Human Resources Strategy

Human resources management concerns the human side of the management of enterprises and employees’ relations with their firms. Its purpose is to ensure that the employees of a company, i.e. its human resources, are used in such a way that the employer obtains the greatest possible benefit from their abilities and the employees obtain both material and psychological rewards from their work.

Human resources management has strategic dimensions and involves the total deployment of human resources within the firm. Thus, for example, human resources management will consider such matters as:

• the aggregate size of the organization’s labor force in the context of an overall corporate plane (how many divisions and subsidiaries the company is to have, design of the organization, etc.)

• how much to spend on training the workforce, given strategic decisions on target quality levels, product prices, volume of production, and so on

• the desirability of establishing relations with trade unions from the view-point of the effective management control of the entire organization

• the wider implications for employees of the management of change (not just the consequences of alterations in working practices).

The strategic approach to human resources management involves the integration of personnel and other human resources management considerations into the firm’s overall corporate planning and strategy formulation procedures. It is proactive, seeking constantly to discover

Financial Strategy

Effective strategies are crucial to the well-being of the firm, and need to address the following issues:

• How, where and when the business will obtain funds, plus (for public companies) the timing of share issues and the determination of share issue prices
• The best use of financial resources
• Gearing
• How to maximize the market valuation of the firm
• What to do with accumulated cash
• Long term financial planning for business expansion
• The capital structure of the business
• The extent to which internally generated profits are reinvested within the company
• Choice of financial criteria for selecting major capital investments.

Also companies operating in several countries need to formulate

10 Ways to Save Money at Your Restaurant

Everyone is looking for ways to save money these days. Restaurants are no exception. The good news is that there are a lot of quick steps you can take to save you money, either through cutting energy use or reducing spoilage. A lot of these tips are the same things your mom told you growing up.

1. Switch to energy efficient light bulbs. Subway recently switched all their light bulbs to energy efficient bulbs in all of their 2000 US franchise locations. Switching to an energy efficient light bulb can save up to $22 per bulb per year. This can add up to quite a savings over time. Also keep lights off when you don’t need them. If you don’t start serving lunch until 11 o’clock there is no reason to turn the dining room lights on until then. 
2. Only run the dishwasher when it is completely full. This cuts down on water usage, soap and energy costs.
3. Soak the dishes. Rather than running hot water over them to loosen dried food, fill a sink and let them soak.
4. Install low flow faucets and toilets. This will save between 20 to 40 percent of water usage.
5. Turn down the thermostat. You can still be comfortable at 68 degrees rather than 72 degrees.
6. Switch from plastic to glass. Green restaurants have been following this tip for years. If restaurant uses disposable plates, flatware or cups, considering a one time investment for china, glass and silver. You will save on garbage (good for the environment as well as the restaurant budget) and save money over time.
7. Invest in energy efficient appliances. This is a lot easier said than done, especially in a sluggish economy. But consider that many states offer restaurants tax credits and other incentives for switching to energy efficient appliances. Plus, the savings on an energy efficient appliance can often pay for itself within a year or two.
8. Trim down your menu. Track sales of every menu item and remove menu items that aren’t selling. Also look for ways to cross utilize menu items, using one item for multiple dishes. This will help reduce food spoilage as well as keep food cost under control.
9. Take advantage of e-marketing. More and more people turn to Google to look for restaurants than the yellow pages. Take advantage of all the internet has to offer, from your own website to online advertising. Many companies offer inexpensive e-newsletters you can send to customers for a fraction of traditional prints ads.
10. Train your staff. Teach your staff to sort recyclables, turn off lights, let you know if there is a leaky faucet in the wait station. Ask them to bring in their own take-home containers instead of using the restaurant take-outs.

Market Segmentation

The term ‘market segmentation’ describes the breaking down of a market into self-contained and relatively homogeneous sub-groups of customers, each with its own special requirements and characteristics. Products and advertising message can then be altered to make them appeal to particular segments.

Markets may be segmented with respect to customers’ location, ages, incomes, social class, or other demographic variables, or according to consumer lifestyle, attitudes, interests and opinions as they affect purchasing behavior.

It does seem that many consumers buy goods that fit in with a chosen lifestyle (healthy, sophisticated, rugged, etc.) and with their perceptions of what they ought to purchase in order to pursue that lifestyle. Once the lifestyle to which potential consumers aspire is identified, advertising message can be modified in appropriate ways.

Differentiated versus undifferentiated marketing strategies

A differentiated marketing strategy requires the firm to modify its products for various market segments and to operate in all sectors. Production and promotion costs are normally higher when this approach is followed.

Marketing Mix

In 1965 Professor N. H. Borden coined the phrase ‘marketing mix’ to describe the combination of marketing element used in given set of circumstances. Appropriate mixes vary depending on the firm and industry, and over time.

