Opening a restaurantby using the six steps in Decision Making

Tutorial Group No. : TE1 Week : 7Members : Lam Kwok Tung Kenny 52610985Lam Chi Wing Frankie 52644718Lai Chung Yam Thomas 52569984 1

Content

• Situation• Six steps in Decision Making• Summary• Q&A Section

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Situation

• Open a restaurant in a centrally located shopping center that already has many restaurants that provide different kinds of food at all price

• Have the resources to open any type of restaurant.

• Decide which type of restaurant to open

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Six steps in Decision Making

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Step 1 - Recognize the need for a decision

Decision : To decide which type is most likely to succeed • There are all kinds of restaurant that provide food at

all price of range• Resources are enough to open any type of restaurant • A restaurant will be opened in a shopping centerAs a result, we need to:Survive and succeed under fierce competitionBe unique, differentChoose suitable type to open

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Step 1 - Recognize the need for a decision

Shopping center chosen : Festival Walk

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Step 2 - Generate alternatives

• Develop feasible alternative courses of action• Otherwise bad decision will be made• More new ideas• Brainstorming

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Step 2 - Generate alternatives

• Alternative 1 - Ocean buffet

• Alternative 2 - Pet Restaurant

• Alternative 3 - Rainforest Food court

• Alternative 4 - Green Café

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Alternative 1 - Ocean buffet

• A big roofed aquarium• Beautiful and rare aquatic animals coral reef and fish• Luxury table, chair and decorations• Western buffet

wines, steak

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Alternative 2 – Pet Restaurant

• Lovely decoration and pet toys • Pet owners can have meal with their pets• Provide a platform for pet owners to share their

experience and happiness about raising pets• Pets can play together

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Alternative 2 – Pet Restaurant

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Alternative 3 – Rainforest Food court

• With a vivid rainforest decoratione.g. aquarium, trees, animals

• Change lighting and sound effect together with some decoration regularly

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Alternative 3 – Rainforest Restaurant

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Alternative 4 - Green café

• Decoration with natural landscape printing or photo• Provide food and drink made by organic fruit or

vegetable• Excogitate new dishes to provide customer feeling of

freshness• Use fixture with natural or recycle materiel• Donate some profits to green organization

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Step 3 - Assess alternativesCriteria1. Legality : not violate any laws or government regulations2. Ethicalness : ethical and will not unnecessarily harm any

stakeholder group3. Economic feasibility : have the best net financial payoff4. Practicality : has the required abilities and resources; the

alternative will not threaten the attainment of other goals

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Assessment of Ocean Buffet

Pros:• An amazing roofed aquarium in a shopping center

(Practicality) • Huge range and wide type of food

Cons:• the maintenance cost of the aquarium( Economic

feasibility)

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Assessment of Pet Restaurant Pros: • Pet owners can have meal with their pets• Provide a platform for pet owners to share their experience and happiness about raising pets

Cons:• Violate Food Business Regulation - Cap.132X(Legality)Example:：

"Kat House", in Mikiki mall in San Po Kong fail to obtain a restaurant license.

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Assessment of Pet Restaurant

Cons:• Others customers in the mall may be affected.

(Ethicalness)

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Assessment of Rainforest Food court

Pros: • Wide range of food provided• Interesting theme for Hong Kong people

Cons:• Very high decoration and maintenance cost. (Economic

feasibility)Fail Example: Rainforest Café in Festival WalkOpened in 1998 and closed in 2002Decoration cost > 10million HKD

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Assessment of Green Café

Pros:• Few vegetarian restaurant in the market (Practicality) • Starbuck style liked restaurant is famous in Hong Kong

(Practicality) • Raising awareness of health and environment (Ethicalness)• Can use simply decoration (Economic feasibility)

Cons:• Meat eater is still dominate in Hong Kong • Dishes not suitable to price too much (Economic feasibility)

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Assessment of Green Café

• The public awareness of environmental protection has been raising.

e.g.

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Assessment of Green Café • The sale of organic product is increasing.e.g. Hong Kong Organic Resource Center conducted a survey about organic food in March 2012. More people are willing to buy organic food. The organic food market is potential.

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Step 4 - Choose among alternatives

• Rank the alternatives • Make decision• Group thinking

Pattern of faulty and biased decision occurred Strive for agreement

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Step 4 - Choose among alternatives

Rankings of choices:Green café > Pet restaurant > Ocean buffet > Rainforest food court

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1. Ocean buffet

2. Pet Restaurant

3. Rainforest food court

4. Green café

1. Legality X

2. Ethicalness X

3. Economic feasibility

XX XX

4. Practicality X XX

Step 5 - Implement the chosen alternative

• Implement chosen alternative• Subsequent and related decision• Ensure that follow-up decisions are successful

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Step 5 - Implement the chosen alternative

Subsequent and related decisions must be made:1. Signing contracts with organic food suppliers2. Recruit chefs, waiters and waitress, cleaners,

cashier3. Find decoration company4. Rent a place and so on

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Step 5 - Implement the chosen alternative

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• Top manager may not have enough time to finish all of the missions by himself or herself.

• Works must be assigned the to others. (increase the efficiency)

• Key of assigning middle managers

• Managers need to have sufficient resources to achieve the goal.

• They should accountable for their performance.

• When success they should be rewarded

• If fail they should be responsible for it.

Step 6- Learn from feedback

• Evaluate the results and learn from experience

• Find out why expected results were not met

• Establish guidelines that will aid decision making in the future

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Step 6- Learn from feedback

1st Month 2nd Month 3rd Month 4th Month012345678

Profit

Profit

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After 4 months,

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Feedback1

Problem:The amount of food cannot fulfill some customers

Solution:Let customers to decide the amount of food. To meet the need of customers and will not waste food Promote it as a habit

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Problem:The serving staff has not received manner training

Solution:• Remind the staff • Set up rules for staffRule 1: Say welcome with smile when customers walk inRule 2: Gently tidy up dinning tablesRule 3: Use positive statement to enhance customer feeling of making good deed

Feedback2

Summary

• Six steps in Decision Making Recognize the need Enough alternative The four criteria in step 3 – assessing alternatives

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ReferencesBookManagement, 2nd ed. (2012), The McGraw-Hill Companies, Inc.

Governmenthttp://www.info.gov.hk/gia/general/201201/18/P201201180270.htm

Newshttp://www.eyo-zh.com/cgi-bin/view.cgi?forum=9&topic=60http://hkmanager.hkma.org.hk/article/%E3%80%8C%E7%84%A1%E9%82%8A%E7%84%A1%E7%95%8CE7%94%9F%E6%B4%BB%E4%B9%8B%E6%85%8B%E3%80%8D%E3%80%8C%E5%8F%88%E4%B8%80%E5%9F%8E%E3%80%8D%E5%B8%82%E5%A0%B4%E7%AD%96%E7%95%A5%E4%B8%BB%E9%A1%8C.html?request_locale=zh_TW

Othershttp://yettatop.pixnet.net/blog/post/3393675-%E9%96%8B%E5%BA%97%E7%A7%98%E7%AC%88%E3%80%8B%E4%B8%BB%E9%A1%8C%E9%A4%90%E5%BB%B3-%E8%B6%A3%E5%91%B3%E7%B6%93%E7%87%9Fhttp://www.openrice.com/restaurant/hk_food/theme.htm

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Q&A Section1. Which steps is the most important and

difficult?

2. In the four criteria in step 3, which one do you think is the most crucial?

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