...Ingredients. Better Pizza. Papa John’s. Better Ingredients. Better Pizza. Papa John’s. Papa John’s Case Analysis Papa John’s Case Analysis Table of Contents Appendix2 Exhibit 13 Exhibit 24 Exhibit 35 Exhibit 46 Exhibit 57 Exhibit 68 Exhibit 710 Exhibit 810 Exhibit 914 Exhibit 1015 Recommendations16 Appendix Introduction * Pizzerias represent 17% of all restaurants worldwide. In the United States alone, 93% of Americans eat pizza at least once a month. * Papa John’s Pizza is the number three pizza chain in the world with 6.3% market share, trailing only behind Pizza Hut and Domino’s. * Papa John’s first location opened in 1984 by John Schnatter, who is now known as “Papa John.” He previously sold pizzas from the broom closet of his father’s restaurant. * Papa John’s prides themselves on “Better Ingredients. Better Pizza. Papa John’s.” As a result, Papa John’s focuses on ingredients rather than expanding the menu. * Papa John’s has 628 company-owned and 3,255 franchised establishments in every state in the United States and in 32 countries. * However, the pizza industry has seen changes take place. * Unlike any time in the past, people are more health conscious and worry about what and how much they eat. * Technology has also caused changes in the industry due to social media and smart phone apps being used as a tool to reach customers. * Papa John should recognize these...
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...Introduction The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products. This case analysis will examine the company’s initial meteoric growth, leveling performance in recent years while attempting to foreground the challenges faced by Papa John’s and evaluate the strategic options and possible responses to pressures through an evolved product differentiation and growth strategy. Internal/External Environment & Pressures Internally, the company had enjoyed astronomic growth since its inception in the mid 1980s, but began to see the impact of a slowing U.S. and world economy in 2008 that began to put pressures on the company’s year-over-year growth and profitability. The time period referenced in the case indicated that Papa John’s in 2007 had 14.8% market share of the $13.5 billion pizza food service market. Despite showing profits each year on its income statement, the year-over-year growth numbers were nowhere near what...
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...Industry Analysis Porter’s Five Forces • Competitive intensity within the industry o Compared to nationally owned pizza restaurants rivalry is high. o Compared to locally owned restaurants rivalry is high. • Threat of new entrants o Threat of new entrants from nationally owned pizza restaurants is high because they have the capital to open multiple units. o Threat of new entrants locally is low because of the high cost involved to open a new pizza restaurant. • Threat of substitutes o There are many choices for consumers to purchase pizza from locally owned to national chains therefore the threat of substitutes is high. • Bargaining power of buyers o With the multiple outlets available for consumers the bargaining power of buyers is high because if prices are too high they will shop elsewhere. o Additionally, many consumers switch between pizza restaurants because they choose the outlet with the best coupon. • Bargaining power of suppliers o The bargaining power of suppliers is low for the nationally owned pizza restaurants so they can demand lower prices. o The bargaining power of suppliers for locally owned pizza restaurants is high because they do not buy in large quantities. • All things considered, Porter‟s Five Forces are high so the industry may not be as profitable or attractive. However, in any case, the techniques implemented by successful, market players after provide them with an opportunity to leverage their business processes...
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...Case Assignment 1: Papa John’s International, Inc.: Twenty-First Century Growth Challenges Inverted broom closet in a hometown lounge. He called it Papa John’s. Today, there are over 2,500 locations across the North America, South America, Africa, Europe and Asia. While Papa John’s has done a very good job with their forward thinking strategies, there are still some avenues to be explored to keep them competing as one of the world’s best pizza chains. During the first year of the company’s inception, John was able to grow his business from one store to eight, and generate $500,000 in revenue. While Papa John’s may not have had true first movers advantage (Pizza Hut opened in 1958), they did have a distinct advantage when it came to product differentiation. Papa John’s prided themselves on “better ingredients” making a better pizza, which is something they stand by to this day. This selling point is what gave them an advantage over the likes of Pizza Hut, or Dominoes (est. 1967), and made it possible for them to enter the market. One of the early strategic moves made by John was to implement a hub-and-spoke type “commissary” (or quality control center) that was responsible for delivering ingredients, supplies, and dough to a number of stores in the surrounding geographic location. This allowed John to ensure the quality of the food being served. These centers were key to early expenditure and quality control, but would be hard to sustain in future expansion due to numerous...
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...MGT 406 Case Study Papa John International 2007 Identification of competencies The 4 different competences of Papa John’s International include its focus on providing high quality products, operating system, marketing and franchise system. Providing High Quality Products Firstly, Papa Johns’ focus on providing pizzas of superior quality to its customers has laid down the foundation for its success in the long run. Unlike its competitors who focused on cost reduction, Papa Johns focused on differentiating its pizzas. In fact, they were also able to prove in court that they used fresh and better ingredients in comparison to its competitors. This allowed Papa Johns to be rated number one in terms of customer satisfaction among all pizza chains in USA. Applying the VRIO framework, it can be said that this focus provided value to the company owing to its many benefits. Although a restaurant chain selling pizzas was not rare, selling pizzas of such high quality was not common. At the same time, this is not easily imitable by companies because focusing on higher quality will need a major shift from their current procedures and marketing strategies. Furthermore, Papa Johns has been extremely organized in exploiting this competence to its benefit. Hence, as this competence fulfills all the criteria of the VRIO framework, it is both a core and a distinctive competence. Operating System Papa Johns’ efficient operating system is also considered to be one of the competences as...
