business scenario, value chain, management homework help

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Complete the business scenario below

on here file you find the business scenario that you need to complete it is 4 pages you have to make it 9 and make what you add with red color and add pictures like the example file

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What to do? 1. 2. Project scenario. (what is the problem domain?) Project objective. (what goals/objectives your group try to accomplish and your suggestion ?) 3. What and how were they accomplished? Employ the followings a) Porter’s five-competitive force model (and identify the two most critical forces) b) Four-competitive strategies (which one or combination of strategies should be the most appropriate) c) Value Chain model (how can the model help the organization improve their internal productivity (efficiency and effectiveness). d) How and what Information Technology should be used for the proposed solution. 4. Describe the managerial and organizational (and others) impacts on your project. 5. 6. Conclusion. It should include suggestions, comparison, and future observations in working with this project. Each group should make the project available on the Internet (available on one of group member’s web site) and add others based on your creativity (with all what you learn from the class). 1 GROUP 1 TERM PROJECT Group 1: Alex Bourguignon, Megan Bruno, Calvin Go, Kelly Hawkins, Cassie Morden Dr. Chen BMIS 235-02 2 May 2016 2 Table of Contents Cover Page ..................................................................................................................... 1 Table of Contents ............................................................................................................ 2 Mexican Showdown ........................................................................................................ 3 Porter's Five Competitive Forces Model .......................................................................... 4 Value Chain..................................................................................................................... 7 Managerial and Organizational Impact ............................................................................ 8 Conclusion .................................................................................................................... 10 Works Cited................................................................................................................... 11 3 Mexican Showdown Back in 2014, Qdoba Mexican Grill made a bold decision by expanding their menu to include guacamole, Fajita, veggies, and a variety of sauces for no additional cost. It was the beginning of Qdoba’s push into a market that Chipotle Mexican Grill has dominated for numerous years. At the time, avocado, limes, and other traditionally Mexican food ingredients were steadily rising in price, but their decision to offer the products for free was particularly innovative. Although Qdoba offered free condiments, their real rise to prominence was a result of a series of scandals from their main competitor, Chipotle. In 2015, Chipotle had an E. Coli outbreak that caused the business to lose a large amount of customers, which allowed Qdoba to offer new opportunities to attract customers. This business failure has created the opportunity for Qdoba’s big break because since 1995, it has been second to Chipotle and has been considered to be “in Chipotle’s shadow.” Due to Chipotle's business setbacks, Qdoba has the opportunity to advance in the industry through proper business strategies. 4 Porter’s Five Competitive Forces Model In response to the fall of Chipotle's sales due to the current outbreak scandal, Qdoba has capitalized on the advantage through implementing new business strategies. In order to take advantage of the presented scenario, Qdoba has developed the objective that focuses on two of the five aspects in Porter’s Five Competitive Forces Model. Industry competitors and customers are the main focus because at the given moment, suppliers, new market entrants, and substitutes are not major concerns for Qdoba. Due to their main competitor (Chipotle) struggling with a recent E. Coli outbreak, Qdoba has had the opportunity to attract more customers by focusing its resources on these forces. Through innovating new products and ingredients, and by implementing differentiation, Qdoba has the opportunity to advance in industry competition. In addition, by incorporating and advertising promotional deals through social media, Qdoba can provide the incentives necessary to please and broaden its customer base. These competitive strategies allow Qdoba to exploit the business scenario presented by Chipotle's product scandal and fall in sales. Therefore, Qdoba must continue to expand 5 its form of differentiation in the industry and in customer products in order to achieve business success over Chipotle. As a result of Chipotle’s temporary closing, Qdoba has been able to use the opportunity to advance in popularity in the industry and slowly start to emerge as a strong industry competitor. Their main strategy has been focused on innovating a new, flavorful menu with a set pricing structure that does not charge customers for extra goods. This new and improved menu includes many choices that are not found on the Chipotle menu such as offering breakfast, nachos, queso, and a wider range of salsa flavors. Qdoba’s breakfast menu is actually one of the company's best kept secrets. Although the breakfast burrito is not available at all Qdoba locations, this ‘secret’ definitely gives Qdoba an edge over Chipotle. Another signature option on the menu is their 3-cheese nachos. Shown as one of the customer favorites, these queso smothered chips are a clear crowd pleaser. By providing customers the option of incorporating their signature