Question

Healthy Foods Restaurant Healthy Foods is a restaurant that is located in the centre of Hana Town. It provides a variety of delicious food that customers can choose from. Competition is very intense in this area of town so, Healthy Foods has to ensure that its customers are provided with an excellent product at all times. This would ensure that they return regularly. The operations manager is aware of the level of competition and knows that he has to make sound decisions to ensure that customers are satisfied. Along with other Operations Manager decisions, the Operations Manger makes the following decisions on a regular Basis.

1. Process and Capacity

2. Location

3. Layout

4. Supply Chain Management

Supply Chain Management Although the restaurant does not have a written mission statement, its main aim is to provide a healthy alternative for its customers. Although competition is intense in the town area, healthy foods is doing well and is expanding annually. Management has been considering ways to expand operations.

1. Select 2 competitive priorities and discuss how Healthy Foods can use these competitive priorities to compete. (6)

2. With the aid of a well labelled diagram, describe the transformation process at the restaurant. (6)

3. Distinguish between functional value and status value. (3)

4.How can status value be added at Healthy Foods? (5)

5. Would you consider Healthy Foods to be a service facility or a manufacturing facility, why? (5)

Answer 1

1. Competitive Priorities which healthy Foods Restaurant must focus on are

Quality : Since they are in healthy food business and want to give a healthy alternative to their daily meals , it is paramount that the quality has to be top class and consistent . People remember Good quality ( and bad quality even more ) and it is the number one criteria why people chose to eat in a restaurant . They should raise the level in such a manner that when people think about Quality this restaurant is at the top of the mind recall.

They should have metrics and measure to ensure quality

Customer focus : Obvious , but every decision to be made should ask this question first : Will it help customer or will customer appreciate this ? In restaurant business quality and service ( it may be billing , serving time , bad food or behavior ) everything they do should be to give customers a delightful experience . They should regularly carry out satisfaction surveys or feedback calls and analyze data .

The above 2 priorities will ensure competitive advantage .

2. Transformation process

The image is attached

3.

Functional value	Status value
Concerned with the charatcteristics of the product which may be of practical use to the customer	Concerned more with esteem or psychological or show off value
e.g. Mileage of a car ,	e.g Price of a car

4. Status value can not be added but is acquired over a period of time basis its quality , service , image . customer profile . hence if the restaurant works on these consistently , then can acquire status value .