...[pic] TOPIC: Revenue Recognition CHAPTER LINK: Chapter 6 Boston Chicken, Inc.: No Chicken About Aggressive Franchising Boston Chicken, Inc. franchises and operates retail food service stores under the name “Boston Market” These stores specialize in fresh, convenient meals featuring home style entrees of chicken, turkey, ham, and meat loaf, as well as a variety of freshly prepared vegetables, salads, and other side dishes. It product line also includes sandwiches, soups, and holiday home replacement meals. The total number of stores in the Boston Market system increased from 83 on December 27, Year 12 to 829 on December 31, Year 15. Gross system-wide store revenues increased from $42.7 million during the Year 12 fiscal year to $792.9 million during the Year 15 fiscal year. Franchisees owned and operated all but three of the Boston Market stores open at the end of Year 15. The company retains ownership of three stores to test market new entrees, assess new operating procedures, and train employees. Area Developers The company relies on area developers to achieve rapid penetration of targeted markets. Area developers are independently owned companies to which Boston Market grants an exclusive franchise in a particular geographical area to develop and operate Boston Market stores. An experienced retail food-service veteran with substantial invested equity capital heads each firm that is an area developer. The company currently has 22 area developers. There...
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...CASE STUDY Kayem Foods, Inc. al fresco BzzCampaign Brand Evangelists Drive Trial, Sales of Growing Brand BzzAgent Copyright © 2004 BzzAgent Inc. 273 Summer Street 4th Floor Boston, MA 02210 Ph 617.451.2280 Fx 617.451.9922 1 CASE STUDY New Brand Enjoys “Ripple Effects” of Targeted Word-of-Mouth K ayem Foods, Inc., the New England company founded in 1909, offers eight leading brands of hot dogs and sausages. In response to healthconscious consumers who were looking for high quality alternatives to traditional sausage products, Kayem created the al fresco brand of chicken sausages to “provide people with delicious foods that are healthy and convenient, meeting today's active lifestyles,” offering flavors such as roasted garlic, sweet apple, sundried tomato and basil, spicy jalapeno, teriyaki ginger, and sweet Italian. The award-winning sausage is prepared without artificial flavors, preservatives or nitrates and contains less fat and sodium than pork sausage. Kayem engaged BzzAgent, Inc. to conduct a word-of-mouth marketing campaign resulting in exponential trial and increased sales of al fresco in target markets. access to a BzzCampaign online homepage with these features: • A communication guide about the lifestyle benefits of al fresco • Instructions about where to find al fresco in local markets • A printable request form to encourage stores to carry the brand • A basic profile of likely consumers i.e. BzzTargets • A list of nine suggested BzzActivities...
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...Introduction Boston Chicken is a traditional American success story and a stellar representation of the new economy. Founded in 1989 by Scott Beck, the idea was to franchise restaurants that featured home style rotisserie-cooked chicken at affordable prices. While the actual food offerings were nothing new, the market winning formula for picking real estate, designing stores, organizing franchise operations and analyzing data was nothing short of a breakthrough. Due to an innovative competitive advantage, Boston Chicken sustained a growth rate that drew both lucrative and discerning attention. This report looks to analyze what key factors led to such rapid growth, Boston Chicken’s accounting policies, as well as a comprehensive valuation of the firm that concludes with a recommendation for further action. Critical Success Factors Boston Chicken was a hybrid restaurant that offered affordable, home-style meals with the convenience of fast food. The company can attribute their stellar success to several success factors including their: growth rate, communications infrastructure, diversified product offerings, and operational efficiency. Beginning with growth, by the end of 1994, only 5 years after launch, Boston Chicken was comprised of over 500 stores, a stark comparison to their 34 stores at the end of 1991. The company had experienced an annual growth rate of nearly 500%, which correlates to a new store being built every other day. Such stellar growth translated into significant...
