Formal report on the current management challenges faced by GSR Food Ltd and the
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of GSR
Food Ltd.
Introduction:
GSR Food Ltd is a food manufacturing company in South East London that produces and sells
m
ready-made meals to supermarkets. Founded by two sisters, Ravi and Maryam who have over
20 years of experience in the restaurant industry, the business sets out to produce the highest
co
quality ready-made meals, become a leading food manufacturer in the UK and improve their
profitability year on year. However, the current progress towards these business goals is limited
due to significant current management challenges. This is reflected in the businesses worsened
s.
HR and financial performance as seen in figures 1 and 2, such as the labour turnover of
permanent employees that has quadrupled in just 2 years and the net profit margin declining by
5.4% over the same period. Therefore this report will analyse the current management
te
challenges that GSR Food Ltd faces, provide justified proposals that not only solves these
challenges but also positively impacts the business goals and a set of recommendations to
no
ensure that these proposals are implemented successfully.
Current management challenges faced by GSR
ss
Food Ltd
ne
1.Low Motivation
si
There is currently low motivation amongst GSR Food Ltd’s workforce. This is because the tiers
bu
of Maslow’s Hierarchy of Needs, a theory that defines the specific types of employee needs that
must be met in order for them to be at their most productive, is not satisfied. Due to the high
number of agency staff that are only employed at the business for a short period of time, it
ec
means that most of the workforce have low job security and therefore fail to meet the safety tier
of hierarchy. As there are no opportunities for employees to get involved in team building or
social events outside of work the social tier is also not met. The esteem tier is also not satisfied
bt
because there are no recognition systems in place to award employees for their hard work
which has left the permanent employees feeling undervalued as their performance goes
unnoticed. As these tiers are not satisfied, the final tier, self-actualisation, where employees find
enjoyment in pushing themselves at work is not present, leading to an unmotivated workforce.
As low motivation reduces the effort and care employees put into their work, they are more likely
to make mistakes and produce less quality meals. Therefore, the business goal to develop the
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
1
, highest quality meals is negatively impacted. Furthermore, with so few of their needs met, it
could explain why labour turnover of permanent employees has been rising. This is
demonstrated in the HR data that shows the figure has increased from 10% in 2023 to 40% in
2025. A high level of labour turnover increases costs because the business has to spend more
on recruitment to replace the employees that have left. This has a negative impact on the goal
to improve profitability and could be the reason why the net profit margin had fallen to just 4.1%.
2.Poor Quality Management
om
GSR Food Ltd’s quality management that oversees all operations within a business to ensure
that products meet customer expectations is poor. Several factors have contributed to this
.c
challenge such as the agency staff not being interested in following company standards and
their non-compliance with essential food safety and hygiene regulations that has directly
es
reduced quality by increasing the risk of contamination. A quality control approach is also used
whereby the product is only checked at the very end of production to identify defects. However,
this leads to high wastage because at this point of production it is too late to correct the issues
ot
which negatively impacts the profitability goal as higher wastage increases cost. There has also
been no investment in pursuing quality certifications such as the ISO 9001 that sets the
sn
standards for quality management systems, a framework businesses use to ensure quality and
operational efficiency in their production as seen at the other food manufacturers. As their
competitors have invested in certifications and have sound quality management, it makes it
es
harder for GSR Food Ltd to achieve their goal of becoming a leading food manufacturer in the
UK as they’re unable to produce high quality meals efficiently. Overall, this is working against
their goal to produce high quality meals and explains why customer satisfaction has declined
in
from 95% in 2023 to just 71% in 2025 as their expectations of quality are not met.
us
3.Over-reliance on Agency Staff
b
The proportion of agency staff has increased from 60% in 2023 to 66% in 2024, reaching 75% in
ec
2025. This significant change in workforce structure reflects Ravi’s and Maryam’s focus on cost
cutting as a way to improve profitability as these agency staff are cheaper to employ. Although
the agency staff do give the business more flexibility as the number of them can be increased or
bt
decreased quickly helping to respond to fluctuations in demand, the over-reliance on them has
caused several issues. One of these issues is the gap between the agency staff and permanent
employees that has caused a stressful work environment. As the agency staff know that they
will only be employed for a short period of time, they make no effort to engage with company
culture, standards or the team. This has created a stressful working environment that has
negatively impacted the permanent employees’ morale. The high absenteeism of 17% has likely
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of GSR
Food Ltd.
