Consequences of Successful Business vs Unsuccessful Business: Linking Business Success to Management

This foursome invested in a market that some thought would not survive because of the eclectic food types, catering to upper income individuals, and the higher food prices. However, history proved differently.

If you are from the south, you have probably heard of the fast food chain Zaxby’s. With more than 660 locations[bandwagon, logos], the company is worth billions, all made possible by two young entrepreneurs, Zach McLeroy and Tony Townley. The two have been best friends since fifth grade, where they decided that there was a need for better chicken. Later, McLeroy sold his drum set- giving up his rockstar career to start the chicken joint- which now boasts a annual revenue of about 1.7 billion. [anecdote, pathos]

Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.

This week’s assignment is about evaluating the quality issues of three organizations. The three sectors I chose to evaluate are manufacturing, service and government. I will then discuss the importance of quality to each organization, the relationship of quality to customers, the leadership commitment to quality and the alignment of quality to the organization’s strategic goals and objectives.

Quality begins with the person providing the service or who makes a quality product which enhances the “perceived value” for the consumer; who gains from the exchange. The employee makes the product, the consumer buys the product, ensuring a relationship with the company who provides the livelihood for the employee. It is a perfect circle.

A key role financial organisation plays for the duration of both planning and development stages, is to produce and relay information to management, shareholders, and stakeholders showing in monetary values the economic stability of business resources (Noll and Zimbalist, 1997). These responsibilities can be categorised as: overseeing financial risk, protecting the integrity of company finances, motivating managers to establish competitive value, attracting money into company projects, future proof planning and controlling performance improvement (Bonham and Langdon,

• The most critical opportunity is the location(s) of expansion. Focusing on long-run profit potential would be expanding in a familiar ‘home-base’ region. From the alternatives, a location(s) that could achieve all key success factors coupled with a strong Franchisee base (that meets required criteria) would be the first step to the desired goal of the revenue growth process. From this foundation, a critical path to overcome market entry obstacles would need to be addressed.

No matter what your business is, the number one thing that drives a firm to success is quality products or service. Growing sales is easier when quality remains consistent. Improving quality will raise your employees’ engagement because people like being on a high-performance team. Here is a list of five tips to improve:

One of the main success factors for most businesses is the profit it creates. “Profits are like oxygen to a business — required to live and grow”. If a business is seeing an increase in their profit, it means that they are growing and improving. This is why profits are considered as a success factor. However, it is important to keep in mind that there are other arguably more important success factors. Many businesses claim that it is important to “make products people love, [and] build and manage a great team”. Making a product that people truly love is considered as a success factor, as a business can increase its customer base and loyalty. Also, some businesses take pride in what they provide for the community, and consider that to be success. Building “a team that is focused, passionate, and cared for by management” is also a success factor. Employees are the engines and faces of a business, which is why their treatment and wellbeing are considered important. Therefore, having a productive and passionate team is what some businesses consider to be success. Although there are many other factors that could lead to success, the most important ones for the majority of businesses are stated above. Naturally, if a business has great products and a well-managed team, profit can follow, which means that all of these factors can contribute to business

Merriam Webster defines quality as a degree of excellence, or a distinguishing attribute. Managers strive for excellence in the workplace to improve customer satisfaction, increase the output in manufacturing while minimizing defects, as well as making the company more profitable. There are several different management systems or methodologies available for businesses to use, but the Balanced Scorecard and the Malcolm Baldrige Performance Excellence Program is the most common and widely used in the United States.

The purpose of this report is to identify an organization and map out its business processes. The company I had chosen is Kentucky Fried Chicken (KFC). In this report, I am going to talk about the company and further on describing it business processes and how they manage such a big organization.

Quality is defined as conformance to the requirement, not goodness: The first absolute explains that management must strive to ensure that during the quality improvement process everyone is getting things done right the first time. Crosby stated that in other to do this management must state clearly what are the individual roles of the employee, management must also supply the employees with the resources needed to do their task and lastly management must give continuous support and encouragement to the employees during the improvement process. When quality is defined as conformance to requirement it helps to reduce hassle and improve quality at the same time. Crosby (1995).

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.

Implementation of excellent quality comes with a cost. The company must decide if it is really worth compromising the quality for revenue. If the quality costs exceeds the expected revenue of the company then the company must abandon implementing quality control mechanism. If otherwise, the quality would contribute to the product value and hence the revenue.

Quality is never an accident it is always the results of high intention, sincere efforts, intelligent directions and skillful execution, it represents the wise choice of many alternatives.