Implementing Mobile and Social Media Ordering at Burger Fuel

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AI Summary
The assignment delves into how Burger Fuel utilizes social media platforms like Facebook and mobile technologies to engage consumers and streamline operations. By analyzing current practices and potential improvements, it assesses the impact of digital communication tools on brand visibility, customer satisfaction, and revenue growth. Furthermore, it explores ethical considerations and employee morale associated with these technological changes. Through an in-depth review of academic literature, including works by Brennan & Schafer (2010) and Coles (2011), this study aims to provide a comprehensive understanding of the challenges and opportunities presented by digital transformation in the fast-food industry.
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Executive Summary
This report contains a study report on the use of mobile phone and Facebook ordering
at Burger Fuel. The study is based on the gap in research identified in the research
proposal. With the increasing popularity of application of technology in business, the
need to for creativity and innovation has also increased. The competition in the Fast
Food industry all the world has also increased rapidly over the previous one decade.
Customers are becoming more complicated and they demand better goods and
services each passing day. Due to this reason, the need to innovate and offer
customers more value has arisen. The proposal of using mobile phones and Facebook
to make orders for customers of Burger Fuel will have many positive effects to the
company. The implementation of the proposal is also expected to bring about
undesirable effects to the company. The study begins with a brief introduction of the
company and the problem being investigated. The stakeholders to be affected by the
change include the customers, employees, shareholders and partners. Some employees
may end up losing their jobs and changes in tasks may be implemented. The
customers will be offered products more conveniently and the services will be
improved. The value of stakeholder’s investment will increase as a result of increase
in returns from the business. The change is expected to increase effectiveness and
efficiency in Burger Fuel. The management and decision making tools used in this
study include the SWOT analysis, Cause-Effect relationship and Mc-Kinsley`s seven
step model (Ursyn, 2014). Qualitative and quantitative research methods are used in
this study for data collection, analysis and interpretation. The findings of the research
are presented using tables and graphs as seen in the documents provided in the
appendix. Both primary and secondary sources of data are used in the study. The
process of change is also presented in the paper in form of a table which contains the
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recommended change and a detailed definition of the same. The final sections of the
report contain recommendations and conclusion based on the findings of the study.
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Contents
Introduction............................................................................................................................................5
Research aims and objectives.................................................................................................................7
Methodology...........................................................................................................................................7
Problem solving model and justification.................................................................................................8
Problem identification.............................................................................................................................8
Work out of major factors involved and possible causes of these factors..............................................9
Research methodology and justification...............................................................................................11
Data collection methods.......................................................................................................................12
Data analysis and presentation methods..............................................................................................12
Management concepts used in the study.............................................................................................13
Strengths...............................................................................................................................................13
Weaknesses...........................................................................................................................................14
Opportunities........................................................................................................................................15
Threats..................................................................................................................................................15
Findings.................................................................................................................................................15
Analysis and interpretation...................................................................................................................19
Process of changes................................................................................................................................22
Recommendations................................................................................................................................24
Conclusion.............................................................................................................................................25
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Introduction
This report analyzes the impact that introduction of mobile and Facebook system of
making orders will have on Burger fuel, New Zealand. Burger Fuel is a New Zealand
burger restaurant that has more than 88 locations spread in 6 different countries. The
company is public and it has shares traded in the New Zealnd stock market, NZX.
Burger Fuel was founded in the year 1995 by Chris Mawson in Auckland, New
Zealand. Burger Fuel operates in other countries apart from New Zealand. These
countries include; Australia, United Arab Emirates (UAE), Saudi Arabia, Egypt,
Kuwait, Iraq and USA. The key products offered by the company include;
Hamburgers, french fries, wraps, soft drinks, milkshakes and ice cream. The
restaurant also has other side dishes which help to build up on its rich menu. The
company recorded revenue of $82,800,000 and an operating income totaling
$18,700,000. Burger fuel continues to grow and is planning to expand to other
countries such as China and Libya (Brennan,& Schafer, 2010). For this to happen, it is
critically important for Burger fuel to keep on innovating so as to help increase
efficiency and effectiveness in its operations. The innovation and organizational
change opportunity that was chosen as the basis of research is introduction of mobile
and Facebook ordering system. The new method is intended to enable customers
order products from the company at the comfort of their sitting room after which the
products can be easily delivered. The problem was identified after carrying out a
market research which indicated the growing need for the company to adopt
technology in its systems to increase efficiency both in its production and operations.
