eastern international food service

8/19/2019 Eastern International Food Service

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EASTERN INTERNATIONAL

FOOD SERVICE

CORPORATION

Case Analysis

Maylyn Vergara


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• Eastern International Food Service Corp. – Ocean Point

Division faces an issue of whether its contract of lease with

Ocean Point will be renewed or not.

• With no clear communication rumors of EI not returnin!

ne"t summer have spread.

• #s a result EI emplo$ees% wor& behaviors have chan!ed

ne!ativel$ – resultin! to tremendous decline in sales and

profits of EI.

VIEWPOINT


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Increase of labor turnover rate decline of emplo$ee

morale increase of food cost percenta!e and

decrease of profits of EI Corp because of

mana!ement%s failure to provide clearcommunication to its emplo$ees.

PROBLEM


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'o reduce labor turnover rate b$ at least ()* food

costs b$ at least ()* and increase sales to an

amount close to the defined tar!et within the

remainin! two wee&s.

OBJECTIVE


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STRENGTHSCapacity to offer 20-25% salary increase or promotion to

returning employeesLarge number of concession stands or branches operating in

various target markets

WEAKNESSManagement’s lack of rumor control

OPPORTUNITY

Achievement of desired labor turnover rate, employeeperformance, food cost percentage and profit margin

THREATSSignificant decline of profit margin

Closure of business operation in Ocean Point Park

AREA OF CONSIDERATION / SWOT


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A.Immediately communicate the issue to the

employees and convince them to support the

interest of the company despite the issue on hand.

B.Immediately communicate and coordinate with

Ocean Point management the contract renewal to

clear the ambiguity.

C.Do nothing. Only two weeks left anyway. Just

recover the lost profit next year or in other

areas/target markets.

ALTERNATIVE COURSE OF

ACTION


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I recommend B

Immediately communicate and coordinate with

Ocean Point management the contract renewal to

clear the ambiguity.

RECOMMENDATION


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A.Conduct a meeting with Ocean Point management with

regards to the contract renewal.

B.Once a decision has been made, communicate it directly to

the employees and verify that the rumor is not true.

C.If the decision made is to renew the contract, motivate the

employees to improve their performance by offering a 30%

pay increase as they return for work next year.

D.If the decision made is not to renew the contract, motivate

the employees to improve their performance by offering

them bonuses once profit targets are met.

E.Contact resigned employees and convince them to come backto EI.

F.To avoid or minimize such harmful rumors, EI must start

having an “Open Door” policy to encourage employees to

share their work problems or uncertainties – creates

transparency.

PLAN OF ACTION

eastern international food service

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