, Formal report on the current management challenges faced by The Fachetti Group and
the suggested management proposals and recommendations.
This report has been prepared by —-------------- and is intended for the management of The
Fachetti Group.
Date:
Introduction:
The purpose of this report is to provide the management of The Fachetti Group with an analysis
of the current management challenges, the proposals to solve the corresponding challenges
and the recommendations for the implementation of each proposal with consideration for the
impact on each strategic objective. This report will also cover how the management and
leadership styles and key principles of The Fachetti Group affects profitability and staff turnover.
The Fachetti Group is owned by Fabio Fachetti who is a celebrity chef and TV presenter who is
well known for his innovative Italian recipes. The Fachetti Group was previously made up of two
divisions; the restaurant division and the manufacturing division. The restaurant division was
made up of a collection of restaurants in the UK’s major cities, with Katrina Szynalski as
divisional manager who has over 20 years of experience in the most successful restaurant. In
the manufacturing, gourmet chilled Italian meals are produced and are sold to large UK
supermarkets at a premium price under the brand Fachetti’s Kitchen. This is an example of a
business to business (B2B) transaction where Fachetti’s Kitchen is the supplier to the
supermarkets. Sunny Elder is the divisional manager of the manufacturing and oversees all
operations in the factories to ensure high quality products are manufactured safely and
efficiently.
The key areas that will be covered in this report are:
● The strategic objectives of Fachetti’s Kitchen
● Current management challenges faced by The Fachetti Group
● Proposals for the corresponding challenge with data analysis
● Recommendations
The strategic objectives:
With the information provided, the current strategic objectives for Fachetti’s Kitchen are;
1. Zero defect production
2. Reduce staff turnover to January 2020 levels
3. Increase net profit by 10%
Zero defect production means to produce the maximum amount of products with the minimum
amount of defects. This can be achieved through having a highly skilled workforce and has
many benefits such as increasing the level of net profit and therefore profitability because as
there are less defects, there is less wastage and expenses. To achieve the reduced staff
turnover to January 2020 levels, staff turnover has to fall from 22% (September figure) to 12%
(January figure) which is a decrease of 10%. Low staff turnover is important because by
retaining a large proportion of the workforce it can grow in efficiency and avoids high
recruitment costs that limit net profit caused by higher levels of staff turnover. The final objective
is to increase net profit by 10%. To achieve this objective Fachetti's Kitchen must increase the
level of net profit to £12,320,000. A high level of net profit is important for a business like The
Fachetti Group because they can use the retained profit to ensure financial stability or reinvest
and expand product lines in their gourmet meals to gain a competitive advantage. The impacts
the suggested management proposals and recommendations.
This report has been prepared by —-------------- and is intended for the management of The
Fachetti Group.
Date:
Introduction:
The purpose of this report is to provide the management of The Fachetti Group with an analysis
of the current management challenges, the proposals to solve the corresponding challenges
and the recommendations for the implementation of each proposal with consideration for the
impact on each strategic objective. This report will also cover how the management and
leadership styles and key principles of The Fachetti Group affects profitability and staff turnover.
The Fachetti Group is owned by Fabio Fachetti who is a celebrity chef and TV presenter who is
well known for his innovative Italian recipes. The Fachetti Group was previously made up of two
divisions; the restaurant division and the manufacturing division. The restaurant division was
made up of a collection of restaurants in the UK’s major cities, with Katrina Szynalski as
divisional manager who has over 20 years of experience in the most successful restaurant. In
the manufacturing, gourmet chilled Italian meals are produced and are sold to large UK
supermarkets at a premium price under the brand Fachetti’s Kitchen. This is an example of a
business to business (B2B) transaction where Fachetti’s Kitchen is the supplier to the
supermarkets. Sunny Elder is the divisional manager of the manufacturing and oversees all
operations in the factories to ensure high quality products are manufactured safely and
efficiently.
The key areas that will be covered in this report are:
● The strategic objectives of Fachetti’s Kitchen
● Current management challenges faced by The Fachetti Group
● Proposals for the corresponding challenge with data analysis
● Recommendations
The strategic objectives:
With the information provided, the current strategic objectives for Fachetti’s Kitchen are;
1. Zero defect production
2. Reduce staff turnover to January 2020 levels
3. Increase net profit by 10%
Zero defect production means to produce the maximum amount of products with the minimum
amount of defects. This can be achieved through having a highly skilled workforce and has
many benefits such as increasing the level of net profit and therefore profitability because as
there are less defects, there is less wastage and expenses. To achieve the reduced staff
turnover to January 2020 levels, staff turnover has to fall from 22% (September figure) to 12%
(January figure) which is a decrease of 10%. Low staff turnover is important because by
retaining a large proportion of the workforce it can grow in efficiency and avoids high
recruitment costs that limit net profit caused by higher levels of staff turnover. The final objective
is to increase net profit by 10%. To achieve this objective Fachetti's Kitchen must increase the
level of net profit to £12,320,000. A high level of net profit is important for a business like The
Fachetti Group because they can use the retained profit to ensure financial stability or reinvest
and expand product lines in their gourmet meals to gain a competitive advantage. The impacts
