Question
Spur Steak Ranches is a subsidiary of Spur Corporation, one of South Africa's largest restaurant companies. It is headquartered in Century City, Cape Town and
Spur Steak Ranches is a subsidiary of Spur Corporation, one of South Africa's largest restaurant companies. It is headquartered in Century City, Cape Town and has regional offices in Johannesburg and Durban, as well as an International Office in Amsterdam, Netherlands, to support the company's international operations. The restaurants are owned by franchisees or directly by the company. As of December 31, 2018, Spur Steak Ranches had 323 stores in 15 countries. The total number of restaurants in South Africa is 284 with 39 located in other countries. Professionals are responsible for the design and layout of the restaurant, so that each restaurant is unique and fits perfectly into its specific location. The main product offering is steaks, ribs and burgers. In addition, the brand also offers chicken, schnitzels, seafood, wraps and sandwiches, salads, desserts, breakfasts and a special children's menu. There are four burger options available: beef, chicken, soy and rib. Products are expertly designed, while product differentiation is done to, to the extent possible, meet the needs of each Spur Steak Ranch customer. Spur also conducts regular research to ensure products continue to meet customer needs. Certain products are purchased daily to ensure freshness, while others are kept frozen until just before use, further supporting the pursuit of freshness. To ensure quality standards are maintained, Spur's head office conducts regular audits. Spur Steak Ranches operates a sauce manufacturing facility that supplies franchisees with the brand's sauces. Major South African retailers also sell their sauces and marinades. These retailers also sell certain products, which are manufactured externally under license, such as frozen Spur ribs and burgers, directly to consumers. Employees (full and part-time) receive training on all aspects of the organization to ensure professional service to customers, before beginning their interaction with customers. To ensure service is fast and effective, administrative staff receive training in scheduling so that appropriate servers and other staff are available at all times. Servers and kitchen staff are also trained to coordinate all orders in a specific sequence so that all tables are served on time.
1) Using a table, explain how the relevant strategic operations management functions apply to Spur Steak Ranches. (8 points)
2) Identify the type of productivity measures that Spur Stake Ranches can use and provide an explanation of why you chose this method. (3 points)
3) On what basis does Spur Stake Ranches achieve its competitive advantage (differentiation, cost or responsiveness)? Motivate your answer by supporting it in the case study. (4 points)
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