Preview

Outsourcing Offshore at Darden

Better Essays
Open Document
Open Document
827 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Outsourcing Offshore at Darden
Darden Restaurants owns all of the Olive Garden and Red Lobster restaurants, which amounts to over 1,700 food establishments. Olive Garden specializes in serving Italian food and Red Lobster serves mainly seafood and fish. They actually own four other chains located throughout the United States, such as: The Capital Grille, Bahama Breeze, Longhorn Steakhouse, and Seasons 52 .To keep themselves successful the company needs to outsource work when the opportunity strikes to reduce their overall labor costs. Darden’s sources of seafood are from sustainable wild fisheries or aqua culture farms, harvested in ways that promote responsible fishing and help protect the surrounding ecosystem. All of Darden’s suppliers must adhere to their rigid food standards, which are typically stricter than the FDA, to continue doing business with them. Darden is one of the largest seafood purchasers. They pride themselves with the diversity of the employees and the company they purchase their supplies from. There are many sources in which a restaurant, like Darden, can find the opportunity to outsource some labor, such as: accounting/finance, seafood catching and cleaning, internet marketing, transportation/logistics, legal processes, cleaning, and bulk food preparation into even portions. There can be many supply-chain issues when working with 35 different countries. If there isn’t proper communication throughout the organization and their suppliers Darden could find they have too much or too little food to supply their establishments. If Darden fails to properly inspect areas of their establishments and their food they could begin to have quality issues throughout the organization. The different time zones they are working with could increase the chance of errors on arrival times of supplies. Darden may also run into problems with different cultures and work performance in all the different countries. After examining the automobile


References: Darden, C. (2009). Our Restaurnats. Retrieved from Darden: http://www.darden.com/pdf/2009_Being_of_Service.pdf Heizer, J., & Render, B. (2011). Operations Management. Upper Saddle River: Prentice Hall. PearsonEducation. (2010). Darden Restaurants Global Supply Chain. Retrieved from Pearson: http://media.pearsoncmg.com/ph/chet/chet_kotler_marketing_5/videos/Darden_global_supplychain/playvideo.html SanFransico, U. o. (n.d.). Six Sigma Helps Drive Ford Motor Company 's Supply Chain Mangement. Retrieved from Univesity of San Fransico Online: http://www.usanfranonline.com/six-sigma-helps-drive-ford-motor-companys-supply-chain-management/

You May Also Find These Documents Helpful

  • Satisfactory Essays

    darden case study

    • 413 Words
    • 2 Pages

    For demographic segmentation, Red Lobster represents the opportunity Darden has to fill the gap between the young fast food concept and the upscale white-tablecloth restaurants. Red lobster is even making many changes to accommodate for the changing times around America which is causing sales to fall. With innovative concepts such as wood fired grilling resulting in a “taste of wood-grilled seafood” and investments in equipment and training, Darden is putting itself back in the spotlight to becoming recognized and respected. You can also never go wrong with fried shrimp so Red Lobster will always have that marketing card to play.…

    • 413 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Outsourced Case Study

    • 752 Words
    • 2 Pages

    The case study was very interesting it was based on ethics of the contract agreement entered into by RMC and 17 project labor agreement. The purpose of this case was to see where liabilities fell when certain parties were not abiding by the original agreement that was entered into by RMC and 17 local building trade unions. In the case such questions surrounding these liability factors. After reading the case study Is BE (Bolton Engineering) bound by the terms of the project labor agreement, which it did not directly sign, including the duty to submit this labor dispute final and binding arbitration for resolution? BE is bound by the terms of project labor agreement only when they are working onsite because they did not sign the agreement with labor union directly. BE’s (Bolton Engineering) contract obligations only relies on the contractual agreement made with Rocket Motor Corporation (RMC). The Project labor agreement only meant to apply to work performed on the job site s Bolton Engineering contend, or could the terms the project labor agreement also be applied to offsite work as well as the Union contends? However, the case study does not state the specifics of the labor union agreement that was included in the agreement between Bolton Engineering and Rocket Motor Corporation it did state that a pledge to adhere to project labor agreement previously signed by RMC and the 17 unions was included. But a pledge does not necessarily mean that there was a written signed agreement. Another twist to this case in regards as to where the liabilities fall is Bolton Engineering subcontracted out the work and the work was performed offsite and not on site. The only way I could see that Bolton Engineering would be liable in this case if the agreement states conditions applies to onsite and off-site projects and it was also included in the contract agreement between RMC and BE. In my opinion, I would think that if the pledge was…

