Tma_001_B120

REPORT FROM JOANNE CARDWELL TO CHRIS PIKE, MANAGER OF OTTERSHAW ZINN’S BURGERS AND PIZZA. Problems at Ottershaw Zinns’s Burgers and Pizza. Using a SWOT analysis, I have drawn up the following report identifying some of the problems that are being experience at the Ottershaw Branch of Zinn’s Burgers and Pizza. Part A. By using the SWOT Analysis, I have been able to identify specific areas within Zinn’s that need to be looked at in some depth. SWOT breaks down into four main themes, Strengths, Weaknesses, Opportunities and Threats. • Strengths: • Regional, medium sized company – can compete with larger multi- nationals. • Later opening hours – bringing in custom from local clubs and pubs. • Have no difficulty in staffing due to local colleges and universities. • Has a formal structure covering all aspects of the company’s operations. • Recession has helped as customers look for cheaper places to eat out. • Weaknesses • High Staff Turnover. • No formal training for Night Managers. • Decor needing updating. • Staff exceeding meal allowances. • Opportunities • Staying open later hours brings an opportunity for increased profit. • Regional company – knows the local market. • Threats • Possibility of all night supermarket opening nearby. • Rising costs leading to less profit. • Ongoing staffing problems. • Food wastage. • Moves toward healthier eating. • External environments adding pressure. Part B. The concept of a SWOT Analysis to give a complete overview of the business. Strengths and Weaknesses take into account the internal environment. This can include such issues as ‘resources and their use, structure and different business functions, (Preston, 2006, p.30). Opportunities and Threats are the external environments. With this particular case study it gives us an overall view on how Zinn’s is performing within the market place. Strengths show us the valuable resource’s that the company can use to build on in the external environment. An example of this would be that it is ‘predominantly based in the north-west and midlands’ (Case Study). This enables Zinn’s to compete with larger, multi-nationals as they are more of a local chain. Weaknesses can be ‘defined as lacking a competence, resource or attribute,’ (Preston, 2006. p.94). An example in this case study of Zinn’s would be the decor which needs updating along with their cooking equipment. Multi-nationals have more resources at their disposal to enable them to accomplish this. Opportunities can be defined as areas within the external environment that Zinn’s may use to their benefit. One such opportunity is the fact that they have later opening hours than many of their competitors thus enabling them to draw in customers from the local clubs and bars. Threats can be defined as those that ‘have the potential to damage’ (Preston, 2006, p.95). Many threats come from the external environment and are out of the control of the company. An example of this with regard to Zinn’s would be the ‘rumours that an all-night supermarket was to open, ‘(Case Study). This is something that Zinn’s can do nothing about. Part C. With regard to some of the problems that Zinn’s Burgers and Pizza are experiencing at present, there are a few steps that could be taken to address and possibly help improve the situation. The decor of the chain needs to be updated and new catering equipment installed, a supervisory training course instituted for the Night Managers, refresher training courses for the staff a possible salary raise for the employees to take them above minimum wage that may help ensure their loyalty to Zinn’s. Also possibly a system whereby all food consumed by the staff is recorded and it could be subsidised up to 50%. In brief, if Zinn’s addressed it’s weaknesses by instituting some of the above-mentioned changes, it could build further on its strengths and create opportunities that it can take advantage of to continue producing a profit in a competitive market. REFERENCES: Case Study Preston, D (2011) B129 Book 1 What is a business, Milton Keynes, The Open University.