Case Study Pizza War Essay

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Published: 29.10.2019 | Words: 3004 | Views: 343
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BSB, Inc. is a huge nationally controlled food-services business. The company acts client businesses on a contract basis.

Their business is definitely divided into 3 (3) market-oriented divisions of corporate, flight and university or college. Case Synopsis Renee Kershaw is BSB’s manager of food services at a medium-sized exclusive university in the Southeast. BSB has been operating at the university or college for the past ten years and Kershaw has been the director at BSB for the past 1 . 5 years.

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At the school, BSB caters for 6000 pupils and 3000 faculty personnel and support personnel by way of its three or more different cafes in the college or university campus. Three eateries will be: a)The Cafe? Open breakfast every day, lunch and dinner daily b)The Dogwood Room?

Serves an high end luncheon dressoir on weekdays only c)The Grill? Wide open between 11a. m to 10p. m daily and until midnight on Friday and Sat nights Primarily, after 5 months getting in-charge of BSB’s businesses at the college or university, Kershaw carried out a survey on client needs and market tendencies. The review revealed that students were not pleased with the food solutions at the school. A large amount of the foodstuff being used by learners was not from BSB’s features mainly because of a lack of selection and unacceptable facilities’ offering time for the scholars.

Below are the data from the survey: Food prepared in dormitory room20% Foodstuff delivered via off campus36% Food consumed off campus44% Students with cars about campus84% Learners with fridges or microwaves in their rooms62% Food that students consumed outside BSB, Inc. facilities43% As a result of the survey executed by Kershaw, she decided to include pizzas in the menu. In addition to the new menu, Kershaw also launched delivery services (by bicycle) for its pizzas. Currently, aside from placing the pizzas making services at the bbq grill, space is likewise being allotted at the barbeque grill to store french fries ingredients, as well as to prepare and stage pre-made pizza.

In order to keep the cost down and provide fast delivery, just a limited quantity of? standard pizzas’ are offered inside the menu. Difficulties and Complications Despite the rise in sales and profit from the pizza procedures, increase in with regard to the pizza has led to potential problems and increase in delivery times. As a result, the pizza’s sales began to level off.

Furthermore, Kershaw is concerned with the competition from a new food court to be opened in campus that will house Lasagna Hut, Dunkin’ Donuts and Taco Bell. Specifically, Pizzas Hut will probably be putting up a facility supplying a limited menu and pizzas on a “walk-up-and-order” basis. Problem 1 Will BSB, Incorporation. enjoy virtually any competitive advantages or main competencies?

Answer Competitive Benefits is the ability of a organization to get consistently in the long term in competitive condition. Core Competencies are the unique resources and strengths that the organization’s supervision takes into account when formulating approaches. BSB looks forward to competitive advantages or core competencies in many ways. a)Specialization – BSB is a specific food-services owner for universities and colleges. b) Experience? BSB has become serving the university to get 10 years for that reason they have first hand knowledge relating to customer tastes and needs derived from their encounters in the market. To get e. g.: survey info. c)Existing features and providers provided? new entrants need to start from scuff.

For at the. g.: site and delivery services inside the university are incredibly important because of the lack of auto parking spaces. d)Brand Recognition – Familiarity among the campus community of the BSB? brand’ as it has been in existence for a long time. e)Close closeness – Close proximity towards the customers is critical for pizza delivery as it allows more rapidly and cheaper delivery. Question 2 In the beginning, how performed Renee Kershaw choose to use her pizza functions to compete with off grounds eateries? What were her competitive focus?

Answer Kershaw decided to work with her pizza operations to compete with away campus restaurants based on this reasons: a)Available resources? Depending on time, location and personnel available for Kershaw at that time, french fries operation is considered the most logical decision to be followed in rivalling with off campus eateries. Pizza operations do not require much time to be set-up.

Furthermore she can easily run the operation in one of the offered eateries (she decided with the Grill) and a minimal amount of staff training is required to run the pizza businesses. b)Food variety? By launching pizzas in the menu, Kershaw has to some degree addressed the challenge of the not enough food selection by only implementing minimal changes in her normal functions. c)Catering for students’ small schedules? Through delivery companies, Kershaw will be able to cater for college students with tight and unpredictable schedules. This decision is dependent on the excessive percentage of food not really purchased from BSB features whereby 36% of the foodstuff is sent from off campus.

Seeing that pizza may be kept and reheated quickly, going into the pizza organization seemed like your best option for Kershaw because 62% of college students in the university have fridges and microwaves in their areas. Competitive Focus are the essential dimensions that the process need to possess to meet its inner or external customers equally now and the future. Kershaw’s competitive focal points when choosing the pizza businesses to compete with off campus eateries had been: a)Cost?

Low cost of working since lasagna operations require minimal staff training and delivery is performed by bicycle. Limited combinations of toppings and? regular pizzas’ offered enable Kershaw to keep cost down. b)Flexibility? Through little changes, Kershaw is able to put in a selection of pizza to her menu as portion o her efforts to improve the variety of meals offerings. c)Time?

