I need a case written and it is emergency

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timer Asked: Mar 28th, 2018

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Business strategy analysis. And this case will be sent to Turin so please do not use any reference.

I need a case written and it is emergency
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I need a case written and it is emergency
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GBA 490 Written Case Layout Cover Page Table of Contents Issue #1 Name of Case, your name, section, professor’s name, date Number the pages. Page numbers With Justification that references begin after the Table of Contents. appropriate appendices Issue #2 Issue #3 Form One Key Recommendation With Justification that references appropriate appendices With Justification that references appropriate appendices (must be implementable and supported by overall case analysis) External Analysis External Analysis External Analysis Appendix A: PESTEL Analysis Appendix B: Dominant Economic Characteristics Appendix C: Five Forces Analysis External Analysis External Analysis Internal Analysis Appendix D: Drivers of Change Appendix E: Competitor Analysis Appendix A: Current Strategy Internal Analysis Internal Analysis Internal Analysis Appendix B: Weighted Competitor Strength Analysis Appendix C: VRIN Analysis Appendix D: SWOT Analysis Internal Analysis Appendix E: Financial Analysis Organization of table above: Left to right and then down to the next row. Each box represents approximately one page. When figures and tables are used in appendices there must be a brief narrative that incorporates the ‘takeaway(s)’ from your analysis. The appendices are referenced in the main body of the report. Figures and tables should appear in the appendices. Refer to the Skeleton Rubric/Outline for evaluation criteria. It is OK to put two appendices on the same page. Cases vary in data available and this ultimately will determine the scope of the analysis that is expected. It is also OK to make a well-reasoned assumption from the data/narrative in the case which should be explicitly noted as such. Do not go outside of the case.
Name:_____________________________________ Grade:___________________ GBA 490 Written Case Rubric – UnderArmour Issues & Recommendation (20% of Total Grade) _________ Identify and Describe 3 Major Issues: Issue #1 + justification (reference to appendix) Issue #2 + justification (reference to appendix) Issue #3 + justification (reference to appendix) …………………………………………..……….………………..1 2 3 4 5 …………………………………………..……….………………..1 2 3 4 5 …………………………………………..…….…………………..1 2 3 4 5 Form 1 Key Recommendation: Recommendation (implementable).…………………………………………..……..………………………………….…….1 Appendix: Industry and Competitive Analysis (80% of Total Grade) 2345 _________ External Analysis: Analysis of the Macroenvironment, Industry & Competitors A. PESTEL Analysis………………………………..……………………………………………...1 2 3 4 5 6 7 8 9 10 B. Dominant Economic Characteristics …………..…………………………………………...…1 2 3 4 5 6 7 8 9 10 ➢ ➢ ➢ ➢ ➢ Market Size and Growth Rate Scope of Competitive Rivalry Product Innovation Economies of Scale Learning/Experience Curve Effects C. Five Forces Analysis (Weak/Moderate/Strong)……………………………………..…..……1 2 3 4 5 6 7 8 9 10 1. 2. 3. 4. 5. Threat of New Entrants Competition from Substitutes Buyer Power Supplier Power Rivalry D. ➢ Drivers of Change in the Industry…………………………………………………………..…1 2 3 4 5 6 7 8 9 10 Identify the Industry/Identify at least 3 Drivers of Change within that Industry E. Competitor Analysis ➢ ➢ ➢ Competitor Identification & Strategy (generic plus business model))………..……….…………………...……………1 2 3 4 5 Key Success Factors (at least 5 + takeaway)……………..……………….………………………………………….1 2 3 4 5 Strategic Group Map (+ takeaway) ………………………………………………………………………..………1 2 3 4 5 Internal Analysis: Analysis of the Firm Itself A. Current Strategy (generic plus business model)..……………….……………………………1 2 3 4 5 6 7 8 9 10 B. Weighted Competitor Strength Analysis (+ takeaway) ………………………..…..…………………..1 2 3 4 5 C. VRIN Analysis (5 resources/capabilities + takeaway) ………………………………………………….1 2 3 4 5 D. SWOT Analysis (+takeaway)………………………………………………………..…………………… 1 2 3 4 5 E. Financial Analysis…(choose 3 from below)………………………………………….….….…1 2 3 4 5 6 7 8 9 10 ➢ ROE/ROA/Times Interest Earned/Debt to Assets/Debt to Equity/Operating Margin/Net Margin/ Days of Inventory/Inventory Turnover Describe/calculate/discuss last three years. Show all of your work. What is the takeaway for each + the company as a whole? Deductions for Writing Deficiency………………………………………….…… (_________) ➢ ➢ ➢ ➢ ➢ Content not clearly labeled to match rubric Excessive Grammar/punctuation/spelling errors Language and word choice inappropriate for senior-level business students Content not presented professionally Other______________________________
