Case Study Analysis (Case Study 1)
Alice, Amy, and Bill are three friends and MBA graduates. They live in a small town and have complained about the pizza for years. Alice, more than the others, has been very critical. In this small town, there are five or six delivery places, including well known places like Pizza Hut and Dominos, but they all compete on the basis of price or delivery speed or both. All the pizzas taste about the same and are made from similar products. When friends from Seattle come to visit and want to be taken to the best pizza place in town, Alice, Amy, and Bill are all embarrassed. There just isn’t a great pizza anywhere in the town. After complaining for many years, the three graduates have decided to quit their jobs and open a gourmet pizza restaurant to be called Alice’s Restaurant. Rather than providing the most food for a dollar, their objective is to provide a variety of gourmet pizzas in a setting that would be an attractive place to come with your friends or family when they visit you.
Please answer the following questions
1. Develop a mission statement for Alice’s Restaurant
2. Describe the competitive advantages that Alice’s Restaurant must have
3. Which tool from this class would you use to measure customer satisfaction? Describe how the tool works and what it measures.
4. Which tool from this class would you use to measure how well your company is operating? Describe how the tool works and what it measures.
5. What value could a transformational leader bring to this company?
Alice's Restaurant Operation Analysis
Alice’s Restaurant is the only ‘High Class restaurant that offers most dishes for Middle Class prices ranging from a dollar. To provide our esteemed clients with an authentic and unique dining experience, which is pleasant, enchanting, and epitomizes the best quality gourmet pizzas at reasonable prices without compromising the quality, Alice’s Restaurant offers a vast diversity of gourmet pizzas in an attractive setting that motivates a customer to visit with their families and friends when they pay a visit. This paper analyzes the competitive advantage, identifies the most suitable tools, that is, PEST analysis, SWOT analysis and Five-force Model. The PEST analysis mainly analyzes the macro environment of Alice’s Restaurant and its impact on the corporate strategy of the restaurant. The SWOT analysis analyzes the internal environment of the restaurant and understands its strengths, weaknesses, opportunities and threats. The five-force model analyzes the five competitive forces faced by the restaurants and provides a basis for developing a competitive strategy. Then, this paper describes how these tools work and their measures. PEST analysis, SWOT analysis and Five forces Model are also identified as the most appropriate tools for measuring how well a company is operating and make description on how the tools work, as well as the elements they measure. Finally, this paper states the value added by a transformational leadership to accompany.
Keywords: restaurant; pizza; PEST analysis, SWOT analysis, Five-force Model
1. Alice’s Restaurant mission statement
To provide esteemed clients with an authentic and unique dining experience, which is pleasant, enchanting, and epitomizes the best quality gourmet pizzas at reasonable prices without compromising the quality, 1. Alice’s restaurant offers diversity in gourmet pizzas in an attractive setting that is pleasant to customers when their families and friends pay a visit. Alice’s Restaurant is the only ‘High Class restaurant that offers most dishes for Middle Class prices ranging from a dollar.
2. Competitive advantage that Alice’s Restaurant must have
Competitive advantage refers to that one or more attributes or qualities of your restaurant’s food and beverages services or the setting’s ambience that renders the restaurant more preference in the market against potential and existing options (Meihami, B., &Meihami, H., 2014). Alice’ restaurant is therefore not an exemption. Henceforth, there are crucial attributes that the restaurant must put into consideration to gain competitive advantage in the pizza market.
Essentially, Alice’s Restaurant being a fast food king should be in a position to exploit the economies of scale in order to achieve an advantage in terms of costs. The restaurant therefore establishes low operational costs which reduces the rate of expenditure thus leading to maximized profits. A universal taste of their product further attracts customers from all regions to buy the gourmet pizza. This is because the three co-founders initially felt embarrassed when friends from Seattle visited and demanded to be taken to the best pizza restaurant in the town. Achieving a universal taste would be an added advantage to
the newly established pizza business (Meihami, B., &Meihami, H., 2014). Alice’s Restaurant also has to be strategically situated within the town to ensure easy accessibility as well as delivery process to the other delivery points
Additionally, an excellent fast food business model will be a key requirement for gaining competitive advantage. Alice’s Restaurant should be able to establish reliable and high speed processes in its customer service without compromising the quality of their products. The MBA graduates presumably have a vast wealth in business management strategies and thus Alice’s Restaurant stands a better chance of edging out competition since the management team possesses well horned skills in the business.
3. a) The most suitable tool for measuring customer satisfaction
PEST analysis, SWOT analysis and Five-force Model
b) Description in regard to Alice’s Restaurant
PEST analysis is a basic tool for strategic external environmental analysis. it grasps macro environment from the perspective of politics, economic, society and technology, so as to evaluate the impact of these factors on corporate strategic goals and strategy development (Igliński, B., et al., 2016).
Considering Alice’s Restaurant, the political factors refer to the political forces and related laws, regulations that have actual and potential impact on its organization and operation. Alice’s Restaurant in competition must carefully study government-issued business-related policies and legal provisions, such as the national tax laws, anti-monopoly laws, labor protection and social security laws. These related laws and policies can affect the operation and profit of the restaurant, and the business strategy of the restaurant must be adjusted accordingly.
Economic factors refer to the economic system, the level of economic development, and the future economic trends of a country. Since enterprises and organizations including Alice’s Restaurant are micro-individuals in a macro-environment, the economic macro-environment determines the and influences the development of a company's own strategy, companies including Alice’s Restaurant need to pay attention to searching, monitoring, predicting and evaluating the overall state of the economy in various strategic decision-making processes, so as to make right strategic decisions.
Social factors are factors including the size of the population, values, and customs of members in a society in which an organization is located. Alice’s Restaurant can discover the capacity of a country or a region through the understanding and analysis of the population size. By analyzing the age structure, values and customs of local consumers, a target market can be better determined, and the types of food and promotion methods can also be determined. .