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Case Study

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User Generated

Subject

Business Plans

School

Boston College

Type

Homework

Uploaded By

xbune844

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Eric opened a restaurant 20 years ago in troy, Alabama and named it “Fajitas & More”

because of the Spanish style menu, which features sizzling fajitas, nachos, tacos, burritos,

and burgers. He has a limited alcoholic beverage selection-beer, wine, champagne, and

margaritas. Eric is a certified chef with a culinary arts degree. He specializes in Spanish

cuisines, utilizing authentic ingredients to create homestyle dishes. The company does

not have a mission statement because he did not think it was necessary for a small family-

owned business. Much has changed over the years, when he started the business, he had

the only restaurant with his menu within 30-miles radius, New restaurant have opened in

the area with similar dishes, such as Santa Fe Steak House and Taco bell. In addition,

other restaurants have entered the market with various themes/concepts, such as CiCi’s

Pizza, Popeye’s Chicken, and Panda express, The local economy is strong because it is

home to Troy University, a well-known university, which employs a lot of people;

however, the university provides an all-you-can-eat cafeteria for its students and

employees. The unemployment rate is higher than the average town because of the large

student population. Students like to eat out but typically have limited budgets. The

demographics have changed over the years. The Hispanic and Asian populations are

increasing. Additionally, many people are focused on healthy eating and fitness.

The restaurant’s operating hours are 10:00am to 9:00pm, which requires two shifts. The

first shift works 8:00am-4:00pm, and the second shift works 3:00pm-11:00pm.

Employees arrive at 8:00am to set up and prep and stay until 11:00pm to clean and close

the restaurant. It is Monday, and Eric is in his office purchasing food and supplies and

preparing the employee schedule for next week. Eric has set time aside for his annual

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review of the company’s operations to identify problems and develop alternative

solutions. A review of last year’s financials revealed the following:

Eric is thinking about the future direction of the restaurant. He has noticed a negative

trend in sales growth the last few years. He knows that a sustainable business model

requires a target profit of 10%. This is the amount he needs to cover his own salary. Eric

is contemplating the appropriate strategic actions to maintain the company’s competitive

position.

Question 1:

Identify and discussion the firm’s business-level strategy

Business-level strategies are mechanisms for a business or an organization to gain

competitive advantage. It addresses the question of how a business will compete in a

particular industry. Moreover, it plays a vital role because it helps businesses increase its

value by taking advantage of its core competencies, which in turn, differentiates itself

from the same line of business. According to Porter, there are two dimensions of

business-level strategy:1) Competitive advantage in which putting the business into a

superior position and 2) Scope of operations, whether a firm attempts to target clients as a

whole or looks to draw in a portion of the target market. Business-level strategies include

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Eric opened a restaurant 20 years ago in troy, Alabama and named it “Fajitas & More” because of the Spanish style menu, which features sizzling fajitas, nachos, tacos, burritos, and burgers. He has a limited alcoholic beverage selection-beer, wine, champagne, and margaritas. Eric is a certified chef with a culinary arts degree. He specializes in Spanish cuisines, utilizing authentic ingredients to create homestyle dishes. The company does not have a mission statement because he did not think it was necessary for a small familyowned business. Much has changed over the years, when he started the business, he had the only restaurant with his menu within 30-miles radius, New restaurant have opened in the area with similar dishes, such as Santa Fe Steak House and Taco bell. In addition, other restaurants have entered the market with various themes/concepts, such as CiCi’s Pizza, Popeye’s Chicken, and Panda express, The local economy is strong because it is home to Troy University, a well-known university, which employs a lot of people; however, the university provides an all-you-can-eat cafeteria for its students and employees. The unemployment rate is higher than the average town because of the large student population. Students like to eat out but typically have limited budgets. The demographics have changed over the years. The Hispanic and Asian populations are increasing. Additionally, many people are focused on healthy eating and fitness. The restaurant’s operating ...
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Tags: Unemployment Rate Spanish style menu Eric opened a restaurant authentic ingredients culinary arts degree