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In: Operations Management

Use the five competitive forces model to describe how information technology might be used to provide...

Use the five competitive forces model to describe how information technology might be used to provide a winning position for a local restaurant.

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Expert Solution

The five forces are substitutes, supplier, buyer, new entrants, and inter-industry.

Local restaurant-The information system can take into account many variables such as holiday, season or temperature, in order to decide the specials to be featured every day or even new offerings.

Restaurants are composed of complex systems of food production , storage, preparation and selling. The health of a restaurant relies on its information systems, which control everything from scheduling personnel to customer service. Diner information management systems can make an enterprise more competitive and a more secure place to eat. That restaurant needs a schedule to take orders, provide the kitchen with information and charge the customers for their meals. These systems may be as simple as written notes, or as complicated as computer networks routing instructions to the refrigerator and counting transactions for each device. Systems are less vulnerable to technological problems, but they can't handle information as effectively as smoothly operating complex programmes. Restaurant stores will also have the goal to reach credit card payment.

Restaurants rely on information that is shared between various teams, such as servers that relay directions to kitchen workers, and line cooks who have their orders be ready to be successful. In addition, cellular restaurant networks will allow workers to connect the finished meals with the customers who ordered them, and to provide information on individual orders and needs. Restaurant leadership also needs to create information technology to communicate with the back of the house on issues like low inventory of specific items or restaurant additives. At restaurants, budget management systems can manage cash flow problems and keep track of expenditures. A restaurant needs ample cash flow to buy supplies and pay personnel, or it can not start.

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