California Pizza Kitchen Essay

A company’s strategic choices shape how that firm will operate and react to the use of its own resources as well as the affects of external factors. These choices are typically broken down into one of our distinct strategies (cost leadership, differentiation, niche focus, and first mover’s advantage) and applied as management sees fit. In studying California Pizza Kitchen (CPK) literature, one can easily decipher that their main strategy is differentiation with portions of first mover’s advantage tied in. CPK is very open about the approach as menu innovation is one of their key values. Having identified this strategy this paper looks to review this strategy against recently performed SWAT analysis to see how it is affecting CPK’s strategic choices. It will discuss whether those strategic choices remaining in line with its differentiation strategy. Additionally, this case study will determine whether the differentiation strategy and CPK’s strategic choices create competitive advantages or are they creating weakness that need to be addressed and countered with some of CPK’s strengths. Finally, a brief discussion on CPK’s mission and vision will be incorporated against the findings to determine what CPK is doing right and what they could possibly change to improve is competitive position. Corporate Strategy Porter tells us that firm’s position themselves by leveraging their strength’s. He argued that strengths ultimately fall into one of two headings: cost advantage and differentiation (Quickmba). CPK chooses and specifically points out differentiation as its main strategy. In its 2009 financial report, CPK states, â€Å"We believe that our concept, attractive price-value relationship and quality of food and service enable us to differentiate ourselves from our competitors†. Differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and/or services relative to the perceived value of other firm’s products and services. Implementation of differentiation strategy means that the value is provided to customers through unique features and characteristics of the company’s products as opposed to the lowest price. A successful differentiation strategy will create customer value that is perceived as such by its customers. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as â€Å"Quality Strategy†, which sets CPK apart from its competitors. As a result of this quality, CPK has branded itself through a very loyal customer base that consistently markets for the company through rave reviews and word of mouth advertising. Firms that succeed in differentiation strategy often have the following internal strengths (QuickMBA): †¢ Access to leading scientific research †¢ Highly skilled and creative product development team †¢ Strong sales team with the ability to successfully communicate the perceived strengths of the product †¢ Corporate reputation for quality and innovation Due to high levels of rivalry in the food industry there is always an incentive to be innovative and continuously improve. There is also always the chance that any differentiation could be copied by competitors. Therefore, innovation remains a huge part of CPK’s differentiation strategy as well as one of its core values. As proof of this, CPK literature is littered with the idea of menu innovation, expansion of service options such as the new items, smaller express stores and growth/development in the frozen and fresh foods market in grocery stores. This philosophy is not just talk however. CPK backs this concept with action through the continuous research and evaluation of various food ingredients, products and supplies for consistency and food safety. This research is compared to detailed specifications developed by CPK’s products teams ultimately leading to high food quality standards. As mentioned in this author’s previous studies, this research provides intellectual capital as well as contributes to the innovation capability as CPK remains at the forefront of and often dictates market changes (Haas1). This capability or competitive advantage is what also gives CPK some of its â€Å"First Mover† advantage. CPK operates as one of the pioneers of premium pizza (a niche market). Therefore they were one of the first to develop the products creating benchmark and standards for the market. This provides them with the advantage of potential lower costs (Golder & Teller) from intellectual capital and development experience as well as creates potential barriers for other competitors to switch products. It also gives them early recognition and consumer preference (QuickMBA) reducing the risk of the threat of ubstitution. This further increases the strategy of differentiation as well in that customer’s become attached to CPK’s differentiating attributes. Additionally, because CPK focuses its main products on a niche market (premium pizza), it has been able to continue to sell its products at a more premium price and better absorb the economic upturn of inflation. Strategic Choices The state of the economy, the downsizing of disposable income and the high unemployment have all posed large threats to the full service dining industry. The current economic environment has particularly played into CPK’s strategic choices recently as they have had to compete to maintain revenue, reduce costs and keep customers who are more and more turning to substitutes such as fast food or home cooked meals in an attempt to save money. This has not deterred CPK completely from its differentiation strategy. In fact, Rick Rosenfield (CPK, Co- CEO) stated the company was working to reverse declining sales by offering a new menu (LATimes), again playing on their strength of innovation. However, it has forced CPK to consider other approaches in the way that the attack the market and expand their business. This gives CPK an opportunity to address one of its major weaknesses at the same time. CPK has over 40% of its stores located in California. This has created a lack of geographical diversification. Therefore CPK is looking to expand beyond California and has even looked to go outside the US as it believes its full-service restaurants will continue to represent the majority of revenue growth in the near term. This expansion plays into CPK’s innovative approach to business. For the most part CPK’s management has looked to expand revenues through new markets and menu options. However, the economic downturn has forced CPK to look internally to reduce cost as a means to maintain or increase revenue. Therefore, CPK has decide to not only look at foreign markets as a way to diversify its revenue stream but it will also leverage its brand name and reputation through is expanding in existing markets to consolidate marketing, human resource and supply chain costs. These choices are a good start, however CPK’s sales have been down and the diversity of the market has not helped CPK to recover its losses. Because CPK works with higher quality ingredients and unique menu items which change regularly there is less room for supply chain cost reduction. The innovative approach that makes CPK unique and differentiates it from its competitors could also potentially be preventing it from reducing costs and improving operational efficiencies. It acts almost as a â€Å"Catch 22† if you will. Further, CPK run the potential pitfalls of risk listed below (Openlearningworld. com): †¢ Customers may decide cost of uniqueness is too high †¢ Means of differentiation no longer provides value to customers †¢ Customers learning may reduce customer’s perception of company’s differentiation †¢ Counterfeit goods convey the same differentiation at a discounted price Ultimately this forces CPK to continue to increase value to customers by means of reducing prices, adding product features without raising prices or developing better efficiency in its value chain. Mission and Vision As described in previous research (Haas2), CPK does not formally identify its mission and vision by these names, therefore some interpretation is required for anyone looking for such designation. CPK intends to be the leader in authentic California-style cuisine and to be widely known for its innovative menu items. To achieve this, CPK intends to provide a range of creative dishes, from signature California-style hearth baked pizzas, creative salads, pastas, soups and sandwiches to extensive beer and wine lists with a full bar. In Part 1, Item 1, Business of the 2009 annual report readily identifies the company’s objectives, as: â€Å"To extend our leadership position in the restaurant and premium pizza market by selling innovative, high quality pizzas in addition to creative salads, distinctive pastas and related products and by providing exceptional customer service, thereby building a high degree of customer loyalty, brand awareness and superior returns for our stockholders† To reach these objectives, We (CPK) plan to increase our market share by expanding our restaurant base in new and existing markets, leveraging our partnerships in non-traditional and retail channels and offering innovative menu item. † Reviewing these statements reaffirm that CPK has a solid mission and vision that incorporate its corporate strategy very well. Innovation and quality are the cornerstones of CPK’s mission which are fundamental factors in a strong differentiation strategy. However, CPK must be care not to become so focused on its current strategy that is forgets to measure pressures of external forces as well as the need for cost reduction that are weighing heavily in its business and profits. Without careful consideration of competitors, economic factors and internal stresses CPK may be forced to look elsewhere for funding which it has considered recently in its attempt to shop the company to new external buyers. It is suggested that CPK look carefully at its current strategy as compared to that of its competitors to see if it can better leverage its internal strengths and potential for operational efficiencies because price may be the ultimate downfall as many competitors are finding ways to incentivize customer value through lower prices, additional options or more product for the same price to maintain customer base. This could be a battle that CPK could fail at if it does not keep pace or find a way to show consumers its value.