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...I. ISSUES In 1996, KFC remained the world’s largest chicken restaurant chain and third largest fast food chain. It held over 50 percent of the U.S market in terms of sales and ended 1995 with over 9000 restaurants worldwide. KFC opened 234 new restaurants in 1995 and operated in the 68 countries. One of the first fast food chains to international during the late 1960’s, KFC had developed one of the world’s most recognizable brands. Despite of the KFC’s past success in the U.S market, much of the KFC’s growth was driven by its international operations, which accounted for 94 percent of all KFC restaurants built in 1994 and for 100 percent of the increase in 1995. Domestically the restaurant count dropped by seven restaurants because of unit closures, intense competition among the largest fast food competitors resulted in a number of obstacles to further expansion in the U.S market. Expansion of free standing restaurants was particularly difficult. Fewer sites were available for new construction and those sites, because of their increase cost, were driving profit margins down. However the most critical or major issue of this case in the future will be their ability to handle changes. Their system is older, in terms of facilities and product form, and their attitudes still don’t reflect the realities of their changing business environment. One on the great challenges at KFC is that there is a lot that needs fixing and the...
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...First In Show Pet Foods, Inc. First In Show Pet Foods Swot Analysis The following SWOT Analysis ledger is for First in Show Pet Foods Inc., new frozen dog food product “Show Circuit”. It displays the Internal and External factors that will affect “Show Circuits” introduction to the pet food market. Although “Show Circuit” will need to reshape its prospective target markets views on conventional dog food, it has a researched and proven formula that will provide an improvement in dogs’ coat shine. With the current market trend projecting an increase in dog food sales, the high production cost of “Show Circuit” will not be a strong external threat. With a good media strategy, store positioning, a creative market introduction, “Show Circuit” will be able to successfully compete with larger well known dog food brands. The Internal Factors Strengths: · Specialty high quality dog food · Small solid following among “show dog” kennels in Boston, MA · Freshest dog food in Market; 85% federally inspected beef by-products, beef, liver, and chicken, 15% highest-quality fortified cereal · Completely balanced frozen dog food Used and recommended by professional “show dog” owners for years. · Located in frozen food section right next to “people” food. · Record of “Blue Ribbon” winners as current product users. Weakness: · Cheaper dog foods that are more readily available. · Less than one-half...
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... |Anytime Fitness |$78.69K − 371.17K | |2 |Hampton Hotels |$3.69M – 13.53M | |3 |Subway |$116.59K − 263.14K | |4 |Supercuts |$113.75K − 233.6K | |5 |Jimmy John’s Gourmet Sandwiches |$330.5K − 519.5K | |6 |7-Eleven Inc. |$37.2K − 1.63M | |7 |Servpro |$138.55K − 187.19K | |8 |Denny’s Inc. |$1.32M − 2.61M | |9 |Pizza Hut Inc. |$297K − 2.1M | |10 |Dunkin’ Donuts |$216.1K − 1.52M | Source: http://www.entrepreneur.com/franchise500/index.html [pic]About Anytime Fitness Anytime Fitness clubs are open 24 hours a day every day of the year, thanks to security systems that allow members to access the clubs during unstaffed hours. The company, which began franchising in 2002, is expanding worldwide. [pic] Franchise Units |YEAR...
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...McDonalds and Burger King both serves the Grilled Chicken Caesar Salad, the Ranch Grilled Chicken Wraps, and the Classic Grilled Chicken Sandwich. This paper will compare the nutritional value of McDonald’s and Burger King. The grilled chicken Caesar salad is served at both McDonalds and Burger King. The grilled chicken Caesar salad served at McDonalds has 27 grams of protein, and the carrots provide A, C, K, and B vitamins that are essential for our bodies. The grilled chicken Caesar salad also contains 10 grams of carbohydrates, 6 grams of sugar, and 32 grams of fat, which are unhealthy for our bodies, and can cause obesity and heart disease (McDonalds.com 2012). As a result, cardiovascular diseases are the number one cause of death globally, with over 17.5 million deaths each year (30 percent of all deaths). Food provides the chemicals we need for activity and body maintenance. The body cannot synthesize or produce certain essential nutrients; we must obtain them from the foods we eat (Donatelle, 2011). Carbohydrates, fats and proteins are the nutrients that give the body the energy it needs. The serving size for the grilled chicken Caesar salad is 10.4 ounces, which is 3.3 ounces smaller than Burger King’s. McDonald’s grilled chicken Caesar salad has a calorie count of 190 (McDonalds.com 2012). Burger King’s grilled chicken Caesar salad contains 35 grams of protein and the carrots provide vitamins: A, K, C, and B. The grilled chicken Caesar salad contains, 26 grams of carbohydrates...