queso in any order helps further differentiate Qdoba’s menu from their competitors. The options are endless with three different queso flavors to choose from: the original 3-cheese queso, fiery queso diablo, and zesty queso verde. Unlike Chipotle who only offers four salsa options, Qdoba offers slightly more choices. These include 6 pico de gallo, roasted chili corn, salsa verde, salsa roja, and fiery habanero. Along with this larger variety menu, Qdoba does not charge customers for guacamole or queso, unlike Chipotle. In doing so, Qdoba is able to offer a more diverse selection of products at a greater value. This method of differentiation has resulted in a steady increase in sales over the years and is expected to continue to show positive results. The second force that we focused on from Porter’s Five Competitive Forces Model is Qdoba’s need to focus on its customers. One of the best ways to reach people in today’s world is social media. Like a majority of the industry, it has a presence on the main social media sites, but separates itself in a huge way from its biggest competitor, Chipotle, by sharing promotions and special deals going on such as on sites like Pandora or Facebook. Furthermore, an even better method for reaching customers is the Qdoba rewards program. By simply signing up, you receive free chips and salsa. Afterwards, it works like a typical rewards program; earning points leads to more free food, birthday gifts, and also sending texts or emails with news on current promotions or events. This is a great way to continue reaching out to customers because it helps them keep Qdoba on their mind when they have so many options for fast food. Since Qdoba is still second to Chipotle for a majority of customers, this E. Coli breakout is the perfect time for them to step up their presence and promotions to get more customers from Chipotle. Qdoba can also continue to find ways such as the rewards program and specials to keep customers even after the scandal has died down. 7 Value Chain The value chain of Qdoba depicts the primary and support activities involved in the business process derived around its competitive strategy. The primary activities include managing supplier relationships, investigating new recipes, hiring and supporting employees, sales and marketing, and managing company resources. Qdoba creates strong relationships with top suppliers like Tyson Foods, American Meat Institute, and North American Meat Associated in order to provide customers with top ingredients. These relationships are vital in the creation of Qdoba’s menu as well as investigating new recipes, current trends and the tastes of customers. Hiring and supporting employees is important due to the direct contact employees have with customers through the creation of the meal. Lastly, managing the company’s resources, in addition to inventories, allows the business to obtain an organized and successful firm infrastructure. By analyzing the support activities, one can see the activities directly involved in Qdoba’s process of business such as acquiring ingredients, prepping ingredients, marketing Qdoba locations, and serving customers. Qdoba’s business ethic revolves around serving the customer, which is implemented through new recipes and 8 ingredients and preparing each meal to the customer’s desires. Qdoba markets its food chain and individual locations through social media and customer rewards program. By pinpointing the primary and support activities, employees, customers, and investors are able to understand the business process of Qdoba. As Qdoba continues to emphasize both its strong and differentiated points, it can additionally take further steps to lock-in consumer confidence or simply spread its popularity by introducing new, possibly successful business ideas. Several new innovations that Qdoba could potentially experiment with are having dessert items, standardized meal deals, options for home delivery, and expanding advertising campaigns. Because neither Qdoba nor Chipotle has invested extensive resources into any of these possible options, it would be comparatively advantageous for Qdoba to be the one that initiates this effort proactively, rather than react to Chipotle adopting similar business ideas. Managerial and Organizational Impact Managerial decisions influence the business process and success of a company due to their direct impact on the allocation and utilization of resources. Managerial decisions involve allocating ingredients, supplies, and other resources needed to fulfill the competitive strategy decided upon by the company. Qdoba creates partnerships with top suppliers, such as Tyson Foods and American Meat Institute as previously stated. Qdoba does not focus its supply on ingredients from local suppliers in order to eliminate faults that may arise like Chipotle experienced. The managerial decisions of Qdoba can be divided between strategic and unstructured decisions. As a managerial team it is their duty to implement organizational strategies within the location and decide 9 on the necessity of introducing new ingredients or forms of business processes. Furthermore, managerial decisions include Qdoba’s decisions involving further marketing and media investments. These implementations are not certain, but are determined off of past benefit. With this beneficial scenario in their hands, Qdoba has the advantage of implementing new organizational means within each location and increasing their competitive strategy while their industry competitors are failing. The Qdoba Restaurant Corporation, which is a subsidiary of Jack in the Box Inc., owns and franchises the chains of restaurants in the United States, Canada, Africa, and Asia. The corporate executives decide the overall business process and organization of its chain of restaurants. They then express these objectives to the managerial team and offer the leeway of independent