The Case: GIGIS CATERING (B) Gigi was looking forwand to taking on the opportumity to senve the catering needs of the spooming Junice- Senior Prom of the Quezon City National High School "How difficult could ia ber she wondered, "after all, it's just fried chicken, or beefsteak, maybe, She added The fint question in ber mind was what kind of food will the kids want "Do they want the brcaded and crunchy kind or they want the simple home-cooked style chicken or beef Gigi wondered. She realized this decision would have some implicatices on ber costs and her production process. She decided to go hack to Mrs. Manalastas, the school principal, so inquire further. Firntly, as mentioned, we don't want any bealth risks. Thar's a minimum We den't wat spoiled food served to students so the food mest be prepured 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 PISO and they are expecting a meal worth PIS0. Thirdly, while the kids may be a bit forgiving in ters of taste, they want the food to taste decent" Mes. Manalastas cxplainod. "la terms of delivery.Ihink I've made myself clear the last time." Mn. Manalastas said The food should be here no later than 4PM on the day of the peom As Gigi left, she wondered jast bow mach money will she make for this particular venture. Her instiacts told her that her direct food cost should be ao more than 40% per serving This was the same profit margin she had in runing her canteen. With these guidelines, Gigi decided to begin ber production plan. Guide Questions I What are their expectations of quality? 2 How should Gipi define quality internally? 3. What is the delivery espectations?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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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
brcaded 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 PIS50 and they are expecting a meal worth PIS0. 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 mysclf clear the last time," Mn. Manalastas said "The
food should be bere no later than 4PM on the day of the prom.
As Gigi left, she wondered just how moch 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 interally?
3. What is the delivery expectations?
Transcribed Image Text: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 brcaded 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 PIS50 and they are expecting a meal worth PIS0. 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 mysclf clear the last time," Mn. Manalastas said "The food should be bere no later than 4PM on the day of the prom. As Gigi left, she wondered just how moch 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 interally? 3. What is the delivery expectations?
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