduction......................................................................................................................................3
Business Report...............................................................................................................................4
Memorable meal experience........................................................................................................4
Food and beverage management functions..................................................................................5
Skills and resources need in food and beverage operations........................................................8
Changing nature of external trends............................................................................................10
Tangible and intangible nature of food and beverage operations..............................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
The food and beverage are most successful and rapidly growing industry of Australia. The areas
of food and beverage are appealing enough to attract a large number of people. This business
report would be based on the Lion organisation which is a most popular beverage and Food
Company and manage its operation in appropriate manner. This report will access the true
moments which provide memorable meal experience to customers. Also, it will include different
strategies which should be implemented by restaurants for delivering quality services. Moreover,
the report will critically reflect the management functions, skills and resources which are applied
in food and beverage operations. Apart from this, the report will evaluate changing nature of
market trends which influence food, hotel and beverage operations.
(Source: lionco.com, 2015)
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Business Report
Lion is one of the most popular foods and Beverage Company which is located in Australia but
provides its services in New Zealand as well. It is specialised in producing wine, cider, beer,
spirits and major dairy products like cheese, juice, soy, flavoured milk and other delicious food.
This organisation was established in 2009 as Lion Nathan National foods. In 2011, it changes its
name to Lion and become subsequent subsidiary which is called as Lin Dairy & Drinks. In
present time organisation is delivering its quality services to more than 8000 customers (Birle, et.
al., 2013). This organisation is considered as rapidly growing food and Beverage Company
because it provides memorable meal experience to its customers.
Memorable meal experience
For better growth and development, Lion organisation ensures that it provides both memorable
as well as enjoyable experience to its patrons so they will become its loyal customers for the long
time period. There are three major factors which help Lion organisation in providing enjoyable
and memorable meal experience and these are followed as under:
 Delicious food: Customer chooses only those restaurants or eating establishment which
provides their favourite food. It is very much important for Lion Company to provide a
creative and varied menu which includes different food products that can attract the
customer attention. People remember only those restaurants or companies which provide
delicious food products. So, it is a good idea for restaurant chains to create good meal
experience for their customers.
 Atmosphere: Most of the customer goes for a meal with their friend and family
members. For providing them good meal experience restaurant or food enterprise should
choose a particular theme and decorate their workplace. This will surely provide them
good experience (Borràset. Al., 2015). Complete meal experience will help the
organisation in making their customer happy and loyal for years to come.
 Service: The success and failure of Food Company are totally depends on its services
that how fast it provides its products and services to its customers. If the organisation will
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not serve food products timely, with polite and attentive manner then the customer will
not remember how good those products were. In fact, they would consider its awful
services which they would not like to get in future. The customer wants complete
experience when they go for having a meal somewhere and that time they look for quality
service. By making the customer feel attendants and welcome organisation can appreciate
their feeling and Laos will provide good meal experience. The quality services encourage
customers to visit again and again to eating establishment.
Food and beverage management functions
Apart from providing food and beverage products, there are some other functions which should
be managed by Lion organisation for the smooth functioning of its establishment. Some most
important food and beverage management functions are discussed below:
 Purchasing food and beverages: This is considered as a most important function of
food and beverage organisation because without purchasing raw foods and beverages it
cannot make final goods which it offers to the customer (Bosona & Gebresenbet, 2013).
For purchasing beverages and foods organisation have to daily spend huge amount which
increases its cost. Lion Company should purchase raw food only in limited quantity as
per market demand.
 Maintaining daily operations: For maintaining daily business activities of an
organisation like a clean environment, the perfect cleanliness planned the operation of all
operating equipment organisation have to take help of stewarding department which
manages above operations and also marinating dishwashing machines (Bujisic, et. al.,
2014). Moreover, the organisation has to forecast labour and cleaning supply needs which
plays an essential role in food and beverage organisation. The management of daily
business operations is a quite complicated task which needs proper time and money
management.
 Strategy making: Lion organisation focuses more on its business strategies so that it can
compete in a competitive marketplace. This food and beverage company formulate those
strategies through which it can achieve a competitive advantage in the marketplace. For
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competing with its competitor it follows the cost-effective strategy in which it produces
its products and services on low cost and sells them on low prices so that it can attract a
huge number of customer and generate a high level of profit. For making business
strategies organisation has to spend a huge amount of market research which is quite long
and cost consuming process.
