...Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Table of Contents Situational Analysis Page 2 History Fast Casual Food Industry Strategy Page 3 Chipotle Value Chain Competitive Landscape Page 4 SWOT Analysis Page 6 Conclusions of Chipotle’s situation Page 8 General Environment Analysis (General & Direct Environments) Identification of Strategic Issues Page 10 Evaluation and Examining strategic alternatives ...
Words: 4469 - Pages: 18
...What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Panera Bread’s strategy is to used focused differentiation to create the “quick-casual” style of dining that many new food chains are adapting today. Urban workers construct a large portion of Panera’s target, while suburban residents make up a differentiated target demographic. Panera provides comfortable, clean dining with fresh and healthy ingredients, which consumers pay a slight premium for over fast food. Panera’s competitive advantage is the high-quality product at a reasonable price that customers will choose over the options of their competitors. 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Strengths: Product Differentiation Good dining experience Franchises Strong Brand High Quality/healthy Ingredients Vertical Integration Strong Growth Model Known for generally good corporate ethics Weaknesses: Pricey food options Geographic Concentration Ingredients have short shelf-life Opportunities: More Franchise locations Breakfast foods Improving economy (more disposable income) Rising Organic Market Take-Home Grocery option Threats: Rely on many gluten foods More competitors...
Words: 1503 - Pages: 7
...The proposed acquisitions of California Pizza Kitchen and Carts of Colorado by Pepsico 1. Should PepsiCo buy California Pizza Kitchen? For both acquisitions it's more about what they add to PepsiCo, not what value PepsiCo adds to them Pros: - needs to acquire CPK to learn casual dining. That's where the growth is, and internal attempts to develop casual dining in Pizza Hut Cafe have failed. whether CPK is merely a passing yuppie fad, or if it is a long-term market segment doesn’t matter to PepsiCo if it merely wants to learn casual dining. - PepsiCo startups failing Cons: - possibly PepsiCo’s failure to develop a casual chain internally, along with the real differences between fast food and sit-down dining, will prevent it from succeeding. •New segment that PepsiCo doesn't know - Yuppie casual dining • $11 check, dinner on pizza dough - PepsiCo ignorant of key success factors •high level waiter service •PR not advertising key to marketing •capital cost $1 - $2m, sales $3m not $800k, $800k. •New untested concept - 25 restaurants, 8 states, $34m sales, $3/4m net income - may be a "fad" •only seven years old - may not stretch beyond Yuppiedom 2. Should they buy Carts of Colorado? Pros: - while CoC's $8m sales is very small for Pepsico, the real market size is the revenue from non-traditional PODs, and this is potentially enormous ($2 billion to PepsiCo alone) The real reason to own CoC is to preempt Coke and MacDonalds in the best locations...
Words: 757 - Pages: 4
...Panera Bread is a chain of bakery-café fast casual restaurants in the United States and Canada. Its headquarters are in Missouri, a suburb of St. Louis, and operates as Saint Louis Bread Company in the St. Louis metropolitan area.Offerings include soups, salads, pasta, sandwiches, and bakery items.The store of St. Louis Bread was founded in 1987 when the first location was opened in Kirkwood, Missouri. Panera bread is the newer name for St. Louis Bread Company outside of the St. Louis area. In 1993, Au Bon Pain Co. purchased the St. Louis Bread Company, which was founded by Ken Rosenthal in 1987. At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area. Between 1993 and 1997,average unit volumes at the revamped Saint Louis Bread units increased by 75%, and over 100 additional Saint Louis Bread units were established. One of founders of au Bon Pain, Ron Shaich, believed that Panera Bread had the potential to become one of leading fast-casual restaurants chains in the nation. Between January 1999 and December 2006, close to 850 additional Panera Bread bakery-cafes were opened, some company owned and some franchised. The driving concept behind Panera Bread is to provide crave-able food that people trust, served in a warm, community gathering place by associates. Panera bread's distinctive menu, signature cafe design,inviting ambience, operating systems and unit locations tragedy allowed it to complete successfully in five submarkets...
Words: 1520 - Pages: 7
...-The competitive environment of ECCO is quite high due to the other of producing shoes such as NIKE, Adidas and Puma etc are the big brand as well. However, the way they positioned themselves is interesting. ECCO positioned itself to be concerned in the quality rather than fashion 1) Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à-vis competitors) to take advantage of changes in the industry. Use Porter’s five-forces model, the PEST model, and a SWOT analysis to explain your answer. ECCO produces mainly casual footwear with an intense focus on high-quality production.In order to deliver the highest quality product, ECCO maintained a fully vertically integrated value chain situated in various countries leveraging local expertise.Because of this unique situation, competitors found it very difficult to sustain a comparable level of quality. As noted in the case, ECCO finds itself in a highly competitive industry. The primary competitors identified in the case are: Timberland, Clarks, and Geox. For a brief analysis of the strengths of each of these competitors, please refer to Figure 3.As ECCO has recently entered the golf shoe market, they also face stiff competition from firms such as Nike, Rebok, and Adidas. ECCO stands in a unique position among the competitors in that it is the only non-branded manufacturer.The primary competitors of ECCO identified in the case outsource the majority of their manufacturing then uniquely brand...
