Performance Management and Control in the Fast Food Industry Report

This report provides a comprehensive analysis of performance management and control strategies within the fast-food industry, focusing on the Australian market. It begins with an executive summary and introduction, emphasizing the importance of market research, particularly considering political, economic, social, technological, environmental, and legal factors (PESTEL analysis). The report outlines the vision, purpose, and goals of a hypothetical healthy fast-food business, including strategies for cost estimation, labor management, and financial planning through budgets. It covers standard cost estimates for direct costs, direct labor, and overhead, and includes a master budget for one month of production. The report also includes a reflection section, discussing the student's learning experience, and concludes with a summary of the key strategies for business success. The report also includes a detailed reference list and bibliography.

Running head: PERFORMANCE MANAGEMENT AND CONTROL
Performance management and control
Name of the Student:
Name of the University:
Authors note:

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Executive Summary
The report has a detailed view of the working of an organization and the strategies
required for the development of the business in the future. The business will be
operated based on the political, economic, social, technology, environment and legal
aspects of the market. The business has various plans and offers for the customers,
who will be visiting the store for the first month. The cost of labor and materials is
also pre-planned for the achievement of the goals.

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Table of Contents
Introduction...................................................................................................................3
Discussion....................................................................................................................3
Conclusion....................................................................................................................6
Reference list................................................................................................................6
Bibliography..................................................................................................................7

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Introduction
The product launching in a market requires strategies and planning. The market
must be analyzed and the best-suited market should be preferred to achieve high
revenue and profit. The product chosen is fast food. Numerous stalls that provide
fast food are present in the market yet there are hardly stalls that provide healthy fast
food. The introduction of healthy fast food will encourage people to purchase food
without any compromise to their health (Wang & Liu, 2017). There is a hick in the
rise of the obese and diabetics in Australia forbidding them to opt for fast food. In
order, to enter a market, the organization must have a strong vision, purpose, and
goals. The organization should strategies the costs of the product and labor cost and
should ensure that the customers are provided with the quality and quantity they
deserve. This will help in the development of brand loyalty ensuring high growth in
the business (Goosen, 2017). The report is based on the working of the organization
in the initial months and the ways it can increase its revenue.
Discussion
Fast food launching in market
The establishment of the business is based on the market research that has been
done for the better working of the business. The market research helps in the
understanding of external factors that help in the growing of the business. Various
factors like political, social, economic, technological, environmental and legal factors
affect the working of the business.
Political: It is important to look into the taxation policy of the government and the
stability of the government of the country, where the business is to be established.
The increase or the decrease in the revenue depends on the political intervention on
the business (Murillo et al., 2018). Health is a great factor that affects the business,
thus, producing healthy foods enables better opportunities for the business.
Social: Depending on the people of the region, the business must be established.
For instance, young people rather than old aged people consume fast food more.
Thus, setting up a fast food store in areas where there is a limited youth will lead to a
decrease in the sale.

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Economic: Countries, where peoples have a very low income or disposable income,
is very low will not prefer choosing any sorts of fast food (Braun, Struthers-Kennedy&
Wishna, 2017). Hence, the fast-food industry must be set up in countries where there
is a high employment rate and people have more interested in consuming fast food.
Technological: Technology plays a vital role in the establishment of a business
especially in the fast-food industry. Nowadays most of the business is run on
technology; this helps in the delivery and ordering of food, increasing the sale of the
product.
Environmental: Natural resources mustn't be exploited while running a business (Wei
& Davis-Ngatai, 2017). For instance, excessive use of water or producing excessive
waste may hamper the ecosystem.
Legal: Some laws need to be followed for running a fast food industry to ensure that
the customers are provided with quality food. The labor law also needs to be
considered in the business.
Vision
The organization has a vision of improving the health of the public by providing tasty
food. They want the city to be aware of their health and prefer healthy food. The
purpose of this industry is to provide food for all and ensure that the food provided is
healthy and good for the consumers. It enables the customer to eat fresh and in a
required portion (Facchini, Melki & Pickering, 2017). The industry wants to provide
food to the consumers that will be convenient and they can afford without wasting a
large sum of money. Providing healthy and tasty food is a difficult task yet the
organization has a variety of choices for the customers, which are wholesome and
tasty. The company has several goals that it needs to achieve to increase revenue
and increasing the brand value of the company. The following are the goals that the
company has set up:
 To be in the leadership in the fast-food restaurant industry.
 Meeting social and ethical responsibilities.
 Serving customers with healthy food and develop a friendly relationship with
the customers.

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 The food provided to the customers should be quality food and worth the
money.
 The shareholders should be provided with a positive return on their
investment.
Standard cost
Estimate of direct cost
To establish a fast food industry, few of the things are necessary without which the
manufacturing of the product is not possible (Cardenete, Delgado & Molero-Simarro,
2017). Land, infrastructure, machines or equipment are the most important things
that are required for the production of mass fast food. There is a requirement of
suppliers as well who will be supplying the raw materials like raw materials required
for producing the food and other kinds of stuff like cups, boxes plates wherein the
customers will be served food. For the production of the food, there is also the
requirement of training to the employees who will be producing the food.

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Estimate of direct labor
Labour management is a crucial aspect of the working of the fast-food industry.
Service and manufacturing is an important factor where several labor has an impact.
Depending on the type of business, the labor cost is decided. The labor cost must be
60% of the revenue that the company brings, depending on the company it may be
high or low (Hansen et al., 2018). Evaluating the labor cost helps in the dividing of
the staff into the group and the cost is divided accordingly. The food provided to the
customers has a cost that depends on the quality and the ingredients required to
prepare food. The price of the materials may vary depending on seasons or the
availability of the product.

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Estimated overhead cost
The estimated cost over head was estimated approximately on the machinery and the way of
working of the labours. There cannot be a definite cost for the labors. Thus, an approx. result
is portrayed.
Master budget
One month of production
Revenue budget
Production budget

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Direct material budget
Direct labour budget

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Manufacturing overhead budget

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Ending inventory budget
Cost of sale budget

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Support department budget
Budget statement of profit or loss
Reflection
Their preparation of the report helps in improving my knowledge about the fast-food
industry and the way they operate. It is a large industry and there are several
strategies needed to compete with other competitors (Nguyen, Nguyen & Do, 2019).
In establishing fast food, the industry requires a large sum of money for the service
that is to be provided to the customers. It helped me in increasing my working skills
in excel. It helped me in increasing my strategic skills as well.