 Marketing: This is an essential business function which is operated by food and
Beverage Company so that it can promote its products as well as services in front of large
audience. In the present time, only those food organisations are generating a high level of
profit which focuses more on their promotional and advertisement activities. By taking
help of social media sites, e-mail and other television ads Lion organisation can increase
its customer base as well as market share (Chen, et. al., 2015). For performing marketing
activities organisation requires lots of capital which increase operational cost of
organisation.
 Follow concepts: There are various management concepts which are followed in
beverage and food organisation for proper management of business activities as well as
practices. Some most important concepts which are followed by Lion enterprise are
courtesy and respect in service attitude, friendly service details, sincere in service
passion, timely and fast service efficiency. These concepts help beverage and Food
Company in making positive relations with its customer and increasing business
performance within the marketplace.
 Cost control and budgeting: In food and beverage organisation, cost control and
budgeting play a most significant role. For controlling business cost, Lion can take help
of menu pricing which is most effective cost control tool. There are various factors which
are considered in menu pricing, these are the perception of value, the elasticity of demand
and effect of market competitors. These factors help the organisation in selling its
products at low prices which directly increase organisational profit (Goode, et. al., 2013).
Apart from this, Lion organisation take help of budgets because it provides a framework
of the need of supplies, labours and their potential costs. While making the budget
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manager of Food Company should use a high degree of accuracy otherwise organisation
can suffer from the huge financial loss.
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Skills and resources need in food and beverage operations
The management of food and beverage operation is a most important task which is operated by
Lion organisation. For effective management of food and beverage operation, managers need
different skills which are followed as under:
 Customer service: This is a most important skill which is required by food and beverage
manager. Without having this skill, they cannot provide quality services to their customer
and also cannot satisfy their needs as well as demands. If manager will interact with the
customer in an effective manner they can make a customer loyal for the long time period.
The only experienced manager can provide proper customer services but they demand
high salary package which increases the cost of business enterprise.
 Problem-solving skills: There are various situations where food and beverage manager
have to use problem-solving skills (Grekova, et. al., 2014). The industrial dispute is the
biggest problem which is faced by beverage and food companies but with the help of
problem-solving skills, an organisation can overcome this type of situation. Sometimes,
business manager make wrong decisions which leads to business failure so food and
beverage manager has to become so much conscious while using their problem-solving
skills.
 Management skills: The managers of Lion organisation have to deal with business cost,
working conditions and product prices so he has to make a balance between all activities
for which he needs proper management skills. For proper management of all business
activities manager have to prepare time schedule so that he can give appropriate time for
all business functions. Sometimes, management of all business activities become a
complicated task for the manager so he has to assign different manager at the different
department which increases labour cost of organisation (Ha, et. al., 2014).
 Communication skills: All food and beverage companies hire that manager who has
good communication skills. For making good relation with customer, food and beverage
manager have to speak to them politely. Lack of communication skills does not allow the
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manager to build good relation with their customer which also affect their business
profitability.
Hence, these are some most important skills which are required by the manager for managing
business activities, practices and situations. Apart from this, there are some other resources
which are required for effective functioning of food and beverage organisation. These are
followed as under:
Financial resources: For operating day to day activities, Lion organisation needs to take
help of financial resources. It collected the required capital from bank loans, debentures;
borrow from friends and other financial sources. The collection of financial resources is
not an easy task, for this, the organisation has to prepare cost budgets.
Technological resources: In the present time, all food and beverage organisation are
becoming advanced so that they can operate their daily operation quickly and cost-
effective manner. The biggest negative side of this resource is that it required time to time
up-gradation which is time and money consuming task (Valta, et. al., 2015).
Human resources: There are various human resources like a chef, cook, executive chef,
restaurant manager, server and waiter which contribute in the success of food and
beverage organisation. The most complicated task is hiring of these people at lower
salaries which creates a problem in Lin organisation.
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Changing nature of external trends
There are various factors like legal, social and environmental which influence hotel, beverage
and food operations.
 Environmental trends: The Lion organisation have to collect natural resources for
making its final product but in present time increasing unavailability natural resources is
affecting the negative impact on foodservice sector.
