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Hamburger Plus

I. Introduction

Due to a rapid decline in sales and bulk of customer complaints on


their branches, the Hamburger Plus is planning to make its operations
digitally mastered through a system called Creative.

Creative is an ambitious project which would allow Hamburger Plus


management to monitor and actively see how many of its products are
being consumed at any of its stores at any time. Also, management can
see if a customer in a particular outlet is being served at the desired
number of minutes. However, Hamburger Plus will be spending $ 1.5
billion, which would mean a 200% reduction in stockholders shares plus
closing down at least 300 of its outlets within the next 5 years.

II. Problems Encountered

To invest in Creative or Not

The VP of operations is in opposition regarding this plan because he thinks


that it will not be effective and that it is costly. Besides, an employee said
that the problem is due to the slow flipping or sluggish cooking of burgers
which causes the long lines and long periods of waiting time. In addition to
these, Hamburger Plus hasnt introduced another hit product in the likes of
burger patty strips in 1985. Its signature burger, the ever famous Jumbo
Hamburger is already 35 years old.

They believe that Creative is not the answer for sluggish customer service
provided by the service crew.

Even with these objections, the CEO is very optimistic to invest in


Creative. He believes that it would give the executives the opportunity to
monitor operations and see to it that the product is consistent and the
service lives up to customer expectations.

III. Strategic Solutions and Implementation

Investing in Creative will allow Hamburger Plus to monitor its production


at any of its stores at any time and see if a customer in a particular outlet is
being served at the desired number of minutes. However, Creative requires a
high cost of investment, a risk of shareholders withdrawal, and closing some
of its outlets. Just like some of Hamburger Plus stockholders, we believe that
this is not the solution for its problem, the sluggish customer service
provided by the service crew.

Therefore, rather than investing in Creative, we consider developing new


procedures of servicing customers. It is a more direct solution to the problem
of customers due to service dissatisfaction and it requires lesser cost. We
believe that this will resolve issues such as long period of waiting time,
sluggish customer service and slow flipping of burgers.

Courses of Actions

1. Ask for feedback

Many companies mistakenly assume that they know what their customers
want. One of the first and most important steps in becoming customer
centric is taking steps to find out what your customers want and expect of
you.

2. Evaluate employees performance


3. Inefficient employees would be subject to either termination or training
4. All remaining employees would also be trained
5. Have an established service standards
6. Have a reward system for efficient and effective service crew
7. Every branch manager must also be hands on and must be active in
monitoring the production