Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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