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Tough Decisions, Hard Choices

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Tough Decisions, Hard Choices: A report on where Lodge Bistro is now and what the future might hold

1. INTRODUCTION

Patricia Lodge CEO of the Lodge Bistro chain requires a brief strategic overview of her present situation and outline possible future improvements.

2. PROBLEMS

The structure of the company has radically changed over the past two years from a functional and formal structure to a service structure with emphasis placed on informal relational structures.

Managers now have far greater autonomy without appropriate checks balances creating inconsistent performance between them. Also and perhaps most significantly, specialisation of the managerial role has led to a de-standardisation of the brand.

Inconsistencies across sites in managerial operations have led to wide disparities in training appraisal, food production and provision. This undoubtedly has impacted staff turnover and customer service.

Lodge Bistro’s are ‘thriving or diving’ dependent upon the capabilities and experience of the manager. The Open University states this well (B120, Book 1, p 36). Often a trade-off exists in a service structure approach; on the one hand they become more “responsive,” but “expertise can become fragmented.”

Long serving managers believe newer managers are lowering standards in pursuit of profits, whilst new (perhaps more specialist) managers feel they are reacting to changing customer needs.

3. CONCEPTS

Structure does govern function; moving away from a formal to informal structure there could be the tendency to ‘throw the baby out with the bath water’. Formal structures can be rigid and less reactive to change, however there benefits shouldn’t be overlooked either.

Formal structures provide a ‘framework’ (B120, Book 1) for the whole company and would clear up any confusion surrounding the roles and responsibilities of

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