CORPORATE DOSSIER ON FRISCH'S RESTAURANT

Corporate Dossier on Frisch's Restaurant

Corporate Dossier on Frisch's Restaurant

Chapter 1

C:

Problem and issues that triggered a strategic change

Between 1993 and 1996, Frisch's opened 30 restaurants in Ohio and in neighboring states. During this time, however, the company experienced a huge decline in net income, which management attributed to increased labor costs and overly rapid growth.

In 1996, two non-management investors, calling themselves Wolverine Partners, launched a proxy fight to gain themselves and two other non-management investors seats on the board of directors of Frisch's Family Restaurants(Zuber, 1998).

Frisch's management maintained that many of the changes proposed by Wolverine Partners had already been considered by the company. Restaurant improvements, a computer system in particular, had been slow in development; the Cincinnati Reds investment was once profitable and could become so again; the farm and hotels operated at a profit and would be sold upon receipt of a suitable offer. Management was also non-receptive to the board restructuring recommendations. Moreover, the Maier family alleged, the goal of the Wolverine Partners was only to realize short-term gains on their investments(Milstead, 1995).

Frisch's management firmly held that the loss of profitability over the previous few years was due to overzealous expansion in a competitive environment. The company had opened 30 restaurants, primarily in Indianapolis and in Columbus, Ohio, which overextended their management resources. Frisch's also pointed out that it had indeed been receptive to selling its peripheral assets, and had done so with the Hardee's and Prime `n Wine chains(Zuber, 1998).

D:

Workforce and Culture Analysis

Every company has its own organizational culture. From an employee's standpoint, culture is valuable because it reduces ambiguity. It tells employees how things are done and what is important. But culture also has the dysfunctional aspects. Culture is a liability when the shared values are not in agreement with those that will further the organization's effectiveness. Strong culture will burden the organization and make it difficult to respond to changes in the environment(Roy, Schor, 1987). It represents what the company objective is. Frisch's is a good example as it emphasizes to provide the best service to customers. It includes to provide outstanding quality, service, cleanliness and value and make every customer in every restaurant smile. It also provides happy environment for employees to work in.

Chapter 2

A.

Mission Vision and Current strategy

Our mission is to be a respected leader in the food service and hospitality industries. We guarantee our customers quality products that provide real value, with the service they expect, in clean, pleasant surroundings. We dedicate ourselves to sound management practices and effective human relations, while returning maximum earnings to our stockholders.” (www.frischs.com)

Frisch's vision is to be the best owner/operator of franchised, multi-location restaurant concepts within 500 miles of their home base in Cincinnati, Ohio, while continuing to create value for their shareholders(Zuber, 1998). They plan on achieving both by earning the loyalty of their customers and employees, and by providing the highest levels of food quality and service satisfaction, with excellence and fairness as their ...