Finnegan’s Garden Essay

The shared costs of each service line can be allocated in several different ways. You can allocate based on FTE’s, direct-labor costs, direct labor plus direct materials or by square footage usage. If you were to allocate the shared costs for Finnegan’s Gardens by FTE you would allocate $24,778 to design, $89,203 to installation, $56,991 to maintenance and $24,778 to administration. To calculate the allocation based on FTE’s, I divided the FTE number given for each service line and divided it by the total number of FTE’s. I then multiplied the result by the total shared costs of $195,750. If you chose to allocate based on direct labor, you would allocate $43,843 to design, $119,360 to installation and $76,390 to maintenance. To allocate the costs based on direct labor, I calculated the direct labor rate per hour for each service line. I divided this number by the total direct labor hours and multiplied that result by the total of the shared costs. If you add in the direct materials to the direct labor, you would allocate $42,231 to design, $94,736 to installation and $58,782 to maintenance. I used the same method to allocate the direct labor plus direct materials as I used to allocate the costs based on direct labor. The last method I used for allocating the shared costs was based on the square footage. To allocate the shared costs based on square footage, you would allocate $$113,661 to design, $20,522 to installation, $20,522 to maintenance and $41,044 to administration. When you look at the Earnings Statement by Service Line, it appears that maintenance has the largest profit margin. This can be attributed to the fact that Finnegan’s design and installation customers often use them for their maintenance services too. I would have to agree with the earnings statement. The maintenance service line produces decent revenue that more than covers their expenses. Even if you add in the shared costs, it will still have the largest profit margin. I think Finnegan’s should expand the maintenance service line. I believe that expanding this service line by 10% would be in the best interest of the company. Even though this expansion would require Finnegan to purchase an additional vehicle and rent additional nursery space, the expense of these wo items is not more than 10% increase in the revenue. I believe that in order for the company to make more money, it would need to spend a little more money to do so. I believe that expanding the maintenance service line would also be easier to achieve than expanding the other two service lines. Even though the majority of the maintenance business comes from the design and installation service lines, I believe finding customers to sign up for maintenance of their lawns would be easier than trying to find customers who want to redo their landscape.

