Benihana of Tokyo Case Solution Introduction: The foundation of Benihana of Tokyo was in the year , the time when Yunosuke Aoki — father of Rocky the current youthful president of Benihana of Tokyo opened his first restaurant chain in the Japan. Though, after spending a period of three years, he had better analysis of the restaurant market of the United States. In , he was worried about the cost rising and increasing competition. This was paid back within a period of six months.
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Benihana of Tokyo Case Solution Possible Alternatives to Identified Issues Based on the above identified issues, the management of Benihana has several alternatives that might be able to reduce these issues to minimum level however,it should be noted that these alternatives do not produce the most desirable result for the management. Following are the available alternatives to the company to resolve the identified issues; Hired Trained Staff fromUS The management could hire experienced and trained staff from within the United States as this will further reduce the labor expenses for the company while the continuing training programs of the company will allow the new hires to learn cooking in the Benihana style.
Hence, thiswill allow the company to grow quickly without the need for paying excessive amounts to chefs. Train Amateur Chefs The company could also hire amateur chefs and provide them with apprenticeship under experienced chefs.
This will provide the young chefs to groom and become professional chefs,whereas Benihana will be able to produce high quality chefs on their own and can fulfill their staff requirement easily. Taking Debt from Banks In order tofulfill the capital requirement, the company has the option to take debt from commercial banks that are willing to give debt but the company management believes that this could result in loss of control. The company should negotiate with other banks in order to be in better termsinwhich they are satisfied.
Charge for Management of Franchises The company can start selling its franchises to other investors again. The adjustments that they can perform is to sign an agreement with franchisee that Benihana will provide management services to the franchise and will charge a portion of revenue for their services. These charges will be separate from royalty payments. Moreover, thiswill allow the company to grow quickly and increase itsprofitability margins. Using Funds of Venture Capitalists The company could call for funds from venture capitalist as these firms have large capital resources and might be interested in investing in Benihana as it has great growth potentials.
These firms will demand stake in equity of the company for providing their funds, therefore the management might lose control however these investors are usually interested in profits and not in management of the company.
Issue Stocks Publically Benihana could go to stock markets and get publically registered, as this will allow the company to issue stocks to general public and receive equity. Moreover, this will allow the company to retain control while receiving large amount of capital.
However,the main problem here is that to get registered the company needs to be larger in size. As a result, this will allow the company to reduce costs while satisfying its customers. Hire Temporary Carpenters The company currently has only two carpenters; therefore thisis limiting the growth of carpenters.
Benihana could hire local carpenters who could assist the Japanese carpenters and therefore, the company will be able to build units more quickly.
These unexplored states could be potential markets for the company. This growth strategy will require minimum capital as the company will spend less in performing market research. Furthermore,as the company has developed itself as a brand in the US, therefore new branches within the country will be more appreciated by customers.
Expanding into different Countries The company can expand itself into new territories situated outside of US,such as the company is in negotiations with a Mexican restaurant for franchising it services to restaurant. The company faces some issues regarding growth for which the identified alternatives are also given.
The best possible alternative, based on the image theory of Analytical Model of Decision Making Beach, , is that the company should sell rights to franchises however it should make contract with franchises for providing management services for a determined fees,whereas the company should also provide apprenticeships to amateur chefs to produce high quality professional chefs.
The company should try to expand itself out of the US as this will allow the company to grow at a faster rate. The strategy suggested will help the company to improve its current operating strategy and will help the company to achieve its long term strategy of expansion……………………… This is just a sample partial work.
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Benihana of Tokyo Harvard Case Solution & Analysis
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Benihana of Tokyo Case Study Help - Case Solution & Analysis
Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. To make a detailed case analysis, student should follow these steps: STEP 1: Reading Up Harvard Case Study Method Guide: Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered.
Benihana of Tokyo Case Study Analysis & Solution
He got himself enrolled in the school of restaurant management at New York City College, thinking that he would never go hungry in the restaurant business. He did a systematic analysis of US restaurant market and discovered that although American enjoyed eating in exotic surrounding but were deeply mistrustful towards exotic foods. He also learned that the American enjoyed watching their food being prepared. These learning helped Rocky to open up his first unit of Figure 2: Benihana founder Hiroaki Benihana by The major problem that Rocky addressed "Rocky" Aoki from the analysis was the shortage of skilled labor which he eliminated with the Hibachi table arrangement, which required only the chef as a skilled person. The instant success of the first unit helped Rocky to open six franchises within the next seven years soon after which he realized that the franchise owners were investors and had no restaurant experience which made it even more difficult for them to relate to a native Japanese staff.