Words: 6478 - Pages: 26
...segmented restaurant brands Internal movement of manager allows good experience sharing Weaknesses Strong resistance to higher management control o Makes it difficult to answer some new demand of the market such as single PepsiCo’s contact Independence of businesses makes it difficult to put synergies in place Group operates competitors to its potential customers o Burger king, for example is a potential customer for Pepsi, but a competitor to PespiCo’s restaurants No shared and established strategy within the brand, just based on a good practice agreement Lack of cooperation between brands (The Toilet Paper victory) Opportunities Drive more synergies between brands Share general headquarters tasks and eliminate duplicate cost within the holding Jean-Marie Le Corre 3 année – Promo 10 IBS – Case Preparation ème Threat Stop in growth of the market B- Alternatives 1- Buy Carts of Colorado, manufacturer of mobile food carts and kiosks 2- Buy California Kitchen, restaurant chain in the casual dining segment About Carts of Colorado Advantages: Manufactures...
Words: 718 - Pages: 3
...Japan Apparel Industry How does the vertically disintegrated/fragmented distribution system in Japan co-ordinate along the value chain? Japanese apparel industry is an industry where enormous number and variety of firms contract across markets to produce and sell the merchandise collectively. The spinning firms procure raw materials from importers and act like the principal fabric maker, coordinating production among the many participants. Thread brokers buy the thread from the spinning firms and send it to firms that finish or sometimes dye the thread. Once finished, the thread is sent to either a weaving or a knitting firm, which in turn sends it a fabric wholesaler after producing the fabric. The wholesaler might send the fabric to the print shop as required. After this the apparel maker coordinates the final half of the production process. It either designs the garments itself or approaches a designer for a garment. Some apparel makers also manufacture the garments in house. The apparel maker ships the completed garments to a wholesaler or to a retailer directly. The presence of wholesaler/broker at different steps reflects the disintegrated structure of the Japanese apparel industry. However, they play an important role in providing information about the market, economizing search costs, bearing risks etc. for small firms. Sometimes, if one of the parties involved in a production step is large it by passes the wholesaler completely. It should be noted that bypassing...
Words: 1040 - Pages: 5
...However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This new scenario has created opportunities for large exporters like China and India 2 that are considerably increasing their market share whilst at the same time creating challenges for European Union member states in order to remain competitive...
Words: 710 - Pages: 3
...margins. In this industry, players compete on basis of style, price and quality. Success factors are active management of inventory and production. Active Gear is a profitable firm in the industry; however Active Gear is a smaller firm than many other competitors and its small size is becoming a competitive disadvantage. The rise of large retailers has also endangered Active Gear’s growth. Mercury Athletic Footwear designs and distributes athletic and casual footwear dominantly to the youth market. Mercury competes in four main product lines: men’s and women’s athletic and casual footwear. Men’s athletic footwear is the leading product for Mercury Athletic. Women’s casual footwear is Mercury’s worst performing product and post-acquisition the line may be discontinued by Active Gear. The below table lists some financial and other aspects of both firms: | Active Gear Inc | Mercury Athletic | Financial Aspect: | Revenues | $470,286 M | $431,121 m | % of Revenue Product | 42% Athletic58% Casual | 79% Athletic21% Casual | Operating Income | $60.4 m | $42,299 m | Revenue Growth | $2-6% | 12.5% | DSI (Days Sales Inventory) | 42.5 | 62.2-10 days more than industry | Other Aspects: | Demographical Target | Family members | Youth market | Brand Image | Classic & lifestyle | Flexible | Price Level | Middle & high | Low & middle | Distribution | Independent sales representatives, sores, independent distributors(Didn’t sell through discount retailers)...
Words: 1226 - Pages: 5
...Nintendo Co. of Japan. They have been the worldwide leader in the creation of interactive entertainment; they have sold more than a billion video games to the world (Nintendo 2010). In 2006, Nintendo created the revolutionary video game console “The Wii". The Wii was designed to attract larger demographic users than other gaming systems. It was, and still, very successful; attracted many people from different ages and it resulted in huge profits since it was created. Unfortunately, recently attitude of consumers and environment has been changing unfavourably for the Nintendo. This analysis is to reveal the key successful factors that made Nintendo a leader in its industry, touch the weak points or mistakes it has done and recommend some strategies to keep Nintendo a leading player. Organisation Background : : : : : : : : : : : : : Organisation Profile 1.1. External Analysis 1.1.1. Pest Analysis In terms of external analysis, it is critical to assess whether the contextual economic, social, technological, ecological, media, political, legal and ethical aspects are conducive to a specific direction. For instance, is the local government receptive to the concept of private sector participation? How are the relationships between the local government with the communities and the private sector? These are important aspects of the macro environment which will have a general impact on industries and companies....
