Ploc for Darden Restaurant

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Executive Summary

This report aims to address the impact and problems to Darden Restaurants Inc. due to loss in fourth quarter of year 2007 and examine strategic analysis for Darden Restaurants Inc. in solving this overarching problem.

External environment of Darden Restaurants Inc. have been affected because of this issues, especially the shareholders and the customers of the company. Decreased in sales of the restaurant chains under Darden Restaurants Inc. (Red Lobster, Olive Garden, SteakHouse,

The Capital Grille, Bahama Breeze and Seasons 52) causing the decreased in profit of the company, and therefore cannot surpass the expenses made, and thus loss of $ 55.1 million was made.

With the intention to increase the sales and cut down the expenses for the restaurants, strategic analysis of Darden Restaurants Inc. was done. Planning and controlling functions was used in preparing the solution for this overarching problem.

Recommendation to increase the sales for Darden Restaurants Inc. is to ensure the quality of services given is the best in order to satisfy the customers. By improving the food quality and customer services, consumer will tend to visit the restaurants more often. Developing in the new menu, adding healthy concept in the menu will attract more health conscious consumer.

Although ensuring the customers get good services from ordering, servings and food is very important; budget should be done to make sure no excess expenses. Annual report will be prepared accordingly to observe the company’s operation.

This report finds that retaining current customers will help in solving the overarching problems. Consumers will choose to visit the restaurants again if the restaurants’ services are good enough to please them.

The incorporate that was studied is Darden Restaurant Incorporate (NYSE: DRI), which is headquartered in Orlando, Florida. Darden Restaurant, Inc. indeed is the world’s largest full-service restaurant company. Darden Restaurant Inc. owns and operates nearly 1,700 restaurants including Red Lobster, Olive Garden, LongHorn, Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52.

Darden Restaurants Inc. used to own Smokey Bones and Rocky River Grillhouse as well. In year 2007, Darden Restaurants Inc. was reported that in the fourth quarter, there is a loss of $ 55.1 million compared to a profit of $ 92.3 million in year 2006. 56 Smokey Bones outlets were closed and the remaining outlets were sold to other company. This overarching problem happened due to too many investments in G&A (supplies and packaging aspect).

Clarence Otis, Jr. is the chairman and chief executive officer of Darden Restaurant Inc. In year 2007, Darden Restaurant Inc. has to trade the restaurant chains due to its slumping stock and also the stockholders of the company giving pressure on the profits.

In this report, planning and controlling is used for constructing the solutions for impact of the loss in 2007 to the company. Fayol saw a manager’s job as planning, organising, leading and controlling (Robbins, Bergman, Stagg & Coulter, 2006).

Planning was implemented in the report, this involves setting a clear goals, and by reducing the uncertainty, minimizing redundancy and also setting the standards for controlling. For controlling, the process of monitoring activities to ensure that the organisation work as what they have planned and also to ensure the activities is done in the ways that brings to accomplishments of organisational goals (Robbins et al., 2006).

Darden Restaurants Inc.’s principle is “to nourish and delight everyone we serve”, and therefore the company should improve the quality of the food and also customer services.

Corporate information, article and the media about Darden Restaurant Incorporate were collected and analysed from the internet. Website of Darden Restaurant provides a lot of information about the organisation of the country and also the problems...
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