BUSINESS PROCESS REENGINEERING (BPR) ON PERFORMANCE

OUTCOMES OF SELECTED FOOD ESTABLISHMENTS IN LEGAZPI CITY:

An undergraduate Thesis Presented to the Faculty of the

School of Business Management and Accountancy

Divine Word College of Legazpi

Legazpi City

by

RAXIELLE MARIE B. ALVARADO

MA. THERESA S. CAMU

DECEMBER 2023
 CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

Presently, some businesses are confined in the “process-driven” concept,

striving for bigger, better and more complex transactions. In the intensifying

efforts to micro-manage organizational functions, there existence of function-

focused structure overlooking other external factors. As a result, unstable

environment is present and flexibility in functions is fleeting. With these

exposures, some businesses started redesigning existing business processes to

stay afloat, competitive and financially conducive, especially in food industry.

Thus, Business Process Reengineering comes into play, as it proves to be an

efficient method to establish sound performance outcomes.

Reengineering-also called process management, process innovation, or

process redesign- involves reconfiguring or redesigning jobs, jobs, and processes

innovation for the purpose of improving cost, quality service, and speed. It does

not usually affect the organizational structure or chart, rather it is changing the

way work is carried out (David, 2014). BPR involves changing many conventional

procedures, to reduce costs, and establish a work system centered on business

process outcomes rather than on functions or inputs. It enables organizations to

improve productivity and relationships with customers, and reduce processing

time by identifying and reengineering the important processes of the firm. With

this, businesses establish appropriate BPR implementation strategies by

approach.

Legazpi City, regarded as a premier metropolis in the Bicol Region,

provides a blend of urban and rural living. It is the most populated city in the Bicol

Region, and the provincial capital of Albay. In addition to being the region's

geographic center, it has evolved into the hub of the economy, tourism,

education, health care, and even transportation. The city is what is propelling

Bicol's economic development more than its gorgeous and breathtaking

sceneries. Legazpi city offers a variety of opportunities for investors to launch

businesses because of its pro-business laws and programs, as well as its solid

partnerships with the private sector.

The increasing growth of business opportunities and the desire to achieve

commercialization in Legazpi City has escalated into more existing food

establishments. Investors have grasped the fact that Legazpi, City is holistically

improving as the years goes by, which as a result, tourists are primarily interested

in the place’s culture and tourism-inclusive of food. For travelers who want to

taste authentic Bicolano dishes, there must be food establishments offering a

variety of food to choose from. In addition, those aiming fast service for fast

consummation, fast food restaurants must also come into existence. With these,

booming food establishments in Legazpi City came into place.

Food establishments in Legazpi City booms for several reasons, one is to

cater the increasing demand of Bicolano food cuisines. With the popularity going
on and the fast-changing world, these establishments may have had hard time

accumulating excellent performance outcomes, particularly customer service. In

addition, work processes that are fixated on functions and inputs sets BPR

emergence in the food establishments.

Being food establishments exposed into unstable environment, radical

design of prevailing business processes to obtain excellent performance

outcomes is inevitable. This is a study that determines the significant relationship

of the implementation strategies concerning Business Process Reengineering

and performance outcomes of selected food establishments in Legazpi City.

Statement of the Problem

This study focuses upon the determination of the significant relationship of

implementation strategies concerning Business Process Reengineering

(BPR) and performance outcomes of selected food establishments in Legazpi

City. Specifically, it seeks answers to the following questions:

1. What are the factors that led to the BPR implementation?

2. What are the provisions for the aforementioned drivers of BPR

implementation?

3. What are the limiting conditions or issues that affect the

implementation of the BPR strategies?

4. What are the effects of the BPR implementation on the

performance outcome of the food establishments as to:

b. Market Performance;

c. Customer Satisfaction

5. What are the issues encountered after the BPR implementation?

Scope and Delimitation

The general intent of this study is to determine the significant relationship

of implementation strategies concerning Business Process Reengineering (BPR)

and performance outcomes of selected food establishments. This study will

mainly identify and assess different factors that lead those food establishments to

the implementation of the BPR. Also, this study yearns to identify the provisions

of the aforementioned drivers of the BPR

implementation, limiting conditions that affect its implementation, effects on

financial and market performance as well as customer satisfaction in food

establishments, and the issues encountered after its implementation.

This study limits its coverage to only 2 fast-food and 2 casual dining food

establishments. It does not cover the BPR of food establishments outside

Legazpi City. This a study of implementation strategies, that’s why it is limited

only to the implementation phase of the BPR which consists of pre-

implementation, during-implementation, and post-implementation phases. Data

gathering limits only to the manager/ owner, 5 employees, and 10 customers/

diners in each of the food establishments.

This study that determined the significant relationship between

implementation strategies with regard to BPR and performance outcomes

strengthened the fundamental operational capabilities of food establishments to

achieve sustainability and efficiency in operations.

