Operational Management and Competitive Positioning of Popeyes
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Introduction: Operational Management and Competitive Positioning of Popeyes
The current global business environment and quick product development for client demand have added new dimensions of complexity to the work of operational management in the fast food sector. The health and longevity of every business depends on the efficiency with which its operations and processes are managed. Management of the resources used in manufacturing or providing a service is the domain of operations management. The present report illustrates purchasing and procurement operations of Popeyes. The task also demonstrates the competitive environment of the business in the Brighton branch. The company operates as a fast food chain in different countries and regions. Currently, the business has a presence in 30 countries with more than 3200 outlets. The business has an employee strength of 5, 700 with a revenue of $ 5.7 billion. Furthermore, recommendations have also been illustrated in the present report.
1. Competitive positioning of the Popeyes
The threat of New Entrants
Popeyes works in a sector where it is challenging to obtain economies of scale. This facilitates a price advantage for manufacturers with big capacities. New entrants find it more expensive to begin manufacturing as a result. As a result, competition from new entrants is diminished. Popeyescan keep its low prices because of its enormous market share and the economies of scale it enjoys inside the business (Musonera, 2019).
Popeyesmay use product innovation to set itself apart from new competitors. It has funds available for advertising to establish a for itself in the market. With this strategy, it can keep its current clientele and stave off competition from upstarts.
Figure 1: Porter's Five Forces
Bargaining Power of Suppliers
Popeyes’s suppliers provide competitive prices for the company's basic ingredients. Due to the cheap switching costs involved, Popeyesmay easily switch suppliers if the prices or quality are not satisfactory. Its supply chain is flexible enough to accommodate numerous vendors. Popeyes, for instance, may work with many vendors in various regions. This will help the company maintain an effective supply chain. Popeyesmay reap benefits from cultivating mutually beneficial connections with its suppliers because of the industry's status as a significant customer (Onyusheva, 2021).
Bargaining Power of Buyers
Popeyescan attract more customers by being creative and setting itself apart from the competition. Popeyescan win over a large consumer base in the food service sector by emphasizing product uniqueness and quality (Callaci, 2021). Popeyeshas to expand its client base rapidly since consumers have little leverage in negotiations. The brand's marketing activities can succeed in doing this.
The threat of Substitute Products or Services
Popeyesmay put its efforts into producing higher-quality goods. Customers would rather purchase its items, which provide superior quality at a more affordable price, rather than similar products offered by competitors. By doing extensive market research to learn more about its target demographic, the company is able to provide customized solutions that stand out from the competition.
Operational performance
Fast food companies such as Popeye's operational performance objectives are the benchmarks against which the success of the business's day-to-day operations may be evaluated and enhanced.
Quick and effective service is a priority for Popeyesand is one of the effective operational performances. Minimizing client wait times may be a primary operational goal, with related goals including improving the efficiency of order processing and meal preparation.
Consistency in the quality of the food Popeyesprovides is crucial to keep the regulars coming back as another operational performance. Goals might include always meeting or surpassing customers' expectations, using only high-quality ingredients, and cooking according to established protocols.
Providing customer service is a top priority for fast-food franchises such as Popeyes. From Porter's five forces, it can be analyzed that the business attracts more customers by being creative in the marketplace. Therefore, customer service has been chosen as one of the prioritized operational performance objectives (Dewi, 2020). This has been prioritized due to effective customer service the organization can attract more customers and increase its customer base in the real; event market place. Employees may be taught to be more hospitable and attentive to customers, problems can be solved faster and better, and the whole customer experience can be improved.
Figure 2: Operational performance objectives
Profitability in the fast food industry such as Popeyes is directly correlated to how well expenses are managed. Waste reduction, optimized inventory management to reduce food deterioration and overstocking, and the introduction of cost-saving techniques in procurement, manufacturing, and labor might all be operational goals.
In Popeyes, health and safety must be prioritized as another example of operational performance. Goals may include fostering a safe workplace by regularly educating personnel, maintaining compliance with food safety requirements, and adopting correct sanitation and hygiene practices.
Fast food restaurants must innovate and adapt their menus to meet the changing tastes of their customers if they are to survive. The goals might include preserving operational efficiency while introducing new menu items, catering to customers with special dietary needs, or responding to shifts in consumer tastes.
Productivity and happiness at Work are one of important operational performances for Popeyes. Happy, fulfilled workers are more inclined to go above and above for their employers. Increased employee happiness and output may be achieved via initiatives like training and development programs, performance recognition and reward, and the promotion of a good work environment (Myers, 2019).
Popeyes may increase productivity and efficiency via the use of technology. The use of data analytics for demand forecasting and inventory management as well as the automation of mundane chores may be part of the plan (Callaci, 2021).
Popeyes is beginning to place a greater emphasis on being environmentally conscious and sustainable. Waste minimization, eco-friendly packaging, and fair trade components are just a few examples of possible goals.
