Course Code -PROJ6009 Business Process Management and Systems
This particular report shall be dealing with business process management shall be divided into two sections. Part-A shall be dealing with the critical analysis of the Business Process Management technique used in the organization, and the risks associated with the implementation process. The second part, Part B shall be dealing with an argumentative account of whether 'To be' mapping system is appropriate or not for the chosen organization, which is KFC (Kentucky Fried Chicken), which is an American fast-food giant having its franchisee stores all over the world. The business processes of the KFC shall be analyzed by means of providing the case study of its operations in the middle eastern country of Israel.
Business Process Analytical Plan
The business process management as it has already been discussed is an activity that oversees the smooth flow of the business activities are taken care of for the achievement of the optimum amount of success. The business process management can be defined in two ways, 'as is' and 'to be' process mapping. These are the two processes that are involved in the task of overseeing the various activities involved in the execution of the business processes (Rebhun & Waxman, 2000).
As the name is suggestive of, 'as in' implies the processes and their outcomes that are supposed to be seen experienced when the plan of the business is to be implemented and executed in reality. 'As in' mapping refers to the summation of the outcomes and their analysis on the implementation and execution of the business plan, which shall be implying whether the implementation of the business plan is a success or is it not reaping the expected benefits (Rebhun & Waxman, 2000).
Similarly, as the name is suggestive of, 'to be' refers to the state of the business that is likely to take a turn when in the future. It is on the basis of the implications derived from the present observable state of business, as in whether the implementation of the business plan is a success or not, is it not reaping the expected benefits, that the 'to be' mapping system is developed, with the view of bringing about the necessary changes in the business operations in future to reap the maximum benefit out of it, or to increase the profit margin by means of doing away with the flaws that exist in the current business operations (Trkman, 2010).
Thus, 'as in' and 'to be' are thus tools by which the business decisions are evaluated, and thus they are quite crucial for the purpose of taking the most important business decisions to ensure that the linear flow of the steps down the supply chain leads to the realization of the business goals cherished originally. Both of them are thus quite complementary to each other. Having provided the basic theoretical understanding of the 'as in' and 'to be' business mapping tools, which are the two most important aspects of business process management, in the following sections, its practical application in the case of the expansion of KFC in Israel shall be provided (Trkman, 2010).
Overview of the Chosen organization
KFC had been founded by Colonel Harland Sanders, who was an entrepreneur. He had initially begun his business venture by means of selling fried chicken prepared at his roadside food joint situated in the Corbin region of Kentucky when the period of the Great Depression had hit hard the American economy. Sanders had identified that the potentiality of the food joint franchisee concept, and he had thus opened his first "Kentucky Fried Chicken" franchise store in Utah city in the year 1952. As his initial food joint was a success, he had decided to embark upon a worldwide expansion by means of leasing out franchisee outlets across various parts of the world (Saini, 2019).
Sanders had sought to introduce KFC in the Jewish majority nation of Israel, in the Middle East in the 1980s, which was however delayed and the final plan had been realized only in the year 1993 when the franchisee store was opened at the Rishon Lezion region. In Israel, the operations were however not very successful and the decision was to close down its operations in the year 2012. Currently, the business operation has already resumed itself once again in the nation, in the year 2020. Israeli market has been an extremely difficult and unprofitable location for conducting business operations ever since it had decided to open up franchisee stores at various locations in the nation (Geeter & Sigalos, 2018). Having provided an idea about the history of the expansion of KFC in the Israeli market, the discussion shall be focusing on explaining the situation as per the 'as in' and 'to be' mapping system of business process management.
On investigating the reason as to why the Israeli market had been unprofitable for the global fast-food chain, it was found out that the recipe of the fried chicken was not in tandem with the Jewish rules of dietary habits, often interchangeably termed as kosher or kashrut. The recipe used in the preparation of the fried chicken for KFC involves herbs, spices and a coating of milk powder which imparted the signature taste to the internationally available menu, available in all the franchisee outlets of the world. That is the trademark of the KFC restaurants, which is offered at all KFC stores apart from the nationally customized menus (Sperling, 2020).
