Task 1 – Case Study

Beijing Sammies

Kelompok 1
Anggota :
1. Dita Wulandari (202000020025)
2. Dirgahayu Dedi Hamonangan (202000020005)

MAGISTER MANAJEMEN
UNIVERSITAS KATOLIK ATMA JAYA
2020
 Task 1 – Case Study
Beijing Sammies
Kewirausahaan

I. Issues from Beijing Sammies

- Company Profile
CEO : Sam Goodman (Canadian)
Started : 1997
Targeted : Everyday walk-in customer, company meetings,
Market presentations, picnics, gifts
Services : Breakfast, lunch, dinner
Products : Selections of Sandwiches, salads, bagels, brownies,
cookies, coffee, soda, and tea
Outlets : 2 x 1200 sqr feet “deli-style” cafes
2 x 800 sqr feet “deli-style” cafes
1 stand alone kiosk
Progress : A Centralized Kitchen started in 1998
Benefits :
Quality Control
Efficiencies with ingredients, machines, and manpower

- Beijing Sammies Issues

1. They failed to address any of the issues that were keeping customers from
returning
2. Delivery orders were being sent hours late or to the wrong location
3. Sales dropped dramatically when Beijing Sammies stopped the 50%
discount
4. There were countless orders that went out with missing utensils, in the
wrong bag or with simply left out
5. The market was showing interest in Beijing Sammies products but he knew
that without exceptional service, good food would not be enough
6. Serving 2 different types of the menu, the standard sammies for local
(China) and customized sammies for foreigners because local customers
didn’t know how and did not want to look foolish ordering something.
Inappropriate
7. Suggested ordering tips like what types of products to order for breakfast
and what products to buy for lunch, a guide for corporate clients to ensure
correct portions and variety for meetings, extra service from sales clerk to
assist walk-in customers.
8. Focusing on customer services by set up the corporate accounts, online
ordering, flexible payment options (weekly/monthly), and a rewards
program (bonus points which offered a credits based on the frequency and
size of orders).
9. Build the Corporate Social Responsibilities by charity sponsorship like
special Olympics, Canadian Day, Independence Day, Sporting & School
Event, etc.
10. By the end of 2001, Beijing Sammies was recording mothly revenues. Over
RMB 500,000. And by 2003 the company had recorded positive net income
in May, June, July.
11. The Sammies is facing cultural problems about customer focus concepts
between the CEO and the employees

Dita Wulandari/202000020025 1
Dirgahayu Dedi Hamonangan (202000020005)
 Task 1 – Case Study
Beijing Sammies
Kewirausahaan
II. Opportunity Recognition

Opportunity for
To offer a superior improvement:
In China, face and experience in order To offer excellent
money were the for customers services that is - Delivery with zero
two most important different with other mistake
subjects to justify paying restaurant
more. - Compensation for
unsatisfied delivery

III. Opportunity Assessment

Major I Section Major II Section

• Description of Service: Zero Mistake of
delivery and compensation to customer for
every delivery with mistake. We need to offer
a superior experience in order for customers
to justify paying more
• Unique proposition: Western Restaurant that
respects Chinese culture
• Social Condition and Growth Rate of
market: Private establishments that
catered to China’s emerging middle class
replaced old state-run restaurants.
• Market Need: to pay for a product
according to the value of the product
(customers to justify paying more)

Dita Wulandari/202000020025 2
Dirgahayu Dedi Hamonangan (202000020005)
 Task 1 – Case Study
Beijing Sammies
Kewirausahaan
Minor I Section Minor II Section
• Human Resources: Beijing Sammie’s Steps:
employee and management team are not • Develop Standard Operating Procedure
capable to address any of the issues that were (SOP) of customer delivery
keeping customers from returning • Implement QA mechanism
• Training needs to be conducted to employees • Develop sanction mechanism for
and management to make them understand personnel who make mistake on delivery
about service excelent to customer.
• Develop compensation payment
mechanism to customer who received
delivery with mistake
• Develop Beijing Sammie’s contact center
that open 24 hours.
• Training to employees and management
team on customer service excellent

IV. Case Study Analysis : Beijing Sammies

- Market Analysis
o Competitor : traditional Chinese restaurants, Mexican restaurants,
German restaurants, Scandinavian restaurants, Italian restaurants, Swiss
restaurants, and English Coninental restaurants.
o As stated in Hisrich, “probably the single most important problem
confronting the entrepreneur occurs when crossing culture”, it’s clear
that The Beijing Sammies face the same problems. It shows from many
statements below :

Statements Problem Analysis

“Having a menu of pre-crafted
sandwiches is a necessity. Many
of the Chinese customers
simply do not know how to
order. They do not understand
the notion of selecting different
types of deli meats and
condiments for a sandwich.”
“The delivery model here in
China is very different from the
West. Clients have no
understanding of what goes on
behind the scenes, and they do
not understand that it is nearly
impossible for us to take a large
deliver order for a corporate
luncheon and bring it to them
ten minutes later.”
The Sammies serves the western menus for
the customer like sandwiches, salads,
bagels, brownies, cookies, coffee, soda, and
tea which have been uncommon food to
local customers. That’s why The Sammies
need a new strategy to grab the market, not
only cut the prices 50%, but also serving 2
different types of the menu and ordering
tips.
Local customers are not used to ordering
food delivery in large quantities, so they
thinks once they order then they want it
served by within 10 minutes later, which is
it takes time longer to prepare the order
and delivery it to the customer in
companies/group ordering.

