Download Chapter 2 Case Analysis: Pizza Wars Come to

Chapter 2
Case Analysis:
Pizza Wars
Come to
Campus
Nicole Chick, Kaylee
Acierno, Rani Naseem, Chris
Dimando, Liang Xi,
Mohammed
Chapter 2: Strategy and
Sustainability


What is strategy?

A set of decisions and plans and policies by which a
company aims to gain advantages over its competitors
(Skinner, 1969)

Strategy is an organization’s action plan to achieve the
mission (Heizer and Render, 2009)
Elements of strategy include:




Environment
Corporate/Business
Operations Strategy
Implementation
Chapter 2: Strategy and
Sustainability
 Types

of strategy include
Blue Ocean (emerging new market)
 Undefined
market
 Capture the attention of a new market and
retain

Red Ocean (traditional market)
 Market
it defined
 Low prices (low-cost strategy)
 Premium value (differentiation strategy)
Chapter 2: Strategy and
Sustainability
 Red

Ocean; Low-Cost Strategy
Provide low-cost, standardized products to the
general public
 Dollar
General franchises
 Wal-Mart
 Differentiation

Strategy
Produce exclusive customized products to serve all
segment within a market
 Coach
Purses
 Apple brand electronics
Chapter 2: Strategy and
Sustainability
 Implementing
the chosen strategy
involves many competitive factors




Quality, Time, Flexibility, and Price/Cost
Meeting the launch date
After-sale support from the supplier
Environmental impact
Corporate strategy
Business strategy
Internal
analysis
Operations
Strategy
Mission
marketing, finance,
Distinctive
Competence
External
analysis
Functional strategies
in
Objectives
(cost, quality, flexibility, delivery)
engineering, human
resources, and
information systems
Policies
(process, quality systems, capacity,
and inventory)
Consistent pattern of decisions
Results
2-15
Business
Strategy
Case Descriptions- Business
Strategy
 BSB.,
Inc. is currently operating in the lowcost strategy of the Red-Ocean segment.


Provide cheap food
Aimed towards the defined market of
college students, on/off campus
Internal
Analysis
Case Descriptions- Internal
Analysis

BSB is running three food-service facilities :
1.
2.
3.

Mission
Large cafeteria
The Dogwood Room which is located on the second in the same
building, serves the upscale luncheon buffet.
Small grill
BSB,Inc is under contract to provide food services 6000 students
and 3000 faculty, staff, and support personnel.
 Mission:

BSB., Inc. will provide the highest-quality food possible at the
lowest prices, to students on and off campus. The hours of
operations and flexible menu items will satisfy each student,
and ensure they return.
Case Descriptions- External
Analysis
External
Analysis
Objectives
Case Descriptions- External
Analysis

External
Analysis
Objectives
Reasons students aren’t satisfied :
1.
Lack of variety
2.
Class schedule
3.
Cars
4.
Microwaves/refrigerators
 Objectives:
 Provide
low-cost food to students
 Catch student’s interest in the food selection,
retain business
 Create an improvement to current strategy that
will overcome future competition
Policies
Case Descriptions- Strategy
Implementation
 Improvements:
Expand menu to include pizza
 Delivery to entire campus


Strategy Implementation:
 More employees, training, bicycle
 Results

Sales/profits/customer satisfaction
increased over the past 10 months
Results
Case Descriptions- Process, Inventory,
Capacity, and Quality Systems

The strain on the grill:
More
demand

Longer
delivery
time
More
space/
equipment
Added Competition:



Pizza Hut and Dunkin’ Donuts are expected to open for business
soon.
Name-brand facilities might attract more business
Larger variety in food
Strengths and Weaknesses
 Strengths


Conducted surveys to define customer needs and
trends
Adapted to customer needs by providing Pizza and
offering campus delivery
 Weaknesses


Insufficient capacities of equipment and space
causing inability to meet demand and delayed
delivery
Limited amount of toppings available for Pizza causing
customers to look elsewhere
Opportunities and Threats
 Opportunities


Close proximity campus provides most amenities
students require allowing BSB, Inc. to take advantage
of their campus location
Possibility to focus on and market to students that
have cars and purchase food off campus
 Threats


New Food Court offering services from popular
privately owned companies in direct competition with
BSB, inc.
“Pizza Wars” off-campus and the increase in demand
of specialty pizzas
Case Questions/Answers
How would you describe the mission of
BSB, Inc., on this campus? Does BSB, Inc.,
enjoy any competitive advantages?
1.
•
•
•
Low-cost food for students on campus
Variety of meals/ operating times
Satisfy student needs: cut down offcampus deliveries and minimize in-home
preperation

Specific to pizza business: quick delivery for
students
Case Questions/Answers
2.
Initially, how did Renee Kershaw choose
to use her own pizza operations to
compete with off-campus eateries?
What were her competitive priorities.

Focus on the convenience aspect: delivery
 On-campus

delivery= speedy service
Low-prices in comparison to large pizza
chains off-campus
Case Questions/Answers
3.
What impact will the new food court have on
Kershaw’s pizza operations? What competitive
priorities might she choose to focus on now?

Increased competition
 More
food variety: Name-brand companies with popular
items
 Locations: closer/farther relative to students classes
throughout the day


Needs to focus on heavy advertisement to out-weigh
popular food chains
Emphasize the delivery convenience
Case Questions/Answers
4.
If Kershaw were to change the
competitive priorities for the pizza
operation, how might this impact her
operating processes and capacity
decisions?

A move to quality and variety require more
resources
Efficient workspace enables operations excellence

Case Questions/Answers
5.



Can you outline a positioning strategy for
Kershaw’s operation on campus?
Transition from generic low-cost pizza to high-end
gourmet pizza
Advertise its durable competitive advantage of fast
on campus delivery
Extended menu with same ingredients
Possible Solutions for BSB, Inc.
 Encourage
Pizza Business:

Heavily advertise delivery service

“Toppings of the month”

Coupons/membership card

Offer calzones