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Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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
Transcribed Image Text:CASE ANALYSIS
Expected Students' Behaviour
a. Participate and listen actively throughout class discussions.
b. Contribute ideas, analysis, and personal experiences instead of simply presenting facts.
c. Build on each other's comments and critique and debate different points of view.
The Case:
GIGI'S CATERING (B)
Gigi was looking forward to taking on the opportunity to serve the catering needs of the
upcoming Junior- Senior Prom of the Quezon City National High School. "How difficult could
it be?" she wondered, “after all, it's just fried chicken, or beefsteak, maybe, "she added. The
first question in her mind was "what kind of food will the kids want?" "Do they want the
breaded and crunchy kind or they want the simple home-cooked style chicken or beef?" Gigi
wondered. She realized this decision would have some implications on her costs and her
production process. She decided to go back to Mrs. Manalastas, the school principal, to inquire
further. "Firstly, as mentioned, we don't want any health risks. That's a minimum. We don't
want spoiled food served to students so the food must be prepared as fresh as possible. Secondly,
the kids would want something filling - they want their money's worth in terms of serving size.
They are paying P150 and they are expecting a meal worth P150. Thirdly, while the kids may be
a bit forgiving in terms of taste, they want the food to taste decent," Mrs. Manalastas explained.
"In terms of delivery, I think I've made myself clear the last time," Mrs. Manalastas said. "The
food should be here no later than 4PM on the day of the prom.
As Gigi left, she wondered just how much money will she make for this particular venture. Her
instincts told her that her direct food cost should be no more than 40% per serving. This was the
same profit margin she had in running her canteen. With these guidelines, Gigi decided to begin
her production plan.
Guide Questions
1. What are their expectations of quality?
2. How should Gigi define quality internally?
3. What is the delivery expectations?
Expert Solution
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