The limited number of pizzas that can be ready and grilled would be able to speed up preparation and delivery period since? standard pizzas’ can be pre-assembled and ready-to-cook once orders happen to be received. QUERY 3 a) What effects will the fresh food court docket have in Kershaw’s pizza operation? The immediate impact can be direct competition from other foodstuff operators. Because announced by the University, the new food the courtroom would cater to, among others, meals franchises just like Dunkin’ Donuts, Taco Bell and Pizza Hut.

BSB, Inc was your sole company and supplier of meals services inside the University campus prior to the story, thus they have, until just lately, enjoyed to some extent monopoly status. Of even more concern to BSB is the fact that the fresh food employees are arriving as proven brand names, consequently making competing with these people an even more difficult task. Competition to BSB, Incorporation would are available in the form of different food types.

Dunkin Doughnuts, for example , will offer snack-type food pertaining to the students, where as the likes of Palabrota Bell presents easy-to-go junk food. Students would find these kinds of food well suited for life about campus. Students are normally subject to hectic activities and are usually on the move, consequently having the convenience of easy and ready-to-go food companies (as offered be the newest operators) could suit all of them very well. Of more value (to BSB) is the breakthrough of Pizzas Hut on campus. Kershaw’s BSB has recently introduced barbequed pizza as an item upon its grill menu, and has up to now enjoyed considerable success too.

Of course , it was before Pizza Hut came into the picture. There is certainly little disagreement that Pizzas Hut would provide the keenest and most immediate competition to Kershaw’s french fries business. In fact , Pizza Hut, being a reputable and a well established franchise coupled with its economic muscle, would be a serious and immediate threat to BSB’s market share in pizza sales. However , Kershaw should take note of the fact that the Pizza Shelter franchise in campus provides its constraints. For one, the Pizza agent does not present delivery service (for now), as it functions on a? walk-up-and-order basis.

Secondly, it is only offering limited collection of toppings due to its pizzas, preferring to focus on a? standard menu’. QUESTION a few b) What competitive focal points might she choose to concentrate on now? BSB’s competitive focus can be split up into three main categories; Price, Flexibility and Time.

With all the establishment of the new food court plus the emergence with the new food franchises at the food courtroom, Kershaw’s BSB would have to decide which competitive focal points would give it a competitive advantage and therefore allow it to better compete with its more established competitors. BSB may choose to focus on it is wide array of food selection it provides upon campus through its 3 main meals facilities; the Cafeteria, the Dogwood Area and the Barbeque.

Compared to it is competitors which serve largely homogeneous goods i. at the. donuts, tacos and pizzas, BSB presents a better collection of food items including those offered by its competitors i. elizabeth. pizza, which may work to BSB’s edge in serving customers who desire for an? expanded’ menu to satisfy their very own culinary predatory instincts. As part of its efforts to offer a variety of foodstuff selection, BSB can also look at increasing the topping combos for its french fries to be competitive head-on with Pizza Hut’s limited number of toppings. BSB’s efforts in expanding its menu ought not to be at the charge of quality, while at the same time try to maintain the charges for its food items.

Another competitive priority that Kershaw and BSB might do well to leverage about is the ability to offer delivery service. Since BSB’s competitors will not offer delivery service, BSB has an advantage in this area, while students, which can make up the many it consumers, would generally prefer never to dine out given their hectic agendas. Also, BSB’s customers could enjoy food in the comfort and ease of their own homes.

In addition , Kershaw may want to established a minimum amount limit pertaining to delivery requests to ensure the assistance remains cost viable, as well as to? encourage’ clients to purchase more food or higher priced food items. PROBLEM 4 a) If the lady were to replace the competitive focus for the pizza procedure, what are the gaps between the priorities as well as the capabilities of her procedures. In its work to add selection to it is food collection and in respond to a customer review conducted, BSB has started offering pizza to its consumers.

BSB’s pizza were well received by the students, and soon after, sales increased, leading to higher income for the business. However , the brand new found accomplishment comes with new challenges. Kershaw soon found that her existing capability is certainly not sufficient to cater for the increasing with regard to her pizzas.

She does not have storage space pertaining to pizza-making products and facilities i. at the. ovens and space for her pizza ingredients. Her pizzas operations are putting a tension on her other grill actions, which is forcing her to re-look at some of the variety on the barbeque grill menu. Given her existing facilities, the girl faces the dilemma of accelerating her french fries supply on the expense of other food items. This may eliminate her first purpose of seeking to offer a variety of food variety. b)How may that have an effect on her functioning processes and capacity decisions?

Kershaw was also confronted with the problem of longer delivery time for her call-to-order pizza. She deduced that the gap arising among her existing capacity as well as the growing with regard to her pizza has, to some degree, caused delivery time for pizza orders to slowly enhance, possibly leading to ensuing grievances from its clients. The poor services (delay in delivery orders) may impact customers to get alternative meals services in and away campus.