Dita Wulandari/202000020025 3
Dirgahayu Dedi Hamonangan (202000020005)

“The concept of the face for
them manifests itself with the
feeling that appearance is much
more important than the
service or quality of the
product.”
“The staff does not understand
the urgency needed in running a
service-oriented business. The
whole concept of service is new
in China. The business
traditions are very strong here.
I don’t know if it’s because of the
issue of face and pride, the
political history, or something
else, but our employees have a
very difficult time
understanding how we need to
deliver service as much as we
need to deliver a sandwich.”
Dita Wulandari/202000020025
Dirgahayu Dedi Hamonangan (202000020005)
Task 1 – Case Study
Beijing Sammies
Kewirausahaan
The customer focus and service excellence
is new in China at that time so that
Goodman need to teach more about the
concept of services to the employee. The
employees need to understand that the
excellent service would be a great way to
sell more because they thinks that
customer needed is just delivering the right
food at the right time. The concept that
focus on product is more familiar than the
concept about focus on service so that
Goodman needs extra efforts to teach his
employees about the service excellence.
4
 Task 1 – Case Study
Beijing Sammies
Kewirausahaan

- Business Performance
SWOT Analysis of Beijing Sammies

Strengts Weaknesses
• The Sammies had enough employees to run • Lack of employees' awareness about service
the business excellence concept
• The centralized kitchen increases the quality • Lack of knowledge about cultural problems in
control and efficiency the beginning (about the menus, delivery
• The different kind of menus and ordering tips logistics,
strategies are great to grab the customers • Western menus are uncommon in local
• The CEO focus on customer services customers in the beginning
(corporate accounts, online ordering, flexible
payment methods, reward programs)
• Not only develop the business but also have a
strong responsibility to sponsor charity
• The ads is well prepared and full of
information
• Corporate clients

Opportunities
• The economic expansion of the late 1990s
dramatically changed dining in Beijing.
• Local government supports new regional
tastes from all around Asia & western-style
restaurants to be opened
• The Canadian community. in Beijing and
around China in general is pretty strong
• The foreign businesses and tourists have.
been very supporting of Beijing Sammies
• Potential customer
Threats
• Like most major cities, Beijing had an array of
restaurant choices ranging from traditional
Chinese to Mexican, German, Scandinavian,
Italian, Swiss, and Engliish Coninental.
• Economic recession and Covid-19 outbreaks
starts to attack China from 2019.

Dita Wulandari/202000020025 5
Dirgahayu Dedi Hamonangan (202000020005)
 Task 1 – Case Study
Beijing Sammies
Kewirausahaan

V. Conclusion & Solutions

The Beijing Sammies is one of international entrepreneurship type that the
business activities across national boundaries, in this case The Canadian CEO
brings the western-menus to China. Lesson learned we can conclude is that we
need to gather enough information before build the international business. The
information that we need before we build the business internationally at least
consist of :
- Political
- Economic
- Technological
- Social & Culture
The Beijing Sammies shows us that the Social & Culture is one of the most
important problem confronting the entrepreneur occurs when crossing culture.
Lack knowledge of Social & Culture would destroy your international business.
We need to learn about behaviour and the identity of an individual and society
where our business would start because physical and psychological closeness to
the international market affects the way business occurs. Sometimes, cultural
variables like religion, education, manners, language, social structure etc can make
a foreign market that is geographically clos seem psychologically distant.
In China, Face and Money are two most important subjects. Therefore, to be
sustainable, an enterprise should consider both subjects. Beijing Sammie has
proven that its foods get interest from the market. However, good food without
exceptional service would not be enough to make Chinese people to pay more.

Sustainable Money
Service
Good Food
Excellent
& Profitable Face (Justification
enterprise to Pay more)

Proposed Actions :
1. Develop and communicate a new Standard Operating Procedure to employees
and management team that details the process and controls to ensure foods
quality are controlled and foods are delivered in good conditions and complete.
2. Develop and communicate a new compensation and penalty scheme for
employees (reward for employees who prepare and deliver food properly and
penalty for the ones who failed to prepare and deliver foods to customer
properly.
3. Develop customer compensation mechanism to customer who received bad
quality of food and incomplete food delivery.
4. Develop and communicate Beijing Sammie’s 24-hours contact center and email
through flyers and or radio advertising
5. Provide regular training to employees and management team on the
importance of Customer Service.

Dita Wulandari/202000020025 6
Dirgahayu Dedi Hamonangan (202000020005)