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...overweight, malnutrition,etc. Children's health will be affected. So they need to let children know don’t eat fast food too often. 3. What would have been the effect on McDonald’s and other fast-food companies if the plaintiff had won her lawsuit against McDonald’s? Explain. If the plaintiff had won her lawsuit against, McDonald’s should make some new health food in the market, not always deep fried foods, like French fries. All of no health food will let children get fatter and fatter, more fruits and veg.,salad will be better. Facts: A 19 years old girl sues Mcdonald's claiming they were the cause of her obesity. Issue:Does Mcdonald's have duty to warn customers? RULE:No,they don't have the duty. Analysis: Mcdonald's have no duty to warn customers because of this case and other threats of litigation. Fast food franchiser have introduced salad,lowfat foods and etc. 8.2 1. What is false advertising? What is puffery? How do they differ from one...
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...lunch and dinner alternatives. In addition, according to Roper (2005) 58% of American households are willing to try a new dinner alternative relative to cooking or ordering out. Compounding this is the fact that 73% or 3 out of every four households by 4:30pm are clueless as to what will be served for dinner. These two insightful figures provide a glimpse into how volatile the quick service restaurants (QSR) marketplace is. Clearly the use of up sell, cross sell ad incentives to drive up same store sales is critical in this market, as is the continual growth and focus on the brand globally, finally with a focus on innovation. These are the three most critical marketing strategies for Domino’s today. Domino’s Pizza 3 2.0 Situation Analysis Today Domino’s is the leader in the delivery segment of pizza sales in the U.S., second only to Pizza Hut in total pizza sales, as...
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...HISTORY Domino’s Pizza was founded in 1960 and since then has grown to become the largest pizza delivery company in the United States. It has grown from a mom-and-pop pizza store to a network of company-owned, franchise-owned stores in the United States and across the globe and was recently ranked number 1 in Forbes magazine’s “Top 20 Franchises for the Money” list (David, R 2013, p. 372). Domino’s Pizza was the brain child of the brothers Tom and James Monaghan who grew up in foster care and had dreams of success. In 1960 the brothers opened their first pizza store in Ypsilanti, Michigan named Domi-Nicks with a nine hundred dollar start up loan. In 1961 Tom acquired full and sole ownership of Domi-Nicks by trading his brother James a car, a Volkswagen Beetle to be specific, for his half of the business. He then changed the name to Domino’s Pizza Inc. During the period from 1965 to 1978 Domino’s experienced steady growth and had increased from the initial mom-and-pop store, to having 200 locations nationwide. The 1980’s saw continued expansion of Domino’s and its brand. They grew to more than 5,000 locations in the United States, Canada, United Kingdom, Japan, Australia and Columbia (David, R. 2013, p.372). In 1986 Domino’s Pizza launched its Pizza Partners Foundation which is 100% funded by team member and franchise contributions and has disbursed nearly $12 million to aid team members facing crisis situations. Company founder Tom Monaghan eventually retired in 1998...
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...EXECUTIVE SUMMARY S. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CONTENTS EXECUTIVE SUMMARY MARKETING STRATEGY OF PIZZA HUT HISTORICAL HIGHLIGHTS OF PIZZA HUT CUSTOMER FOCUS COMPETITORS STRATEGY INDUSTRY ANALYSIS SCANNING THE INTERNAL ENVIORNMENT MARKETING STRATEGY PRODUCT STRATEGY PRICING STRATEGY PLACE STRATEGY PROMOTION STRATEGY GLOBAL STRATEGY BIBLOGRAPHY APPENDIX PAGE 5 6 7 10 14 19 22 26 27 32 36 39 50 54 55 2 Pizza Hut, the world’s largest Pizza chain with over 12000 pizza restaurants and delivery outlets worldwide has the vision of becoming the best branded restaurant with the best delivery and franchise network thereby providing the best food and best value to the families. Pizza Hut as a company has always tried to target and satisfy various diverse customer categories in different countries depending upon various factors and situations. Pizza Hut in order to fulfill its marketing objective of maximizing customer satisfaction by providing high quality products, has believed in the following marketing strategy: “Think Global, Act Local” Pizza Hut has tried to target each and every diverse population segment either on the basis of age (kids, teenage, office goers, senior citizens) or on basis of lifestyle (singles or couples) or special interest groups (celebrations, parties, festivals). As a part of the marketing strategy, Pizza Hut follows total market strategy along with international market strategy coupled with early entry strategy. Marketing...