The findings of this study may have provided benefit, in one way or

another, to the following individuals and organizations:

Management of selected food establishments. This study can help the

management of selected food establishments formulate better implementation

methods and decision-making. The study's findings and recommendations

should help the manager perform his job more successfully, make better use of

the company's resources, and run the organization more

efficiently;

Employees. By making use of this study, employees of selected food

establishments can learn about Business Process Reengineering from the

implementation in which they partake and evaluate their contribution to the

operation and success of the company. Thus, with the aid of other factors

defining BPR, it can result in a significant shift in the performance of the

employees in terms of teamwork, camaraderie, and quality mindset;

performance objectives, was found to be highly impacted by

implementation strategies with regard to BPR. Doing this, it can raise the quality

of the restaurant's goods and services to a level that will satisfy patrons and offer

them reliable services.

Other food establishments. This will help other restaurants in the same

industry to effectively manage their business through the application of effective

BPR implementation strategies.

Government Agencies (DOT, DTI, BIR, and LGU-Legazpi). The

Department of Tourism can use this information as a resource as it investigates

restaurants' capacity to draw tourists through the cuisines it offers. This can be

used as a guide by the Department of Trade and Industry to monitor and support

establishments' management in the food industry to boost and sustain growth.

Also, the Bureau of Internal Revenue can use this study to examine the market

and financial performance of selected food establishments which are particular

determinants of their profitability. By using this research as a point of reference,

the local government unit of Legazpi can potentially assist the community and

prospective business owners/entrepreneurs in improving their standard of living

by employing this research as a point of guidance.

Academe. This research study can benefit the institution by sharing the abilities

and knowledge that the researchers have acquired through inquiries,

knowledge or a teaching tool for students and teachers.

Present researchers. The study aids the current researchers' education and

information acquisition regarding Business Process Reengineering and

successful implementation strategies. This research serves as a medium to

develop professionally.

Future researchers. Future researchers interested in researching the

same or a comparable topic can also find the study to be a useful guide. They

can find inspiration and understanding from this.

As a result of the fast-paced lifestyle of today's consumers, the food

service business in the nation has improved over the past few years. In response

to the increased desire for convenience among Filipinos, food service businesses

are growing their networks. Due to more consumer options, restaurants have re -

designed and highlighted the unique environment associated with their brand.

  The literature and studies that were thoroughly selected from

different works of local and foreign authors have added significance and have

agreed and paralleled with the primary objectives of the present study that is to

be conducted by the researchers. However, with a profound examination of the

gathered literature and studies, the researchers have found out that they were

mostly concentrated on the financial performance and the implementation phases

of other industries. In addition, some of them have tackled the BPR’s impact on

cost reduction.

In the related studies that were collected, the works of Golchini,

demonstrate that organizations must clearly identify their objectives and

stakeholders in order to apply BPR strategies.  If they fail to develop such a

strategic map, their competence would be significantly harmed. Deploying BPR-

oriented systems would not be a logical strategy in that scenario. Companies

must make sufficient investments in their IT infrastructures, precisely design their

buildings, and carefully choose the systems they use for their operations because
the costs of errors may greatly outweigh the advantages of the BPR project's

initial benefits.

The research work done by Fasna & Gunatilake disclosed that Business

Process Reengineering is comprised of the pre-implementation, during-

implementation, and post-implementation phases. In their study, Alverina et al.

also came to the conclusion that technology is now advancing at a rapid pace

and can aid in the creation of new enterprises and employment prospects.

Modern technology now makes it easier, more comfortable, more efficient, and

more affordable for anyone who desires to conduct business, especially young

entrepreneurs.

The related literature states why customer satisfaction is very crucial to the

success of the industry. The success of a business depends heavily on its ability

to satisfy its customers, and doing so also helps to increase the market value of

the company. A company's output and sales will rise as a result of improved

business procedures, which will also assist productivity levels to rise. Effective

resource management reduces the amount of money the company must spend

on production costs. Customers that are happier likely to make larger product

purchases and bring in more money for the business. A culture that encourages

innovation and growth is created by efficient business processes.

Gap bridged by the study

There was an array of literature and studies on Business Process

Reengineering, what it is, its impacts, and its importance. There had been various
studies also conducted regarding BPR but they were on the international scene.

It has been noted that because of the uniqueness of Business Process

Reengineering, only a few have dared to conduct a study about it locally. Most of

the related studies regarding BPR are not local but by international researchers.

Similar studies conducted focused on the same field yet different industries.

Another study was made with the same industry but it was focused on other

business aspects.

After examining and evaluating the related studies that were presented,

none of them has attempted to conduct a study about certain impacts and effects

of Business Process Reengineering on the operational performance of food

industries situated in the City of Legazpi. Thus, the gap has been bridged by the

current study.