BENIHANA OF TOKYO CASE PDF

What strategic measures should Benihana of Tokyo take in order to sustain future growth? There are three 3 underlying management issues and challenges that we can identify in answering our main problem, these are the expansion constraints, franchising issues, which happened to be one of the ways of expansion and lastly a threat in the business operations model relative to the current customer and market behavior. For franchising, investors have no knowledge of the Japanese culture and the Benihana style of cooking thus eliminating the companys core value of authenticity on each of these opened branches. In addition, most of the franchisees have minimal experience on operating a restaurant business, which proved to be detrimental to the franchises growth. This led Aoki to discontinue the program after years of implementing it. Expansion was also an issue due to companys unwillingness to take the risk of borrowing from financial institution, the scarcity of trained staff and limited productivity of 2 carpenters.

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What strategic measures should Benihana of Tokyo take in order to sustain future growth? There are three 3 underlying management issues and challenges that we can identify in answering our main problem, these are the expansion constraints, franchising issues, which happened to be one of the ways of expansion and lastly a threat in the business operations model relative to the current customer and market behavior.

For franchising, investors have no knowledge of the Japanese culture and the Benihana style of cooking thus eliminating the companys core value of authenticity on each of these opened branches.

In addition, most of the franchisees have minimal experience on operating a restaurant business, which proved to be detrimental to the franchises growth.

This led Aoki to discontinue the program after years of implementing it. Expansion was also an issue due to companys unwillingness to take the risk of borrowing from financial institution, the scarcity of trained staff and limited productivity of 2 carpenters.

In operations, there was an ongoing concern on the restaurants limited menu variation as well as slow service option. Aside from this, cost for advertisement and PR is eating a substantial amount of companys overall expense plus presence in secondary market and markets outside US is non-existent. Recommended Courses of Action: After a thorough analysis of the problem, the group was able to identify recommendations for each of the underlying management issues.

Expansion Constraints The company should take funds from financial institutions in order to further fuel growth. Instead of going into Franchising, the company might as well develop joint ventures with International Hotel companies.

Through this, they would be able to reach out international market. Developing different product value proposition would also cater to different target markets. For younger generations that would opt for faster service, the company might want to establish a new restaurant operations model such as Benihana Fastfood theme where customers can dine-in, opt to take out or order thru drive-thru. The company might want to create new menu variations like sushi, udon and gyoza.

Allowing local chefs and staffs to hasten hiring process, thus reducing recruitment cost. All-you-can-eat concept can also be introduced in order to widen target market.

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Benihana of Tokyo

A company called BFC bought the stock in a deal that was negotiated by a Benihana director. The same Benihana director was also a principal owner of BFC. After the directors approved the stock sale, Benihana of Tokyo disagreed with the sale and purchase and filed a derivative lawsuit against the directors. The trial court held for the directors, stating that the board knew that the director was a principal of BFC, but that the board was not informed that the director had negotiated the deal on behalf of BFC. The trial court also found that the decision was within the bounds of the business judgment rule.

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Benihana of Tokyo Harvard Case Solution

Benihana restaurants are traditional Japanese hibachi steakhouses, which feature the Japanese cooking method known as teppanyaki. There are key attributes that separate Benihana from other restaurants. One is true Japanese authenticity. Utilise the Benihana simulation used in tutorials to illustrate your arguments, analysis and recommendations in this assignment. Steps in the process: 1. Benihana simulation is a computer simulation of an operation management result based on concept of Benihana restaurant in Tokyo designed by Harvard school. The outline of the simulation is based on two seating position i.

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