Case Study: A Midsummer Day’s Nightmare Executive Summary The following is a case study of a small-sized restaurant that aims at making profits. In this case analysis, the problem is non-compliance with Consumer protection legislations; Food and Drug Act and Food and Drug Regulation as established by Health Canada. A situation analysis attempts to explain how the size of the organization has led to its non-compliance. Nonetheless, various alternatives of expansion and diversification in both operations and products available for the firms are provided within the case analysis.
Lastly, this case analysis provides recommendation and how it should be implemented. Background and Problem Statement The case is about a restaurant that violates the provisions of the laws and regulations governing operations of business entities especially with respect to consumer protection. Consumer protection is an important aspect of various regulations proposed by government (Cseres 151). For instance, the Food and Drug Act as well as Food and Drug Regulations are part of legislations by various institutions within the government that ensure consumer protection against poisonous or stale foods and drugs. Every business organization especially those involved in provision of food and drugs must adhere to such provisions.
Lack of adherence or non-compliance to regulations aimed at protecting consumers is regarded as a violation of legislations governing business operations. Therefore, the restaurant in this case study violated the Food and Drug Act as well as the Food and Drug Regulations as provided for by Health Canada. The restaurant also faces managerial problems where other than having few managers, promoted managers barely undergo training to equip them with required managerial skills.
Situation Analysis Food and Drug Act and the Food and Drug Regulation provided for by Health Canada are aimed at protecting consumers from consuming poisonous foods or those considered to be stale. The restaurant in this case study violates such provisions by selling foods that have not been persevered or stored at an ambient temperature of 40°F or lower. One of the reasons that lead to non-compliance of the restaurant to provisions of the Food and Drug Act as well as Food and Drug Regulation is the size and the urge to make profits.
The restaurant’s size prevents the firm from having adequate equipments that can preserve food at the required temperature (Cseres 178). In this respect, the restaurant opts to have a smaller management team, which absurdly does not undergo the required managerial training. In addition, the small size makes it unable to meet the expenses associated with operations of business. As a result, the firm opts to use possible means to reduce expenses such as not installing effectively functioning machines in addition to putting off the freezer to reduce costs associated with power.
Analysis of Alternatives One of the alternatives is involvement in outside catering leading to expansion and diversification of sales hence making it possible to have desired profits. Another alternative would be to expand into other regions. Even though expansion will demand additional capital and expenses, the strategy has far reaching positive implications. The restaurant may also opt to diversify the business. Diversification means providing other goods and services other than selling foodstuffs. Other alternatives would include hiring more managers and ensuring that they undergo required managerial training.
Such trainings will enhance the performance of newly promoted persons into managerial positions. Employing and training more managers on the other hand will be expensive. Recommendations and Implementation Expansion and diversification are recommended. Nonetheless, this should be implemented in phases in order to avoid further problems of capital required and expenses associated with expansion and diversifications. Nonetheless, there is need to have lean but efficient managerial team. If the restaurant does not have enough to employ more managers there is need to equip the existing and newly prompted managers with managerial skills through adequate training.
Work Cited Cseres, Katalin. Competition law and consumer protection. The Hague, Netherlands: Kluwer Law International, 2005. Print.