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...Eric Rhoads Overstock.com - Competition from substitutes is high in a .com business model. It limits the margins you can charge as it is easy to just go to other websites from your own couch. Rivalry between established competitors is a real concern in the online retailer business. Overstock has Amazon and Ebay as direct competitors. Amazon focuses more on new merchandise but if they see great sales by Overstock they can use their current supply chain to start delivering the “overstocked” items with little core change to their business. Ebay is focused more on used items and would have a harder time adjusting its business model to compete with Overstock make parallel. Threat of entry is also a concern. At this time (2004), internet stocks are trading at a premium and capital can be collected from venture capitalists without the normal scrutiny of having to show profits. They also do not require a huge capital investment in a storefront. The buyer’s bargaining power is on the lower side because they do not buy at big volumes but “bargain” by substitutes (see a). The supplier’s bargaining is what overstock.com uses as its competitive advantage. The suppliers want to move the inventory as fast as possible and are willing to take a loss just to get some return on the inventory. The long-term structure of internet retailing has a hard time showing showing a constant profit. The margins are very small as the competition is intense and the bar of entry is low. It is amplified...
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...9-575-072 REV: APRIL 14, 2009 DARRALL G. CLARKE Optical Distortion, Inc. (A) In late fall 1974, Daniel Garrison, president and chief executive officer of Optical Distortion, Inc. (ODI), had asked Ronald Olson, marketing vice president, to develop a marketing plan for ODI’s new and only product—a contact lens for chickens.1 While contact lenses serve mainly to improve human eyesight, the lens developed by ODI was made to partially blind the chickens. Garrison explained: Like so many other great discoveries, our product concept was discovered quite by accident. In 1962 a chicken farmer in Arizona had a flock of chickens that developed a severe cataract problem. When he became aware of the problem, he separated the afflicted birds from the rest of the flock and subsequently observed that the afflicted birds seemed to eat less and were much easier to handle. So dramatic was the difference that a poultry medical detailman visiting the farm, rather than being asked for a cure, was asked if there was any way to similarly afflict the rest of the flock. It has not proved possible chemically or genetically to duplicate the reduced vision of the chickens, resulting from the cataracts, but a chicken wearing the ODI lenses has its vision reduced enough to obtain the good behavior the Arizona farmer observed. This behavior has important economic implications for the chicken farmer. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon ...
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...9-575-072 REV: APRIL 14, 2009 DARRALL G. CLARKE Optical Distortion, Inc. (A) In late fall 1974, Daniel Garrison, president and chief executive officer of Optical Distortion, Inc. (ODI), had asked Ronald Olson, marketing vice president, to develop a marketing plan for ODI’s new and only product—a contact lens for chickens.1 While contact lenses serve mainly to improve human eyesight, the lens developed by ODI was made to partially blind the chickens. Garrison explained: Like so many other great discoveries, our product concept was discovered quite by accident. In 1962 a chicken farmer in Arizona had a flock of chickens that developed a severe cataract problem. When he became aware of the problem, he separated the afflicted birds from the rest of the flock and subsequently observed that the afflicted birds seemed to eat less and were much easier to handle. So dramatic was the difference that a poultry medical detailman visiting the farm, rather than being asked for a cure, was asked if there was any way to similarly afflict the rest of the flock. It has not proved possible chemically or genetically to duplicate the reduced vision of the chickens, resulting from the cataracts, but a chicken wearing the ODI lenses has its vision reduced enough to obtain the good behavior the Arizona farmer observed. This behavior has important economic implications for the chicken farmer. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon ...
