This study will focus on developing strategic objectives for Amazing Burgers in the format of a balanced scorecard. The objectives would be based on the following four quadrants namely, Shareholder Value or Financial Perspective, Customer Value Perspective, Process or Internal Operations Perspective and lastly learning and Growth (Employee) Perspective. Objective: Market share Currently Amazing Burgers has a miniscule share of the fast food burger chain market, due to its relatively unknown brand franchise.
It has only 5 food chains as of now, but all of it has above average profit returns and plans of expansion are looming fast. The target of Amazing burgers is to get at least one percent of the total market share for the fast food industry in America. The company will apply a generic strategy for its long term growth, in which the focal point is low-cost leadership. Initiatives such as an effective marketing program will be introduced, to create more awareness into the marketplace.
Objective: Revenues and Costs The low-cost strategy has been paying dividends for the company, compared to their competitors, Amazing burgers average retail value of a product is less than a dollar, which translates low costs to its consumers and its general appeal because of its distinctive flame grilled burger taste. Revenues for the past years have an increasing trend and costs, somehow have been stable. Target revenue for the end of this fiscal year would be at least 10% more compared last year and costs are expected to increase by 5% more in comparison to last year due to its new marketing program.
Objective: Profitability Due to its low cost strategy, total costs have been relatively low compared to total revenues, thus profitability of Amazing burgers has been stable. Improvement in operations will also be the main initiative this year, to assess what type of the business functions could be streamlined, and how to decrease average handling time in serving customers will also be analyzed. An allocation of the Profits gained in the past year will be used to utilize training of staff to enhance productivity and efficiency in overall fast food operations.
Customer Value Perspective Objective: Customer retention or turnover To increase customer turnover and retention, Amazing Burgers will plan to include healthy meal options on their current menu, such as Vegetable Salads and other food choices with the same concept. This would attract a new type of market for those demanding healthy options on their meals. The target turnover rate would be at least 20% increase before the end of this year. The new menu will also be part of the marketing campaign to share the statement of diversified menu coming from Amazing Burgers.
Objective: Customer satisfaction To maintain customer satisfaction, Amazing Burgers, will continue to apply the same methods on how they cook their burgers consistently which customers normally likes and still maintain the appealing low price. To increase customer satisfaction, staff will be trained more on decreasing average handling time on serving customers, since usually long queue of customers on the cashier is in general a good sign but it also has its disadvantages since the company does not want its customers to wait too long for its meal. Objective: Customer value
The strategy in order to increase customer value is to increase the level of service for the customers, since the products are already relatively cheap with good quality, service will be the focal point on this metric. An example would be during long queue waiting for orders to be stated, a crew will already take in the orders from the customers while waiting their turn in the cashier, this will save a lot of time for them. An initiative will also be put into place such as customer satisfaction survey, and those results will be the measure of both customer satisfaction and customer value for products and services by Amazing Burgers.
Process or Internal Operations Perspective Objective: Measure of process performance The target here is an increase in overall efficiency for the long term, Amazing Burgers, wants to run its operations effectively without compromising quality and hopefully reduce more costs in the process. Each staff will now be evaluated twice a month based on the performance on service delivery. The target would be 100% utilization of all staff and machineries. Objective: Productivity or productivity improvement Productivity will be measured by the number of customers served on a specific operational shift.
Thus for example it takes 2 to 3 minutes to serve one of Amazing Burgers unique burgers, the target that needs to be reached is about 1. 5 minutes. This will be done by continuous monitoring of the staff’s productivity and also provide regular training on how to reach and be consistent with the target. Those employees who after all resources have been applied will be deemed ineffective, thus replacement should be the next step. Objective: Operations metrics The effect of an increase in productivity should translate or be a factor on expected revenues and costs reduction.
The metrics involve would be average handling time, customer feedback and customer turnover, each with a defined target to reach and maintain. Learning and Growth (Employee) Perspective Objective: Employee satisfaction One of the important goals of any firm is employee satisfaction which also has a direct correlation on employee retention. Thus, in Amazing Burgers, strategies such as a basic rewards system for those employees consistently having good feedbacks, maintaining average handling time and have no issues on absenteeism and tardiness will be given a monetary reward or bonus on top of their basic monthly wage.
Objective: Employee retention With the reward system in place, the target of Employee retention would be at least 90% each year. Aside from the rewards system, employees will now be part of organizational goals of Amazing Burgers, meaning, the management will have constant communication to them by presenting the overall goals of the company and making sure that all of the staff understands that they contribute a lot on making that happen, this will give them a sense of responsibility not only on their daily tasks but for the company as well.
Objective: Technological innovation Apart from regular trainings for the staff, Amazing burgers, would study and scout potential improvements in machineries, to be applied on the target of 1 and half minute serving time, using again a percentage of the profits Amazing burgers will spend on research and development for other technological advancements that can be applied for the fast food operations.