Final Strategic Plan and Presentation

Week Five

Final Business Strategic Plan

BUS/475

For a company to be successful, theymust have a clear vision and mission that the company will be taken toward. The mission for the Windy City Deli is to make it a unique and popular eatery for people of all types. The vision is to see a total of three locations of the deli open across the Coachella Valley. To achieve this, the deli has to satisfy several objectives that uniquely contribute to the business. This paper will recount some of the details of previous works from week two, three, and four withinformation such as the business and strategic plan and the balanced scorecard, all three essential in the success of the deli.

Strategic Objectives, Measures, and Targets

The most important strategic objective that will keep the business running will be the profitability. If not profitable, there is no point in continuing the business. Therefore, financial objectives need to be put into place. In the idea of reducing and keeping profits at a maximum there will need to be some changes to the delivery of stock. To accomplish this, initial delivery of supplies will need to change. Originally the idea was to purchase as much products locally, with the exception of items such as meats and cheeses, specialty items that will make the food authentic. Unfortunately, to keep the menu genuine, the meat products must be brought in from Chicago. However, it is not necessary to fly in the products daily. Instead, they can be brought through freight on a weekly basis and kept frozen. The deli will be using products specific to Chicago makes thedeli unique and offers a competitive advantage. Other restaurants/delis in the area will most likely not be offering food of Chicago origin; obviously, it cannot be said for certain, but most restaurants serving food uncommon to a said region serve international rather than domestic styled food. Therefore, the probability of the development ofanother Chicago styled deli is very low and increases market share of the type of food that will be delivered to a significant extent.

Methods to Monitor and Control the Proposed Strategic Plan

Complacent employees are an essential part of customer satisfaction. To create a pleasurable experience for a customer at the deli, consistent service and personalization with the customers is will play into the strategic plan. Because managers will not be the only people interacting with customers, it must be certain that employees are also giving superior service. This, obviously, points to learning and growth operations; the best way to keep employees from becoming lazy and bored of their job is to put some variety in their work; this can be done by duties every day. An additional idea, which had not implemented earlier, is offering an incentive to the employees. For example if the deli made $X in revenue in a year, a certain percentage of that revenue would be offeredas an incentive at the end of the year. Therefore, the harder they worked on doing their jobs well; they would also increase revenue in a positive way, and at the end would result inincreasing how much of the “pie” they can get. Returning to the customer service satisfaction, there are other ways besides giving great service that will be used to attract customers back and to make the deli a popular spot.

Marketing and Information TechnologyStrategies and Tactics

Keeping up with modern technology can happen with business of all types, even delis, which is why there will be large televisions along with WIFI installed in the deli. Thoseefficient with time may appreciate this concern and would maybe even make it a regular habit to come to this spot to catch something important on TV or to get work done during eating their meal. Obviously, at times when sports are being broadcastedon TV, it would be a great place for manypeople to gather and watch games. Becausethe televisions would be large, people would be more inclinedto come in with large groups and watch the game together. By understanding the college culture it is also very plausible that students may go to the bars after watching the game. Because the deli is downtown, there are bars around the area. Therefore, the tactic is to provide a precursor to students for getting food and just as a general hangout before they head out for their college nightlife.