The numerous requests by customers to have the company develop a system that
enables them to make orders without necessarily visiting the restaurants motivated
Burger Fuel to propose this change. This also prompted the idea of using mobile and
Facebook applications as a method of making orders by customers. The problem is
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very significant to Burger Fuel because its touches on three important aspects of the
organization which are people, systems and products. The solving of the problem by
introducing mobile and Facebook ordering will result to a lot of changes in the
organization and these changes are expected to affect various stakeholders within the
organization (Wu, Jakubowicz, & Cao, 2014). The employees, shareholders,
management and the customers are likely to be affected by the change. The report
aims at investigating the impact that introduction of mobile and Facebook ordering
system will have on Burger fuel and its various stakeholders. The report also
investigates how the change will affect efficiency and effectiveness of the
organization. The scope of this project is limited to the impact the change will have on
Burger fuel alone irrespective of what happens with competitors. The study focuses
on investigating ways in which the change will impact positively on the company and
how it will help to increase customer satisfaction (Maumbe & Okello, 2013). This is
in turn expected to increase customer base. The project objective include determine
by how many dollars the proposal is expected to reduce the costs. The other objective
is identifying how the proposal will help to reduce the labor force hence reducing
costs.
Research aims and objectives
The aim of this research is to analyze the viability of introducing mobile and
Facebook ordering for Burger Fuel, New Zealand. The study aims at accomplishing a
variety of objective and they include;
Examining the amount by which the proposal will help to reduce the cost of labor
Investigating the impact that the proposal will have on service delivery and
customer satisfaction.
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To investigate the reduction in waiting time in minutes for customers who visit
the restaurants
To investigate the percentage increase in customers as a result of the new system.
To examine how the change will affect employee morale and performance.
Investigate the percentage increase in revenue attributable to the use of mobile
and Facebook as a method of making orders by customers.
Methodology
This section discusses the methods that are applied in conducting this study. This
entails discussion of the problem solving methods used in identifying the problem
being discussed in this study. The method is named and the steps and procedures
undertaken when using this tool. The research methodology and the management
concepts used in the study are also evaluated and analyzed in the study.
Problem solving model and justification
This research applies the cause-effect analysis model of solving problems. This
method was developed in the 1960`s by Ishikawa who was a pioneer of quality
management (Traitler, Coleman & Hofmann, 2015). It combines the technique of
brainstorming and mind maps. This helps in identifying all possible root causes of a
problem and provides alternative solutions to these problems. The following are the
steps followed using this model to solve the problem identified in the study;
Problem identification
This step involves writing down the exact problem that Burger Fuel is facing. Burger
fuel has been experiencing a problem of long queue in many of its stores in New
Zealand and Australia. This is mainly due to the high number of demand for the
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companies` products because they are of superior quality and have more health
benefits as compared to those of competitors. The long queue result to long waiting
time which inconveniences customers. Some customers end up giving up on being
served and they leave without purchasing what they intended to purchase. This
problem has resulted to loss of customer dissatisfaction which could potentially lead
to loss of customers. Another problem related to the current system used by Burger
fuel is that its efficiency levels are very low. It has very high related to employees and
other operational costs that end up reducing the profit margins of the company.
Customers have been demanding adoption of technology and innovation that would
help them to purchase goods from Burger Fuel without having to visit the restaurant.
Companies in other countries such as Australia and USA mostly rely on online
purchase of products such as burger and pizza after which the products are delivered
to the customer at their preferred destination. The problem is affecting customers the
most since they end up getting inconvenienced and the customer service may be poor
at times due to pressure to cater for the many customers waiting in line. The
employees of Burger fuel are too affected by the identified problem since they may
end up overworking themselves and hence lacking time for self development.
Work out of major factors involved and possible
causes of these factors
This step involves identification of factors that may be part of the defined problem.
These factors may be things to do with systems, equipment, materials and external
forces. In order to identify and evaluate the major factors that relate to the defined
problem, it is very important to use a well defined framework to identify these factors
to exhaustion. For this study, the McKinsey 7-S Framework is used. The model
analyzes the seven internal aspects of an organization that are critical for the success
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of an organization. The analysis of these aspects will help to identify all the factors
that relate to our problem defined above. The seven aspects are analyzed below:
Strategy: Strategy can be defined as a plan of action devised to maintain and build
competitive advantage in an organization. It is developed with the aim of achieving
success by utilizing the core competences and resources that an organization has and
its competitors lack or have less of; Strategy is one of the factors that relates to the
problem of long queues which have resulted to poor customer service and hence lack
of customer satisfaction at Burger fuel. The company’s strategy in relation to
customer service and utilization of technology to increase efficiency in the company
has not been good enough. The strategies devised by the company have been able to
increase demand for Burger Fuel products but there lacks strategies for helping to
sustain the demand. The strategies have also not been able to cater for different types
of customers depending on their needs, tastes and preferences. The company needs to
develop strategies that help to reach customers who are into technology and may not
find time to stop over and buy the burgers.
