MGMT 480 Essays/Short Answers

Agency Theory Stock Options Balanced Scoreboard

• The idea management will work in their own interests in order to appeal to stock holders to boost financial performance.

• Customers, growth and improvements, and core competencies can also measure a businesses success.

The Big Short, Cause, Control mechanisms

• 2008 financial crisis due to subprime mortgages, false securities, lack of transparency, agency failures, and weak regulation.

• Tighten regulation and require transparency. Remove those who knowingly commit white collar crimes from being able to ever work in the industry again.

• Also: A balanced scorecard, long-term incentives, and making investments easier to understand

Balanced Scorecard

Financial, Internal, Customer, Leaning/Growth (FICL)

Financial

Goal: Drive profitable growth while maintaining cost discipline

Key KPIs & Metrics

Revenue growth rate (%)

Operating margin (%)

Short-Term Objectives (0–12 months)

Increase same-store sales through menu innovation and promotions

Improve margins by managing food and labor costs

Long-Term Objectives (1–5 years)

Sustain high operating margins through automation and efficiency

Grow international market share

Internal

Goal: Optimize operations, food quality, and throughput

Key KPIs & Metrics

Food safety incident rate

Order fulfillment time (minutes)

Short-Term Objectives

Improve inventory management to minimize waste

Strengthen food safety compliance across all locations

Long-Term Objectives

Standardize operations across expanding locations

Leverage data analytics for demand forecasting

Customer

Goal: Deliver a consistent, high-quality, and convenient customer experience

Key KPIs & Metrics

Customer satisfaction (CSAT score)

Average order value (AOV)

Short-Term Objectives

Improve speed of service during peak hours

Address customer complaints quickly (food quality, wait time)

Long-Term Objectives

Build strong brand loyalty around “Food with Integrity”

Maintain reputation for quality and sustainability

Learning and Growth

Goal: Develop employees, culture, and innovation capabilities

Key KPIs & Metrics

Employee turnover rate (%)

Training completion rate (%)

Short-Term Objectives

Reduce employee turnover through better scheduling and wages

Improve onboarding and training programs

Long-Term Objectives

Build a strong leadership pipeline (promote from within)

Foster a culture of innovation and continuous improvement

Premise

F: Monitoring stable food costs and pricing power

I: Checking customers willingness to pay premium prices

C: Validating supply chain assumptions, labor availability, and productivity

L: Validating assumptions about employee retention, effectiveness of training programs

Strategic Surveillance

F: Monitor competitor pricing, economic trends, cost pressures

I: Monitor food safety incidents, operational innovations

C: Monitor social media sentiment, food trends

L: Monitor employee brand competition, labor market trends

Three Strategic Controls

Premise, Implementation, Strategic Surveillance (PIS)

Mission Statement

Cultivate better food for the world

Vision Statement

Change the way people think about food (Sustainability, Real Ingredients, Access)

Values

People-First, Transparent, Food with Integrity, Authenticity, Quality

Strategic Focus

Providing fresh responsibly sourced food, improving customer experience, continued growth

Implementation

F: Revenue and growth margins, cost control, ROI for promos and price changes

I: Fulfillment time, audit food safety, waste and labor

C: Track Customer satisfaction and average order value, loyaly program engagement

L: Track employee turnover, training completion, leadership development