2. Detailed analysis of the operation
There has been a significant shift in how Popeyes make their purchase choices in recent years. As a result, many businesses, especially those involved in fast food, are placing a greater emphasis on sustainability and health. Good buying management may have a major impact on the achievement of the organizational objectives of the business. Purchasing is often responsible for negotiating contracts and agreements with vendors. However, this function is quickly evolving across all sectors, especially in the fast food sector. Purchasing managers are shifting away from their conventional function and instead focusing on sustainability and health in an effort to improve productivity.
There are numerous areas that are included in purchasing and procurement operations of Popeyes. The areas of procurement and purchasing have been described below:
Supplier selection: The company segregates and identifies suppliers who are able to provide quality raw materials and products for the business. This is one of the important areas in purchasing and procurement operation of the business. With quality suppliers, the business is able to acquire and offer relevant products to customers in the Brighton branch. The organization may face issues with quality while selecting suppliers. This is one of the issues the business may face in the relevant marketplace.
Negotiation and contract: Determining pricing is one of the vital steps for the business to manage the financial budget of the business. With contract and negotiation, the business can strengthen and develop positive bonds with the suppliers (Griffith, 2019). Maintaining a positive bond allows the business to gather sources efficiently in times of emergency.
Ingredient sourcing: The business sources different ingredients such as chicken, spices, and breading. In such a scenario the organization needs to identify specific suppliers who can provide appropriate sources of ingredients (Mapes, 2022). It is one of the vital areas in purchasing and procurement of Popeys as it defines the image and presence of the company in the fast food sector in Brighton.
Quality assurance: The organization has strong quality assurance measures and process which allows the business to maintain the quality of the products that are being produced. Supplier audit and product testing are some of the quality processes that are involved in purchasing and procurement of the business (Gordon, 2020).
The process map describes the areas that are involved in the purchasing and procurement operation of Popeyes.
Figure 3: Process Map
With the identification of the suppliers, the business can move to the next level which is negotiation and contracting. In this phase, the business is able to build an appropriate relationship with the selected suppliers and continue with their further process in purchasing and procurement. Ingredient sourcing is the next phase in the operational process where the company provides its order to the identified suppliers. In this phase, the business segregates and decides the product that needs to be ordered from the suppliers. The last phase of the operation is monitoring and checking the quality of the sourced products from the suppliers (Lehman, 2020).
Recommendation
It is recommended that using technology in Supplier selection for Popeyes is a very authentic way to boost their productivity. By keeping tabs on invoices and stowing away payment details, technology may streamline and simplify the payment process. Businesses have more confidence in one another because of the transparency that payment technologies provide about pricing and fees. Invoices allow buyers and sellers to verify one other's numbers without having to provide a tonne of extra information. Invoices and payment information may be tracked and stored digitally, which would speed up and simplify the payment process (Muhammad, 2022). Because of the openness that payment technologies bring to the table in terms of pricing and fees, companies have greater faith in one another. Invoices eliminate the need for extensive communication between buyers and sellers in order to verify one another's figures. With e-sourcing solutions, purchasers may verify a company's legitimacy without relying on the seller's word or outdated contracts. Instead, it's consolidated into a single location for easy reference. Procurement heads may compare and contrast different suppliers on this platform (Brooks, 2021).It is also recommended that Popeyes can also use advantage technologies such as SAP and with the use of this software, the business can aggregate the suppliers as per their nuggets and monetary capability. The business can also implement a separate internal audit team for monitoring the quality of the products that have been produced in the enterprise (Dambanemuya, 2021). This will allow the business to have a strong monitoring of the quality departments and units.
It is also recommended that, In order to develop a specialized waste management team, Popeyes need to form a certain mentality. People who are actively involved in the preparation of meals should be included in this category (Do, 2022). Composting meal waste might help the planet. This would help eateries reduce their contribution to landfills filled with food scraps, a major source of the harmful gas methane. Finally, take advantage of modern tools to aid in the fight against food waste. To guarantee that they have implemented all necessary steps in Popeyes management to reduce food waste, Popeyes may, for instance, use a computerized checklist.It is recommended that customer feedback is a mandatory method for growing a food chain business such as Popeyes. Popeyes should allow its consumers to post reviews and feedback online. Offering a reward in exchange for filling out a short, straightforward feedback form or survey. Popeyes may then provide its clientele with a selection of products and services that will more adequately address its requirements.
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Conclusion
It can be concluded that the business needs to focus on the quality of products fetched from the suppliers. Overlooking the quality of products may lead to the downfall of the business in the relevant industry. It has been found that separating and identifying reliable sources for raw materials and finished goods is a top priority for the organization. When it comes to the company's procurement and buying processes, this is a crucial issue. The company can get the items it needs to serve its Brighton consumers from reliable vendors. The findings of the report also illustrate that the business has a presence in 30 countries with an employee strength of 5,700.
Reference
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