managerial decisions in each location. The managerial decisions that impact Qdoba must abide by the company’s strategies of industry-wide differentiation and customer confidence in each location in order to maintain a consistent culture and integrity of the company. In order to successfully achieve their competitive goals, Qdoba implemented an organizational strategy to fulfill their overall objective. By creating a diverse menu and offering a variety of options for customers, Qdoba is able to differentiate themselves from their competitors. For example, Qdoba’s website has a more attractive and vibrant layout than its competitors. The site has an easy to navigate system that allows users to view the variety of new options on the menu. As a way to maintain a steady increase of interest in their company, Qdoba offers a rewards system which provides customers with a variety of coupons and deals. This style of marketing focuses on the customer aspect of Qdoba's competitive strategy. In doing so, they encourage consumers to 10 return by offering free reward cards, in which customers can receive exclusive offers and deals just by being a member. Qdoba successfully organizes their company to ensure they continue to differentiate themselves from competitors while simultaneously attracting more customers. Conclusion Through a solid understanding of the market, commitment to the differentiation strategy, and smart managerial and organizational decisions, Qdoba has not only been able to compete with Chipotle, but is also in a position to take the edge against them. Qdoba offers an abundance of options on their menu, much more than Chipotle, which sets them apart. Qdoba also got a lucky break; because of the health scandals of Chipotle, Qdoba took advantage using a smart strategic plan through the rewards program and marketing events to get customers in the door. To be successful in the long-run, companies need to have a structured system starting with knowing their competitive strategy. Then, on the individual level, they should follow the value chain to stay with their successful direction of differentiation. We would advise Qdoba to continue their rewards system and outreach to customers via social media and the introduction of new menu items, such as desserts, to keep their lead on Chipotle with regards to menu options. With Qdoba extending their customer base and keeping it interesting and their restaurants running smoothly, we believe they can maintain their growth and rising popularity. 11 Works Cited Johnson, Hollis. "I Compared Chipotle's Food to Another Major Mexican-food Competitor - and the Winner Shocked Me." Business Insider. Business Insider, Inc, 14 Oct. 2015. Web. La Monica, Paul R. "Chipotle Loses to Qdoba in Burrito Stock War." CNNMoney. Cable News Network, 21 Oct. 2014. Web. Oyedele, Akin. "Chipotle Shares Are Tumbling after E. Coli Reports in 2 States." Business Insider. Business Insider, Inc, 02 Nov. 2015. Web Watrous, Monica. "Qdoba Crawling out from 'shadow of Chipotle'" Food Business News. Food Business News, 14 Jan. 2015. Web. Business Scenario: Rincon is a local Mexican restaurant that is just outside of campus, but students do not enjoy their food; therefore, the business is struggling. A former Zag, Pablo, who for years hated Rincon decided to do the students a favor and renovate it in order to attract students to a restaurant that is fun but also has great food. He decided to change the name of Rincon to Taco Zags to make it more desirable to students. This alumni knows that Spokane does not have a strong market in Mexican food so it is likely that a great Mexican restaurant will have a booming business. Pablo has a secret recipe that his family has been passing down for generations and it is so good that it will attract people from all over the county and the regions surrounding it. The signature dish will be the carne asada, which has a secret rub. Taco Zags not only plans on having exceptional food but also having the entertainment to help bring in more college students. On Thursday nights they will have Karaoke night, which zags have notoriously loved and on Saturday nights a live band will be playing for entertainment. You may be wondering why there is so much entertainment at a restaurant, well that is because it is also a bar that will have the best margaritas in Spokane for students that are of age. Porter’s Model: Supplier Power- Rincon Tapatio outsources ingredients from different countries. The suppliers of these ingredients are able to change their prices based on supply and demand. The fewer suppliers out there, the fewer options Rincon has to choose from to get their products. Buyer Power- Customers buy depending on prices. Rincon has comparable prices in order to keep customers interested and satisfied. Competitive Rivalry- In Spokane there are a decent amount of Mexican restaurants but none that stand out above the rest. The taco truck is in closest proximity to Rincon but is unable to accommodate many hungry guests at one time, unlike Rincon. By having lots of sit-down room, with tables varying in sizes for all different groups, Rincon is able to feed more people at one time. Some of the other sit-down Mexican restaurants in Spokane have age restrictions; therefore, underclassmen from Gonzaga are unable to attend until they are of age. Rincon is family friendly for all age groups. Threat of Substitution- While Rincon may not have the best-tasting food in town, it knows how to stand out in other ways. Rincon keeps its uniqueness by promoting their specialty drink, The Fishbowl. College students come from miles around in order to get their very own personalized Fishbowl. The drink comes in five different flavors so the consumer never gets tired of the taste. Other restaurants cannot compete because Rincon has done so well in promoting this specialty. Threat of New Entry-The threat of a new Mexican