Taco Bell - Hbr Case Essay
The given case deals with the growth of a well-known chain of restaurant named Taco Bell over a period of time. During the given period the restaurant’s sales doubled and profits tripled. This was the result of a series of changes made by the management in the functioning of the restaurant.
How Taco Bell Evolved
PRODUCTION AND PROCESS
The company, with the advent of the modern era, keeping in mind the convenience of the customers increased its POA (point of access) and re-engineered its Multilevel Management system to Team-Managed Units. The earlier system was a “commanded and controlled” organizational structure which was changed to a structure that empowered its frontline employees. This induced a sense of …show more content…
The flow of information in the system was so formulated that no Bullwhip Effect takes place. The team managed unit let the flow of information into the system in such an effective manner that there is no requirement of the General Manager to interfere in the day to day functioning of the restaurant. With the advent of advanced information technology, flow of information was enabled to all the required locations at just one click. Also the crew members knew better about the day to day operations than the Managers so letting the members handle the decision making job was comparatively better than the Managers making the decisions. Secondly, the restaurants earlier had a throughput process as the customers had to wait to get their change at the window. This process was broken into two:
1) at one counter the customer gets their change, and
2) the other counter to get the customer’s orders.
THE learning organization
The company’s rapid expansion of its multiple brands and its ever increasing span of responsibility presented new challenges for Taco Bell. One such challenge was the ability of the company to quickly transmit information throughout the company in ways that added value. It resolved to meet this challenge by creating a learning organization.
The company believed the benefits of creating such an organization were an increased individual awareness and collective IQ of the