Benihana of Tokyo Harvard Case Solution & Analysis

Benihana of Tokyo Case Study Solution

Employee Satisfaction:

Satisfaction of employees as the ecosystem for support available for every employee:

• Satisfaction of employees increases growth chances of performances of both employees and organization.
• Paternal attitude –served as the key to the bonding on basis of culture with effective management.
• Providing employees with handsome wages and incentives such as plans of bonus.
• Providing employees with intangible advantages like security of job and employees’ well-being.
• Pride of employees serves as the key factor in the motivation of employees.

Effective and Aggressive Marketing:

Investment of Benihana at substantial level in the maintenance of public relations and development of advertisement:

• Investment of about 8 to 10 percent in advertising from the gross sales.
• Organization lead in terms of its unusual strategy of advertising.
• Advertisement was exceptional, contemporary, off the wall visuals in the advertisement.
• Benihana significantly maintained its policy word of mouth in a consistent manner.

Customer Satisfaction:

Research of market to evaluate the potential customers and their expectancy:

• Quality of food drive the customers’ satisfaction the most i.e. use of food of prime grade.
• The key drivers served as the factors of customers’ satisfaction was mainly atmosphere and service.

Problem Analysis:

Franchise

• Investors of the business were not experienced in regard to grow the restaurant business.
• Lack of awareness about the culture of Japan and cooking style of Benihana.
• Investors lack control in terms of management of operations.

Expansion

• Funds – unwillingness to receive loans from institutions of finance such as banks.
• Organization faced inadequacy in the additional trained staff.
• Productivity is considered good but is limited with availability of only two carpenters.

Operation

• Services of the organization were time-consuming as there were no options of quick service.
• The cost of advertisement was quite high and specific focus of organization towards food.
• The services variation was limited to the primary United States food market.
• The menu of the organization lacks variety of food as the menu was limited.

Improvements:

Expansion

• For the expansion of business, there is a requirement to explore potential regions such as suburb areas.
• Joint ventures are considered more liable in comparison to franchise such as with the chain of international hotel.
• Benihana can significantly take funds from the institutions of finance as cash flows was not a matter of concern.
• Expansion of business in the international market like market of South East Asia with an attention of middle to upper class division.
• Development of brands with varying value proposition like Benihana signature, Benihana of Tokyo and Benihana Oriental Express.

Cost

• Through the expansion of business in the suburb areas, there will be reduction in the site cost.
• Cutting down of additional cost of advertisement.
• Use of local material in the development of building to give it a shape of architecture of Japan.
• Use of locally available manpower for the work of carpentry.
• Purchase of decoration material in bulk amount to get more discounted rates of the products.
• Building of workshops in third world countries such as Indonesia or Thailand for production of decoration craft of Japan as new business line.

Operation

• Introduce operations with quick services in order to cater the division of young people.
• Benihana can take up add-on business in order to sell traditional stuff of Japan in a dedicated restaurant areas.
• Bring variation in the menu such as addition of sushi-on-the-go, udon, robatayaki.
• Introduction of attractive schemes for old people and females.
• Introduction of complimentary card of membership to offer package of special offer to its loyal customers.
• Building of local center for training particularly to train local staff.(Christian, 2014)

Conclusion:

Since the establishment of Benihana from the time of Rocky’s father, the organization had been working as a restaurant, after Rocky joined Benihana to implement the things he had learned during his study at the American school and the systemic analysis of the American’s food market. Following a number of operations, Rocky completely changed the concept of Japanese food menu through introduction of three main American entrees which mainly included steak, chicken and shrimp as a replacement for raw fish as a representative food at the restaurants of Japan. His idea and management was unique which was quite difficult to imitate.

Exhibits

Exhibit – Production Process

Exhibit –Winning Strategy

Exhibit – Improvements:

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