Evaluating the Strategic Role of Operations Management at Nandos
Nandos can be described as a casual dining restaurant, which originated in South Africa with a Mozambique/ Portuguese theme. Nando’s got its name from one of its founders; Fernando who had Nando’s in the later part of his name. The Restaurant chain was founded in 1987 and has grown to operate in over thirty countries in over five continents. (www.nandos.co.uk) Most commonly, Australia, Bangladesh, Canada, India, Malaysia, Mauritius , Pakistan, Singapore, Zimbabwe, the united States of America and The united kingdom in which Nando’s is trying to build a finger licking tradition. They received the highest accolade for excellence ( three stars) in the best companies annual accreditation awards. It is important to high light here that amongst all the large companies which entered for this award , Nando’s was the only one who received the award. (www.nandos.co.uk)
Nando’s is specialized in serving chicken and chips , rice or mashed potatoes. They specialize in selling flames peri peri chicken and from a personal point of view I think that they do no only specialize in the selling flamed chicken grills , I think that they have revolutionarised the way in which we eat chicken and chips in the united kingdom. Chicken and chips in the united kingdom can to an extent be considered staple food, but with the establishment of Nando’s in the country , its presentation and serving has been given a total over hall. The name peri peri is a south African Swahili word for what is called in Africa the birds eye chilli.. This chilli is exclusively indigenous to Africa. The chicken in Nando’s is served in either quarters, halves or a full chicken. (www.nandos.co.uk)There are also butterfly breast which are sold exclusively to the Nando’s restaurants in the united Kingdom. Added to chicken, Nando’s also serves pitas, burgers, salads, wings and raps in their restaurants. In other countries, Nando’s sells, a large stand with a skewer of chicken breast and large peppers , chicken livers and a chicken and rice dish served in a traditional Portuguese copper dish. Nando’s serves a wide range of drinks, but they are well known for their idea of serving bottomless drinks, which gives the customer the opportunity to drink and endless as much soft drink as they want, as long as they can handle it and nobody is allowed to take any away from the premises of the restaurant. (www.nandos.co.uk)
Nandos thrives on excellence, this is embedded in the our promise section of the menu. In the promise, Nando says that nothing is more important that keeping a promise, and the symbol of the escudo is a sign of integrity, passion, pride and courage. (www.nandos.com)This is a promise by Nando’s to give you the customer the excellent flavor and quality that you would expect. It is important to add her that every service sector company should strive to attain excellence. The survival of this type of business depends on people opinions as such it is very very essential that these kind of companies try their utmost best to keep customer satisfaction levels high. This could either be in the way of producing the best quality plate of food that a customer has ordered in the shortest time possible. (www.nandos.co.uk)This will reduce the waiting times by the customers, but still leave the customer with the excellent feeling of satisfaction of consuming your good or service
According to accounts filed at companies house in 2009 , the financial crisis at Nando’s worsened as they made a loss of about 23 million pounds. As a result of the financial crisis, consumer spending reduced and there was a rise in the cost of raw materials to the industry. This led to a rise in cost to the company and a fall in sale. It is important to not that the company made sales during the period of about one hundred and sixty seven million but due to other factors out of their control, they were still able to make a loss. Management also confirmed that they were happy with the performance of the company even though they did worse that the previous financial year. (www.nandos.co.uk)
Operations management is responsible for designing, redesigning and overseeing business operations. It focuses on the process of producing and distributing goods and services efficiently. Operations management makes sure that business operations use as little resources as possible to produce the post resources as possible, it also has to be as efficient in the sense that it has to make sure that the customers requirements are met. Other activities that are associated with this process include inventory control, quality control, managing processes, storage , logistics and evaluation of processes. Substantial measurement and management of internal processes is therefore embedded in the operations management concept. Important to note therefore is that fact that the ways by which operations management is carried out in an organization depends sole or wholly n the goods and services that this
The idea of the role operations plays in business is very important , as similarly as human beings, we have a role I our everyday existence. In the morning, we could be parents the our kids, later in the day colleagues at work, and later in the evening we could be friends to other people. The point which should be made here, is that we have a different function in every role we play. In the same way, operations in the business depending on what they are, perform a different function depending on what their overall objective is. The most basic role of strategic operations is implementing business strategy. Other important roles of operations are to act as support for the business strategy and to act as a driver for business strategy.
The objectives
Operation management objectives are generally every broad. However, it is important to note that operation management affect five different groups or stakeholders in the organization. (Micheal and McCathie ,2005) The first obvious group of people that are going to be affected by operations are the customers. The second group of people going to be affected are the suppliers who have to change or adapt to the changes in any operations so that the end results can be achieved. The share holders are definitely another group that are going to be affected by changes in operations. The better the operation performs, the more business will be driven to the company which in turn increases sales and in turn increases returns on shares. (Micheal and McCathie ,2005) Generally, employees implement operations processes, therefore it is important that the employees understand the objectives of this operation and are will and able to do everything possible to achieve this goal. Also there is a chance like with many companies, that if the employees perform well and this generates positive returns for the company, then they will be in turn better off as the company may be in the position to offer bonuses to them or maybe increase their employee benefits or salaries.
Findings And Analysis
This report is going to analyze the strategic role of operations and operations objectives, layout , flow , process, and capacity management of Nando’s high cross Leicester. It finds that Nando is a high volume mass service restaurant operating with a low process variety level
This report will examine and describe the main characteristics of Nandos service operations in the high cross in Leicester which was visited on the evening of Friday the first of April 2011.
After making the necessary analysis, this report will end with a recommendation on how Nandos can improve their process.
It is worth noting here that Nandos has become or is gradually becoming a household name in the United Kingdom. Demand for the products and services is so high in the Leicester area that they are operating two restaurants in the city center, one about four hundred yards from the other (Micheal and McCathie ,2005)
Variation.
Nandos can be said to have a fairly predictable variation in the daily, weekly and seasonal demand for its goods and services. Because of the type of food they sell, it is very typical for a Nandos restaurant to be virtually empty in the morning hours of the day. Generally , the most busy periods for the restaurant are evenings, weekend, launch time, and various holiday periods. Periods such as Easter, Christmas and the New year.
As a result therefore, management of Nandos varies the number of staff in the shop at any one period of time so that they can be able to meet up with and adapt with changes in demand. Nandos also employs a good number of part time and temporal staff as such they can be called in at short notice so that unexpected variations in demand can be dealt with efficiently and time lags are avoided.
Visibility
Visibility can be said to be the level of exposure to operations that the customer experiences. Using this definition, Nando’s can be said to have very high levels of visibility as they are exposed to all the front end operations of the business. In a typical Nando’s restaurant , the customer is able to take a look at how his chicken is grilled. Basically take a look at how his/her meal is being prepared.
However, if visibility is considered in terms of the extent to which customers can customize their meals, then visibility can be said to be between medium and low. Nandos, on most of the days and in the evenings can be considered to be a high volume restaurant. This means that you have a lot of people coming into the restaurant to eat. Customizing meals will not be very feasible as it will totally slow down operations. At some times of the day, say probably earlier on in the day, it is easier to probably try an customize meals. But id that is done then they will have to try to practice that through out the day and it will be virtually impossible to do during peak times. As such it can be said that due to its high volume nature, low to medium levels of visibility are necessary in order that the business can operate efficiently.