Papa John’s Written Case Recommendations and Justifications Ingrid Matos GBA 490- 001 February 12, 2015 Recommendations and Justifications: In 2012, the pizza industry had a total of $42.8 billion in worldwide sales. It is an immensely growing industry projected to grow 3.13% in sales and 3.25% in establishments per year until 2017 (Exhibit A). Papa John’s is one of the Big Four chains in this industry and with a solid strategy already in place has seen 9.1% increase per year in corporate revenue from 2011-2013 (Exhibit H). While Papa John’s is a huge player in the industry it falls in third behind Pizza Hut and Domino’s (Exhibit D). The market is huge, not only considering consumers are eating 350 slices of pizza per second (Exhibit A) but the amount of other options besides pizza or Papa John’s are everywhere (Exhibit B). Papa John’s is looking to expand their brand at the rate of 20% over the next five years (Exhibit C). For Papa John’s to grow its market share, it will have to consider four things. First they need to consider expanding their product line offered on the menu. Secondly its marketing efforts are needing to be more consistent. Third, if the main goal is to have the strongest brand loyalty, they need to acknowledge their customers more. Last, Papa John’s needs to continue their growth into global and domestic markets. These decisions will proceed to foster the sales growth (Exhibit G) and find the increase of market share the company is looking for. Looking at the industry as a whole shows that there is practically any replacement for pizza within cost and time restrictions (Exhibit B). Pizza Hut and Domino’s have separated themselves from the rest by expanding their lines (Exhibit D). Papa John’s is leaving out a huge segment of potential consumers by not offering the same amount of options its competitors do (Exhibit F). With new items added, customers will feel less driven to find an alternative if they can get everything they want in one location (Exhibit A). They would really need to consider what items to add beyond just chicken, which wouldn’t differentiate the company too much (Exhibit D) but possibly healthy alternative, as that is where the market is heading (Exhibit C). Especially with the easy entry of any independent restaurant into the market (Exhibit G), finding a way to expand the line beyond the usual is crucial. A competitive advantage of Papa John’s was being the most recognizable NFL sponsor of 2013 (Exhibit E) but it cannot stop there. Papa John’s needs to increase its marketing efforts with possibly a new campaign. Since 50% of Papa John’s orders were made digital this previous year (Exhibit A), a digital campaign would work best. Consumers are looking to use different outlets to get deals and information such as Facebook and Twitter or social media of any sort (Exhibit C). Utilizing the Papa John’s app with a deal just for using it would increase usage and sales (Exhibit C). Also they should reconsider their marketing efforts internationally. If they restrict themselves to only local marketing that eliminates the potential to enter markets that they had no idea wanted them (Exhibit F). In North America, Papa John’s are extremely common to come across but that can’t be said internationally if they don’t raise the bar for their efforts. If 70% of the new 1000 units within the next five years will be international, this is definitely something to consider (Exhibit A). Possibly the biggest part of growing market share is to acknowledge the market itself. The market is broken into age groups that are all a relatively large faction of the entire consumption of product (Exhibit A). The buyers do not necessarily have a lot of buying power (Exhibit B), which is better for Papa John’s just due to the size of the market being enormous. They need to consider what the customers want to come from their products. Right now, there is a health craze pushing consumers to be more aware of the food they are eating (Exhibit C) so Papa John’s needs to respond with different options to satisfy those wants. Consider what Domino’s did, they asked their customers specifically what were the issues with their pizza and responded not only by changing their entire