Case Study on the Pho Hoa Restaurant

Introduction

Managing people in an organisation is to make sure about how to control and plan work in respect of organisation strategy and policies at once. At the same time, it has been dealt with number of people at a time in an organisation that is applicable as well as necessary requirement to run a business run successfully in all aspects as well. The report has been based on the analysis of the case study Pho Hoa Dorchester, a Vietnamese Restaurant that has been owned by family in Boston since 1992. In fact, it will focus on the business issues and challenges that has been facing by the restaurant initially and currently due to major changes in it. The owner of the restaurant, Thanh Le, migrated from Vietnam to the United States, back in 1981 and started running his restaurant well with minimal formal processes, like regular reporting of statements, or planning the budget or using business strategies. The owner, Thanh, thought to retire from the business and has handed over the business to his eldest son, Tam, as the CEO and the manager for both the restaurants. As a result, Tam, his son feared to have loss in the business and that may affect on the father-son relationship, as Tam wanted to make major changes in the restaurant.

Description of issues

Tam has the right concept of making the required changes in the business without affecting anyone's emotion. When Tam opens up the case, he finds there are numerous issues and challenges that he will have to face and solve along with some additions to the business (Forbes India, 2020).

Strategy and Operational challenges in the business

The operational challenges faced are poor service and the variable food delivery time. The restaurant has a big menu of 150 items and the dishes are varied, so the time taken for preparation varies (Saini and Khurana, 2018). The staff count is not sufficient, that hampers the services of the restaurant. Though Tam's father has moved out of the business, his uncle continues to manage the staff and the front of the restaurant. Tam's uncle has good knowledge of the organization that would be a benefit for Tam, but how he will react to the changes is a great concern. Previously, when Tam was managing the business, the food supply was fast, however, they have become late and inconsistent.

Issues related to organisation structure and ethics

As there is no formal reporting of data, planning or budgeting, one will not have the idea about how the business is doing in the market (Ward, 2016). An electronic register for sale has been installed at the Pho Hoa restaurant since 2014 but that has been rarely used. Not knowing the grounds the organization is standing is a significant issue in operating a business. In this respect, Pho Hoa has to pay an annual fee of $40000 for the franchise, though the franchises contribute very little towards the operation of the restaurant. Tams father had a long-term relationship with the franchise owner who is Vietnamese American, on the ground of culture that affects business, as the franchise had a high cost and little reward.

Issues with changing decisions suitable for earning revenue

Changing decision for benefit of a business often makes a chaos into the light of this discussion (Mbalamula et al. 2017). With reference to the case study, Tam has planned to increase the revenue, to introduce alcohol to the menu. However, the servers, employees of the restaurant, who are the majority of Vietnamese immigrants, assumed that the Vietnamese customers would not order alcohol and did not offer them the drinks menu. This kind of behaviour of the staff extended towards the Vietnamese customers too and later on the staff scarcely offered the customers the alcohol menu.

Description of academic theory

Identifying the theory with the best approach could help an organization in enhancing a soft model approach of human resource management, as it can be observed earlier. In other words, managing people with strategic HRM model is all about approaching the problem and then starting with solving the staff needs and barriers on time (Ramakrishna, 2019). In respect to the case study, Pho Hoa is required to have some strategic principles of management to be followed that can be applicable for its business to run under effective guideline and leadership control.

Henry Fayol’s Theory of Management principles (Source: Godwin et al. 2017)

According to the concept of Henry Fayol’s management theory, it can be identified that an organisation needs to run under strategic decision-maker as well as effective policies of having better outcome and dealing with business problems (Godwin et al. 2017). In relation to the challenging issue is concerned, it can be well identified that the new manager’s function into the business lack in experience and dealing with financial operations. Based on Fayol’s management principles, it can be acknowledged that a consistent approach and contribution from behalf of the managers is to overcome critical problems.

According to Brescia (2020), division of work, discipline and unity of command and direction works in association with the key principles of management. On the other hand, Tasie (2017), commented that management of an organisation goes with strategic interests, remuneration and centralisation as well as scalar chain and order process of the business. It determines that in order to maintain a business in proper form, workplace ethics and leadership qualities are integral part of management role and function that could do well identification and management proactively in a business. Hence, it can be applicable for Pho Hoa in a similar way.

Application of Theory to issues

Based on the theoretical concept above, it has been recognised that Training at work is a mandatory element that a manager can provide to enhance better operations (Ulupui et al. 2020). In case of Pho Hoa, it would work for its staffs how to approach with the guests in a professional manner and solve a lot of issue. Apart from that the next problem arrives due to misallocation of job roles and duties have to be made and proper roster has to be available and person has to appoint who has knowledge of the job to lead the group. Building a proper relationship with the staff and giving them timely incentives and appreciation such that the staff becomes self sufficient and can handle the entire required job on their own and as per being professional (Feißel et al. 2018). The management should have a modern approach on how to run the staff as the staff in return runs the business plotting and planning different ways on how to make the team committed to work and so as the business prospers and gets profit to the owner, as it is all inter related to the business. All the staffs have to be willing to do the job and need to be highly committed to the job and should know what they are doing.