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...The Renal Diet A Guide to Eating Healthier for Hemodialysis Patients Table of Contents Introduction Controlling Your Phosphorus Controlling Your Potassium Controlling Your Sodium Controlling Your Protein Controlling Your Fluid Intake Grocery List Suggestions Fast Food Facts for the Renal Patient Dining Out for the Dialysis Patient Smart Snacking Choices Renal Friendly Holiday Food List Cookbooks for the Kidney Patient Renal References Sources Cited Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 11 Page 16 Page 18 Page 19 Page 22 Page 24 Page 25 This information is a guide for you and your family. The purpose is to help you learn more about your health. Be sure to follow any instructions your healthcare provider gives you for your special needs. If you have any questions, or there is anything you do not understand, please ask your doctor or dietician. 2 Introduction Eating well is an important part of your treatment and can help you feel better. A new diet is essential part to your treatment process. Not only will it help you feel better, it can also help you avoid complications of your renal disease such as fluid overload, high blood potassium, bone disease, and weight loss. Because every individual is different and their needs unique, the following dietary advice should be given depending on a number of factors and discussion with your renal dietician. These factors include: stage of your renal disease, type of treatment you are on, laboratory results,...
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...Illustration for Children: A Comparison of Two Artists Adriana Martinez Lando University of North Texas Author Note This paper was prepared for SLIS 5420 Section 001, taught by Doctor Janet Hilbun. Illustration for Children: A Comparison of Two Artists “Never take yourself to seriously nor your work too lightly,” was Robert Lawson’s maxim for living (Wells, 2001, p. 43)! Robert Lawson was born on October 4, 1892 in New York City. He spent his childhood in Montclair, New Jersey. According to Folmsbee, Latimer, and Mahony (1947), “Robert Lawson as a child showed no special aptitude for drawing or writing. His life was that of the usual child in a usual suburban town” (p. 331). It was not until high school that he expressed an interest in art and drawing. He attended the New York School of Fine and Applied Art for three years. (Today it is Parsons School of Design.) He studied under the tutelage of Rae Sloan Bredin and Howard Giles. In 1914, Lawson opened up a studio in Greenwich Village. He worked there three years before his participation in the war. He worked on “magazine illustrations, stage settings, and some commercial work” (Folmsbee et al., 1947, p. 331). His career as an illustrator began during this time, when his illustration for a poem about the invasion of Belgium was published in Harper's Weekly. In 1917, Lawson went to France as a member of the first US Army camouflage unit, 40th Engineers. In France, he served with other well-known artists. After...
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...Company History: KFC Corporation is the largest fast-food chicken operator, developer, and franchiser in the world. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. KFC, a wholly owned subsidiary of PepsiCo, Inc. until late 1997, operates over 5,000 units in the United States, approximately 60 percent of which are franchises. Internationally, KFC has more than 3,700 units, of which two-thirds are also franchised. In addition to direct franchising and wholly owned operations, the company participates in joint ventures, and continues investigating alternative venues to gain market share in the increasingly competitive fast-food market. In late 1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants, Inc., to be formed from the spinoff of PepsiCo's restaurant holdings. New Management for Kentucky Fried Chicken In 1964 Sanders sold Kentucky Fried Chicken for $2 million and a per-year salary of $40,000 for public appearances; that salary later rose to $200,000. The offer came from an investor group headed by John Y. Brown, Jr. a 29-year-old graduate of the University of Kentucky law school, and Nashville financier John (Jack) Massey. A notable member of the investor...
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...YUM! BRANDS, PIZZA HUT, AND KFC Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also...
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...First In Show Pet Foods currently produces and distributes dog food for show dog kennels in the United States. The company’s product, Show Circuit, is a unique food that gives dogs a healthy, shiny coat. The product is 85% fresh federally inspected beef and chicken and 15% high quality fortified cereal and contains no additives or preservatives. The product is frozen to keep the uncooked meat fresh. Problem: It has been brought to the company’s attention that a similar frozen dog food product is being marketed and sold in the freezer section of supermarkets in the southwestern United States. The major problem the company faces is whether or not to proceed ahead with a plan to market and sell their product in Boston area supermarkets. This opportunity prevents several challenges for the company. The first challenge is the fact their product would be placed in the frozen food section where most customers don’t think to look for dog food. The next challenge they face is that Show Circuit, while well-known to show dog kennels, is a new product that is unknown to the general public. The final challenge the company faces is that First In Show Pets Foods is also a brand that is unknown to the general public. Alternatives: First in Show Pets Foods has the following alternatives to consider: 1. Implement the advertising campaign with a budget of $500,000. This budget would include money for television, newspaper/magazine, collateral, agency fees and miscellaneous costs. ...
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