Balanced Score Card Article Example | Topics and Well Written Essays - 3000 words

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Study for Business Essay Example | Topics and Well Written Essays - 1000 words

Study for Business - Essay Example As a matter of fact, businesses around the world, that are looking forward to establish a foothold in a new or existent market with its ever changing consumer behavior and product - market dynamics are increasingly looking forward to opt for consulting services provided by various well established and renowned consulting organizations and agencies for a particular country or region to various agencies. Consulting is carried out mostly in order to serve one of the many purposes of the client comprises which comprises mainly of fulfilling company’s goals and targets, solving the client company’s problems related to the management, identifying and recommending new business opportunities across various markets, providing learning and helping the client with the process of implementing changes within the organization’s structure and processes (Kuber, 2012, p. 3-6). In other words, it can be said that consulting services are often rendered by industry experts with valu able and significant amount of work experience, besides having related product as well as market knowledge. A key factor that differentiates the service of consulting from any other service or product is that the client is purchasing a promise of satisfaction for the services provided by the consultant and expects that the advices and recommendations provided by the consultant will solve the company’s existing problems. Hence the services provided by the consultant needs to be impeccable, effective and highly accurate (Biech, 2003, p. 4-5). Possible Reasons of Failure There can be a multiple number of reasons that can be attributed for the fact of possible failures of a group project. The most important factor can be the fact of ineffective communication amongst team members. Ineffective communication amongst the team members leads to misunderstanding of the job roles and the required project functionalities allocated to them. Due to the cause of this, the team members most o f the time face difficulties in understanding the personalized project related goals and individual targets allocated to them. This also leads to highlighting of the fact that poor communication among team members leads to poor role clarity to the team members. Also, ineffective team communication arises from the ego factors of the team members involved. This also leads to an increased communication gap. Motivational factor of the team members is a huge factor for the success and effective execution of a group project. Team members, who have low level of motivation, which may arise out of several factors ranging from personal problems, marital problems, financial pressure, work related stress etc will have a low level of involvement, which may affect their performance and contribution to the group based project. Another vital factor is inefficient time allocation and time management for the project involved. Improper time allocation for the project leads to hurried completion of the project, in order to meet the deadline allocated for the project. This leads to overlooking and skipping of some of the important goals and objectives of the project (Team Building, 2009). Possible Corrective Measures In order to take effective steps for the purpose of prevention of the above mentioned reasons of failure, certain steps can be taken. For the purpose of

Do the questions below. ( every questions should be more than 200 Term Paper

Do the questions below. ( every questions should be more than 200 words) - Term Paper Example However, it does not mean that labor is the most valuable practice though some historical perspectives give labor such prominence. This occurs in social structures where development of productive forces is minimal so the labor activity completely occupies the individual’s life. This highlights the need to recognize labor as the centre of the ontology of culture (Stanley and Wise 1). This is because additional aspects of human activity entirely depend on the capability of individuals to provide labor within a stipulated time. Additionally, advancement of productive forces determines the capacity of individuals coupled with the extent of complication of social needs that require labor satisfaction. Marx’s expression â€Å"changes his own nature† draws mistranslation, particularly because the word â€Å"nature† can have two interpretations. The first meaning relates to human beings as the subjects of the action; a subject performing an activity needs to alter his or her own nature in a definite way to achieve the stipulated targets. The other meaning of â€Å"nature† relates to environment and emphasizes the alterations of the world because of intentional activity (Stanley and Wise 1). Additionally, humans alter the world to launch their own social objects to change the course of the society. Q: 66. â€Å"Give everyday examples illustrating the contradiction that in everyday practical activity exchange-value is sometimes considered immanent and sometimes considered relative†. Presently, in each practical activity, exchange value may be either immanent or relative. Products attain value because they are expressed in monetary terms. The value form of a product exists after different products have been compared with each other. The value of products is dynamic because it continuously develops based on trading processes (Lendvai 1). Presently, individuals objectify the worth of produced goods to enhance trade. By doing this, t he individuals are evaluating and contrasting the value of their efforts. Additionally, while individuals are comparing and justifying the products’ value before exchange, they are also comparing the intensity of their efforts. Therefore, the worth of a product largely depends on the worth of other products regardless of product evaluation (Lendvai). This depicts that exchange value is at times relative. It is imperative to say that immanence is a notion of relationship. Therefore, exchange value is at times transcendental and exceeds the physical features of objects, implying that values exist above the individual senses (Lendvai 1). An example to illustrate this is that the aesthetic worth of a painting is not similar with the textile of the canvas and the oils within it, though the painting cannot exist without these substances. Additionally, the exchange value of an object like diamond cannot subsist without its physical and chemical reality. Similarly, two portions of wo od fixed with the figure of a cross may enjoy sacramental value. Therefore, these examples clearly show that exchange value can be immanent or relative. Q: 98. â€Å"Take two very different kinds of labor, such as teaching and construction work, and discuss in what respect they are equal†. There exists a relationship between teaching and construction work. Teachers serve as architects of a better future of students because they nurture and monitor their progress, thereby ensuring that these

