Monday, April 8, 2019
Outback Steakhouse Case Essay Example for Free
remote Steakhouse Case EssayOutback has clear defined strategic goals that give a clear sense of where the bon ton is headed in the future. The company intends to jam its future growth though a four pronged strategy. First, they want to continue to expand in the U.S. with an additional 300-350 Outback concept eating places. They also plan to develop a second system of enfranchisement restaurants called Carabbas. After that, the founders may develop additional themed restaurants, and branch out into international franchising. To achieve these goals, several useable goals have been defined. The owners will continue to focus on the development of Outback, because there is still a solidifying of work left to do there. Also, expanding Outback to greater levels will provide a strong excogitation for the Carabbas venture. As Joe Coffer said, I see Outback as the McDonalds of the future, except a step up. The useable strategy right now is to continue expanding Outback operation s, and continuing to build their reputation as the promethium mid-level steakhouse. There be many standing plans outlined in the text, but deuce of note postulate with the promotional strategy and staff training.All job candidates for the restaurant staff are required to tend an aptitude test that assesses basic skills such as making change. Also, every candidate is interviewed by two concourse, and undergoes psychological profiling. With regards to promotion, Outback does local advertising on billboards and TV, but most of their promotion is done finished community involvement. Actions speak louder than words, and the founders know that their community involvement helps build friends and an image of great food at a great price. A single use plan was put into effect when the company require additional venture capital to fund Outbacks early stages. They planned to offer a portion of the company for public sale. A project schedule was developed, outlining exactly what was need ed for the plan to be a success.They needed to raise at least 1.5 million to finance the purchase of equipment for the next year. They valued to sell enough stock, priced at about 20% of the highest restaurant stock, to finance about 18 months of operation. Their readable project schedule paid off, and by 1994, sixty-eight million dollars were raised. 1. The Outback Steakhouse uses various types of controls that discipline high quality, efficiency, and customer satisfaction. One feedforward control has been the development of the Outback kitchen. Bob Basham designed the kitchen for peak efficiency, occupying 45% of the area of the restaurant. Bob decided that by overdesigning the kitchen and underdesigning the dining area, the restaurant is better able to operate during clock of peak demand, while maintaining a high level of quality.Controls are also used while the restaurant is in operation. The ratio of servers to customers at Outback is much lower than at the typical restaura nt, and this is the key to Outbacks outstanding customer service. Outback employees typically only handle three tables at a time, so customers are served more quickly, and dont experience rushed when ordering. Feedback controls are used when a new restaurant is opened and new employees are hired. The restaurant staff has four practice nights when sympathy events are held or the local media are entertained, before the restaurant is actually opened to the public. This gives the new employees some(a) experience, but also provides a basis for discussion afterwards. By discussing the events of the practice nights, areas requiring improvement can be identified before the restaurant is open to the public. In a panache, this is both a feedback and a feedforward control. extraneous controls are not used extensively at Outback because of the relatively informal organizational structure.Of course, company policy and procedures would be outlined during the orientation process, but there is n ot always a motorbus or supervisor watching you. The closest thing to external control outlined in the incident would be Tim Gannons meeting and training sessions upper management ensuring that the front-liners are behaving in a way that is consistent with the Outback philosophy. Internal controls are emphasized at Outback, through self-directed learning and individual(prenominal) growth. Trudy Cooper calls it the learn-teach-learn approach. As Chris Suiilvan explains, Outback gives people a lot of opportunity to make some mistakes, learn, and go on.2. Both positional and personal condition are utilized at Outback. The attention that Outback employees total during the hiring and training process would fall under legitimate power. The people that are training the new employees are experienced, friendshipable workers the new employees are clearly their subordinates. However, aptitude testing and one-on-one training would make them feel important. Such attention can be strenuo us and intimidating, but in the long-run this attention would aerate the message that the company cares and wants you to excel. Referent power is one of the most beneficial types of power to have in an organization, but is also one of the most difficult to create.At the ten meetings per year that Tim Gannon holds with staff members, denotative power is utilized because Tim sounds like a cool guy. Employees work hard for him because he earns their respect and people want him to like them. Also, experience power would be present because of Tims extensive management knowledge and experience. People respect him because of the years he has invested in Outback. On the positional power side, reward power is used almost exclusively.Outback has provided ownership opportunities at three levels at the individual restaurant level, through joint venture and franchise opportunities, and though the employee stock option plan. The first two opportunities require an sign investment, but the retur n is excellent. The stock option plan, I think, is an excellent idea, because it benefits everyone, and rewards loyalty and hard work. You are rewarded in proportion to what you have contributed to the success of the venture.