When you look at a modern, successful organisation such as Bakers Delight, it is possible to see aspects of its management practices that we would have seen in similar retail/manufacturing organization’s operating 50 years ago. At the same time, aspects of its operations will seem very up to date, with ideas that are new and very innovative. Bakers Delight has designed and planned its operation to ensure that its customers receive fast and courteous service, the products they receive are always fresh and of a high quality, and they will be able to obtain bread and pastries of uniform quality and style at any Bakers Delight outlet.
Bakers Delight has a management system that ensures nothing is left to chance. This chain of corporate and franchisee-owned bakeries started in Australia with a single bakery in 1980. As of 2007, there were 700 bakeries spread across four countries – Australia, New Zealand, Canada and the United States. There are more than 500 franchisees, some operating between two and seven outlets; in addition, there are approximately 90 company-owned outlets. Rodger and Lesley Gillespie initiated the chain in 1980 and are still at the helm of the organisation. The chain is said to serve more than 2.5 million customers each week.
Rodger Gillespie attributes the success of the organisation to concentration on the people within it. This started with selecting good, committee people who know what is wanted from them within the position they hold. They also need to be able to inspire all the people who report to them, and this approach extends to the most junior staff. This indicates that the organizational behaviour approach referred to in the text is one of the principles that underlines the organization’s success.
How is this ‘community of interest’ achieving in such a large multi-outlet organisation spread over four countries? It starts with a selection process for franchisees built around a ‘Nathan Profiler’ developed by an organizational psychologist who specializes in franchise operations. The organisation also has extensive training programs for all levels of staff, field representatives who call regularly on outlets, and people called mystery shoppers who purchase at random from various outlets. Communication between outlets and corporate headquarters is achieved via regional and international conferences, as well as a weekly publication called Crums. There is also an extensive IT network carried on the internet, where dissected sales are recorded in real time as they happen. We see here aspects of administrative theory, as well as scientific management and a quantitative approach. All new products undergo a rigorous testing process that includes both the product and method of manufacture.
The international or global operations began as a strategy that evolved from the organization’s regular planning process, which is a top-down process with corporate, regional and individual outlet plans and goals.
Initially, New Zealand began as a result of an application from that country to open a franchise outlet. Later, when considering the two growth options of ‘do the same business elsewhere’ as against ‘do something different’, Bakers Delight opted for the first option and looked at the west coast of the United States as the most suitable place for an overseas operation. This was initially rejected, as the exchange rate between Australia and the US was unfavourable at that time. The organisation elected instead to go into the west coast of Canada, where it has now been operating for almost four years (2007 data). In 2007, it opened its first outlet in the US, again on the west coast, and is planning considerable expansion there. It is interesting that the organisation has developed some differing products for its overseas operations that reflect the tastes and eating habits of the populations of those countries.
While the organisation is considering other countries for further expansion, it also believes there is still enormous expansion capacity in the four countries where it is currently represented. Of concern to the organisation is where its staff will come from in the future, with a large bulge of baby boomers moving into retirement in the countries where it is now trading. One solution being considered is more part-time employment of older workers, which will mean a change in direction for recruitment and training.
As organizations expand into global trading, it is interesting to observe how they adapt both their product offerings and methods of work to reflect the community values and expectations of different countries. This, of course, can only be achieved through a process of planning, organizing, leading and controlling.