Guzman y Gomez (GYG) Australia Operations: Key Issues and Strategic Recommendations (Essay Sample)

Guzman y Gomez (GYG) Australia Operations: Key Issues and Strategic Recommendations Name University Course Instructor Date Executive Summary Guzman y Gomez (GYG) is a fast-food restaurant that offers Mexican food, and due to the rapid growth of its stores, it has increased operational issues in Australia. The Board must address three significant areas in our recommendation to support the company's growth and sustainability. These are supply chain management problems and those arising from the integration of technology and sustainability. Every area has the potential for positive change, but if the opportunities are capitalized, they can bring beneficial customers and brand names. This paper provides strategic suggestions to enhance these crucial aspects so that GYG can continue operating competitively in the evolving Australian environment. Table of Contents Introduction…………………………………………….…….………..4 Supply Chain Management……………………………………………4 Issue………………………………….…………………….4 Cause and Ramifications…………………….…………….4 Supporting Evidence…………………………..…………..5 Recommendations……………………………………..…..5 Technology Integration………………………………………………..5 Issue…………………………………………….…………5 Cause and Ramifications………………………….………5 Supporting Evidence………………………………………6 Recommendations……………………………………..….6 Sustainability………………………………………………………….6 Issue……………………………………………………….6 Cause and Ramifications………………………………….7 Supporting Evidence……………………………………...7 Recommendations…………………………………………7 Conclusion…………………………………………………………….8 Reference List………………………………………………………...9 Appendix A Supply Chain Management…………………………..…12 Appendix B Technology Integration…………………………………18 Appendix C Sustainability…………………………………………....23 Introduction Guzman y Gomez (GYG) has recently grown significantly throughout Australia and can now boast of being the fast-growing fast-food company serving mouth-watering genuine Mexican cuisine. Nevertheless, such expansion holds many challenges that, if found uncompromised, threaten the company's growth and operational performance. This report identifies and analyzes three key issues: Supply chain management, technology infusion, and sustainability. Every issue can thus be problematic for GYG, but at the same time, it also provides the company with the chance. Supply Chain Management Issue: The Schmore or Increasing Complexity and Rising Costs Dilemma. The larger the company grows, the more complicated it will be to manage the supply chain network suite (that includes suppliers, transportation, and distribution centres) (SBO Financial, 2014). The most emergent issue regarding food quality management is balancing quality and costs when relying on fresh ingredients only(See Appendix A). Cause and Ramifications The increasing growth of GYG has led to increased procurement volumes and has expanded a geographical distribution network. Even though this growth is good, it has led to operational challenges(Osum, 2024). High usage of fresh ingredients reduces GYG's procurement cycle compared to competitors; nonetheless, it adds to the overall cost of logistics and inventory storage(See Appendix A). An improved supply chain management system poses a significant risk of future delays and the company's product quality. This will lead to the company's brand image and customer loyalty suffering in the process(Sinclair & Carr, 2018). Supporting Evidence CrunchTime states that GYG's fast growth has put pressure on its present and traditional supply chain management system(CrunchTime, 2024). From the operations perspective, new requirements for purchasing fresh meat and fish, vegetables and fruits, and other produce from different places have thrown up issues that must be addressed. Recommendations * Implement Advanced Supply Chain Management Systems: Adopting fresh supply chain technology, such as technology procurement of machines, real-time tracking maps, demand forecast solutions, and inventory optimization solutions, will bring more efficient supply chain visibility, effective evaluations, and cost-efficient solutions(See Appendix A). * Supplier Diversification: Do not rely on one supplier since that could cause a problem in case of a shortage or refusal to supply quality products. * Cost Control Measures: Propose measures to control the costs of procurement. Technology Integration Issue: Desire for Higher Technology for Efficiency in Operations and the Quality of Customer Service The fast-food industry is gradually growing more competitive for GYG; as such, the overall quality and utility of technologies must be improved in terms of internal functionality and customer service experiences. Mobile applications and company websites stand as the primary digital sales channels that, when implemented with limited integration of superior technology, could lead to a loss of market competitiveness by the affected firms(See Appendix B). Cause and Ramifications Currently, GYG has well-functioning technology in its operations; however, the adoption is relatively isolated without proper integration(Guzman y Gomez, 2023, June 30). A coupled-up technology system is needed to ensure the company deals with disparate order management, supply chain procedures, and employee timing patterns. Lack of advanced technological investment will likely cause GYG to lose its customers to competitors who provide faster and more convenient services ranging from order placement to delivery and relevant offers(Cappellesso & Thomé, 2018). Supporting Evidence In GYG's recent financial update, digital sales were one of the firm's most important growth areas. The organization recorded extensive order penetration through digital platforms, proving that online platforms are viable in managing sales (Gomez, 2023, December 31). Recommendations * Upgrade Digital Platforms: GYG should further integrate the improved functionality of its application and website into the customers' experience. Amply-built ordering services, product tracking in the supply chain, and integrated customer loyalty programs may go a long way in engaging the customers(See Appendix B). * Adopt Integrated Technology Systems: Implement organization, such as order and management synchronizations. Sustainability Issue: Higher adoption of environment-friendly measures People are more willing to pay attention to environment-friendly practices in locations they visit for their meals, and businesses that do not adapt to this aspect may pull out of business and be considered environmentally irresponsible(Morningstar Equity Research, 2024). Regarding sustainable sourcing, while GYG has improved the use of fresh and clean ingredients, it should make more efforts to promote sustainability procurement regimes(See Appendix C). Cause and Ramifications This is due to growing customer consciousness about the environment and increased regulatory scrutiny of carbon emissions and waste(West, 2024). If not correctly implemented, sustainability strategies in GYG's operations may suffer poor balancing with customer preferences, attracting undesirable adverse customers and fines for non-compliance with environmental standards. Implementing sustainable materials and services, such as waste management, energy efficiency, and environmentally friendly packaging materials, also positively affects a firm's image and brings operational benefits such as cost minimization and waste elimination (Jose & Shanmugam, 2020). Supporting Evidence GYG has already secured its position in the market through the encode's positioning statement to source fresh and higher-quality ingredients that fit the contemporary sustainable movement, as McDonagh et al. (2024) described. Nevertheless, given that total transparency regarding the environment is the order of the day among supermarkets' clients, GYG requires extending the company's environmental initiatives to the rest of the specifications(See Appendix C). Recommendations * Adopt Sustainable Practices: GYG can enforce restaurant sustainability guidelines, including minimizing waste, cutting energy costs, and using eco-friendly packaging. * Sustainability Reporting: The company should ensure that it periodically releases its sustainability strategies and achievements to the public to portray credibility to the public. * Consumer Engagement: Provide information to customers to create awareness of the company's sustainability efforts through advertisements and better signage inside stores(See Appendix C). Conclusion As GYG progresses in its development in the Australian market, it is presented with several strategic issues and challenges. Overcoming supply chain management issues, implementing advanced technologies, and implementing sustainable strategies are essential for the company's activities. With the help of the outlined measures, GYG can increase its operational performance, upgrade the value delivered to its customers, and solidify the brand identity so the company can remain competitive within the identified market and consistently deliver sound profitability. References Cappellesso, G., & Thomé, K. M. (2019). Technological innovation in food supply chains: a systematic literature review. British Food Journal, 121(10), 2413-2428. HYP...