Finally, to keep consistency in the process/internal operations the use of technology as an aid becauseis a good way to measure business and advertise. For example, using the website yelp.com can help to advertise the business by providing updates on deals and by also measuring the reviews that the deli gets. Yelp.com is a widely used networking tool thatposts reviews as a primary source, but for the tech-savvypatronsof today, it is also a tool through which information – bad or good – can spread like wildfire to several people. A bad review of the restaurant would hurt because those bad ratings stay and do not go anywhere. A method of consistently monitoring these reviews and taking action on the negative ones and offering the customer some sort of compensation if the deli is at fault or scrutinizing the reason that caused the customer to leave such a review. Once the reason has been found, appropriate action can be taken to remedy and prevent from such a mistake from happening every again. Marketing, in addition, is very important and can make the difference between success and failure. For example, when people drive past a McDonald’sfast food restaurant, they are usually able to recognize it even if they look through their peripheral vision (Macdonald, 2008). The important thing here is that these people aren’t observing the word, McDonalds. They are observing the way the building is structuredand the huge M arc. These things have made McDonald’s recognizabledespite not seeing the name explicitly. Similarly, the Deli should have a logo of some sort that can convey what the products will be like. The use of an iconic Chicago building such as the Willis Tower along with a Chicago style hot dog would get the message across. A measurement of the success of the restaurant that a several restaurants use, can be that of providing incentive for online reviews in exchange for a discount on the next order. For example, offering a free beverage or a buy one get one free coupon if a survey is answered and bring the receipt of the survey. It isa great way to know how thebusiness is doing but at the same time, it is a bit of a biased sampling method of choosing people as the people taking the survey are maybe more tech savvyor who have easy availability to a computer and printer. Butby using this method some insight can be gainedinto consumer happiness and take appropriate action. It was mentionedin previous work that another method of measuring satisfaction was just to observe how many and what types of people come to the deli. By watching changes there can be maintenance in diversity. Ensuring that all crowds believe to bewelcome at the deli, itcan ensure that profits remain high and that expanding to other areas of the town without worrying about loss of customers.

Actions Needed to Address Ethical, Legal, and Regulatory Issues

Ethical, legal, and regulatoryissues that can be facedby the deli could be issues regarding potential sickness because of spoiled food or serving the wrong food to a customer. In the situation that a person becomes sick after eating food from the deli, possible medical, andlegal costs could accrue. Likewise food allergies need to be taken seriously as well. Posing a regulatory issue, as what is orderedneeds to be delivered as such to avoid any potential harm to anyone. In cases like this, to show a sign of good customer service, there would be an offer to the customer of full refund as well as a new sandwich. Situations like these need to be taken seriously and it needs to show to the customer to avoid any further backlash on the future business.

Another regulation is extremely important is that of the raw foods; when providing foods with ingredients that may cause allergies, it must be displayed. Signage for this scenario could say something of the sort of “There may be traces of peanuts in the bread.” In addition, if meat products are advertised to be “naturally raised without the use of antibiotics,” it must keep it that way. If changes are madeto any of the raw ingredients that information must be portrayedthat so people can understand that there are, indeed, changes that should be acknowledged.

Week Two- Strategic Plan, Part I: Conceptualizing a Business

All organizations must define themselves; stand out among the masses and competition. The business that is needed to be introduced in the local community will be a Deli, not just any Deli but a big city deli located in the heart of the Coachella Valley. It will be a place where friends can gather to watch a ball game on TV and during the week at lunch hour the deli will also cater to the professionals who work in the local downtown city offices. Setting the deli apart from other restaurants will be a challenge; below it has outlined how I will make it happen.

Mission Statement

A business must define itself from others by the service and products they offer. It is the mission of the deli to offer authentic Chicago style deli foods in a warm and friendly atmosphere. There will be measures taken to ensure we cater to a diverse crowd, but also have a true understanding of the client base because of the location chosen. The products that the deli will offer to its patrons would be authentic big city sandwiches like the Rueben, Pastrami on Rye, Chicago style hot dogs, Roast beef sandwiches and much more. The deli will also do all of the baking in house for the sandwiches and other baked goods. Specialty items that are popular in cities like Chicago, Boston and New York will be shipped in to ensure authenticity of the items served. Quality will be the priority, only kosher meats and fish will satisfy the pickiest of deli patrons. By severing higher quality products the values and beliefs of the company will be apparent.