Because of the difference, customers’ satisfaction may decline, potentially leading to loss of regular and existing customers because they opt for alternatives. As a result, sales will suffer, and inevitably affecting BSB’s bottom-line, if certainly not immediate, in the long run. Lower margins and in the end declining profitability will consequently impact the company’s performance and viability as a going concern. QUESTION 5 What would be a very good service method for Kershaw’s operations on grounds to meet the meals court competition? With the introduction of new foodstuff services in campus namely Dunkin’ Doughnuts, Taco Bells and Pizza Hut, Kershaw should first invest as well as resources in understanding the impact with the emergence of such competitors upon customer choices.

Knowing perfectly the fact that Pizza Shelter are of world class common with regards to top quality and flavor, Kershaw has to come up with a better business technique. Our group has deliberated on the subsequent recommendations within Kershaw’s strategy: 1 . Offer Variety of Pizzas at Less expensive Price Off Campus meals outlets, in particular those offering Pizza have appeared as a severe source of competition to BSB. These meals operators will likely offer various pizza combos.

Thus, Kershaw could maintain its competitive edge by offering a number of pizza having a wide range of toppings at inexpensive price points. The key for this strategy is to maintain quality and to pioneer on product offerings. For example, Kershaw could offer pizza selections which are totally different from what Pizza Hut currently offers (such as Hot and spicy Tandoori French fries, Vegetarian Lasagna and Chicken breast Hot Pizza).

This might permit the customers to acquire more choices that are outstanding in quality yet affordable. By offering Vegetarian Pizza which is not being offered by Pizza Shelter, the international students who have are vegetarians (i. at the. students coming from India and China) may also indulge in the pizza. This could create a niche market for BSB among non-meat eaters. Due to the fact that most of the university’s residents are pupils who will not earn a fixed and secure income, Kershaw should offer pizzas which might be affordable to them. To beat her competitors, Kershaw should sell off the pizzas at affordable prices than Lasagna Hut.

By offering a variety of pizza at affordable prices, Kershaw could increase the with regard to its lasagna, ultimately increasing its income. 2 . Keep Good and Consistent Quality Understanding client needs and maintaining good quality are extremely important in ensuring success, especially in the food industry because consumers are extra value mindful when it comes what they? consume’ i. e. foodstuff and drink. For some clients, price can be of less importance when compared with quality.

Kershaw should continually reinforce it is pizza quality and specifications to remain? relevant’ with in-campus and off-campus customers. 3. Phone Order and On-time Delivery Kershaw’s direct rival, Pizza Hut could most likely match BSB’s pizza rates, but may lose out in terms of selection and delivery. Seeing that Pizza Shelter does not recognize phone requests and do not give delivery services, Kershaw should take advantage by offering these companies to the customers.

Kershaw should allow telephone orders since most of the pupils face irregular schedules that discourage them from eating out In addition , the delivery should be made on time to ensure customers’ satisfaction. some. Longer Procedure Time Because the plan of college students are restricted and normally did not match cafeteria providing hours, Kershaw should lengthen its business operations till midnight. Several students are likely to study right up until midnight and like to have supper.

In fact , they will get the nearest meals court intended for convenient. A large number of students often study and possess a group debate outside the collection while having supper at the same time. Therefore, it is important pertaining to Kershaw to extend its operation hours and serve foodstuff such as pizzas or hamburger at the cafeteria.

As a result, Kershaw could maintain steadily its competitive benefits and remain competitive against the enjoys of Pizzas Hut and Taco Bells. 5. Expanding the Syndication Network At present, Kershaw is definitely renting three food-service services namely the cafeteria, Dogwood Room, and Small Grill. However , the girl with nearing complete capacity onto her pizza procedures and is seeking to expand. As a result, she may have to consider a new location, because there seems to become limited space at the barbeque grill location.

Plainly, she can pick to set up fresh convenient and attractive food-facilities such as the Kiosk and Bistro-type facilities, provided that the return on investment is worthwhile. REALIZATION AND SUGGESTION In conclusion, by adding variety towards the menu while keeping the quality and delivery acceleration, it is possible intended for BSB to take care of its competitive advantage in spite of the emergence of new rivals such as Pizza Hut and Dunkin Donut. The rise in needs for additional leading combinations and levelling of sales suggest that BSB will need to expand the product selection.

This suggests customers’ desire to have a variety of assortment, and the extended hours is going to enable BSB to offer their services if the Pizza Shelter is sealed, or when ever students will be in their dorm rooms. However , an increase in item variety will affect equally service and cost. Kershaw probably are not able to have as many pre-made pizzas ready to become thrown in the oven. She is going to also need to inventory additional toppings.

If your woman wants to maintain good support, she will ought to hire added workers. Therefore, there will inevitably be several trade-offs among quality service and cost if the girl decides to pay attention to product versatility.