recipe but creating a marketing campaign from it (Exhibit D). Technology has prompted so much feedback that is impossible to ignore and Papa John’s should take advantage of that as well (Exhibit A). A main thing that Papa John’s should try to listen to is if consumers would rather have Ready-To-Go pizzas or wait because Little Caesars is the closest to them in market share (Exhibit D). Customers want to be heard and if Papa John’s wants to keep their high customer satisfaction ratings, they will listen as well (Exhibit F). The final part of Papa John’s necessary steps to grow in the market is to continue their already thriving growth (Exhibit H). The market is expanded and Papa John’s needs to keep up (Exhibit A). While entry is fairly easy with independent pizzerias taking up 57% of the market (Exhibit A), Papa John’s has grown 6.39% in sales per year for 5 years (Exhibit C) and should continue that. While majority of their new stores are going to be franchises, they need to cut the development incentive plan. Franchise fees only make up about 7.3% of revenue (Exhibit F) so cutting that margin even smaller isn’t in the best interest of growth. Also operating costs have gone up 7.1% per year over the past 5 years (Exhibit H), which could be partially due to the incentive plan and the benefits that it provides to the specific franchise at the risk of not receiving the payback. Although Domino’s has seen a 17.8% growth from 2011-2013 and Pizza Hut is expected to grow 20% in 2014 (Exhibit D), Papa John’s has seen 13.5% growth over 2011-2013 (Exhibit H) and is not slowing down. The rivals of Papa John’s make it difficult to gain market share if they’re prospering at the same rate (Exhibit D). Papa John’s needs to stick to the advantages that it has already succeeded with (Exhibit E). The strategic goal is to have the best brand loyalty and to do that Papa John’s needs to know its consumers (Exhibit A). The company cannot overtake Pizza Hut and Domino’s just yet but it can separate itself farther from Little Caesars (Exhibit D). These recommendations will help Papa John’s continue seeing the growth they have already been seeing in the past years (Exhibit H) but gain market share to compete not only within the Big Four but the race into the top three (Exhibit D). Appendix: Exhibit A: Dominate Economic Features (PESTEL) Market Size and Growth Factors • $42.8 billion market • Expected yearly industry sales growth of 3.13% to 2017 ($49.5 billion) • Pizzeria establishments worldwide growth 3.25% yearly (2012-2017) from 74,400 to 86,493 • People in US consume 350 slices per second (approx. 30.24 million slices a day) • Papa John's looking to expand at rate of 20% for next five years • (see Exhibit C for more detials) Number of Rivals • 57% of market locations are independent owned pizzerias • 28% of locations are made up of the Big Four (Pizza Hut, Domino's, Papa John's, Little Caesars) • 4 channels: traditional sit-down, delivery, carryout, take n' bake • (see Exhibit D for more details) Scope of Competitive Rivarly • International markets • Frozen-pizza/par baked grocery sections up 1,100 items in 4 years • 70% of 1,000 new unit expansion over five year to be international Number of Buyers • Biggest consumer demographic: 25-44 age group at 46.3% • Segment made up of busy parents pressed for time • 45-64 age group at 22.8%, followed by under 25 and over 65, at 16.2 and 14.7 respectively • Disposable income of buyers dictates what channel is favored Degree of Product Differentiation • Entire industry is made up of differentiation (see Exhibit D for more details) • Every individual pizza chain/store has specific and exclusive items to offer Product Innovation • Limited time offers and specific store preferences expanded menus • Competition of fast food lead to introduction of chicken and other items to attract new customers • Health cautious consumers created higher end products with organic and whole wheat options Demand-Supply Conditions • Number one meal of choice for Americans, 93% eat pizza at least once a month • Financial uncertainty creates higher market demand for delivery/takeout (cheaper alternative) • Higher income allows the demand to switch more towards gourmet restaurants Pace of Technologial Change • • • • • • Papa John's pioneered the online order in 1997 2014, more than 50% of Papa John's orders were made digital 2001 was the release of the online ordering nationally 2007, text orders were added iPhone, Android, & Kindle Fire apps released in consecutive years, 2010-2012 Social