restaurant being established is pretty low because there are already many others and the cost would be significant to start from scratch. Spokane also isn’t known for Mexican food and people don’t directly come there for it. A new Mexican restaurant would be overlooked very easily. Porter’s 4 Competitive Strategies: Focus differentiation- At Taco Zag’s the best quality ingredients are used. Food is made fresh to order every day. Also, only fresh products and ingredients are used. Beef is never frozen, unlike other competitors. Better quality ingredients are used than other competitors. Industry-wide differentiation- Taco Zags is different than other Mexican restaurants because its main customers will be Gonzaga students, so this restaurant will have a mainly college environment. In addition, because of the wide population of college students and professors that attend the restaurant, there are many special deals and discounts for them. Cost differentiation- The prices at Taco Zags are comparable to our competitors, but the quality ingredients allow this restaurant to sell its food for the same cost as our competitors who are selling lower quality meals. Cost leadership- The cost of operating our restaurant is cheaper than our competitors because it runs very efficiently. The technology used is one of the highest quality; therefore, making the food is quick and efficient. For example, there are top-notch machines which warm the tortillas and fold the tacos and burritos. It is also cheap because the machines which make the food are already paid for, and few workers are needed to operate them. Mainly college students are hired, and they are willing to work for cheap. Value-Chain: Value chain refers to the activities or the processes that a company undertakes in order to add value to its products or services. Such activities range from the first stage in production to the marketing of the products. There are various elements that constitute the value chain of every product or every service being offered. The first elements that would be most useful in the restaurant would be the infrastructure. When clients visit Taco Zags, they will find the kind of infrastructure in the hotel, for instance, the sitting spaces and the restrooms. In addition to being convenient, the infrastructure of Taco Zags is adequate to serve the customers who visit the restaurant at any given time. Taco Zags is going to focus on mark ...
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Contents
Business Scenario: Value Chain ....................................................Error! Bookmark not defined.
Porter’s Model: ..............................................................................Error! Bookmark not defined.
Porter’s 4 Competitive Strategies: .................................................Error! Bookmark not defined.
Value-Chain ...................................................................................Error! Bookmark not defined.
Works Cited ...................................................................................Error! Bookmark not defined.


Surname 1
Student’s Name
Lecturer’s Name
Course Title and Code
Date of Submission
Business Scenario: Value Chain
Rincon is a local Mexican restaurant that is just outside of campus, but students do not
enjoy their food; therefore, the business is struggling. A former Zag, Pablo, who for years hated
Rincon decided to do the students a favor and renovate it in order to attract students to a
restaurant that is fun but also has great food. He decided to change the name of Rincon to Taco
Zags to make it more desirable to students. This alumnus knows that Spokane does not have a
strong market in Mexican food so it is likely that a great Mexican restaurant will have a booming
business. Pablo has a secret recipe that his family has been passing down for generations and it is
so good that it will attract people from all over the county and the regions surrounding it. The
signature dish will be the carne asada, which has a secret rub. Taco Zags not only plans on
having exceptional food but also having the entertainment to help bring in more college students.
On Thursday nights they will have Karaoke night, which zags have notoriously loved and on
Saturday nights a live band will be playing for entertainment. You may be wondering why there
is so much entertainment at a restaurant, well that is because it is also a bar that will have the
best margaritas in Spokane for students that are of age.
Porter’s Model:
Supplier Power- Rincon Tapatio outsources ingredients from different countries. The
suppliers of these ingredients are able to change their prices based on supply and demand. The
fewer suppliers out there, the fewer options Rincon has to choose from to get their products. In

Surname 2
the same manner, it is of the essence to not that the restaurant is not vertically integrated.
Therefore, it does not have control over the distribution network. However, there is hope when it
comes to readily available products such as meat and flour, which go a long way in reducing the
amount spent on suppliers. This is specifically because there are a high number of suppliers on
this front hence a lesser amount spent. In general, considering the special dishes that the
restaurant is considering to bring on board and with the realization of discounts to college
students, it would be proper to categorize the supplier’s bargaining power as a weak force to
Taco Zags (Susanto).
Buyer Power- Customers buy depending on prices. Rincon has comparable prices in
order to keep customers interested and satisfied. Unlike other restaurants, most of the consumers
targeted by Taco Zags do not have a chance to change restaurants more often. As such, it would
mean that they will be willing to pay good price for quality food.
When there are few restaurants in the neighb...

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