Classification Of Business Problem Business Essay
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According to Bunchapattanasakda Wong, management is the process of working with and other to effectively achieve organizational objectives by efficiently using limited resources in changing environment. Hence, Domino's Pizza which is located on 2/792 Great South Road Wiri Manukau seems to have problem is smoothly managing the business and achieving the projected targets and objectives. The major problem this organization faces today is with Resourcing such as short labour, staff delegations and stock management due to uncertain customer flow and low sale. This organization has been chosen by the research group because one of the group member's friends is a manager in that organization therefore; the business information is easily available to the research group. Solving this problem will help the organization to be better prepared and planned and will keep the labour cost in line with the sale which will be good for the business and the employees.
1.1 Background & History
This group will be conducting a research on Domino's Pizza which is located on 2/792 Great South Road, Manukau because the organization has problems in managing the business and achieving the projected targets.
The international fast food pizza delivery corporation, Domino's Pizza, is a renowned and popular choice amongst people for enjoying their favourite fast food, the Pizza. With its headquarters located just outside Ann Arbor, Michigan, US, the Domino's Pizza has interesting background. Today, this huge franchise has a deep global impact and has 8,000 corporate and franchise stores in more than 54 countries (Domino's Pizza, 2010).
Domino's Pizza was founded in 1960 by a man named Tom Monaghan whose original goal was to open three pizza delivery stores. Domino's Pizza has made success a possibility for thousands of other people too. By franchising Tom's pizza delivery model to like-minded entrepreneurs, Domino's Pizza has turn out to be the world leader in pizza delivery and one of the most successful franchise businesses in the world. As well as instilling a commitment to due product, service, image and safety Domino's Pizza franchisees are also encouraged to foster positive relationships with the communities they function by delivering local people something more than just great tasting pizza (Domino's Pizza, 2012).
Domino's Pizza, Manukau is franchised by a Brian Lee and the store was opened six years ago. It started with less staff but with more intensity and since the sales increase in the past six years therefore the company now employs ten staffs.
1.11 Nature of Business
Domino's Pizza, Manukau is relatively small store, occupying approximately 1,000 to 1,300 square feet, and designed with a focus on efficient and timely production of consistent, quality pizza for delivery. The store plan has been refined over time to provide an efficient flow from order taking to delivery. The store is primarily production facilities which mainly produces pizza and, accordingly, do not typically have a dine-in area.
1.12 Organizational Culture
According to Gareth Morgan organizational culture is the set of the set of beliefs, values, and norms, together with symbols like dramatized events and personalities that signifies the unique character of an organization, and provides the context for action in it and by it. Therefore, at Domino's Pizza, Manukau employees are essentially all the same and live for the thrill of being "fast and nice." Their motto is to "sell more pizza, have more fun," and they believe that this is the culture of their business because the team members make and sell pizzas and in appreciation the management creates an atmosphere of fun and productivity.
1.13 Organizational Structure
Organizational structure is something that every origination needs to make sure that everyone who works within the company knows what they should be doing and how they should be doing it.
1.14 Products, Service & Target Markets
The present Domino's menu features a variety of Italian-American entrees and side dishes. Pizza is the primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings. In 2011, Domino's launched Artisan style pizzas that offer a base blend of rich flavours to complement chef inspired toppings. Supplementary entrees include pasta, bread bowls and oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages and dessert course (Domino's Pizza, 2010).
Domino's Pizza, Manukau is in pizza delivery service and they are not only a fast food but they deliver good and fresh food fast. They are not a takeaway or restaurant because on average, only 30% of the pizzas are collected and their stores don't have eat-in facilities. Domino's exists to fulfil a basic need for their customers by providing a high quality, freshly ready, hot meal delivered on time and every time. Domino's Pizza, Manukau target market are the local residents around Manukau area, the local business community and students around the area. Today, Domino's Pizza is best known as "the pizza delivery experts" because each pizza is made to order from fine and fresh materials.