 Legal trends: Apart from this, legal authorities have introduced many rules and
regulations which restrict the profit and sales review of food and beverage organisations
like Lion. For dealing with legal trends, the organisation has to make changes in its
current business strategies and policies (Wang, et. al., 2013).
 Social trends: People of Australia are becoming so much advanced regarding their food
needs. They demand those food products which are healthy, tasty, hygiene and good for
their health. It becomes difficult for Lion organisation to provide all the facilities at lower
prices which are a biggest negative point for it.
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Market
trends
Environmental
trends
Social
trends
Legal trends

Tangible and intangible nature of food and beverage operations
There is two type of nature of food and beverage industry which are intangible and intangible.
These are discussed in below-mentioned points:
 Tangible nature: It involves those physical products which satisfy the needs and
demands of the customer such as drinks, food and other eatable products (Valta, et. al.,
2015). Lion organisation has to spend a huge amount of capital for providing quality
products and also invest in marketing activities for promoting those physical products.
 Intangible nature: It includes skills of staff members and how they deliver service to
customers. It is considered as more important nature as compared to tangible aspects.
Without providing intangible services food and beverage organisation can never satisfy
its customer and provide them good meal experience.

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Conclusion
By summering above mentioned discussion it has been concluded that management of food and
beverage operations are very much important for the future growth of Lion organisation. By
taking help of different concepts, costing techniques, strategies and marketing functions
beverage and food functions can be managed in most effective as well as in a systematic manner.
Also, it helps restaurant chains in providing quality services to their customer which increase
their loyalty level. Apart from this, there are some other skills like communication and resources
like technological which are required for effective functioning of food and beverage operations.
Moreover, Lion organisation should consider changing nature of social, legal and technological
trends because they can affect its future growth.
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References
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applications in food and beverage processes. Food Control, Vol. 29, No. 1, 254-269.
 Borràs, E., Ferré, J., Boqué, R., Mestres, M., Aceña, L., & Busto, O. (2015). Data fusion
methodologies for food and beverage authentication and quality assessment–A
review. Analytica chimica acta, pp. 891, 1-14.
 Bosona, T., & Gebresenbet, G. (2013). Food traceability as an integral part of logistics
management in food and agricultural supply chain. Food control, Vol. 33, No. 1, 32-48.
 Bujisic, M., Hutchinson, J., & Bilgihan, A. (2014). The application of revenue
management in beverage operations. Journal of foodservice business research, Vol. 17,
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 Chen, E., Flint, S., Perry, P., Perry, M., & Lau, R. (2015). Implementation of non-
regulatory food safety management schemes in New Zealand: A survey of the food and
beverage industry. Food control, Vol. 47, pp. 569-576.
 Goode, K. R., Asteriadou, K., Robbins, P. T., & Fryer, P. J. (2013). Fouling and cleaning
studies in the food and beverage industry classified by cleaning type. Comprehensive
reviews in food science and food safety, Vol. 12, No. 2, 121-143.
 Grekova, K., Bremmers, H. J., Trienekens, J. H., Kemp, R. G. M., & Omta, S. W. F.
(2014). Extending environmental management beyond the firm boundaries: An empirical
study of Dutch food and beverage firms. International Journal of Production
Economics, Vol. 152, pp. 174-187.
 Ha, O. K., Song, Y. S., Chung, K. Y., Lee, K. D., & Park, D. (2014). Relation model
describing the effects of introducing RFID in the supply chain: evidence from the food
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 Lion H1 Trading update, (2015). Lion.com. [Online] Lion.com. Available at:
https://www.lionco.com/media-centre/lion-h1-trading-update. [Accessed 10th May 2018]
 Valta, K., Kosanovic, T., Malamis, D., Moustakas, K., & Loizidou, M. (2015). Overview
of water usage and wastewater management in the food and beverage
industry. Desalination and Water Treatment, Vol. 53, No. 12, 3335-3347.
 Wang, Y. F., Chen, S. P., Lee, Y. C., & Tsai, C. T. S. (2013). Developing green
management standards for restaurants: An application of green supply chain
management. International Journal of Hospitality Management, Vol. 34, pp. 263-273.
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