Critical analysis of the Business Process Management technique used in the organization
The problem with the signature menu of the fried chicken is that it goes against the Jewish religious dietary rules of kashrut, as in, the mixing of dairy products with meat dishes is forbidden and considered as unfit for consumption. Hence the product was not consumed by the majority of its population, naturally, KFC lost in terms of business. This can be considered as the outcome derived from the 'as in' situation analysis in Israel, as implications derived from the present observable state of business, as in whether the implementation of the business plan is a successor is it not reaping the expected benefits is what the mapping system is all about. The implications derived out of the 'as in' mapping analysis of the business proceedings in Israel has throughout remained the same, down the history of the business operations in the nations as the demographics in terms of the religion, the taste pattern, has remained by and large the same, even until 2020, when the fast-food giant has begun expansion in the nation once again (Van Der Aalst, Ter Hofstede & Weske, 2003).
The 'as in' situational mapping suggests that the failure of KFC to reap benefits in the Israeli market has been attributed to its failure to achieve success in terms of its non-adherence to the rules of Kashrut. Israel is a Jewish majority nation and the level of observance varies across the spectrum of ultra-orthodox to fairly secular, and across the spectrum, there has been observed that the people choose to adhere to the rules of kashrut, majorly. KFC as such had no problems in attracting the Muslim and the Christian populations of the nation. KFC fried chicken adheres to the rules of halal, and that makes the meat consumable to the Muslims, and mixing dairy and meat is allowed as per Islamic dietary rules, and the Christians do not have any dietary restrictions in that regard as such. However the Muslim and the Christian populations were too less in the Israeli market situation to bring about any substantial amount of profit. From this situation, the implications derived from the 'as in' mapping analysis, the 'to be' business process mapping is supposed to be derived, which shall de discussed critically in the next section dealing with the critical analysis of the risks associated with the implementation process. Structural changes in the process of business and the nature of the product offered had been brought about (Lee & Dale, 1998).
Critical analysis of the risks associated in the implementation process
In this particular section, the risks associated with the implementation of the 'to be' mapping system shall be provided and that shall provide an idea of at all the future prospects envisaged shall be providing the organization with a chance to gain profit in the Israeli market.
The 'to be' mapping system is developed, with the view of bringing about the necessary changes in the business operations in future to reap the maximum benefit out of it, or to increase the profit margin by means of doing away with the flaws that exist in the current business operations. The 'to be' implications or the future steps that were supposed to be the taken involved, making the recipe kashrut, and also to ensure that the marketing of the fried chicken is done in such a way that the Jewish people find buying the products worth it as the chicken is a staple diet, and thus it must be made appealing to the people who eat it every day at their homes. Israel might as well be a Jewish majority nation, hence the first 'to be' condition to be met by the chosen organization was to gain more profit is by means of increasing the level of sales. Jewish kashrut meat is permissible for the Muslims and Christians to be consumed hence it was more important to make the products kashrut and attract the Jewish masses (Hammer, 2015).
The second 'to be' condition to be met by the chosen organization was to replace milk powder with soy protein powder to make the meat kashrut. It was a risky, as that meant the total alteration of the nature of its signature and original product. Israel was the only location on earth whereby the signature recipe of the original product was altered to suit the market demands. It was, however, a failure since the 'as in' situation had been even worse, the soy protein powder could not replicate the signature taste imparted by the milk powder and it was not liked by even the existing customer base belonging to the Islamic and Christian faith. Hence falling out of favor, KFC finally decided to close down operations in 2012 (Joffre, 2019).
The next 'to be' implication that ways supposed to be implemented was entry into the Israeli market following the business strategy of not adhering to the rules of kashrut at its franchisee store in Nazareth. As per the views expressed by the spokesperson of KFC going kashrut, way was a mistake and it would be rectified in the new business venture of re-entering the Israeli market. The 'to be' implication meant for the year 2020 and onwards also runs the same old risk of having fewer customers, that is people belonging to only a few selected religious group shall be the buyers while the majority population shall have to be foregone, thereby limiting the margin of profit to the bare minimum ("KFC set to relaunch in Israel", 2020).
Description of the Audit process and Improvement methods
Business functions on the basis of a systematized process, which has to be managed in a proper manner. Business process management is considered to be a discipline within the field of business management studies which involves within its ambit the combination of the processes of modeling, automation, execution, control, measurement and optimization of activity flows in business processes in order to support the entrepreneurial goals, spanning of the systems, the employees, the customers and the partners within the ambit and beyond the boundaries of the business organization. This hints at the fact that the area of functioning of business process management is quite broad and it tends to have an overshadowing attitude over the entire process of conducting business. For example, the business processes involve the following activities, which are oriented towards the receiving of the orders, invoice preparation of the bills, shipping of the products to the end of the final customers, updating of the employee information, on a regular basis, and the setting up of a marketing budget for a particular business project or the entire financial year (Zairi, 1997).
