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CHRIS’ PANCAKE SHOP
An Exercise in Organizational Control
Instructions: Read the exercise below about Chris' Pancake Shop. After careful thought and consideration, determine what types of control systems can be put in place to help Chris resolve his business problem. Remember that lowering the standard of delivering every breakfast within 10 minutes is NOT an option.
The Situation
Chris Cattran is the manager of a restaurant that specializes in serving high-quality, inexpensive breakfasts in a highly efficient manner. In fact, Chris is so committed to the idea of efficient service that he has a policy whereby every breakfast order must be delivered within ten minutes of the time it was ordered. If this policy is violated, it is Chris’ practice to give the breakfast to the customer free of charge.
During the last few months, Chris’ Pancake Shop has suffered a sharp decline in profit, directly attributable to the dramatic increase in the number of free breakfasts offered. Apparently, many customers are not receiving their breakfasts in ten minutes. Clearly, Chris has a big problem that must be corrected immediately. The question is what can be done to eliminate, or at least reduce dramatically, the number of late breakfasts? How can Chris regain managerial control over this situation?
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