Words: 10161 - Pages: 41
...1|Page Coursework Header Sheet 220924-625 Course FINA1035: Strategic Financial Mgt Course School/Level B/UG Coursework Report Assessment Weight 100.00% Tutor EA Warren Submission Deadline 19/03/2015 Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism. 000652920 Tutor's comments Grade Awarded___________ Moderation required: yes/no For Office Use Only__________ Final Grade_________ Tutor______________________ Date _______________ 2|Page 0006529208 Strategic Financial Management Report: McDonald’s Part 2: External Analysis Zaheer Mansuri Word Count: 3038 Tutor: Liz Warren 3|Page 0006529208 Contents PESTLE ..................................................................................................................................................................... 4 Political:............................................................................................................................................................... 4 Economic:............................................................................................................................................................ 5 Sociocultural:...
Words: 9846 - Pages: 40
...Table of Contents Executive Summary……………..…………………………….…….Key Problem/Issue of the Case…………………….…..……………AnalysisExternal Analysis……………………………….…………...Internal Analysis…………………………………………….Business-level strategy………………………..…………….Corporate-level strategy………………………..…………...Firm Performance…………………………….……………..Alternatives Available……………………………………………….Team Recommendations………………………………..…………...References…………………………………………………………...Appendices………………………………………………………….. | p.03p.04 p.07p.08p.10p.11p.12p.16p.18p.21p.22 | Executive Summary The Chipotle Mexican Grill restaurant chain has been exceptionally successful since its inception in the early 90s. The growth of this “fast-casual” dining phenomenon in its early years demanded the attention of many fast food industry giants all over the United States. One in particular, McDonald’s, even spent significant time holding ownership of a controlling interest of shares in the company, and lent their distribution and growth strategies to Chipotle. This injection of wisdom certainly attributed to their current level of accomplishment as a company because it afforded exponential acceleration in both domestic and international expansion of the brand. Given the overwhelming success of Chipotle to date, the company has decided to launch an additional fast-casual format restaurant designed around a Southeast Asian cuisine theme and named “The ShopHouse Kitchen”. The ShopHouse leverages the same basic, yet proven, principles of the Chipotle Mexican Grill...
Words: 5591 - Pages: 23
...A. A supply chain strategy appears in many different forms and varieties; picking the right strategy is the hard part. When deciding on a strategy, the goal is to pick the correct one that will benefit your specific organization and area. There are six different strategy associated with supply chain management: Many supplier, few suppliers, vertical integration, a combination of the two referred to as a joint venture, Keiretsu, and a virtual company (Hiezer). The first couple of the strategies have a company rely heavily on external suppliers for their goods and service. Not necessarily working in conjunction with the organization business strategy, but aggressively compete with other suppliers to gain essentially the right to provide the product on the companies demand. The goal of both these strategies isn’t to foster a long term partnering relationship with the buyer’s organization. The strategy of vertical integration takes on two forms also; a company can either purchase a supplier or work in combination and join resources becoming a joint venture. Vertical integration can be forward taking on more of the distribution action or backwards by produce what was in the past purchased. They can benefit from organization talents by reducing cost, increase quality, and timely deliveries. It being hard to everything well and the large financial commitment are some of the challenges of a vertical integration strategy, for some organization these challenges may force them into...
Words: 3355 - Pages: 14
...unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both categories. Besides, with the good timing which became the first mover to this new category also led itself to this favorable position. This new category has made Panera Bread’s position not only unique but also contributed to its success. Panera Bread did a lot of things to distinguish itself from its rivals such as adding specialty food, different menus, catering service, new time suggesting of specialty food and providing inviting neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week systemwide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique position strategy, its signature foods and savvy execution to make this goal a reality. Q2. Analyse the restaurant industry using Porter’s five forces model. In what ways has Panera Bread successfully positioned itself against the forces that are suppressing the profitability of the restaurant industry as a whole...
Words: 1649 - Pages: 7
...2004 ‘Marketer of the Year’ “for its winning formula of product advertising, unpretentious advertising, smart partnerships and status as a national icon.” (Harris 2005) The approach Tim Hortons has adopted has been “relentlessly patriotic” (Parmar 2005) and their advertisements “try to reinforce what we do in the community, what our core products are and what our core values are.” (Cathy Whelan Molloy, VP of Brand Marketing & Merchandising in Harris 2005) Its marketing strategy focuses on “emphasising its community ties.” (Palmar 2005) Their long-term goals include: • Extend the Tim Hortons brand into new markets (Shareholder’s Report 2005, P.6) • Leveraging system to lower supply costs, develop new products with healthy profit margins & reduce expenses (Ibid) • To have between 3,500 and 4,000 system restaurants in Canada (Ibid) • To have 500 stores in the US by the end of 2008 (Ibid) • Review testing results of a cashless ‘Tim Card,’ designed to speed up queues (Harris 2005) • Instil a more “fast-casual approach...
Words: 8582 - Pages: 35
