Taco Bell's Success Essay example

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Taco Bell's Success

Did Taco Bell’s success result from a top down or bottom-up approach to change? What situations drove this change, and what leadership approach did John Martin use? What was the old (previous) leadership style and what was its limitation?

• Taco Bell’s success resulted from a top down approach to change.
Along with the new organizational structure came the job position of
Market Manager. Management added this new position to send a strong signal that they wanted different behavior. They wanted people to be broader managers, good at managing P & L, to be decisive and to take ownership. The Market Managers had a lot of responsibility because management had pushed down a large deal of decision making.

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• The changes that John Martin implemented were incremental and continuous. Some of these changes included remodeling, new signage, drive through windows, modern looking uniforms, and increased seating capacity. Martin also introduced new items to the menu like nachos, taco salad, and Mexican pizza.

• The level of management that was eliminated was the District
Manager position. District Managers basically watched over the shoulder of the Restaurant Manager making sure everything was alright.
Now the job of Market Managers (formerly District Managers) was to be a coach as well as being a business leader.

• Before the changes implemented by John Martin the organizational table looked like this:

Vice President-General Manager (3)
Vice President-Operations (3)
Zone Director-Operations (13)
Area Managers (60)
District Managers (320)
Restaurant Managers (1,800)
Assistant Restaurant Managers (3,500)

• After the changes made by John Martin the organizational table looked like this:

National Vice President-Operations
Zone Vice President-Operations
Market Manager
Restaurant General Manager
Assistant Restaurant General Manager

3) Did TB raise or lower food costs as part of its “customer value” strategy as a percentage of sales? What store operational changes were made to improve sales volume

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