Darden restaurants are the largest full service restaurant company in the world. Located in Orlando FL, they operate over 1,500 restaurants. They own many brands such as Olive Garden, Longhorn steakhouse, Bahama Breezes, Seasons 52, The Capital Grille, Yard House plus many more. They tend to all be located in high traffic areas, which encourages business. The restaurant industry is the fastest growing industry in America (Feeding America). Darden is committed to building and maintaining a customer-orientated environment. They provide work for nearly 150,000 employees; they focus on making their work environment vibrant and desirable. Darden values integrity, fairness, respect, ...view middle of the document...
But the board of directors at Darden decided to sell Red Lobster for 2.1 Billion, without shareholder consideration. So the problem is how will Darden manage and restructure their employees and gain shareholder trust to encourage growth within their brand?
Stages of Group Development
After shareholders fired the entire board of directors, Darden is starting from scratch. The purpose of group development is to engage in similar actions to benefit the underlying company or goal. There could be distortions if an individual does not keep the best interest of the team. The first stage of group development is forming, determining the purpose and structure of the group is important for generating responsibilities. This stage will take time for distinct roles to set in based upon each individual’s personality type. The next stage is storming, turbulence, disruption and frustration is at a high level. Individuals will begin to realize if they can interact efficiently with their group. People will begin to leave the group or job during this stage. Norming is the next stage which deals with shared values and goals. This is the stage that separates groups into teams. Collaboration is the way to achieve maximum performance. Lastly, performing is when the structure is in place and each member understands his or her duty and responsibility. This development stage is the beginning step for Darden’s new board. Yes, each person is designed a distinct role but everyone is new and will learn more about their position each day on the job. The sale of Red Lobster to was very important to the restaurant industry because it represented 8.5% of the domestic casual dining market (Morningstar). The group development of the previous board of directors broke down into adjourning, the termination of group activities. As time evolves there will be certain characteristics, which correlate to the overall structure of the group.
Over the years, the correct leadership has propelled Darden to dominate the restaurant industry. With ever changing business models and the growth of competition in the industry, Darden needs to be revitalized. Operating problems are occurring due to a breakdown in the operating structure, which could provide profit-maximizing techniques. Building off of the group development stage an important characteristic in decision-making is creativity. Creativity can be used to capture opportunities and give one’s team a competitive advantage. There are many qualities, which could spur innovation. Obtaining a moderate to high level of risk and eliminating risks that will fail. Being open to new approaches and tolerating not having all of the facts before making an educated decision. The previous management team ruined Darden’s main brand, Olive Garden. In our opinion they had ideas with no creativity obtained through bad execution. Here is a prime idea of how Darden could improve their business profitability: breadsticks are the feature of...