1.2 Business Management Problem
The research team has been able to identify a business management problem at Domino's Pizza (Manukau). The problem is that of ineffective resourcing system in managing staff and controlling stock at Domino's Pizza (Manukau).
1.21 Research Questions
How effective is the resourcing system used by Domino's Pizza (Manukau) managing staff and controlling stocks?
1.22 Classification of Business Problem
A crisis problem describes a situation in a business in which the leader(s) must take urgent and exceptional action to try to save the business from failure. This would be a serious problem that needs immediate resolution.
A non-crisis problem, on the other hand, is an issue that requires resolution but does not have the associated urgency of a crisis problem.
The issue of ineffective resourcing at Manukau Domino's is a non-crisis problem as it is an issue that needs to be resolved but there is time yet for management to sufficiently study and analyse the issue to articulate solutions.
The issue of ineffective resourcing at Domino's (Manukau) is an internal problem as it is existent in the company's internal environment and the store culture is also attributing to this problem. The research team is aiming to analyses this problem and synthesis recommendations that can be carried out to change the internal environment of Domino's (Manukau) and in doing so, resolve this issue.
The objectives of the research team are to:
Identify what resourcing methods are used at Domino's (Manukau): specifically related to the fields of inventory, human skills and production resources.
Analyse the quality and effectiveness of staff delegation at Domino's (Manukau) and assess employee satisfaction with their working environment.
assess the stocking-keeping knowledge and capability of staff
Find out any other challenges faced by management due to issues in resourcing.
Analyse types of resourcing systems especially related to organisation and planning that can be used to improve the way business is done at Dominos (Manukau).
1.24 Justification of topic:
The research team has chosen this topic because one of the supervisory staff members at Domino's Pizza, Manukau was accessible for interview and information sharing. Recommending changes that could solve the problem of resourcing at the restaurant will lead to less wastage with a possibility of more profits.
2.0 Project Plan
The research will be conducted on Domino's Pizza, Manukau as part of the Applied Management 636 Assessment
2.1 Scope of study
In this research, the group is trying to search and identify any problem existing in Domino's Pizza, Manukau. The group will be carrying out a thorough Supervisors interview, distribute staff questionnaire to the staffs and spend some time observing their fast food operations to gain more knowledge of the organization. This task will make it easy for the group to draw a conclusion that problems exists in managing the resources of the organization. Therefore, the group will propose a few recommendations to solve the existing problems and help in improve the business.
2.2 Proposed problem Solving model
This research will use and apply seven-step problem solving model. This model is appropriate because it is designed to offer systemic solutions to difficult problems. It was developed by The Center for Quality Management (1989) and according to this method problems are solved by seven different steps. It is also very simple and easy to understand.
2.21 Step in Problem solving model
The diagram below shows and explains a series of steps used to solve different types of
(Center for Quality Management, 1989)
Management problems at Domino's Pizza, Manukau followed by detailed explanation of each step.
Step 1: Pose the problem, this is the first step in problem solving where the problem needs to be identified first and the accordingly classify or label it. It is necessary to figure out first about what is going wrong in organisation and its management. It is very important for every group member to clearly understand the problems so that everyone can focus towards the same goal or problem solving. In this research, the group will figure out how the problems are created and at what level such as production area, the staffs, management, stock or the procedures.
Step 2: Analyse the problem, in this step questions will be asked to figure out the fundamental cause of problems existing in the organization. The group members will not assume anything such as the main cause of problems before any investigation. Question are raised, asked and answered such as how difficult is the problem? What are the causes of the problem? What are the effects and symptom of the problem? Once the questionnaire is sorted out then the group will figure out on how to go about in conducting this research and getting the questions answered. Methods such as questionnaires, interviews and observation will be used to move the research ahead.
Step 3: Set Goal, after conducting the above two steps the group will be able to identify the problem and figure out the main cause of the management problems. Once the root cause of problems is identified then setting the goal to solve the problem will become easy.
