Describe the various functions involved in management of a food service institution.
Answers
Economic environment:
The state of the economy can affect food product development. A great new food product idea may work well when consumers have a high income level and the economic outlook is prosperous, but the idea may fail in tougher economic times.
The following economic factors may affect food product development:Political environment:
Australian manufacturers, producers and distributors of food are all subject to regulations made by federal, state and local governments. At the federal level, the most prominent regulatory body is Food Standards Australia New Zealand (FSANZ), which, in principle, coordinates and oversees food regulation throughout Australia and New Zealand. Local government in NSW acts in partnership with the NSW Food Authority on food regulation. Local government deals specifi cally with local issues relating to foods, such as zoning laws, planning permits and health inspection matters.Ecological environment:
The ecological environment includes the air we breathe, the food we eat, our waterways, biodiversity in both plant and animal species, and the land itself. Today there is concern about endangerment of species and environmental damage because of issues such as pollution, land degradation, inadequate waste disposal and conservation of natural resources. These issues affect consumer attitudes to such things as recycling, biodegradability of packaging, pollution of the atmosphere and waterways, use of pesticides and waste disposal. Internal factors
Personnel expertise:
The expertise of staff is crucial to the operation and development of a business. The personnel (staff or human resources) employed by a food company include some or all of the following:
• production staff on the factory floor
• financial staff
• marketing and sales staff
• purchasing staff
• product development staff
Production facilities:
Production is where raw materials are converted into final products for the market. It is very difficult to produce any food product with the wrong equipment. Production facilities vary in complexity, level of technology, output capacity and also expense. The levels of technology and complexity vary from very simple (such as fruit and vegetables packed into nets or plastic bags) to quite advanced (such as frozen meals, extrusion and ultra-heat treatment). Larger companies often use a mixture of production technologies, while smaller ones may depend on just one, often simple, process. In general, the complexity of equipment is related to specific products and processes, output volume and the financial status of the company.Financial position:
A company’s financial position is a major factor in the type of equipment it can afford and hence its product range and new product development activities. The financial position of any company includes the value of its assets (cash, property, equipment), its cash flow, profit-andloss balance, value of its shares (for public companies), amount of borrowings or loans to others, interest rates, equity in other companies and property, value of stock on hand, market share, product range and other aspects that vary between companies.