Eastern International Food Service Corporation (EI) was a food service corporation in the eastern area of the United States. Its services were offered in many amusement parks. Ocean Point Amusement Park was one of its biggest branches, in sales as well as in number of employees▬ 300. Eastern International had a contract with Ocean Point to operate all its food service concessions on the park’s premises. Fifteen EI concession stands were distributed throughout the 500-acre park. Food sales included hotdogs, hamburgers, French fries, popcorn, ice cream, beverages and so on. Each concession stand had a manager and an assistant manager, as well as between and 5 and 20 workers, depending on the size of the stands. Jobs ranged from cleaning grills and fryers to waiting on the customers over the counter. In addition to the concession stands, the company also operated six different restaurants on the premises, including fast-food services, cafeterias, and a sit-down dining room. Each had its own manager and two or three assistant managers, as well as a full complement of line servers, dishwashers, kitchen helpers, cooks, waiters, and waitresses.
II. Time Context
The problem began on summer season.
III. Case View Point
Stanley Strayhorn, general manager of Eastern International Food Service Corporation’s Ocean Point Division, has a problem. For the past week, labor turnover has been increasing, employee morale has been dropping, and food cost percentage is climbing, while profit margins on sales are declining.mr. Strayhorn is deeply concerned, for there are still two weeks left in the summer season. Not only is it too late to train new workers, but it is difficult even to find replacements. A shortage of labor will drastically affect potential sales for the next two weeks, a period noted for heavy sales.
IV. Statement of the Problem
Ocean Point Amusement Park, one of Eastern International biggest Branch, established specialty-food concession stands of its own.
Rumors flew, fuelled by the concession operations of the park. Some said that the stands were set up to allow the park to develop the skills needed to administer concessions. Once the skills were developed, the contract with EI would be allowed to lapse, and park employees would run the former EI stands next season. An elaborate seniority and promotion system used by the park would effectively preclude EI employees from transferring to park employment. For the past week, labor turnover has been increasing, employee morale has been dropping, and food cost percentage is climbing, while profit margins on sales are declining
V. Statement of the Objectives
• To get employees for EI to gain potential sales for the next two weeks, a period noted for heavy sales
• To know what are the benefits that is needed to be given to the employees that will lose their jobs if the contract will not be renewed
VI. Areas of Consideration
a) SWOT ANALYSIS
- The company operated six different restaurants & 15 concession stands on Ocean Point Amusement Park.
- Returning employee would get 20- 25 percent increase in pay or perhaps a promotion.
- EI management remained silent though there is a problem
- Eastern International Food Service Corporation was a food service corporation in the eastern area of the united states. Its services were offered in many amusement parks
- Ocean point is making competition with EI
- Ocean Point may not renew their contract with EI