...Abstract The Darden Restaurant chain is responsible for serving over 300 million meals annually throughout the United States and Canada in over 1,700 restaurants. Three of the most popular casual dining restaurants are the Olive Garden, Long Horn Steakhouse, and Red Lobster; with over 180,000 employees it is the largest full-service restaurant company in the world (Darden, 2012). Darden has found means of outsourcing certain aspects of the business to optimize their profits, through the use of supply-chain management strategies. On page 461 at the conclusion of the Outsourcing Offshore at Darden Video Case Study; in part 3 or Managing Operations Chapter 11, 4 Discussion Questions are posed. 1. What are some outsourcing opportunities in a restaurant? A variety of opportunities to outsource exist in a corporation of this size; human resource divisions are often times given to third parties, recruitment in particular. Payroll and taxes could be outsourced. Cleaning services, including sending out laundry aprons towels etc. rugs are often sent out to be cleaned oppose to internally cleaning them. Cleaning the seafood and prepping for cooking such as filleting fish and de-veining shrimp. Maintaining websites, working on promotional marketing online and in the communities is another job that can be easily outsourced. 2. What supply-chain issues are unique to a firm sourcing from 35 countries? Utilizing sources from so many countries could compromise standard working...
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...Successful Restaurant CIS 207 April 30, 2012 Vickie Martin Business Solutions of a Successful Restaurant Taking on a task to simplify, streamline, and update a company’s business process or more appropriate, the company’s technology-based support and service, is not one on the easier side. Darden Restaurants took on this task in 2005 as it was faced with acquiring solutions to its growing and success. There were many changes that needed to be made but executives within Darden knew that restaurant operations were at the forefront of the updating which meant that they were in need of a serious overhaul of the company’s POS system and back-office support systems. At that time they were using dated Microsoft applications such as MS-DOS and Windows NT server operating systems. These were fine and acceptable the decade before when they were integrated. With the growth and goals that Darden wanted to achieve, a new solution was needed. In the end and looking toward the future, “Darden wanted to reduce the time and cost of maintaining its aging point of service devices, as well as a way to save time and cost of deploying devices to new restaurants.” (Microsoft, 2007) To accomplish this task, Darden asked the assistance of its in-house IT guy, Bob Gentry, whose title is actually Director of Strategic Initiative. The director was able to review many options before choosing a direction to take, but with the help of their hardware supplier, NCR, and Microsoft, Darden was able...
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...CHECK: AN IN-DEPTH LOOK AT DARDEN RESTAURANTS, INC. vs. BARINGTON CAPITAL GROUP LP Table of Contents Executive Summary 4 Position 5 Sense 6 Uncover 7 Solve 8 Build 9 Achieve 10 Bibliography 23 Executive Summary This is the first paragraph of your executive summary. It should be indented, it should be double-spaced, and it should be in 12 pt Times New Roman font (as should the rest of the body of your term paper). An executive summary should be no longer than two pages (and preferably shorter), and should be written after your paper has been completed. It is a complete summary of your recommendations, and the reader should get a clear picture from this section alone. Assume that the reader reads nothing else. Darden Restaurants, Inc., a multi-billion dollar full-service restaurant company, is facing – and will be facing many difficult challenges. In addition to billions in lost revenue from the economic downturn and a severe shortage in their most served menu item, they have recently been challenged by a new minority shareholder who is pressuring them to reorganize their corporate structure. This activist investor, Barington Capital Group, LP, is known for being particularly aggressive and frequently getting what they want. Darden’s revenues are down significantly over the last couple of years in their two flagship – and typically most profitable restaurants, Red Lobster and Olive Garden...
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...CHAIN SUPPLY CASE STUDY Thinh Quang Bui GSCM-206-26722 1) What are the advantages of each of Darden’s four supply chains? There are several advantages of each of Darden’s four supply chains. First is “smallware”, by having Darden Direct Distribution in Orlando, Florida, Darden easily manage the delivery path to restaurants by common carrier, lower cost in inventory. It also helps to give all restaurants are having the same quality of smallware. Second is frozen and canned food. With 11 distribution centers in North America, once again, it makes easier in inventory control and shipping will be more effective. Third is fresh food supply. Darden places order directly to independent suppliers, which are known as B2B. Darden tries to make sure it will get a freshest food from those who know their own product and grow them in a right way. Last one is worldwide seafood supply. Darden is doing business with suppliers in 35 countries, which is to get the best seafood product. And the quality is always inspected by Darden’s overseas representatives. This helps Darden brings the best and reliable products to customers. 2) What are the complications of having four supply chains? Beside all advantages that Darden gets from the four supply chains, it also have some complication by operating them. With only a smallware distributor in Orlando, Florida, it makes easy to manage, but what would happen when this location gets bad affected from such as natural disaster or burned out. Darden doesn’t...