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...Variables The goal of this study is to conduct a pizza demand analysis to determine the viability of opening a Domino’s Pizza outlet in Philadelphia, Pennsylvania in the area of zip code 19107. The proposed demand function contains five independent variables as follows: Qd = f(Pz, Pb, Pc, I, N) where Qd is quantity demanded. This is the dependent variable we will have to estimate. Pz is the price of pizza. This is the most important variable in determining the quantity demanded of pizza. By the law of demand, we expect it to have a negative relationship with Qd. Pb is the price of burgers, which are a substitute good to pizza. It is an important part of the equation, because as prices change, people tend to shift consumption to the relatively cheaper substitute good. Pc is the price of soda. As a close complement to pizza, a difference in the price of soda is likely to have an effect on the consumption of pizzas. I is the income level, as measured by annual salary. It measures the ability of consumers to afford pizza. Annual income data is taken from Bureau of Labor Statistics. N is the population size. Its importance for demand is clear as a higher population means a higher potential customer base. Data is taken from the US Census Bureau. For our particular zip code area of interest, Pz is $8, Pb is $6, Pc is $2, I is 25,000 and N is 12,122. Regression Analysis To construct a credible regression analysis based on the formula previously mentioned, we need a good number...
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...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 used for student presentations and...
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...Final Project 1 Final Project The Broadway Cafe' Part I and II CIS 500 Strayer University Elizabeth Bethel Final Project 2 The Broadway cafe is a family inherited coffee shop located in downtown Atlanta, Georgia. The cafe' has been in business for 58 years. The business offers specialized coffees, teas, a full service bakery, homemade sandwiches, soups, and salads. It was once a hotspot but for the past five years business has been declining. Although my grandfather was very adroit at managing the business, Starbucks will be coming to the area. Grandfather had a terrific memory and stored everything such as customers names, family recipes, and soups in his brain. His record keeping system was tracked...
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...Threats and Risks Assessment Joshua Watts SEC 400 September 15, 2013 Bill Hale Threats and Risks Assessment Risk is defined as any situation that involves the exposure of or to danger. Threat is defined as an intention or statement to cause damage or hostile action against someone or something for retribution. When security managers don't manage risk properly they are vulnerable to threats. This can be any situation possible will involve some risk and leave someone or something vulnerable to threats, there is no way to eliminate risk completely but there are ways to manage risk and reduce the vulnerabilities and thus reducing the threats. This is one of if not the most crucial part of being a security manager. You will need to constantly do risk and threat assessment of the property or assets you’re in charge of protecting this includes both from seen and un-seen hazards. This is an example of a risk and threat assessment of a local business that I am employed at, had I been a security manager this is what threats and vulnerabilities I found and assessment of how to reduce them. Floor Plan - The floor plan is a 1000 sq. ft. building with a main entrance area and waiting area also housing the bathroom. There’s a middle area with an oven and counters to make pizzas, with a 10 sq. ft. office in the rear corner of the middle area. There is also a rear stock area with a walk in freezer. There are two main doors and...
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...effective. It will also explain how you can (and why you should) develop a thesis that goes beyond “Thing A and Thing B are similar in many ways but different in others.” INTRODUCTION In your career as a student, you’ll encounter many different kinds of writing assignments, each with its own requirements. One of the most common is the comparison/contrast essay, in which you focus on the ways in which certain things or ideas—usually two of them—are similar to (this is the comparison) and/or different from (this is the contrast) one another. By assigning such essays, your instructors are encouraging you to make connections between texts or ideas, engage in critical thinking, and go beyond mere description or summary to generate interesting analysis: when you reflect on similarities and differences, you gain a deeper understanding of the items you are comparing, their relationship to each other, and what is most important about them. RECOGNIZING COMPARISON/CONTRAST IN ASSIGNMENTS Some assignments use words—like compare, contrast, similarities, and differences—that make it easy for you to see that they are asking you to compare and/or contrast. Here are a few hypothetical examples: * Compare and contrast Frye’s and Bartky’s accounts of oppression. * Compare WWI to WWII, identifying similarities in the causes, development, and outcomes of the wars. * Contrast Wordsworth and Coleridge; what are the major differences in their poetry?...
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...CIS 500: Information Systems for Decision Making Ryan Somma Strayer University Cyril Shepherd December 19, 2008 Cohesion Case Study for the Broadway Cafe 1 Table of Contents Abstract ........................................................................................................................... 3 Part 1: Porter’s Five-Force Analysis ................................................................................ 4 Part 2: Developing an E-Business Strategy ...................................................................... 7 Part 3: Telecommunications Considerations for M-Coupons............................................ 9 Part 4: Second Life for Customer Relationship Management ......................................... 12 Part 5: Aspects of Outsourcing Systems Development ................................................... 14 Conclusions ................................................................................................................... 16 Bibliography ................................................................................................................. 18 Part 1 ................................................................................................................. 18 Part 2 ................................................................................................................. 18 Part 3 ........................................................................................................
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