CASE STUDY

IN MGT 4
(TTH-7:30-
9:00)
SUBMITTED BY:
KUNAL SAJNANI
NIEL ARCAY
VENJIE BIADNES
JECKON CAYACAP

SUBMITTED TO:
 EDGAR LABADAN

HAMBURGER PLUS

Summary:
Due to a rapid decline in sales and bulk of customer complaints from
one branch to another, the Hamburger Plus, along with its global
operations, is planning to make its operations digitally mastered through a
system called Creative which costs $1.5B. Creative is an ambitious
multimillion dollar 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 and if the number of minutes served is met.
However, creative’s cost would mean a 200% reduction in stockholders’
shares plus closing down at least 300 of its outlets within the next 5 years.
VP of Operations says it is not worth it, it will not deliver what it is supposed
to deliver. Employees say the faltering customer service is due largely to
slow flipping of burgers or sluggish cooking of burgers. Customers are so
irritated by the long lines and long periods of waiting time before burgers
are served. Stockholders Hamburger Plus hasn’t 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. Majority of
Stockholders believe that Creative is not the answer for sluggish customer
service provided by the service crew. Despite the objections, the CEO is
very optimistic to invest in Creative.

Statement of the Problem:

Dissatisfied customers due to poor customer service.

Objectives:
To bring back the company to its prime.
To provide better customer service.
To have an edge over the competition.
Generate more revenues.

Alternative Courses of Action

1. Augment and Broaden new techniques of serving customers
2. Go through with Creative.
3. Unveiling new items on the menu.

Chosen Alternative:
We would choose alternative no. 1 as this solution relates the most
with the problem and it’s considerably cheaper compared to alternative
no.2 which has major disadvantages like closing down stores, decrease in
stockholder’s trust in the future of the company ,in turn to low stock prices,
and it doesn’t directly address the problem and it is too expensive.
Alternative no. 3 is also a good option to attract customers but if the service
is bad then there is no point in introducing new products as the customers
will still be discouraged and it is a major problem that needs to be solved
directly and that’s what alternative no. 1 provides, some rearrangement is
needed in the workforce and research costs for new ways of serving
customers efficiently.

Conclusion:
The company should be smart on where to invest their funds. To
maintain the edge over competitors they should prioritize service over all
others so that the company will once again be known for fastest, most
consistent service in the industry. Hiring and firing will be needed as the
employees could be a major factor of the service drawback but this will be
implemented in alternative no. 1.