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Frriar Tucker International

Decent Essays

Week 3 Frriar Tucker International
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Leading company staff in thinking bigger, operating in direct relationship to customers and stockholders’ needs, while staying flexible and adaptable to economic and market shifts ( Gaddy, p.171)” are all examples of priorities faced by companies that want to be competitive .
Friar Tucker International (FTI) is a hospitality service chain that has annual revenues in excess of $300 million and employs 1,200 people. The company currently manages 35 entertainment and cuisine establishments .FTI is seeking to expand operations through diversifying its portfolio, while maintaining the company’s strategic objectives (Apollo, 2008). This paper will discuss the issues and opportunities in …show more content…

Business Case
The Galleria project is expected to generate about $10 million over the first two years, and the project is expected to break even in five years. The projected annual revenue from the restaurant and gaming is $1 million in year 1 and will grow to $35 million in year 10. Another $4 million expected annually from other sources. Because this is a new business, the initial investment can be $18 million or higher. If the estimates are a bit high, it may take a bit longer. It could take up to seven years to break even. This still allows for a fairly quick break-even point and an even greater return on investment when considering long-term financial goals.
The Galleria project is the most suitable for FTI, and it will fit in well with the strategic plans for the company and will provide a strong financial return on investment. Building new competencies is important to FTI to help achieve their vision of being among the top 10 hospitality service providers and the corresponding mission statement of attracting more visitors and customers.
Proposed Resources
FTI will need to shift resources to manage this program. Sprint was faced with a similar problem in their Enterprise Property Services project. They devoted 25% of their executive team to manage the new program management. Sprint was able to do this by outsourcing

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