The establishment will offer the customers flat panel HD/TV’s that will be on each ofthe four sides of the deli so each television will be catering to specific customers, for example during the week at lunch hour the business channels will be on one side for the business professionals while the other will have sports, cartoons, and reality television. The clientele base will be diverse, just as the menu is, but everyone will feel comfortable coming and enjoying a deli sandwich, salad, or snack. The Coachella valley is made of a very diverse group of people. There is a large population of retirees who have moved here from large East coast and Mid-western cities. Offering them a taste of home is important for repeat business. The local population is heavily Hispanic and the authentic foods they crave would be taken into consideration when formulating the final menu items. Customer will have a comment box for the suggestion of specialty items that they would like have available to them, along with seasonal specials.

Visions for the Future

Growth is the largest vision for the future, in order to do that we must be profitable. To be profitable we have to stand out from the other eateries available. The vision for the deli is for it to grow into a family run business with a total of threelocations in the valley, keep it home grown and support the valley by staying true to family, friends, and community. A few ways to separate the deli from those of larger cities is being locally ownedand operated, the service and food comes from the heart, and because of this a true feel for what the community wants from the establishment will be understood. While specialty items will be shipped in, purchasing fresh produce and other local items will not only be cost effective, but once again show support for the community the deli plans to thrive in. Giving the opportunity for the patrons to see just how much there is a commitment to freshness and quality, there will be a picture window for viewing into the bakery section of the kitchen. This serves another purpose are well, when patrons can see into the kitchens they know just how clean the establishment is, further confirming value and quality. While the quality and reputation of the establishment are paramount, so is the success of profit. Once continued growth is shown and a solid profit margin is consistent the possibilities are limitless for expansions. Good profit margin will also allow for commitments like sponsoring a little league team, giving us a positive public image.

Guiding Principles and Values

The guiding principles or values would be to keep the promise to the customers by providing them with fresh food and a fun experience at the deli. The culture of the business reflects the local community and that of family, culture meaning that of respecting everyone who walks through the doors. The value places on diversity will reflect in the menu. The social responsibility and ethics would be making sure only fresh ingredients are provided; only buy from the best, and never serve anything that is subpar. To show the value placed on the customer there needs to be a strong desire to make things right in their eyes, and show appreciation for their business.

Addressing Customer Needs and Achieving a Competitive Advantage

The business cannot be a success if the mission or vision statement is not only followed but alsoif the staff and owners do not promote what they inspire. The vision is to have the business grow, but itcan do only thatif the customers are treatedwith respect. A business must keep their word or promises on the service and products delivered. For the business to be successful every promise made must be followedup by not only the owners, but alsoby staff, and those who business is conducted with at the deli. The only way to maintain a competitive advantage over larger chain restaurants, sandwich shops, and fast food joints, is to keep the promise made in the mission statement, and continue to stay focused on what is most important, the customer.

Week Three – Strategic Plan, Part II: SWOTT Analysis

Business owners need to realize that while there is great potential to succeed there is equal potential to fail. One of the greatest factors of success or failure is external factors and how they will play a role in the operations of a business. In this paper there will be a definition of some external factors for the Windy City Deli and how well the deli adapts to these factors. Analysis of the supply chain of operations will also be taken into consideration along with the identification of other issues and opportunities that may occur.

Economic, Legal and Regulatory Forces and Trends

In regardto external social forces/trends, there are several forces that create an impact on the business. For one, the grip of obesity on America has forced several individuals, especially youngsters, to eat healthy and reduce their waistlines. Indeed, one of the most successful fast food chains has not been McDonald’sor Burger King, but has been Subway (Subway, 2011). With their attractive pricing and healthy options, Subway has been far more profitable where other restaurants and chains have faltered. The Coachella Valley has two distinct colleges within a 5 mile radius of deli, there becan expectations to find college aged individualsdominating a large percentage of the customers at restaurant later in the afternoons. Because these health trends are extremely popular among the youth, it makes sense that these social factors of health conformity are a huge positive trend towardthe deli. College kids are more likely to be health conscious because it is the norm to be in shape and fit at that age. Therefore, by eating healthy sandwiches provided by the deli, they are a positive external force.