Step 4: Imagine solutions, after setting out the goals, the group will figure out and discuss the possible solution in context with theory and easy practical methods. Here, if the group will conduct a thorough discussion and manage to explain them well then it is possible to identify and implement more effective solutions. The group will use brain storming process to gather any possible solution.
Step 5: Select solutions to implement, this step will be carried out by selecting a possible solution among all alternative solution that is the most relevant to each situation and problem. The group will think ahead on all the outcomes and will discuss amongst themselves before selecting any solution. The group will have a responsible task of selecting solution because it will be recommended to organisation so that they can improve their business. These possible solutions will be reflected on the organizations, the institute, the research group and their assessment.
Step 6: Implement solutions; once the solutions are selected the group needs to implement it with a detailed reason and explanation in context with theory. The group needs a lot of motivation, patients and energy to implement because this process takes time to come in effect and produce any positive result. Furthermore, the group then recommends the best selected solutions to Domino's Pizza's, Manukau so that they can implement them to get rid of their current problems.
Step 7: Analyse Solutions, this is last step in problem solving model. Just because the group has implemented the best solution does not mean problem was solved. It is very important to for the group to evaluate the outcome of each solution and check if the problem was fully solved and eliminated. If the entire problem is solved then the group will know that they have achieved their goal or else restart the seven steps and figure out what went wrong and where. Lastly, look at the organizations performance again and conduct a small survey to gather some feedback or to see if things have improved and by how much.
2.22 Other Management Concepts/tools
To complete this report, the research group will use two management concepts such as bounded rationality and satisfying. According to Gill and Pio (2007) the concept of bounded rationality explains the idea that decision makers are bounded (hindered) by limited information, limited time and limited capability. Whereas, satisfying suggests choosing a solution that satisfies the decision maker without further effort to establish if it is the optimal one.
Once the group has conducted the research, identified the problems through information gathered then the group will use planning, organizing and control to implement the recommendations. As Fayol (1949), suggested that planning is the process most important process in management because it determines organizational aims, develops premises about the current environment, selects the course of action, initiates activities required to transform plans into action, and evaluates the outcome. Generally there are four major types of planning exercises: strategic, tactical, contingency, and managerial. Once strategic planning and management planning are implemented, organizing to get the job done is next. Organizing is the process of establishing formal relationships among people and resources in order to reach specific goals and objectives. The process, according to Marshall (1992), is based on five organizing principles: unity of command, span of control, delegation of authority, homogeneous assignment, and flexibility. Control is the final element of the management which involves the comparison of the activities of the people to the plan of action and also known as the evacuation component of management. According to Taylor (1917), all activates should conduct effectively and efficiently to obtain organisation goal.
2.3 Resources needed
The resources required to carry out this research were computer, internet, printer, lecture notes, transport, money, time and support from the tutor and family members. We also had our time sheet where we recorded or daily tasks.
The research team members planned how time would be managed before carrying out the research, so the work was shared between the members. Travelling and printing expenses was also shared. Questionnaire was prepared and given out, manager was interviewed and some information was collected from internet. An observation was made, for the research report lecture notes and text books were used. The team is also thankful for the support from the members and tutors of Aotearoa Tertiary Institute.
2.31 Budgeting Requirements and plan
The group first discussed about Domino's Pizza, Manukau with each other and then agreed to conduct a research on this organization. For the research the group had to plan a budget to cover any expense incurred while researching. Therefore, a budget of NZ$60 is drawn and each group member will contribute NZ$15. Please refer to a copy of the research team's budget in the appendices section.
2.32 Activity Plan
Activity plan is list of the entire task needed to complete the research and meet the objectives therefore all the action plans and questionnaires are attached in the appendices.
2.33 Perceived limitation and benefits
The action plan will keep the group focussed and show the amount or work carried out and pending. Every research has a limitation therefore this research has limitations such as work area not properly organized, management tools not in place, member's commitment in their personal life and the increase and repeat cost of actual visit. The major benefit of the entire research is the planning, organizing and control carried out by the group because everything came into place accordingly.