Business processes tend to occur at each of the levels of an organization and in its activities, which is inclusive of all the events which thee customer can see and also all those events which are not visible to the customers. In the contemporary business world, the business process management tends to do all the works related to the creation and direction of the processes that are the best suited for the success of a particular business venture and for the achieving of its particular goals. All of those are usually focused upon the stakeholders associated with the organization or are oriented to the technological aspect, or in some cases, both, since the assets which could be used for the facilitation of the best of the process for the particular job to be accomplished. Thus the overall summation of all the processes that are involved in the conducting of the business in a smooth manner falls under the purview of business process management, and it tends to oversee all these processes so that it proceeds properly and orderly in a linear manner and that is a vital aspect (Zairi 1997).
These are the audit processes that are continuously followed in the seven stages of the business following the 'as in' and the 'to be' mapping system to continuously monitor whether the flow of goods and services down the supply chain is improved and smoothened. The way of improving the business processes that have been undertaken by KFC to ensure that it continues to remain in business in Israel can be divided into two phases, the one prior to the year 2012, and the most recent one in the year 2020. These are the methods of improvement that have been undertaken by the organization concerned.
In the years prior to 2012, the decision taken by KFC administration was to make its fried chickens kosher by substituting the coating of milk powder by powdered soy protein. It was decided at the cost of compromising with the originality of the taste of the product. It was, however, a disastrous effort which had led the organization to lose customers as there was a dearth of demand for the modified, kashrut chicken fries, even the target audience rejected it and eventually the business operations had finally come to an end in Israel that year. Again in the year 2020, the new business improvement plan that had been introduced was that of rectifying the mistake of 2012, and instead of focusing on attracting the Jewish Israeli population, KFC had decided to stick to its non-kosher version of adding milk powder to the recipe. The associated risk with it is that the rate of sales would remain comparatively low and so shall be the profit margin. Hence it is highly doubtful, in a climate wherein the Jewish majority demographics have not changed much, whether the rate of profit margin and the rate of sales shall increase. It is also doubtful whether such a step to re-enter the Israeli market can be called as a business development process or not (Dumas et al 2013).
Applicability of “To-Be” Mapping based on the organizational resources and capability assessment
The latest 'to be' mapping measure which has been taken has been in the year 2020, to offer the non-kosher menu to the public, however, the 'as in' mapping analysis suggests that the population is still majorly Jewish in the nation, with Nazareth being an exception, wherein KFC has started operating. The population of the town is majorly Muslim and Christian, hence the rate of sales shall not be jeopardized (Rosemann & vom Brocke, 2015). Thus this particular business venture can be considered to be in favor of applying the 'to be' mapping system as the organizational resources and capabilities have been marketized at a location where there is a demand for the original, unmodified version of the product, milk powder coated fried chicken. The 'to be' mapping implications of expanding and earning profit from the Israeli market has been possible only because the demographics of the local market have been studied properly and then the decision to re-enter has been undertaken. Similar marketing strategies can be applied in Israel elsewhere wherein the Jewish population is less or in cosmopolitan locations wherein there is a possibility of garnering a lot of tourists (Barnea, 2011).
Governance processes for Business Process Management change
The business process management change has efficiently surveyed the demographic composition of entire Israel and it is ensuring the considering of all stakeholdersin both the process and the technology change. The strategy or the governance process has made a market survey to find areas in Israel having less Jewish population and that has been a success since the rate of sales has remained decent. Previously, KFC had made a mistake of not studying the culture of the nation and had also not made a market survey to locate a market within the nation having a demand. Choosing Nazareth in 2020 has solved the problem and that can be applied elsewhere in the Israeli market where demography is similar (Jeston & Nelis, 2014).
Thus at the concluding section, it can be said that the area of functioning of business process management is quite broad and it tends to have an overshadowing attitude over the entire process of conducting of business and that the 'as in" and 'to be' mapping system is extremely important as they are tools of the situational analysis of the business process when it is ongoing.
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