    • 752 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    After reviewing Ford Motor supply chain, we became aware of its very complex nature. Due to this complexity we are forced to search for alternatives to overcome the costly supply chain challenges faced by our industry both now and in the future. The present system has an inefficient control of a large database and a vast and complex network of suppliers.…

    • 1771 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The O-Fold Innovation

    • 582 Words
    • 3 Pages

    By dividing the market into smaller sections that can be unique and specialized as the Italian family dining experience or the ranch house Longhorn steak experience or the Fresh seafood dining that is Red Lobster, all for an emotional and economical experience. Each market has been targeted and carefully improved to create an overall experience dependent on the diner’s choice of experience. Geographically, Darden is not a one shop industry each restaurant is carefully placed and then introduced to suit area needs coast to coast. Each restaurant undoubtedly, has some local influences, but maintain the strategic marketing that has made them so popular. Demographically, Darden includes everyone from families to single patrons. From corporate lunches, to baby shower parties, every one for almost every occasion can be satisfied with one of Darden’s options for dining. There is no age or gender segmentation all are incorporated into the dining experience with all three brands. Psychographic segmentation in all three brands is pretty evident. You will not leave Olive garden, Longhorn Steakhouse or Red Lobster for under $10 per person satisfied, for dinner. So there is an economical segmentation. These restaurants do not have a cheap flavor or experience.…

    • 582 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Darden Restaurants focus on the customer’s expectations and building long-term relationships. David Pickens, the president of Olive Garden, begins staff meetings with his managers by reading and listening to letters from customers. Pickens is truly interested in the customers experience at Olive Garden. Managers read letters from…

    • 1290 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    With more than 1800 restaurants spread throughout the country Darden Restaurants has become the largest full service restaurant company. Darden's success lies with in its ability to create brands with similar operations as well as effectively differentiating and positioning their brands. Some of the ways Darden differentiated their brands was by creating restaurants that provide customers with an emotional as well as physical experience. For example The Olive Garden, which is one of Dardens most promising brands and accounts for half of dardens annual revenues, focused on the concept of creating a mythical Italian family dining, hence their marketing phrase “When your here, your family”. Darden targeted the customers that wanted to experience an italian style dining atmosphere. Olive garden's management worked directly with italian chefs to capture the authenticity of italian style cooking and food. An example of effective marketing positioning is Red Lobsters strategy to develop a healthier style of dining as well as a more appealing menu. Red Lobster had to make some substantial changes when their sales dropped back in 2004. At the center of these changes was a concept that Red lobster referred to as “Stealth Health” which was a concept that prompted a development of a new menu based off wood-fired grilling. With one third of its new menu consisting of wood-fired grilled food, it helped bring in new customers who were interested in trying something new. Although this concept may have drawn away its original patrons, they targeted a segment that was much more abundant. However, Red Lobster did its best to keep original items on the menu for their loyal classic customer. I also feel this concept was created based of the facts that a majority of the customer base is shifting to more healthier options when dining out. The “Stealt health” strategy is an excellent approach to provide for this shifting…

    • 322 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Olive Garden

    • 1576 Words
    • 7 Pages

    General Mills originally created the Olive Garden restaurants in 1982. In June of 1995, General Mills moved the Olive Garden division to its newly developed Darden Restaurants, Inc. Olive Garden has quickly become the largest casual dining restaurant company in the world. Olive Garden uses Italy as its basis of inspiration and attempts to focus on hospitality and a pleasing dining experience. In 1999, Darden Restaurants, Inc. established its cooking school in the Tuscany region of Italy known as the Olive Garden’s Culinary Institute of Tuscany. Olive Garden creates all of its principles from two specific ideas: hold us to high standards and treat us with respect (Darden, 2011).…