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...Case Study Analysis: Locating the Next Red Lobster Restaurant Amanda K Passaretti February 7, 2015 Prof. Jonathan Bates BUS520: Operations Management From its first Red Lobster restaurant in 1968, Darden Restaurants has grown the chain to 690 locations, with over $2.6 billion in U.S. sales annually. The casual dining market may be crowded, with competitors such as Chili’s, Ruby Tuesday, Applebee’s, TGI Fridays, and Outback, but Darden’s continuing success means the chain thinks there is still plenty of room to grow. Robert Reiner, director of market development, is charged with identifying the sites that will maximize new store sales without cannibalizing sales at existing Red Lobster locations. Characteristics for identifying a good site have not changed in forty years; they still include real estate prices, customer age, competition, ethnicity, income, family size, population density, nearby hotels, and buying behavior, to name just a few. What has changed is the powerful software that allows Reiner to analyze a new site in five minutes, as opposed to the eight hours it took just a few years ago. Darden has partnered with MapInfo Corporation, whose geographic information system (GIS) contains a powerful module for analyzing a trade area. With the U.S. geocoded down to the individual block, MapInfo allows Reiner to create a psychographic profile of existing and potential Red Lobster trade areas. “We can now target areas with greatest sales potential,” says Reiner. The...
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...Executive Summary Industry and macro-environmental analyses of the international restaurant industry provides an overview of the industry and reveals the conditions that impact competitiveness and profitability of the industry’s players. The industry is split in two sectors: full-service restaurants (FSR) and limited-service restaurants (LSR). FSRs typically have a wait-staff; LSRs do not have wait-staff. The top five countries, in terms of total number of foodservice outlets, are: China, India, Brazil, Japan, and the US. The industry is of low concentration. Combined, the top industry players make up less than 3% of total global industry revenues. In terms of size, 2013 global sales were $2.6T, up 4.9%. The 2013 global labor force was 62.4M employees, up 2.4%. In accordance with Porter’s Five Forces framework, the forces that shape competition in the restaurant industry have a moderate to high impact on competitiveness. There is a moderate threat of new entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity...
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...RED LOBSTER: MARKET RESEARCH REVEALS WHATS FRESH TODAY BACKGROUND 1968: Foundation: Red Lobster was founded in 1968 by entrepreneur Bill Darden and Charley Woossby. Originally billed as a “Harbor for seafood Lovers”, the original restaurant in Lakeland, Florida, was followed by several others throughout the Southest. 1970: General Mills acquired Red Lobster in 1970 as a five-unit restaurant company and rapidly expanded the company nationwide. As it reached more parts of the country, Red Lobster continually introduced guests to fresh dishes that quickly became favorites, with many guests getting their first taste of calamari, snow crab and Key lime pie here – not to mention the fact that it is where popcorn shrimp was invented. (after 1970, until 1980) In 1980, this year was one of the most important for the company, reaching and being in their stage of maturity, a stage in which all companies desire to be in there. In 1983, Red Lobster opened its first restaurant in Canada (Windsor, Ontario) Finishing, in 1995, after decades of success and growth, Red Lobster, together with Olive Garden and later Bahama Breeze, became part of Darden Restaurants, with Joe at the helm until 2005, when he turned the reins over to current CEO and Chairman Clarence Otis. Over the years, their passion for seafood and delicious experiences has kept Red Lobster evolving. Their menu has grown and changed with their guests’ tastes and their ability to bring the best of the sea to your table...