Competitive analysis as an external force/trend is quite interesting. Since the deli is in Southern Californiathere is a high population of Hispanics. Mexican cuisine is quite prevalent in the area and a Chicago themed restaurant would be an outlier among the usual fast food chains and the family-owned restaurants. This provides an advantage as the deli has something new, and different to offer. In addition, the restaurant is locatedin a downtown area gives advantages over restaurants not downtown. Downtown areas are usually home to many offices and small business employing workers. These businesses employ white-collared professionals who would most probably leave for lunch around the same time. Perhaps some sort of discount to employees who come in large groups could give the deli a loyal following. The installation of flat screen TVS displaying news items and economic information is material that is, generally, attractive to white-collared professionals. Because the deli will be in a location wherethese workers work, I have to cater to them this way and offer an attractive environment in which they can relax and unwind for lunch. Downtown areas are also hot spots for tourist exploring attractions of the city. As Southern California is a state with warms temperatures all year round, with expectation that people to at least stop for food or for something to drink. Given that families that usually do not come downtown do not see the restaurant as often, it may be an attractive choice to those who want to try something new.

External technological forces/trends could go either way depending on how the business is opened. First impressions do matter – as much as businesses do not want them to; with websites like yelp.com, there are several reviews of businesses available online. Yelp.com could tend to easily influence a potential customer even though it is written by an amateur blogger– be it positive or negative. In this situation, it is very important that the restaurant makes a strong first impression. Older reviews on websites are usually at the top and have the most views so it is important that the first review is written well and is in favor of the deli. Alsocollege newspapers are a popular source of information to students and perhaps some sort of coupon or deal in the school newspaper would be a good way to lure students to the restaurant. Becausethe written part of paper has its counterpart on the web, online advertising would probably be a more attractive option because college students are more likely to read information online than in physical print; this is just more sensible of a thing to do.

Supply Chains Organizations Impacts

Considering the obtainment of resources for any business, a strong force that can negatively/positively affect the deli is the cost of transportation of materials. Originally, the plan was to transport fresh material daily through air from Chicago itself. However, this would be inefficient and extremely expensive. It makes more sense that these material are obtained from a truck transporting material on a weekly basis. These materials should be items that would definitely have to be imported from Chicago because they have to be authentic Chicago foods. For example, the processed meat and the hot dogs that will be usedin the food should be imported from Chicago. On the other hand, ingredients such as vegetables, flour, and other raw materials can be obtainedlocally. This would also prove to be cheaper because it lessen the amount of materials imported from a long distance.

Identification of Issues or Opportunities

Culture

Culture is another internal force, which can make the deli a great and popular place. Having a family-owned business with a small group of friendly employees makes a huge difference in how a restaurant is perceived. Hiring employees whonot affiliated with the business owners generally results in employees who do their job but may not necessarily enjoy or take part in the enjoyment that the owners may have in operating the business; in other words, these employees will do their job but they will nothave the passion that family members would have if they ran the business. Generally, the friendly service that customers will receivefrom the deli will likely be an incentive for them to return again. The TV panels that will be provided for viewing in the deli will be in several corners are important because they cater to different types of people; for example, the white-collared professional would enjoy watching TV programming relevant to what they enjoy whereas the sports fan would enjoy watching television relevant to theirliking. The feeling should be relaxing enough that customers will want to continue to hang out after their meal. Over time, places like these become a sort of “favorite” hang out for people; this is very similar to how bars become places where people can hangout and relax while watching TV and sipping on drinks and eating. With technology being so prevalent and because this is a college area, it is expectedthat people will have laptops and other portable electronic devices. Offering free Wi-Fi is essential in getting customers to stay longer.

