FCSFN 363 Chapter 1

Two Different Types of Systems
Open System & Closed System
Open System
Organizations that are in continual interaction with the environment, interdependent
Closed System
No outside sources; operations resources only, independent
Difference between open and closed system
Amount of interaction with the environment
Three functions of control in a system
Input, Transformation, Output
Relationship between interdependency, integration and synergy
When the system is relying on other parts of the system to accomplish goals
Input resources of a foodservice system
Human: Labor and skill
Materials: Food and supplies
Facilities: Space and equipment
Operational: Money, time, utilities, and information
What are the levels of organization
Policy-making,Organizational, Technical core
Functional subsystems of a food service system
Procurement: Attaining goods and services
Production: Combining goods and services together to create a product
Distribution and service: Distributing the product to customers/clients
Safety, Sanitation, and maintenance: Making sure that facility is clean and functional
What is the purpose of Management Functions
Coordinating the subsystems in accomplishing the system’s objectives
What are the Management Functions
Planning, organizing, staffing, directing, controlling
Why is the linking process important
Needed to coordinate the characteristics of the system in the transformation from inputs to outputs
What are the linking procesess
Decision Making: Selection by management of a course of action of variety of alternatives
Communication: The vehicle for transmitting decisions and other information
Balance: Refers to mgmt’s ability to maintain organizational stability under shifting technological, economic, political, and social conditions
Threats to a competitive advantage
New organizations enter market place, rivalry between organizations, new products, meet customers needs, suppliers increase prices to lower quality, buyer’s control
Three steps in the Strategic Management Process
Analysis of the Company, Implementation, Evaluation
Commercial Foodservices
Quick service, Full Service, airport dining, convenience stores, country clubs, recreation(casinos)
Onsite Foodservices
Hospitals, colleges, senior care, k-12, child care, military, correctional facilities, employee feeding
Self-operation
Foodservice is managed by an employee of the company in which the food service is located
Partnering
Mutual commitment by two parties on how they will interact during a contract with the primary objective of improving performance through communications
Contracting
An agreement between two or more persons to do or not do something; usually between non food related business and a foodservice operator
Franchising
Right of an individual to market a company’s concept
Boundaries
Limits of a system that set the domain of organizational activity
Commercial Foodservice
Foodservice operations in which sale of food is primary and profit is desired
Competitive Advantage
Goal of strategic management that occurs when a firm is able to create more economic value for consumers than its competitor
Competitor
Another organization selling a similar product/service in the same market segment
Cost Leadership
Being the lowest cost provider of a product/service a broad market
Differentiation
Providing a product/service that is unique, that customers value and that customers are willing to pay a higher price for
Dynamic Equilibrium
Continuous response in adaption of a system to its internal and external environment
Entrepreneur
Person who creates and assumes risk for a new venture or business
Environmental Factors
Things outside the system that can impact the operation of the system
Equifinality
Same or similar output can be achieved by using different inputs or varying the transformation process
Feedback
Those processes by which a system continually receives information from its internal and external environment
Focus
Using a cost leadership or differentiation strategy to target a specific limited size market
Greenwash
An in accurate or misleading information distributed by an organization so as to present an environmentally responsible image
Hierarchy
Characteristic of a system that is composed of subsystems of a lower order and a supra system of a higher order
Input
Any human, physical, or operational resource required to accomplish organization’s objectics
Integration
Parts of a system sharing objectives of the entire organization
Interdependency
Each part of the system affects performance of other parts of the system
Interface
Area where two systems or subsystems come in contact with each other
Memory
All stored information that provides historical records of a system’s operations
Mission Statement
Summary of the purpose of the organization
Onsite Foodservice
Foodservice operations in which sale of food is secondary to the goal of the organization
Output
Result of transforming input into achievement of a system’s goal
Stakeholder
INdividuals or groups who are significantly affected by or can significantly influence the company’s decisions
Strategic Management
A system’s approach to managing a food service operation; involves creative, intuitive, strategic thinking
Strategies
Decisions and actions to assist a company meet its objectives
Subsystem
Complete system in itself but interdependent part of the system
Sustainability
Ability to meet needs of today without compromising future generations ability to meet needs
Synergy
Working together to create a greater outcome than could be created individually
System
Collection of interrelated parts or subsystems unified by design to obtain one or more objectives
Transformation
Any action or activity used in changing inputs into outputs
Vision
Statement of where the company wants to be in the future