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...The widening income gap pushes Red Lobster to either go upscale or go downscale (Chen, 2013). The top 10 percent richest people earned 12 times what the lowest ten percent earned, according to 2012 Census Bureau data. Although an unexpected high percentage (23%) of experientials patronized the restaurant in 2008 (Red Lobster Case, 2010), the shrinking middle class makes it embarrassing to serve both experientials who expect the best service and price sensitive customers at the same time. Neither the rich nor the poor will choose Red Lobster since rich people will directly go to fine dining restaurants because they expect top notch service, and the low income people tend to spend more time eating at home (Gustafson, 2012). For a chain restaurant as large as Red Lobster, it should not go premium and change its customer base to experientials because of potential market opportunities and its own operating features. Segmentation The revenue brought by more profitable experientials will be offset by the loss of other 70% price sensitive customers because they can not afford the costly upscale service. It is true that experientials account for 23% of total customers and contribute more to profits. Indeed, the three phase plan has attracted many experientials that the company has not expected. However, they could not represent the company’s new customer base since 23% of them are far from enough when compared to 70% of price sensitive customers that include indulgents, traditionals...
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...MBAA 606 Talisha Quinta Case Study Write- up Red Lobster March 17, 2015 COMPANY OVERVIEW Red Lobster is a chain of casual dining restaurants, founded and managed by Bill Darden. The headquarters of the company is located Florida, and it has branches in Japan, United Arab Emirates, and Canada. Red Lobster has approximately 698 branches. The company was formed in 1968, with the aim of providing a place where Americans will get some seafood. The company was successful in introducing fresh and new delicacies to their customers. These fresh dishes became popular, and this accelerated the growth of the company, and in 1980s, the company made its presence in Canada. However, its Canadian experience was not good; this is because the company made lots of losses. Competition was stiff in Canada, and due to poor strategies and lack of sufficient market information, the company was forced to close some of its branches in Quebec, Canada. This happened on September 1997. In 1995, Red Lobster, Olive Garden and Bahama Breeze were integrated, as part of the Darden Restaurants Inc. Joe Lee was then in charge as the Chief Executive Officer, and later on, he handed the company to Clarence Otis. The company is passionate about seafood, and over the years, the company has initiated the culture of innovation for the purposes of introducing and developing new menus that will satisfy the needs of its customers. Red Lobster has become a household name and over the years was able to gain...
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...Southern Mississippi, Hattiesburg, MS 39406-5091, USA Received 1 May 1999; accepted 1 May 1999 Abstract A study is presented that examines the effect of specific retail elements on deviations from the expected schema, or prototypicality, of a retail store. The results suggest that subtle differences in the store name, the location, and the appearance of its salespeople can evoke contrast in the form of variable typicality scores. A structural model is presented that shows the outcomes of this variance in a retail context involving women’s apparel stores. Low typicality is associated with increased excitement and discomfort, and these emotions affect patronage intentions and perceived shopping value. This finding is counterbalanced by a direct, positive link between typicality and patronage intentions. D 2001 Elsevier Science Inc. All rights reserved. Keywords: Schema; Consumer affect; Shopping value Recently, research has demonstrated the key role played by emotional experiences in explaining store choice and consumer– environment interactions and reactions (Bitner, 1992; Baker and Cameron, 1996). Design elements including a store’s employees, prices, lighting, scents, product assortment, background music, and crowdedness influence the affect experienced in a service environment (Eroglu and Machleit, 1990; Hui and Bateson, 1991; Hui et al., 1997; Baker et al., 1994; Darden ´ and Babin, 1994; Dube and Morgan, 1996; Spangenberg et al., 1996; Yoo et al., 1998). Likewise, it is clear...
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...Graduate School of Business Rollins College PEARSON Prentice Hall Upper Saddle River, New Jersey 07458 About the Authors vi Foreword xx Preface xxi PART i l l 1, Introduction to Operations Management 1 Operations and Productivity 1 Global Company Profile: Hard Rock Cafe 2 What Is Operations Management? 4 Organizing to Produce Goods and Services 4 Why Study OM? 4 What Operations Managers Do 7 How This Book Is Organized 7 The Heritage of Operations Management 8 Operations in the Service Sector 9 Differences between Goods and Services 10 Growth of Services 11 Service Pay 12 Exciting New Trends in Operations Management 12 The Productivity Challenge 14 Productivity Measurement 15 Productivity Variables 17 Productivity and the Service Sector 19 Ethics and Social Responsibility 20 Summary 20 • Key Terms 21 • Solved Problems 21 < Self-Test 22 • Internet and Student CD-ROM/DVD Exercises 22 • Discussion Questions 22 • Ethical Dilemma 23 • Problems 23 • Case Studies: National Air Express 24; Zychol Chemicals Corporation 25 • Video Case Study: Hard Rock Cafe: Operations Management in Services 25 • Additional Case Study 26 • Bibliography 26 • Internet Resources 26 Developing Missions and Strategies 34 Mission 34 Strategy 35 Achieving Competitive Advantage Through Operations 36 Competing on Differentiation 36 Competing on Cost 37 Competing on Response 37 Ten Strategic OM Decisions 39 Issues in Operations Strategy 42 Research 42 Preconditions 43 Dynamics 43 Strategy Development...