Leadership

Leadership is an essential part of any business and can lead to better efficiency. It is very important for my business to have a good leader. In a small business situation the leader should be the owner, there is a sense of warmth and gratitude when being greeted and served by the owner. Sometimes, a customer may ask a certain question that requires a bit of prerequisite knowledge about a certain type of food or product and to answer the question. When the owner is the leader, and a part of the general operations, that knowledge is passed on the other employees when the owner is serving the guests. Good leadership also is integral to making a business run smoothly. There usually has to be someone “in charge” that can direct people around in case they are lost. In this case, if an employee is making a certain product and is confused on how to finish it or continue with it, the “leader” can usually step in and aid in the completion of the product. Therefore, a good leader will run the business in a smooth manner while the lack of a leader can result in the business losing money because of customer dissatisfaction (due to problems such as excessive wait for food, bad service, bad food, etc.)

Strategy

The internal strategy will be to keep consumers pleased and to keep their visit to the deli memorable so they would want to come there again. Keeping the place a sit-in allows customers to enjoy the atmosphere and savor the taste of their food in a Chicago type atmosphere. With the added flat-panel displays, they have something to keep them occupied and enjoy their stay. To keep the menu a bit unique, there would be a diversified menu by serving specific “specials” on different days of the week. There would also be incentives provided in the form of discounts for a large group of people, such as office parties.

Economic

Economic forces and trends that can benefit or work against the deli are most definitely include the price of oil and prices of raw materials. Becausetransportation is a must in any business to bring materials to the deli, rising gas prices will hurt business and cost more. Similarly, a drought in the area will also exacerbate the situation and raise prices of raw materials to be used in the deli. Of the two local colleges, one offers undergraduate and graduate level programs so in a worsening economy, we can see that many people would enroll in a graduate program. This would increase the number of potential customers increasing business.

Regulatory

In regards to regulatory forces/trends that would affect this business would be the health inspection and how they regulate length of time a certain product is fresh. As an example, if health regulations do notallow beef to stay out for a certain amount of time or travel for a certain amount of time from one place to another, there may have to be an adoption of faster ways that the beef can be transportedfaster. This may require the use of shipping through air and that would cost more. By not following these procedures, laws would be broken and there would be the risk of the business closing.

Becausethis is a small deli, it would not be too difficult to make changes unless the changes are extreme – like the change corresponding to the faster transportation of meat. Making changes to the menu or making different items is usually just a change in how a certain product is prepared. Becausedelis usually provide food made through the same ingredients mixed in different ways, this will not be very difficult changes to apply. However, if people were to ask for coffee in the deli, coffee-related products would have to be purchased and that could take some time for delivery. The deli is a small scale business; it is easier toapply changes than it is for bigger businesses that may be spread out in several locations.

Global

The most recent global issue for most business right now is the price of oil. Gas keeps the trucks moving whether they will be carrying the meat, vegetables or cheese products; it will be an unavoidable cost. With rising gas prices, posses a real threat to the sustainability of the deli. All forms of delivery will be examined to ensure that the best price is acquired alongside the best quality.

Processes and Systems

Providing great service seems almost nonsensical as every business strives to do so. Small businesses have to make greater strides in this department. Consistency is the key in order to be consistent a system or process is needed for every detail. When there are definite procedures for the everyday tasks the employees and the customers know what to expect. For instance the opening and closing procedures will have specific tasks and duties every day. This type of consistency will keep a positive momentum.

Week Four – Strategic Plan, Part III: Balanced Scorecard

The reason an individual opens a business is to be successful and usually to make a profit. The vision and the mission for the business are to be one of the most popular eateries in the Coachella Valley area. In addition, should be a highly respected business and not just another business serving food. Getting to know the customers on a personal basis and prove friendly service that is appreciated and that leaves customer with a sense of superiorservice that keeps them as loyal patrons. But mostly, the deli will provide great food that people will enjoy to eat and crave. The vision for the deli is to see it open at multiple locations throughout the Coachella Valley so that the entire desert area has access to the unique options we offer.