Introduction:
GSR Food Ltd is a food manufacturing company in South East London that produces and sells
m
ready-made meals to supermarkets. Founded by two sisters, Ravi and Maryam who have over
20 years of experience in the restaurant industry, the business sets out to produce the highest
co
quality ready-made meals, become a leading food manufacturer in the UK and improve their
profitability year on year. However, the current progress towards these business goals is limited
due to significant current management challenges. This is reflected in the businesses worsened
s.
HR and financial performance as seen in figures 1 and 2, such as the labour turnover of
permanent employees that has quadrupled in just 2 years and the net profit margin declining by
5.4% over the same period. Therefore this report will analyse the current management
te
challenges that GSR Food Ltd faces, provide justified proposals that not only solves these
challenges but also positively impacts the business goals and a set of recommendations to
no
ensure that these proposals are implemented successfully.
Current management challenges faced by GSR
ss
Food Ltd
ne
1.Low Motivation
si
There is currently low motivation amongst GSR Food Ltd’s workforce. This is because the tiers
bu
of Maslow’s Hierarchy of Needs, a theory that defines the specific types of employee needs that
must be met in order for them to be at their most productive, is not satisfied. Due to the high
number of agency staff that are only employed at the business for a short period of time, it
ec
means that most of the workforce have low job security and therefore fail to meet the safety tier
of hierarchy. As there are no opportunities for employees to get involved in team building or
social events outside of work the social tier is also not met. The esteem tier is also not satisfied
bt
because there are no recognition systems in place to award employees for their hard work
which has left the permanent employees feeling undervalued as their performance goes
unnoticed. As these tiers are not satisfied, the final tier, self-actualisation, where employees find
enjoyment in pushing themselves at work is not present, leading to an unmotivated workforce.
As low motivation reduces the effort and care employees put into their work, they are more likely
to make mistakes and produce less quality meals. Therefore, the business goal to develop the
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
1
, highest quality meals is negatively impacted. Furthermore, with so few of their needs met, it
could explain why labour turnover of permanent employees has been rising. This is
demonstrated in the HR data that shows the figure has increased from 10% in 2023 to 40% in
2025. A high level of labour turnover increases costs because the business has to spend more
on recruitment to replace the employees that have left. This has a negative impact on the goal
to improve profitability and could be the reason why the net profit margin had fallen to just 4.1%.
2.Poor Quality Management
om
GSR Food Ltd’s quality management that oversees all operations within a business to ensure
that products meet customer expectations is poor. Several factors have contributed to this
.c
challenge such as the agency staff not being interested in following company standards and
their non-compliance with essential food safety and hygiene regulations that has directly
es
reduced quality by increasing the risk of contamination. A quality control approach is also used
whereby the product is only checked at the very end of production to identify defects. However,
this leads to high wastage because at this point of production it is too late to correct the issues
ot
which negatively impacts the profitability goal as higher wastage increases cost. There has also
been no investment in pursuing quality certifications such as the ISO 9001 that sets the
sn
standards for quality management systems, a framework businesses use to ensure quality and
operational efficiency in their production as seen at the other food manufacturers. As their
competitors have invested in certifications and have sound quality management, it makes it
es
harder for GSR Food Ltd to achieve their goal of becoming a leading food manufacturer in the
UK as they’re unable to produce high quality meals efficiently. Overall, this is working against
their goal to produce high quality meals and explains why customer satisfaction has declined
in
from 95% in 2023 to just 71% in 2025 as their expectations of quality are not met.
us
3.Over-reliance on Agency Staff
b
The proportion of agency staff has increased from 60% in 2023 to 66% in 2024, reaching 75% in
ec
2025. This significant change in workforce structure reflects Ravi’s and Maryam’s focus on cost
cutting as a way to improve profitability as these agency staff are cheaper to employ. Although
the agency staff do give the business more flexibility as the number of them can be increased or
bt
decreased quickly helping to respond to fluctuations in demand, the over-reliance on them has
caused several issues. One of these issues is the gap between the agency staff and permanent
employees that has caused a stressful work environment. As the agency staff know that they
will only be employed for a short period of time, they make no effort to engage with company
culture, standards or the team. This has created a stressful working environment that has
negatively impacted the permanent employees’ morale. The high absenteeism of 17% has likely
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
