We operate a fast food restaurant in United States which is a service-based business. The business is concerned mainly with providing fast foods which can be prepared and served quickly for example pizza or French fries. The foods can be provided to the customers while they are sited or can as well have them take away depending on their preferences.
The main objective of our restaurant is to provide; quality, service, cleanliness and value to our customers at any given time. To attain this objective and to attract more customers into the restaurant, we have ensured the following;
Improved operational excellence
Strict systems have been put in place so that the time taken by the customers waiting is kept low. The hospitality point of sale systems has enabled those people working in the kitchen to see the orders which are placed at the front counter or drive through in time and we have also introduced the wireless systems which enable the cashiers and cooks to take the orders made through the drive speakers. The time of operation has also been increased to 24hrs so that the needs can be attended to at any given time.
Increased variety and choices across the menu
Variety of foods and choices has been added to the menu so that the customers can have an option of taking what they are comfortable with. This is mainly to ensure that their health is not at risk, for example we have introduced the white meat, fresh fruits and salads in the menu. Foods which have poor nutritional value like the saturated fats, salt and simple sugars can cause diseases like obesity which are not good to an individual (Cooke, 2003).
Restaurant more inviting and attractive
The restaurant has been made to look more attractive and inviting to the customers by ensuring that the necessary renovations in the premises are done. In addition to this, beautification around the compound has also been done so that it appears attractive.
Customers need a place where adequate security is provided. In our business therefore we have made sure that proper measures are in place to ensure that the security of our customers is well taken of. We have hired adequate security men to ensure that all is well in the restaurant.
Cleanliness is one of the most important things that must be ensured in the running of a business of this kind. In our business therefore we have ensured that the level of cleanliness is kept high. This goes well with the customers’ expectations. The cleanliness is ensured in all the parts of the restaurant including the employees.
We have also tried to improve our customers’ base by improving the quality of the foods we give to our customers. We provide our customers with food that they would see them get the value of their money back. The customers would feel that their needs are taken care of very well and they would keep on coming.( Leidner,1993),
If we take our business to another country there would be various forces which would affect its operations which are within its environment; this is mainly because a business entity cannot operate on its own without any other force coming into play and therefore affecting the value creation of these businesses. These factors include;
The economy of a country has a great impact on the business value in that when there is growth in the economy as a result of the increased gross national product, the level of income of the people will go up since many people will be employed. As a result of this increased level of income of individuals, the purchasing power will increase hence increasing the value of the business. Inflation on the other hand would mean that the prices of the services provided by the business would have to increase; this may discourage people from buying and therefore reducing the value of the business.
The economic polices of the country may also have an impact on the business. Strict economic polices may not give the expected returns to the business. The country may restrict the amount of services or goods to be produced by a foreign business or may even restrict the area of operation of that business which directly reduces the value of the business.
The government also has a great impact on the operation of the business. The government being the controlling organ may provide regulations which may be to the advantage or disadvantage to the business. For example the government may give high taxation rate to the foreign businesses as compared to the local businesses, this will reduce the value of the foreign business since they will be paying more taxes and as a result they would declare low profits. In a situation where the government provides low tax rates to the businesses both the foreign and the local, the business would increase its value since the business would be encouraged to increase its service delivery in the country.
The government also licenses the businesses in a country. If the government decides not to license certain businesses in the country, the business may not be in a position to operate in that country and this therefore reduces the value of the business in that country.
The laws of a given country have a great impact on the operation of the business in that country. These laws may either make the operation of the business in that country to be very difficult or very smooth. The laws of the country may require that certain conditions be met before the business is registered. These conditions may be too demanding such that it would be very difficult for the business to operate.
In some countries also there are advertising laws. These laws may restrict the level of advertising of the service to the potential customers; this may reduce the value of the business greatly. The environmental laws also may have an impact on the business operation. These laws may require that the business operates under certain strict conditions so that the environment is also taken care of like for example the business may be required not to emit any cases to the air or dispose any waste to the rivers, so maintaining this law may require that the business incurs a lot of cost which reduces the value of the business (Leidner, 1993).
The political stability of a country also has a great impact on the operation of the business. If the country is politically stable, the business operations of that country would be favorable unlike in a situation where the country is under political instability of which the business may even not operate at all and therefore reducing the value of the business. This therefore means that the development of a business in the country would greatly depend on whether the country is politically stable or not.
The cultural backgrounds of the people in a given country also have a great influence on the operation of the business in that country. The culture may give a clear distinction of the foods which are edible and those which are not. Businesses therefore which operate in an environment which has a favorable cultural backgrounds would tend to increase its value because the goods and the services of the business will be marketable (Amit and Zott, 2001).
The language being used in the country which the business is situated has an influence on the way the business would operate. A language which is well understood by the people of that country can be used while marketing the product or service and therefore increasing the value of the business. Where there is a language barrier, the business may not operate very well and may make the business to operate at a loss hence reducing its value.
The business operations can affect the value creation in various ways. These include;
Marketing of a business product or service increases the business sales since many people will get to know the existence of that product in the market. This therefore creates the business value and therefore increasing the returns.
The business transport system may also create value to the business in that the goods and services will get to the customers at the right time. This therefore improves the relationship between the business and its customers. Also through the transport operations, the business would be in a position to get its supplies in time; this also boosts the relationship between the business and the customers hence creating value to the business.
The way the transactions of the business are done also has an impact on the creation of value in the business. Transactions which are well executed increases the value of the business since the books of the business will be well maintained (Amit and Zott, 2001).