Financial Perspective

Because the initial location will be in the center of the valley, it can hold a considerable market share over other restaurants in that area of the valley. Moving forward the financial perspectives include market share, the vision influences the market share in this way and it allows for enhancement of profitability and the competitive position. More restaurants around the valley can have the same supply chain operations that the initial restaurants would have, keeping the costs relatively the same. Increasing the number of delis would, also help to lower prices of raw materials becausethe deli would be buying larger quantities. This in turn wouldreduce the cost of spending but would increase the profits. The mission values are to provide great tasting food to a large variety of people of different social groups and to provide great service. To achieve such a goal, it is very necessary that some objectives for customer service and employee satisfaction are put into place.

Employee Perspective

Obviously, the amount of satisfaction that the employees will have determines how good of a service they provide to customers. Therefore, increasing employee satisfaction is a must for the deli. Stimulating the employees is a great way to keep them productive. A method of stimulating the employees would be to rotate the duties. A rotation of duties ensures that all of the employees understand the functions of the different stations but they also understand all the cleaning duties as well. This, in turn, affects their productivity and how they handle customers. The satisfied customers, in turn, helps enhance the customer’s value perspective in areas such as customer retention and customer value. Providing warm, friendly service is a valuethat the deli will have that will set it apart from other restaurants in the area.

Customer Perspective

An objective that should be maintained is to keep the same level of service and customer satisfaction going throughout time. Ways to measure customer satisfaction is how customers react to the deli on review sites such as yelp.com or frequency in which they visit. Offering a punch card with a reward is way to measure the frequency that they come into the deli. Obviously, a large group of people coming to the deli signifies that the deli is a popular destination, because a large group of people would only come to a restaurant if they all agreed upon it. Noticing changes in trends can help an owner to understand where problems may lie. An important strategic objective that should be respected in the organization of the deli is keeping service quick and without any hassle.

Process of Internal Operations

To achieve the objective process of internal operations the deli needs to, again, maintain a fast and reliable service plan for the company. This requires planning, as the employees need efficiently to produce the product that the customer wants. This is not only encompassing the employee perspective but also the customer service perspective. Popular sandwich companies usually have a method through which they create a sandwich in an efficient manner. They do this usually by running their bread thru a toaster/oven, loading it with the wanted meats/vegetables packaging and asking for what extras they desire. This orderly method that will be developed is essential for the business to run properly because it reduces the work that the employees do and allows the customer more freedom in choosing what may or may not be wanted on their deli sandwiches/hotdogs/etc. In addition, I feel like this will be a necessary feature of the deli because other similar businesses serving food assemble from various ingredients will also be producing their products in a similar procedure. Therefore, keep competitive this method should be adopted.

Conclusion

Having a strategic objective, a clear vision and mission statement in place will guide any business owner putting everything into perspective. Understanding where the business stands in the marketplace is vital in growth and overcoming the competition. The internal operations may need to be changed from time to time, but once a tried and try method are developed it came only serve as a catalyst for future growth. But two of the most important factors are the employees and the clientele. Without both the business will go nowhere. While finding a balance is not easy, the tools are there to make a business owner successful. When all of the previous works a clear understanding of the need for the strategic plan is demonstrated.

Week 3 Part

Week 4 Part

Balanced Scorecard

Week 4 Communication Outline

Communication Outline

References

Pearce, John A. , & Robinson, Richard B. . (2009). Strategic management. formulation, implementation, and control. United States: McGraw-Hill.

Thompson, Arthur A. , Gamble, John E. , & Strickland, A. J. (2006). Strategy: winning in the marketplace: core concepts, analytical tools, cases. United States: McGraw-Hill Companies.

MacDonald, Denise. (2008, October 15). Mcdonald’s marketing strategy. Retrieved from http://www.macdonaldconsultingservices.com/post/2008/10/McDonalds-Marketing-Strategy.aspx