Media immensely important Exhibit B: Five Forces Model Substitutes McDonalds, Burger King, Subway, gourmet pizzerias, quick-serve/fast food Suppliers Generally located nearby to ensure highquality menu items. Must be able to go through the Quality Control Centers before reaching stores Buyers Rivals Pizza Hut, Domino’s, Little Caesars, Papa Murphy’s, frozen grocery Potential New Entrants sections, par-baked Easy entry into market across channels, franchise opportunities, individual pizzerias at discretion of owner 46.3% age group 25 to 44 Adults with families pressed for time. Targeted and bought across all Force Power Reasoning Suppliers Moderate Considering the guidelines that the suppliers need to adhere to according to the Quality Control Centers, along with the high-quality expectations of 100% fresh/real ingredients, which can mean locally-grown and smaller farms, the suppliers don’t have the power to dictate prices unless there is an issue in the growing season. That could result in a spike like they saw around 2010. Substitute Products Strong Substitute products can be anything else possible. The quick-serve/fast food industry can be considered cheaper, faster and easier to make the kids happier comparatively. Buyers Weak Potential New Entrants Strong Rivalry Strong Overall Strong Exhibit C: Driving Forces Model The target market for Papa John’s and pizzerias is massive. Literally every age segment is a good portion of buyers to the industry. Although switching costs is basically nothing, with that amount of people in the market, they have absolutely no power in their hand. Entry into the industry is at the discretion of whoever can afford to make the pizzas and deliver. Along with the low possible cost for the ingredients, the market for pizza isn’t restricted to one geographic area. Franchises looking to be 95% of new units opened. Changing from Papa John’s to another rival has zero cost to the consumer. They are still able customize their pizza and get what they want. Every pizzeria has gotten into the differentiation of products so no matter where consumers go, there’s the same offerings basically. Overall, the industry is extremely competitive due to the ability to be replaced by either another pizzeria or another type of food. There’s so much potential for new entrants that even if the market is played by the Big Four, individual pizzerias can still thrive. On top of that, buyers have no power because of the size and generalization of the same products across the market. Industry sales growth rate at 3.13% per year until 2017 Worldwide establishment growth at 3.25% per year for the next five years Product innovation has become more popular due to health craze and customization of menus Marketing innovation is now specifically among social media to interact and personalize the brands Uncertainty and risks are mostly concerned beyond economy to be able to financing franchises Big Four and individual chains all have smartphone apps for ordering Papa John's is third among the Big Four in a growing market. Smaller firms are the ones exiting and entering Buyer preferences are changing from just cheese and pepperoni to creating their own pizza experience Consumers of any age look to consider quickness unless dining out Product life is essentially nonexistent so costs are circled around ingredients and operating costs Societal concerns and attitudes are becoming more concerned with what is going into their bodies Analysis: According to this Driving Forces Model, most of the aspects of the market are prompting expansion. Worldwide industry sales are projected to grow 3.13% over a fiveyear range (2012-2017) from $42.8 billion to $49.5 billion with Papa John’s showing a 6.39% increase just in worldwide sales over the previous 5 years (2009-2013) with plans to continue growing. Establishment growth over the pizza industry is also driving the market, especially that of Papa John’s plan to apply a yearly growth of 20% to reach 1000 new stores worldwide in five years. That annihilates the projected industry growth of establishments at 3.25% over the same time range of five years. Papa John’s believes that 4,000 units in North America alone are possible, which is double the amount of units they have as of 2013. As of 2001, online ordering for Papa John’s has been an option and stretched through the industry to include text orders then to apps for all devices to assist with the convenience of ordering that all customers crave. It still allows the optimum customization that has always