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All agency action can be classified in three categories: quasi-adjudication: order making, judicial quasi-legislation: rulemaking executive
Posted On: Oct. 23, 2017
Author: Shipra


Darden Restaurants Darden has become a global leader in the hospitality industry. It started with a modest beginning when the company’s founder Bill Darden opened his first restaurant in 1938 in Waycross, Ga. It was not a fully fledged restaurant but a small one of the size of 25’ by 30’ luncheonette and named “The Green Frog" that featured "Service with a Hop." The first Red Lobster restaurant was opened in 1968 in Lakeland, Fla. As on date, Darden is the world’s largest full-service restaurant company. The success of the restaurant comes from the strong values that it holds and imbibes in its employees as well. These are Integrity and fairness to each other; Respect and caring and well being for others, acknowledging individual differences and belief in Teamwork, These are also its critical success factors as the company believes in continue learning. Darden also is focused on making sure that employees are trained and nurtured as it is through them only the company would achieve and sustain success. When the employees feel a pride and a sense of accomplishment it ultimately leads to the success of the company and its growth. Another success factor for growth is the Supplier Diversity imitative adopted by the company in which it focuses on businesses run by women or minority. This initiative helps in bringing about awareness and opportunities to those who are in need and then become part of the value chain of the company. The company does not just believe in earning profit itself. It measures its performance in terms in terms of full service. This view is held by the company because they are of the opinion that with their strong multi-unit brands, they can enhance their share of full service segment. It is the variety or breadth and depth of their expertise that has helped them in gaining a distinctive place for themselves in the field they are operating. The balance score card would cover constituents such as brand management excellence, restaurant operations excellence, supply chain, talent management and information technology, among other things. The time and effort the company spends on minor details even for selecting a site for opening new restaurants goes to show their commitment to quality. The company believes that a high – quality restaurant should be managed well and then only it would contribute to its long term success. While the structure of the restaurant differs on the basis of brand and size, there is no compromise on quality and consistency of preparation procedures and recipes. It suppliers are encourage to maintain a very high standard of manufacturing practice and have put in place a comprehensive Hazard Analysis and Critical Control Point (“HACCP”) food safety programs adopted by the U.S. Food and Drug Administration. The company is aware of the risk factors such as follows:- The business of the company get a beating if it does not maintain safety precautions in the entire supply chain of its procurement , preparation and service of food. Further, in this service industry, there is a possibility of people filing case of litigation, including allegations of illegal, unfair or inconsistent employment practices, which in turn could seriously affect the revenues of the business. In case of adverse publicity, the company may not be able to respond in an effective manner and thus could damage its reputation built over the years. This can adversely affect the sales and number of guests visiting its restaurants. Examples of costs with respect of brand Red Lobster Variable cost The cost of procurement of sea food for preparation of dishes for its various customers is variable (Drury 2007). This would vary depending on the number of customers being served. Even the cost of the ingredients for making the dish will be variable. Fixed cost Cost incurred towards payment of salary of its employees is a fixed cost. The rent and charges towards electricity is also a fixed cost. Product cost This cost related to the product (sea food) and would depend on the ingredient used and the process time involved. Period cost These costs are not included in cost of purchase or manufacturing. Examples are sales commission and administrative expenses. Direct cost These costs are directly charged towards the total cost of manufacturing. For example Publications, brochures, project supplies to name a few Indirect cost The examples of indirect cost are audit and legal costs, administrative staff Cost of controlling cost The salaries of people employed to supervise the operations and also check the quality of items purchased and manufactured would be examples of cost of controlling cost Cost of failing to control quality This cost will be reflected in terms of lower volume of sales and reduction in profit margin (Chadwick 1998). References http://investor.darden.com/Theme/Darden/files/doc_financials/2012-10K.pdf accessed on September 17th 2012 Drury C. (2007) Management and Cost Accounting 7th edition Cengage Learning Chadwick L. (1998) Management Accounting 2nd edition Cengage Learning