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
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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
Portillo’s became the unsurpassed leader in the fast causal dining industry because my systems required maintaining unbelievably high standards. I never took short cuts or compromised quality to justify a heartier bottom line. I knew that if I ever lowered my standards our very devoted customers would simply leave to find something better. I see stagnating sales and believe that its starting - our faithful customer base is starting to go away and we have to fix it. We have to return to the place where our employees love their jobs. Their enthusiasm will translate to cleaner stores, better quality food, faster service and eventually healthier
The analyses indicate that the franchisees are profitable at this level of sales; some franchisees appear to be having cash flow problem, since footnote 7 points out Boston Chicken had been forced to make advances to franchisees to fund local and national advertising; the sales from same store and distribution of same store sales; late payments by franchisees; the total cash floe generated by all stores.
In today’s highly competitive market, the continuous changes that are occurring in the social, politic and economic environment create serious challenges in the corporate world. Corporations cannot afford to do business as usual if they want to remain in the game and be successful. In order to achieve their goals and objectives, they need to evolve, adapt, learn and apply different new strategies that will help them secure long-run success and performance. Among those strategies, we are going to discuss ten of them and their advantages in connection with corporation’s goals and objectives.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
This essay shall outline porter’s four generic strategies: ‘cost leadership’, ‘differentiation’, ‘cost focus’ and ‘differentiation focus’. These relate to segments 3A, 3B, A company has to be in one of these four segments: it cannot be between two. (Longmuir, 2015a) To achieve this, policies and procedures need to be developed to focus the whole company from top to bottom
In order to be competitive, companies have to satisfy customers’ requirements. They have to provide a fast and dependable service at reasonable price. There are five performance objectives that lead companies to competitiveness. They are:
Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.
For almost two decades, managers have been learning to play by a new set of rules. Companies must be flexible to respond rapidly to competitive and market changes. They must benchmark continuously to achieve best practices. They must outsource aggressively to gain efficiencies. And they must nurture a few core competencies in the race to stay ahead of rivals.
The purpose of this report is to give a detailed analysis on a case study of Padi-Cepat. Padi-Cepat is a Malaysian Company dealing with food, beverages and baking products. Norman Effendi, CEO of the company is more concerned about the future of the company as the company is sliding down and he wants to take an effective strategy for improving the performance of the company. Padi- Cepat mainly targeted on middle and lower income groups. Different options for solving the issue of growth problem are put forward by the senior officials. The options are Greenfield Option, Market potential the Australasian region, exporting option and diversification option. The managers have proposed diversification strategy and launching a new business segment in Malaysia focusing on selling hot and cold beverages with cake, pastries etc. The managers predict that this market has significant potential to attract the middle and lower income customers because other international coffee chains in Malaysia only target high-income groups and the restaurants do no not have their own marketing products. They rely more on external suppliers for their selling. Norman has to choose any of these options for enhancing the company’s growth and he knows that if the company did not expand internationally, the local rivals would beat the company. Hence he decided to choose the diversification strategy for enhancing the company’s growth.
Speedy service & order accuracy New franchises Royalty fees Reinvest Branded grocery items Volume Profits Negotiation power with suppliers Diversified global portfolio Marketing programs New menu boards International expansion 6 v Coordinating Across All Operations v Value Chain Levendary Café’s operations touch upon the entire value chain of running a multi-unit restaurant.
This would be critical in the business’ ability to survive in such a monopolistic type market. Successful operation within a smaller independent chain restaurant faces challenges that may not be as apparent to a larger and more established national chains.
The purpose of this report is to give a detailed analysis on a case study of Padi-Cepat. Padi-Cepat is a Malaysian Company dealing with food, beverages and baking products. Norman Effendi, CEO of the company is more concerned about the future of the company as the company is sliding down and he wants to take an effective strategy for improving the performance of the company. Padi- Cepat mainly targeted on middle and lower income groups. Different options for solving the issue of growth problem are put forward by the senior officials. The options are Greenfield Option, Market potential the Australasian region, exporting option and diversification option. The managers have proposed diversification strategy and launching a new business segment in Malaysia focusing on selling hot and cold beverages with cake, pastries etc. The managers predict that this market has significant potential to attract the middle and lower income customers because other international coffee chains in Malaysia only target high-income groups and the restaurants do no not have their own marketing products. They rely more on external suppliers for their selling. Norman has to choose any of these options for enhancing the company’s growth and he knows that if the company did not expand internationally, the local rivals would beat the company. Hence he decided to choose the diversification strategy for enhancing the company’s growth.
There are two schools of thought pertaining to how firms should choose the competitive strategy that best suits them. One is of the opinion that firms should choose one of the generic strategies and commit all resources to making it work. Porter belongs to this category. They believe that the value chain necessary for cost leadership is quite different from that of differentiation strategy and that while differentiation deals with better quality, cost leadership deals with lowering costs wherever possible.(DESS and DAVIES 1984) What porter articulated here is that there is need for strategic clarity.
Porter (1980) argues that the competitive advantage is a process that requires constant realignment to adjust to the changing environment.
Competitive advantages that adhere to the current resources and market requirements are key and maintaining those advantages that is top priority.