Motivation at work and Appreciation:

The Staff has to be motivated and should be understood about their values for a better future of both themselves and the organization. A value-based system of appreciation can be used to appreciate the staff and keep them motivated along with complete usage of man power with the concern of vital area to look into that matter of financial assets that need to be resolved in times (Kim et al. 2020). In respect to Pho Hoa, it is required to work with methods that can reduce and control effective production process and reduce waste plan. It would not go to waste, as working in an over staffed area will give no utility to the organization and the man power may not be wasted (Forbes India, 2020). At the same time, planning has to be done in a more strategic way so as the whole area of the organization is covered in the plan and how the plan will be implemented and the work and effective for meeting the targets and business goals.

Managing issues associated with finances

With the growing evolution of digitalisation in the market everywhere in food business, it has become integral part of a business to implement digitalised mode of services as well as fastest delivery to the customers. According to Demirer et al. (2018), financial performance of restaurant firms may require to take some standardised norms that may reduce future earnings as well as incorporation of financial agreements. In other words, resource-based theory plays significant role in managing finances of corporate associates as well. So far in this case, it needs to be borrowed in respect of having it in the form of making ensured about how to create sustainable flow of money and investments. In the matter of Pho Hao, it seemed that the business have faced number of issues in respect of its operations, its savings, its cost and expenditure and in terms of labour wages as well. As a result, it gave a complete acknowledgment of its unplanned way of delivering services and revenue losses and sales decline (Forbes India, 2020). Therefore, it needs to be well aware of certain areas of concerns and implement certain strategy so that it may not be able to lose its market share once and able to retain its customer base at once.

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Recommendation

From the above communication and the case study analysis, it has been observed that many areas are required to be modified in the existing business operation of Pha Hoa. If Tam takes this responsibility at once, he would need to look into major concerns in the business further.

Managing professionalism:

Tam need to have a professional approach as well as effective communication skills with the staffs and customers first of all without any legal gap and ethical concerns. He needs to talk and have a professional conversation with his uncle, since he has a good knowledge about this food industry. It would be necessary for Tam to explain his concepts and ideas openly in order to make his uncle to understand it all.

Effective Monitoring and Supervision of Operations

Tam would need to make regular KPIs of his employees on regular basis so that performance appraisal and rewards should be given to staff in terms of a bonus, extra holiday and so on. Staff may get motivated towards responsibilities resulting on operations run smoothly.

Menu Checking:

The menu should be reviewed and revised with less time including popular dishes. In this way, it would be less confusing for the guest to decide on what they want and more easy for the chef to prepare everything with a faster pace. In addition, inclusion of Alcohol may increase the revenue to a great extent. In this respect, the staff should be strictly told to provide all customers with the alcohol menu since assuming would not pay the bills added with a table with alcohol rates and offers printed on them.

Maintenance of Register:

The staff should also be taught and encouraged to use the electronic register for sales since it's a little easier to keep track on the amount of sales and also about, which item is more in demand, this may improve business sales.

References

Brescia, J.A., 2020. Trust, Transformation, and Army Modernization. Defense Acquisition University Picatinny Arsenal United States.

Demirer, I., Madanoglu, M. and Kizildag, M., 2018. Corporate real estate holdings and financial performance of restaurant firms. Journal of Hospitality Financial Management, 26(1), p.2.

Feißel, A., Peter, R., Swart, E. and March, S., 2018. Developing an extended model of the relation between work motivation and health as affected by the work ability as part of a corporate age management approach. International journal of environmental research and public health, 15(4), p.779.

Forbes India. 2020. It's Hard To Fix The Family Business Without Offending The Family | Forbes India. [online] Available at: [Accessed 24 August 2020].

Godwin, A., Handsome, O., Ayomide, W., Enobong, A. and Johnson, F., 2017. Application of the Henri Fayol principles of management in startup organizations. Journal of Business and Management, 19(10), pp.78-85.

Kim, J., Kim, J., Lee, S.K. and Tang, L.R., 2020. Effects of epidemic disease outbreaks on financial performance of restaurants: Event study method approach. Journal of Hospitality and Tourism Management, 43, pp.32-41.

Mbalamula, Y., Suru, M. and Seni, A., 2017. Utility of Henri Fayol’s Fourteen Principles in the Administration Process of Secondary Schools in Tanzania. International Journal of Education and Research, 5(6), pp.103-116.

Ramakrishna, N., 2019. Henry fayol's principles of management and it's applicability in contract staffing. International Journal of Management, IT and Engineering, 9(3), pp.168-182.

Saini, A.K. and Khurana, V.K., 2018. Business model innovation in the digital era: issues and challenges. Digitalization, p.29.

Tasie, G., 2017. A Review of the Role of Management as an Integrating Activity using Henry Fayol Fourteen Principles. Advances in Social Sciences Research Journal, 4(22).

Ulupui, I.G.K.A., Zahra, S.F. and Handarini, D., 2020. Accountability in Managing Business Funds through Budgeting to SME's. Jurnal Pemberdayaan Masyarakat Madani (JPMM), 4(1), pp.375-384.

Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.