Tan says as a newbie to the industry, he has had his work cut out for him. As his customer base is made up purely of deliveries, he must work doubly hard to ensure the orders are handled properly - something he learnt the hard way. "In the early days when we received orders from multiple food delivery platforms, we made some silly mistakes like overlooking orders. And once the food is delivered, there are only two options - either refund the money or cook a new meal, send it to the customer again and bear the cost. And we ended up bearing a lot of additional costs because we were making so many mistakes!" he says. Tan says he also realised how important it is to take charge of things like the food inventory system, instead of just leaving it up to the chef. "In the early days, I didn't really track our purchase and usage. Our gross profit was about 20% to 25% but after a while, I realised our product usage was very high, but our sales were not. "So, I took charge and manually checked things like how many chickens were bought and how many orders this translated to. And from there, the gross profit went up to 50%, which means we had been losing 25% for no good reason, which is a huge loss to a new business like ours! "Since then, we have managed to drastically reduce our wastage as the chefs now manage the ingredients really well, so our wastage is now 1% or even less than that and we have been able to maintain a gross profit of 50%. It was a painful learning curve, though," he says. The menu now includes about 40 different Japanese-themed options. Tan and his team constantly track the performance of all the different dishes across the various delivery platforms as well as on their own website. Their focus now is on using the same ingredients in different meals. Mr Tan would like to consult with you on strategic management issues. Illustrate the strategic management model and provide an explanation of the framework touching on FIVE (5) key points of the model.

Tan says as a newbie to the industry, he has had his work cut out for him. As his customer base is made up purely of deliveries, he must work doubly hard to ensure the orders are handled properly - something he learnt the hard way. "In the early days when we received orders from multiple food delivery platforms, we made some silly mistakes like overlooking orders. And once the food is delivered, there are only two options - either refund the money or cook a new meal, send it to the customer again and bear the cost. And we ended up bearing a lot of additional costs because we were making so many mistakes!" he says. Tan says he also realised how important it is to take charge of things like the food inventory system, instead of just leaving it up to the chef. "In the early days, I didn't really track our purchase and usage. Our gross profit was about 20% to 25% but after a while, I realised our product usage was very high, but our sales were not. "So, I took charge and manually checked things like how many chickens were bought and how many orders this translated to. And from there, the gross profit went up to 50%, which means we had been losing 25% for no good reason, which is a huge loss to a new business like ours! "Since then, we have managed to drastically reduce our wastage as the chefs now manage the ingredients really well, so our wastage is now 1% or even less than that and we have been able to maintain a gross profit of 50%. It was a painful learning curve, though," he says. The menu now includes about 40 different Japanese-themed options. Tan and his team constantly track the performance of all the different dishes across the various delivery platforms as well as on their own website. Their focus now is on using the same ingredients in different meals. Mr Tan would like to consult with you on strategic management issues. Illustrate the strategic management model and provide an explanation of the framework touching on FIVE (5) key points of the model.

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter17: Organizational Planning And Controlling

Section: Chapter Questions

Problem 3CTQ: The case focuses on U.S. markets. How are European markets affected by holiday shopping?

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