Wraps On The Run Essay

Title: Systemic analysis of ‘Wraps on the Run’

Problem definition:

‘Wraps on the run’ earned success once it was first established. However, the business was expanding at a speed much faster than it supposed to be. With the number of new stores increases, the increasing numbers of new employees puts a lot of pressure on store management and lower the work efficiency. As a result, the decrease in customers serving quality turned many customers off and the business struggles.

Reference Model

At time T0, the first ‘Wraps on the Run’ store was established. After that, as time goes, the new concept of the store was accepted by the people and then more and more customers come to the store. The revenue of store increased faster and faster in the period of time.

At time T1, the business was starting to
expand. At the first stage of the business expanding, the revenue was still booming. With the number of new stores increasing, problems occurred. Then the revenue increased in a slower speed and finally started to decrease. Thus, if the problems remained unsolved, the revenue would be decreasing faster and faster to zero or even negative.

Causal Map

As we can see in the map above, there are four loops. Three of them are balancing loops. The other one is reinforcing loop.

Loop 1: Direct impact on customer dissatisfaction during business expanding.

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The loop1 is a balancing loop mainly shows us about the circumstance when lots of new employees flow into new stores.
The loop demonstrates that the increase in revenue motivates business expanding and creates more stores. Establishing new stores will attract more applicants wanting jobs. Therefore, it’s not a hard thing for the new store to hire more new staff. As there are more new employees come to the store and they know little about the business, more employees in new stores need to learn the job. Thus, it will be more stressful for the manager to train more new employees. Then if we put too much load on the manager’s shoulder, as we know there is no perfect man, there could be more chances for the manager to make some faults on store management. The increase on management faults will definitely affect the quality of customer services. Also the bad serves will dissatisfied customers and turn them away as a direct consequence. Subsequently, the number of customers will go down and the revenue of business will also decrease, which discourages the business expanding. The loop balances all the elements contained in
it.

Loop 2: indirect effects of customer dissatisfaction on revenue

Balancing loop2 reflects the circumstance in a slightly different view. This loop is very similar to loop1; the difference exists on the indirect effect on the dissatisfaction of the existing customers. With more existing customers get annoyed in the store, complaints to friends will also increase. The reputation of the business will be ruined by the increasing complaints. Due to which the number of customers will decrease and the revenue will decrease as well. It’s eliminating the expanding of the business.

Loop 3: the effect of organisation culture on revenue in business expanding

Balancing loop3 illustrates the effect of organisation culture on revenue during the business expanding. As the revenue goes up, the number of new store increases. Then the number of employees in the new store previous working in the original store will decrease, which could make it harder to maintain the organisation culture. If there is a change in the organisation culture, it could be a hit to customers. Then it would disappointed customers, which would further cause a decrease in number of customers and a less revenue. It is bad for business and restricts the development of the business.

Loop 4: The way that employees get frustrated

Loop4 is the only reinforcing loop in the map. In the loop above we could see that new employees feel frustrated when they come to the new store and found out that the working environment is not as good as they thought. Then after they got frustrated, they would become negative on work and more likely to keep serving and eating areas unclean. The mess in working areas would depress employees more and then the loop rounds again. The loop keeps making things worse.

System Archetype

In this ‘Wraps on the run’ case, ‘Fixes That Fail’ system archetype fits the best.

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In the system archetype, the problem is to expand business to get more earnings. To solve the problem, more new stores are established, and then the problem eased because of that. While more and more stores are established, more new employees are hired. The increasing number of employees could increase the burden of manger and lower the quality of customer services. Then the problem of expanding business to get more earnings increases.

Recommendations:

• When hiring new employees, hiring those having working experience in related industries such as people having experience working in KFC, McDonald, take away food stores and so on. To make sure that they could learn the job faster and get used to the similar working environment and ease the store manager’s working load.

• Design and print some brochures about the business organisation culture to let the new employees know better about the business and behave them.

• Let the new employees feel welcomed through greeting cards and welcome parties.

• Organising some experienced employees to provide causal training for the new employees.

Casual Map Modified:

Reference:

Wraps on the Run Case Description documentation