    • 1576 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Use of the term lean has begun to replace use of the term JIT, and is associated with the Toyota Production system. Lean is broader, although closely related to JIT, and describes a philosophy incorporating tools that seek to economically optimize time, human resources, assets, and productivity, while improving product and service quality. In the early 1980s, these practices started making their way to the Western world, first as JIT and then today, as lean production or lean manufacturing. Lean production has evolved into a way of doing business for many organizations. Quality assessment and improvement is a necessary element of lean production. First, as the process of waste elimination begins to shrink inventories, problems with human resource requirements, queues, lead times, quality and timing are typically uncovered both in production and with inbound and outbound materials. Eventually, these problems are remedied, resulting in higher levels of quality and customer service. Second, as the drive to continuously reduce throughput times continues, the need for a continuing emphasis on improving quality throughout the productive system results in the need for an overall quality improvement or Six Sigma program. Six Sigma stresses a commitment by the firm’s top management to enable the firm to identify customer expectations and excel in meeting and exceeding those expectations. Since environmental changes and changes in technology and competition cause customer expectations to change, firms must then commit to a program of continual reassessment and improvement; this, too, is an integral part of Six Sigma quality. Thus, to achieve the primary objectives of low cost, high quality, and reduced lead times, supply chain management requires the use of lean and Six Sigma…

    • 1026 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Red Lobster

    • 1258 Words
    • 6 Pages

    Red Lobster is the largest casual dining chain of restaurants that focuses on seafood as its main theme in the world. They are a subsidiary of Darden Restaurants, Inc., who also operates other establishments such as Olive Garden and Bahama Breeze. The Red Lobster menu definitely honors its seafood theme in its menu and décor within the restaurant. Red Lobster also offers a Du Jour menu of fresh fish of the day each day, as well as, fresh lobster from Maine, and their signature freshly baked cheddar biscuits. The du jour menu is updated daily since fish, varying by season, is being flown in for best quality freshness for guests. Prices of the fresh fish will also vary depending on the market price at that time. They also offer a “lighthouse” menu with healthier options for people who prefer a healthier lifestyle. There any many varieties of food to please each individual guest, including a kid’s menu specific to their wishes as a small consumer. From wood-fire grilled items, to fried foods, and cold desserts, the diverse types of food preparation allows for the kitchen to run smoothly and efficiently to keep guests satisfied with the timing of which they receive each menu…

    • 1258 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Six Sigma has been so successful in manufacturing business that it has moved into other industries like insurance, banking, telecommunications, healthcare, software, marketing and construction. Fortunately, for Wal-Mart, this process has not made its debut in the retail business. This opportunity will give Wal-Mart a huge head start over their competitors. The existing metric process that rates an acceptable level of defective manufacturing is below acceptable standards and the result is Wal-Mart is losing…

    • 1864 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    There are many challenges when managing chains that have units in different countries or regions. Organizations, their employees, and policy makers need to recognize each of these factors. A global value chain needs to be optimized in order to penetrate new markets. Each unit must interact closely with suppliers to achieve price stability (Nielson, Bo, Pedersen, Torban,, Pyndt, Jacob, 2008). Labor cost savings should be a main focus. It must be recognized that labor costs differ. It is also important to find local employees that can be trained and retained for a long period of time.…

    • 494 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Darden Restaurants is the world's biggest restaurant operator. The company is in the business of restaurant dining for customers who enjoy somewhat "relaxed" dining, and eating Italian and seafood in the United States and Canada. (99 Darden Restaurants 1999 Annual Report.) This is evident because as far as customers are…

    • 2946 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    US armor school

    • 6447 Words
    • 26 Pages

    Applying Lean/Six Sigma to Life Cycle Management 15th TACOM LCMC / Industry Logistics Symposium - Dearborn Hyatt Regency, Metro Detroit - March 14-16, 2006 http://www.ndia-mich.org/ILS_intro.htm…

    • 6447 Words
    • 26 Pages
    Good Essays
  • Good Essays

    Darden is known to have four major types of their supply chain for all of their canned food, sea food, small ware and also fresh foods which are of great help to the company. Darden usually distributes small ware directly which is of great advantage to them since it helps them to lower down the cost that they incur while they ship small items like plates napkins because they usually have a similar manufacturing area. It also helps the company in aligning all their main restaurants together. This makes it easier for the company to distribute small ware of the same quality to all their restaurants.…

    • 913 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The main supplier for the restuarant is Sysco. Sysco will provide The Office will all poultry, beef, dairy, wheat, and all other food service needs. Sysco is located in Houston, Texas and has 125 distribution centers all over the nation. This will allow for easy access and cheap shipping costs. The supplier for beverages…

    • 407 Words
    • 2 Pages
    Good Essays