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...Working for McDonald's is often portrayed as an undesirable job. In primary school, my math teacher told us that if we did not learn division, we would end up “flipping burgers at ‘Booger King’ or mopping floors at McDonald's.” She is not alone in her negative stereotype of McDonald's. In 2003 the Merriam-Webster Dictionary added the term “McJob,” defining it as a “low paying job that requires little skill and provides little opportunity for advancement." This negative perception of McDonald's is not consistent with the facts. The Darden case study reports on p. 3 that McDonald's defies industry norms, paying wages that are often better than the industry average and offering many employee benefits. For example, McDonald's designed incentives to encourage employees to participate in health insurance and 401(k) retirement programs, and pioneered several types of "flex-time." The company is a leader in employee training programs to develop and retain workers, founding "Hamburger U" in 1961. The company also uses a promote-from-within strategy, with 40% of executive officers beginning as entry-level crewmembers. Overall, McDonald's corporate strategy is to be the world's best "quick service" food provider by focusing on its stakeholders. In order to be successful, the company must deliver excellent products and service to customers; develop, retain and motivate employees and local suppliers; deliver profit to shareholders; and contribute to the community. The company wishes...
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...DardenBusinessPublishing:223021 UVA-C-2350 Jun. 23, 2014 This document is authorized for use only by MichaelFulton. Please do not copy or redistribute. Contact permissions@dardenbusinesspublishing.com for questions or additional permissions. RATIOS TELL A STORY—2013 Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive product-pricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput (i.e., turnover). A second reason for some of the variation in financial results and conditions among companies is the result of management philosophy and policy. Some companies reduce their manufacturing capacity to match more closely their immediate sales prospects, while others carry excess capacity to be prepared for future sales growth. Also, some companies finance their assets with borrowed funds, while others avoid that leverage and choose instead to finance their assets with owners’ equity. Some corporate management teams choose to not pay dividends...
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...Licensed to: iChapters User Licensed to: iChapters User Essentials of Management, Ninth Edition Andrew J. DuBrin VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Melissa Acuña Executive Editor: Scott Person Developmental Editor: Jennifer King © 2012, 2009, 2006 South-Western, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means— graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. Senior Editorial Assistant: Ruth Belanger Marketing Manager: Jonathan Monahan Senior Marketing Communications Manager: Jim Overly Content Project Management: PreMediaGlobal For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. Further permissions questions can be emailed to permissionrequest@cengage.com. Media Editor: Danny Bolan Production Technology Analyst: Jeff Weaver Frontlist Buyer: Miranda Klapper Production House/Compositor: PreMediaGlobal Senior Art Director: Tippy McIntosh Permissions Acquisition Manager/Text: Mardell Glinski-Schultz Cover Designer: Stuart Kunkler, triartis communications ...
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...football player and T.V. star O.J. Simpson. Ron Goldman was an acquaintance of Nicole and worked at the Mezulla Restaurant near Nicole’s’ condo. He was believed to have been returning a pair of glasses Nicole’s mother had left at the restaurant earlier that evening. Even though O.J. Simpson was found not guilty in the crime of murder, the large amount of evidence, including DNA evidence, undoubtedly proved guilt, and a murderer walked free. Judge Lance Ito was appointed to hear the case which was widely broadcasted and televised. The prosecution was led by lawyers, Marcia Clark and Christopher Darden and the defense was lead by “The Dream Team”, lawyers, Johnnie Cochran, Robert Shapiro and Robert Blasier. The case was filed in the downtown district of Los Angeles where a more racially diverse jury would be appointed. Keep in mind; this was only two years prior to the Los Angeles riots following the beating and trial of Rodney King. Racial tension was high and treatment of minorities was becoming a huge concern. Prosecutors also decided not to seek the death penalty, a costly mistake that would have otherwise gave them the advantage of having a “death qualified jury”, which studies have shown would have been more likely to convict and typically comprisded of white males. All these factors combined where a key advantage for the defense. Over the next 133 days the case heard 150 witnesses and had cost $15 million to try. Early Monday morning, Simpson was notified by phone of...
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