The structure of Burger Fuel is also related to the problem being investigated in this
study. Structure refers to the way the organization is structured and the hierarchy of
power. It is very crucial for the success of any organization. The ownership structure
of Burger Fuel is a franchise system. The company has centralized management
which is based in New Zealand. The major decisions are made by the board of
directors. The company also has functional units which are overseen by the executive
members of the board. The organizational structure is very rigid and this makes it
very difficult to make decisions at the lower level. This may have contributed in a
way to the problem of the ordering system being currently experienced by the
company.
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The third aspect is the systems. Systems are the organization and flow of daily
activities and process undertaken by employee in the course of fulfilling their task
objectives. Systems are crucial in an organization since they determine effectiveness
of employees and efficiency of the organization in general. The problem of poor
ordering system resulting into long queues can be attributed partly to the systems of
the company. The current system of the company is such that the customer is
expected to arrive at the restaurant, make an order and then wait for a few minutes to
have their order processed. The waiting time is a little longer at times and hence
frustrating customers. The system is therefore seen to contribute immensely to the
problem being investigated.
Shared values of the company could also be one of the factors associated with the
problem. The core values of the company should be seen in the corporate culture of
the organization. The lack of proper work ethic and disciplined employees may have
an hand in the problem defined in this report.
Style: This refers to the style of leadership adopted by the people in charge of the
organization. This involves both the top leadership and middle level managers. The
problem of poor customer service may be attributed by the leadership style of
supervisors who fail to inspire employees to optimize their productivity and give the
customer the best services. The leadership may be conservative and fail to recognize
and develop a solution as the customer base increases.
The staff of Burger fuel is also a factor related to the defined problem. The staff is
expected to perform at their best to ensure customers are served within the shortest
time possible and in the best manner possible. Failure to do this can result to the
problem the company is currently experiencing.
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The employees may lack the requisite skills and competences required to carry out
tasks allocated to them. For example incompetent kitchen staff may take a lot of time
to prepare the burgers and this may increase the waiting time and hence reduce
efficiency in the organization as well as affecting customer satisfaction.
Research methodology and justification
This refers to the method used to collect, evaluate and analyze data on this study. This
study uses a combination of qualitative and quantitative research methods. Both
methods are used in order to ensure that all the information required to answer the
research questions is collected and analyzed. Qualitative method helps in collection
and analysis of data that is descriptive in nature and cannot be expressed numerically.
Quantitative method collects and analyzes data that is numerical and it makes it easy
to analyze and draw conclusions from the data collected. The decision to use both
methods is influenced by the fact that the information expected to be collected in this
study is of varying nature and therefore it is important to use a method that will help
to collect and analyze both qualitative and quantitative data.
Data collection methods
Primary data for this research is conducted using surveys. A structured questionnaire
is developed with all the questions that help provide information useful in this
research. The questionnaire issued to the respondents is similar irrespective of
whether they are employees, customers or members of the management team. Simple
random sampling is the sampling technique used to select the respondents. The
research uses a small sample of 36 respondents consisting of employees, customers
and management. The incorporation of the three groups of stakeholders who are most
likely to be affected by the change will help to collect unbiased and reliable data
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which can be used to make conclusion. The study also uses secondary sources of
information such as books, peer reviewed journals as well as thesis and dissertations
(Smith& Smith, A. 2012). These sources help to offer additional information on the
subject and provide past literature on the research subject.
Data analysis and presentation methods
The data is analyzed using statistical tools of analysis such as Microsoft Excel
Spreadsheet and SPSS applications. These tools will help to analyze various aspects
such as correlation, variables, mean and regression. The data is then presented in form
of charts, table and graphs to help give the target audience a better view and
understanding of the variables investigated in this research.
Management concepts used in the study
The main objective of using management tools is to analyzing the viability of the idea
of using mobile phone and Facebook ordering method in Burger Fuel restaurants. The
method used should therefore be capable of providing information on the advantages
and disadvantage of introducing the new system. This explains why SWOT analysis is
chosen as the best management tool for use in this study.
The following is the SWOT analysis of the proposal of using mobile phones and
Facebook as a method of making orders by Burger Fuel customers.
Strengths
There are various strengths of the new proposal on ordering at Burger fuel. One of
these is that the new system will help to reduce waiting time in the queue. If
customers are allowed to use mobile phones and Facebook application to make
orders, the number of customers visiting the restaurant outlets per hour will reduce.
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