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(Case study 5.

4)
Never Underestimate the
power of Rules
General Mills
General Mills, the cereal maker best known for Cheerios cereal and
Yoplait yogurt, created two of the best known restaurant chains in
the United States- Red Lobster and Olive Green and has ver 1,500
restaurants in the United States, Canda and Japan.

Problems occurring in the company


One of the main problems occurred in the company customers
was company was loosing their image in the market ,
customers were no longer enthusiatic about the quality of the
food or customer service.
Another problem occurred in company was Sales volume fell
off many restuarants.

Reasons causing the problems


One of the main reason of the problems occuring in the
company was that
the companys managers lost the control over their busines
because of openeing soo many restaurant at once.
Another main reason was the managers of orlandon protype
were not aware of the complains of the company and ther
were no actions taken to the complaints coming in business.
Another problem in the company was that the company,s top
managers Top managers had not created enough rules and
SOPs for restaurant managers to follow the procduedures in
the organisation as well as there were no specific trainning
given to cooks and waites in the company in order to match
the contnious standards of the company.

Actions taken to tackle the problems


There were many actions taken in order to fix up the problems
such as the Top managers decided that in future each

restaurants managers and staff would atend a four-month


intensive training so they continously match the franchises
standards.
As the company mainly lacked in the quality of the product
they were providing. To fix up this Managers were taught the
rules to be followed when preparing and serving food.
All the rules and regulations were wrtiien in manual so
managers can rfer that to the other staff working in
restuarants and get them to work on standards.
Businness created Regional managers whose responsibility
was to supervise restaurant managers. And they were
resposible for giving restaurant managers additional training
and times.

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