been the competitive advantage of the pizza industry combining the choices consumers crave along with the simplicity of technological apps. Not only are they using apps to connect to the stores but they’re also using other apps such as Twitter and Facebook to be free marketing for the product they’re buying. Both can be used as forums for comments and reviews of products to ensure satisfaction. The Big Four of the pizza industry are not faltering in any way, if anything their income is growing progressively but those only make up 19.6% of the market, leaving plenty of room for independent pizzerias to come into the industry. Pending on their locations and if one of the Big Four are located relatively close, they might not prosper but the market gives plenty of room. Because the product life of pizza is only a couple of hours to a couple of days, cost efficiency is really only directed towards operating costs that have been going up 7.1% over the past five years. Suppliers have the relative upper hand due to the lack of control over how the growing season goes so Papa John’s needs to focus on costs that they really have control over. Looking at franchises, they hold the most uncertainty because of 83% of current Papa John’s are franchised along with 95% of the new planned 1,000 in the next five years. The typical investment is $280,000, which prompted the company to create a incentive plan to lower the initial startup cost by $60,000. Before the incentive plan, franchising royalties was only 7.3% of revenue so the company isn’t losing money with the plan but they’re narrowing an already narrow faction. Buyer preferences are changing more than just to fit preferences but to fit lifestyles. This includes changes in sauces, crusts, and toppings. The offerings to the menus are dependent to customers wanting their own personal experience and with the health conscious world growing, pizza is getting more complicated. Exhibit D: Strategic Moves of Rival Pizza Hut Strategies • • • • • • Largest market share at 11.5% Of Big Four, only one to offer Dine-in Developed subbrand of WingStreet dedicated to specifically just chicken products Dine-In offers an array healthy options such as salads and lunch buffet Menu includes everything from pasta to desserts and drinks Heavily involved in social media, World Hunger Relief, and Book It! National Incentive Reading program • International stores offer more Dine-In options than North America Pizza Hut's Next Moves • • • • Expected earnings to increase by 20% in 2014 Expansion to only include delivery and carryout With less dine-in options, costs minimized/eliminated Continue to expand but only places with limited space: malls, travel centers, military bases Domino's Strategy •Market Share at 10% •Focusing on delivery/carryout options •Operating an efficient supply chain •Convenient locations •Listening to customers such as the complete change of the pizza recipe •Marketing strategy consists of proving to customers that they value their opinions •Order tracking available to consumers •Partnerships with St. Jude's and Partners Foundation Domino's Next Moves •Expansion into international markets past their already established 5,900 units •Continue the forum with their customers to express opinions about the company and their product •Focus on their competitive advantage, delivery, but increase carryout by finding the most convenient locations for stores •Continue growth around 17.8% (2011-2013) Little Caesars Strategies • • • • • • Market share 4.7% Hot-N-Ready Simple menu Focus on cutting costs rather than expanding product line Carry-out only Standard toppings for $5 Little Caesars Next Moves • Continue to focus on simple menu with only offering 3 items besides pizza • Focus advertising on the advantage of not having to wait for their pizzas • Should only expand if the country they enter values a fast-paced outcome Analysis: This graphic shows the strategies of the rival Big Four pizza chains and what their moves should be in contrast to each other and Papa John’s. All have distinct competitive advantages that should be utilized with adjustments. Exhibit E: Key Success Factors Marketing Related • Wide array of menu options • Most identified NFL sponsor, 2013 • Schnatter as spokesperson • Active social media • Highest customer satisfaction among pizza chains • Locally targeted promotions Skills and Capability Related • Quality Control Centers specify actions for franchises to maintain consistency • Regular training and development programs for employees • Different outlets to order through, website & app • Recuitment of franchisees Analysis: Above are listed the success factors necessary for Papa John’s to continue expansion at the rate that they are attempting. Marketing and skills capability are the specifics they need to stick to if they want to ensure the strongest brand loyalty in the pizza industry. Focusing on these could then create a competitive advantage to raise market share. Exhibit F: SWOT Analysis Strengths Weaknesses •Highest Customer Satisfaction rating •High Quality Standards •Training for employees •Partnership with charities •Market Share size •Rising/unpredictable ingredients costs •High/rising operating costs •Cutting franchise initial start-up costs Opportunities Threats •Marketing efforts internationally •4,000 units possible in North America •Menu expansion even further •Consumers can switch with no cost to them •Breadth of product line •Pizza delivery considered one of the most dangerous jobs •Consumers becoming more health aware Analysis: Strengths: Papa John’s excelled in customer satisfaction in 2013 with having the highest ratings among pizza chains. With the Papa John’s Quality Control Centers, the company can be sure to stay at their standards, especially with locations being utilized globally in Mexico, the UK, and China along with the US. Regular training for employees is important to be sure consistency is stressed as an important factor. Partnerships with charities and community service are vital for the image of the company. Weaknesses: At only 6%, Pizza Hut and Domino’s both have almost double of Papa John’s market share. With ingredient costs being dependent on the growing season, there can be often times a spike for an unaccounted drought or something along those lines. Papa John’s has seen an increase of operating costs at 7.1% per year over the past 5 years. Cutting franchise start-up costs may possibly bring in the want to franchise a store, but in 2013, franchising fees and royalties only made up 7.3% of revenue so cutting it isn’t in the best interest. Opportunities: Marketing efforts internationally are only focused at a small radius surrounding the unit. While this can be seen as a safe bet, it’s eliminating potential for expansion where people have never heard of Papa John’s. Management sees a potential to support 4,000 units in North American and are planning to implement a new 1,000 units over the next five years. While Papa John’s already has good menu, they fall in comparison to Pizza Hut, which has a whole other brand bringing a different type of customer. Threats: All the pizza chains are closely related. Consumers are ultimately giving up nothing by switching from Papa John’s to another chain. Looking at their product line, they’ve done nothing to really signify a difference in their brand versus any other. If pizza delivery is in the top most dangerous jobs to have, that could effect whether they can find the employees designated to ensure customer satisfaction of getting their pizza in a timely fashion. Especially if a company like Little Caesars is available in contrast to waiting too long. The world is becoming more aware of what is going into their bodies. While they can still control what toppings go onto the pizza, some factors out of their hands are dough, sauce, etc. People are being smarter which is prompting companies to be smart too. Exhibit G: Industry Outlook Ingredient costs dependent on outcome of season Easy market to enter but competive with 48% independent pizzeria market share Global market growing. 95% of new Papa John's units opened will be international Industry sales growth projected at 3.13% per year to 2017 Papa John's sales (alone) increased 6.39% per year since 2009 Analysis: This graphic shows the attractiveness of the industry. It’s ideally growing with the ingredients pending on season outcomes and entrants, although the entrants would only be locally based, not able to fully compete with the Big Four on the global level that they are at. Exhibit H: Present Strategy 9.1% rise in Corporate Revenues 2011-2013 13.5% Net Income increase 2011-2013 6.39% increase in Sales alone 2009-2013 7.1% increase in Operating Costs 2009-2013 12.6% increase Earnings per share 2009-2013 103% increase in Total Debt 2011-2013 All percentages per year over time frame Analysis: This model is showing the change listed on the financial summary over the time frame registered according to the present strategy used by Papa John’s.

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