Business Management Watch
Mr Diner had been employed as a cook in a family restaurant in Lily Valley for ten vears. The restaurant,
Carib-Jerk, was one of the first of its kind in Lilly Valey. It specialises in a Caribbean cuisine offering
a special Jerk-Chicken dish flavoured with a mix of spiey Caribbean scasoning. Its clientele was a
mixture of local residents, tourists, and cmployees from the mearby commercial complex. Over a ten
year period the owners of the business became very wealthy indeed.
Mr Dincr, inspired by how well the business was doing., started looking around for a suitable place to
locate a Jerk-Restaurant of his own. After searching for two months, he decided that Matchville, a small
town approximately five miles from Lilly Valley would bc an ideal location for the following reasons:
1.Måtelville has no restaurant which offered this unique type of cuisine
2.Unemployment was relatively low in the town
3.Tourists visited the area regularly mainly because of an ancient museum situated there
4.A busy commercial as well as industrial complex was situated there.
Mr Diner leased a shop on Easy Street, one of the busy streets in Matchville. He took out a five year
lease, paying $240.000 yearly, spent a further $100.000 converting the premises into a Testaurant, and
bought S150,000 worth of furniture and equipment. Two weeks before the opening, Mr Diner placed
some advertisements in the local newspaper. He installed a wonderful sign that lights up in the nights.
with the name "Diners-Jerk", offering the same cuisine as thut of Carib-Jerk.
After six months of operation, Mr Diner was deeply concerned. He had a large clientele, but customers
were complaining about the service. They had to wait a long time for the meals to be prepared as well as
served. In addition, the dining area was too small, and customers always complained about this. Once
Mr Diner had done up a proposal for an expansion and had asked an advertising agency for a quotation
on the cost of an advertising campaign. To date, he has not had a chance ro look at the figures quoted.
After sitting and reviewing his books, Mr Diner realised that the income generated by the business was
just sufficient to cover his running costs. He knew that he had to do something quickly. He is now
considering several options. These include:
1.Possible expansion- and where to seck, Lhe finance for such a project
2.Whether to join up with two other family members and go into a partnership or a limited
3.liability company - to share the responsibility and decision-making
4.Whether to launch the new advertising campaign if he chooses to expand.
Explain how an application of the following FOUR functions of management would help Mr
Diner to run his business more efficiendy.