All the data collected in this research is by handing out questionnaires to the employees, making observations and carrying out personal interview with the Supervisor. The group consist of four members each of the members were given a responsibility. One of our research team member's friend who was working for the company managed to collect information. The second team member did the typing of the document and the third member conducted all the interviews and the last member collected relative data.
However, before starting the research the group will send a request letter to the company, so that the team gets permission to carry out the research. Then the team will hand out the questionnaires and start collecting data for the research. Once all the information is gathered and the team has the some useful information's the group will analyse the data. During the research the team members will work together, to make sure that they help each other if anyone faces any problem
3.1 Research Instruments
The research team will identify the regular customers of Domino's Pizza, Manukau through observations. The first source of data will be collected from the employees who will answer the questionnaires. The second source of data will be collected by conducting personal interview with the Supervisor of the organization. The third source of data will be based on observation by using a checklist. The group will select any peak shopping hours to conduct observations.
3.11 Strength & Weaknesses
One of the most important tools used to collect data in this research was the questionnaires because it has both strength and weaknesses.
It is a very effective way of collecting information. It is comparatively quick to collect information using a questionnaire because this method easily collects information from any large groups. The responses will be gathered in a standard way; therefore they can be very objective.
Not all the feedback gathered will be very useful because at some point wrong or false information's may be given or sometimes feedback may not be honest and questionnaires being misused.
Personal observations carried out by the group using the checklist and literature review will support the data from the research and then all the data is compared and verified. This is important because it helps in data triangulation resulting in reliability of the research. Questionnaire will be handed out to employees to get their opinions and then re-collect the data. The research works will strength the interpersonal skills of the researches which will help them to learn more about business problems and their impacts. The respondents may not be able to answer questions according to our expectations.
3.2 Literature review
Resource is the process of using a company's resources in the most efficient ways these includes goods, equipment, and financial resources also labour resources such as employees. A resource includes ideas such as making sure one has enough physical resources for business.
The above Maslow's heirarchy of physiological needs suggests that the management should give employees proper salaries so that they can work efficently. Secondly, the management should provide employees with safety needs, job security and safe working environment. Thirdly the social needs to encourage team work and fourthly the importance of esteem needs where the management should reward employees when they reach targets and lastly self actualization where employees are given a chance to show their skills.
3.3 Ethical issues
Firstly a letter is sent to Domino's Pizza, Manukau requesting for permission on behalf of our team to conduct research based on resourcing in their organization. Once the approval letter will be received our team will start making necessary observation, collecting data, and conducting interviews at a convenient time. Questionnaires were distributed amongst employees their names and all the information collected will be kept confidentially
4.0 References List
Bunchapattanasakda, C., & Wong, P. (2010). Management practices of Chinese managers in Chinese MNCs operating in Bangkok. Cross Cultural Management: An International Journal, 17(3), 268-282. doi:10.1108/13527601011068360
Center for Quality Management. (1989). CQM 7-Step Problem Solving Onsite Workshop. Retrieved from http://www.goalqpc.com/shop_products_detail_popup_courses.cfm?PID=692
Domino's Pizza. (2010). About Domino's Pizza. Retrieved from http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/About+Dominos/History/
Domino's Pizza. (2012). Franchise with Domino's Pizza. Retrieved from http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/Franchise/
Fayol, H. (1949). General and Industrial Administration. London: Pitman.
Gill, L., & Pio, E. (Eds.). (2007). Organisations and management :theory and applications. Auckland, N.Z.: Pearsons Education New Zealand.
Marshall, J. (1992). Journal of Management Education and Development. 23, 3, 9. Retrieved from http://www.lums.lancs.ac.uk/profiles/judi-marshall/publications/
Maslow, A. H. (1969). A theory of metamotivation: The biological rooting of the value-life. Humanitas, 4, 44.
Taylor, F. W. (1917). The Principles of Scientific Management. New York: Harper & Brothers.
5.1 Viper report
5.2 Gantt chart
5.5 Interview Questions
5.6 Observation checklist
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