Assignment 2: Case Study Report- Gold Coast Convention Centre

Task Description:

The Gold Coast Convention Centre offers as part of its operation, a newly created catering service for the various events and conferences held at the facility. The initial year of operation has seen an annual turnover of $800,000; represented by a 70% of food and a 30% of beverage sales. The Food and Beverage (F&B) manager of the catering service was appointed to the job as a temporary replacement, which lasted for the whole first year. He came to this role with very limited food and beverage experience. While he is aware of exactly how the sales revenue is made up by each component of the service, he does not know what margins they make. Being an inexperienced F&B manager he has decided that, there was no need to introduce any system for controlling stock or purchases, relying instead on employees and his own experience. He always assumed that employees are honest and know their job and therefore only checked the final yearly results. A brief look at the accounts identifies the following: Food sales $510,000 Cost of food sales $315,000 Beverage sales $290,000 Cost of beverage sales $112,000 While it is considered successful in the eyes of the F&B manager, this operation is not performing as well as it could. Some negative feedback has been received by the General Manager, from customers participating in various events and conferences. The following are some examples of feedback: 

1. We have attended at least three functions in the last few months as well as receiving some catering services from the kitchen. However, we decided not to come here as often as we would like because often what was ordered and organised was different from what was delivered. It is especially embarrassing when we have a private function for our guests and you cater for it, as we rarely get what we expected.

2. Food quality and presentation is inconsistent and varies considerably e.g. meal sizes are big one time and very small the next

3. The last time we booked an event most of our participants reported being ill afterward and complained to our organisation that they will never participate again. Your task You have been hired by the General Manager as an expert to advise him on what procedures they should adopt in terms of purchasing, receiving, storage and production that would mitigate these customers’ comments and generally improve the performance of the catering service. Your task for this assessment is to analyse the information provided above, critically evaluate current procedures, and make recommendations for improvement to the GM in the form of a report. In your analysis you should also consider the accounting figures presented above which will help you further understand the situation and the difficulties management is facing.

 

Possible Solution:

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Limitations

In the making of this report, various limitations were encountered. To begin with, due to lack of detailed data recording procedures, it was not possible to gather information related to the quality and quantity of goods received from suppliers. Secondly, it was not possible to ascertain credible information from some employees on the specific failures that led to customers’ complaints. Possibly, there was fear of repercussions or blames, and as a result, accurate information was not provided. There was also incomplete reporting arising from subjects failing to remember critical information on food storage, production, and receiving. Besides, some orders were not recorded on time if they were recorded at all and it was not possible to access the information. There was also the problem of inaccurate measurement and estimation of portion sizes. Lastly, some items were accidentally or intentionally not recorded.

Scope of the Report

The report will cover purchasing, receiving, storage and production processes at the center. Information will be gathered using various data collection methods. The researcher used mixed methods study design to collect qualitative and quantitative data for the report. First, interviews were carried out by the researcher and information obtained through inquiry and recorded. The researcher talked to staff individually noting their opinions, concerns to learn from their knowledge and experience at the organization. Secondly, the researcher used direct observation to collect information on the practices at the organization. The researcher visited the kitchen, stockroom, sales area and all other sectors noting processes and regions that could be considered for change. Lastly, the researcher conducted primary research by going through available documents related to purchasing, receiving, storage and production processes at the organization.

Current Situation

Basis for Operations

Organizational Structure

The Gold Coast Convention Centre catering service operates as a catering services provider for the events that take place at the center. It is comprised of a centralized organization structure. The Food and Beverage (F&B) Manager manager in charge of the catering service. The manager oversees all daily activities of the department. The manager reports directly to the general manager of the convention center. Under the F&B manager are chefs and the marketing and sales department. The marketing and sales department is in charge of procurement, sales and receiving client orders. There is a head chef in charge of all food preparations on the kitchen floor. Under the head chef are cooks, waiters, and waitresses….

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