Professor E. J. McCarty subsequently summarized the notion under four headings (known as the ‘four Ps’ of marketing), as follows:

• Promotion – including advertising, merchandising, public relations, and the utilization of sales people.
• Product – design and quality of output, assessment of consumer needs choice of which products to offer for sale, after sale service.
• Price – choice of pricing strategy, prediction of competitors’ responses to changes in the supplying firm’s prices.
• Place – selection of distribution channels, transport arrangements.

Marketing is the primary interface between the firm and its customers, guiding resources towards appropriate product offers and facilitating the satisfaction of customer requirements. Selection of the particular mix to be used forms the basis of the firm’s marketing strategy.

Examples of marketing strategy are:

• developing new product for existing markets
• deeper penetration of existing markets
• entering new markets for existing product
• attacking competitors head-on (rather than following competitors’ norms and behavior)
• serving particular market niches

Marketing Myopia

In 1960 Theodore Levitt published in the Harvard Business Review an article entitled ‘Marketing Myopia’ in which he argued that firms should adopt broad industry orientations rather than focusing their attentions on

10 Ways to Stay Ahead of Your Restaurant Competition

quoted from Ian Macdonald - founder and owner of Macdonald's Gourmet Burgers

Every restaurant owner should constantly be taking an objective look at how well your restaurant is doing. Staying ahead of the competition will keep you on your toes. Here are some ways you can get a good report card.

1. Know who your competition is!

I have encountered situations where a restaurant owner has identified the competition. Or at least what they think is their competition, but they're not. If I am selling Gourmet Burgers with the finest of ingredients, including trimmed premium Scotch Fillet Steak for the beef patties, (like I do), in a licensed restaurant with full service and extras, I am not really in Competition with the greasy burger joint down the road, or a group like Burger King am I?

So make sure your competition is truly your competition in the first place.

2. Get Employees to Sample the Competition.

You should always know what your competition is doing, it is essential to your success. It may be difficult to go yourself though as you would no doubt be known. So send one of your employees instead. Brief them what to look for. It will also give you the opportunity to treat a staff member to something different. How about showing up for work to be told you have to go out to dinner or lunch...all expenses paid!!!

3. Employ the services of a mystery shopper.

This is the reverse of what we have just spoken about. Here you get someone to come to your restaurant and report back to you. So none of you staff know what's going on. I organise this by going to our local business or community college and speaking to someone from the food and beverage school. They always suggest a student that would excel at the project. They earn some money, have some fun, and get a free meal. I often donate something to the college or I might even go and speak to there for them.
Everybody wins.

'10' Restaurant Financial Red Flag

quoted from John Nessel - Restaurant Resource Group

• Absence of a well organized and implemented accounting system
• Key operating expenses too high relative to gross sales
• Menu items not accurately documented, costed and updated
• Food & beverage inventory levels not counted and costed at the end of each accounting period or recorded in your accounting software
• Food and beverage inventory levels too high relative to corresponding sales
• Daily & weekly financial operating data not collected, reviewed or acted upon
• Inaccurate posting of financial information to your accounting system
• Current liabilities sufficiently greater than current assets as to impair future ability to pay bills
• Owner relying on online bank balance to determine available cash to pay bills
• Overall lack of understanding as to how to read and interpret period ending Financial Statements

Why Fast Food Is Not Cheaper Than Healthy Food

quoted from Tim Harland, MD - Board certified internist and founder of Dr Gourmet.com

I get a lot of questions during lectures from people wanting to know how they can eat better when eating healthy is so expensive. They base their questions on claims that unhealthy choices are cheaper. For instance, I saw a recent news story where the reporter walked around Wal-Mart and looked at the value of foods based on the measure of calories per dollar. This is really nothing more than a cute parlor game to say that one dollar will purchase close to 1,000 calories of candy bars but only a single large apple, because it doesn't tell us anything about what we get for our money. Calories are certainly an important part of our diet and weight control, but it is the quality of those calories that matters to our health.

The conclusion often from studies and news reports is that the subsidies on more calorie-dense foods are the culprit Because our government provides funding to farmers growing calorie-dense products like corn (which is processed into sugars) and beef, the typical fast food menu can be advertised as being "cheap, cheap, cheap," and candy bars can be sold for 33 cents each.

This is, however, one of the great myths about healthy eating -- ranking right up there with the fallacy that eating healthy doesn't taste good. I believe it's more economical to cook a fresh, healthy meal than to eat junk food.

The argument I hear most often is that it's cheaper to eat at McDonald's. After going to McDonald's recently and putting together a typical meal for four (mom, dad and two kids), I came up with a total of about $14.00 (I didn't actually buy anything, though). For that money, you get almost nothing of nutritive value, but bland white bread, greasy burgers and fries with a sugary soda.