Kite Runner of Khaled Hosseini Essay Example | Topics and Well Written Essays - 750 words

Kite Runner of Khaled Hosseini - Essay Example Comparison between Amir and Hassan The comparison between Amir and Hassan shows that Amir is a jealous person as opposed to Hassan. This is because, whenever Amir sees his father loving Hassan more than him, he gets jealous. As a result, he seeks methods aimed at attracting his father’s affection by trying hard and winning the local kite-running tournament. To ensure that he remains alone with his in their home, he frames Hassan as a thief by planting some money and a watch under his mattress so that when his father finds out Hassan is a thief, he will force him out of the family. In addition to jealousy, Amir is cold and a coward. For instance, when Hassan takes long after going to look for the blue kite, he goes searching for him and when he finds him in the hands of Assef who bullies Hassan and sexually abuses him, he does not help him (36). Besides, he hides and watches helplessly but thinking if he does get the blue kite to his father, he will approve him. In the other en d, Hassan is a true successful kite runner. Hassan is also a brave boy and loving friend. For instance, when Assef tries to attack Amir, he steps forward to defend Amir simply because he is brave and a caring friend for he defends his closest friend Amir. Similarities between Amir and Hassan The novel portrays Amir and Hassan as closest friends despite Hassan being a Hazarajat and therefore not allowed to stay close to Amir traditionally. The novel gives a number of similarities between Amir and Hassan. For example, within the context of their close friendship just as portrayed in part of the novel, it is deducible that both Amir and Hassan are friendly (44). Hassan is a Hazarajat and their tradition does not approve of his friendship with Amir. On the other side, Hassan does many things to help Amir due to their friendship. He defends him from bullies and helps him win the local kite-running tournament (59). All this happens because they are both friendly. When Amir returns to Paki stan after Rahim Khan who is ailing calls him, he establishes something that portrays another similarity between him and Hassan. Khan tells Amir that, for all that time he was not aware but as of that time, he knows. Khan is certain that Ali was not the true father of Hassan; his real father was Baba, Amir’s father. On that note, Amir finds out that Hassan was his half brother and they both shared the same biological father. This shows that, apart from being closest friends, they are also brothers. It is therefore agreeable that Amir and Hassan have another thing in common which is, they share the same father (64). Furthermore, both Hassan and Amir have talents. The novel portrays Hassan as a talented kite runner while Amir has talent in locating where the kite will fall even without looking. Thus, their talents are also part of the similarities that they share. How do their differences ruin their relationship? Amir and Hassan relate as friends and share the same home. Howeve r, they are not relatives. Baba, Amir’s father is rich and Amir gets almost everything that he wants. Hassan on the other hand ails from a poor family and can only get what is necessary. Since Amir feels that his father does not love him as much as he loves Hassan, he resolves to do things that ruin his relationship with Hassan. For examp

Describe how studying macroeconomics has helped you understand an Essay

Describe how studying macroeconomics has helped you understand an issue - Essay Example Based on the fact that I am pursuing a course in economics, my dream has always been to become one of the most successful economists in the country. Being a successful economist would involve being a Chief Executive Officer of a manager in the most respected organizations in the world. These roles necessitate one to have a wide range of knowledge in macroeconomics as well as other fields associated with economics. Being a top official in a highly respected organization involves a lot of interviews in televisions and radio stations. In doing so, an individual offers insight in the happenings of his organization and hence this can be considered a form of marketing. Furthermore, one of the units learnt in macroeconomics is leadership. Therefore, learning macroeconomics have enabled be to learn and gain leadership skills and abilities. Learning macroeconomics will ensure that I familiarize myself with all aspects of preceding and current economic issues of benefit in my future role as a top executive. Successful organizations in all parts of the world are governed by distinct rules and regulations. For managers to implement plans of actions geared towards enhancing and maintain organizational structures, incorporation of skills and knowledge in macroeconomics is critical. The study of macroeconomics involves investigating behaviors of various organizations and other successful institutions (Madariaga, 2005). Therefore, learning macroeconomics presents me with knowledge on how to create and implement organizational rules and guidelines associated with macroeconomics. In general, the study of Macroeconomics is involved with investigating comportment, performance, or conduct of the economy. It would be hard for me to implement economic policies without understanding various market conditions such as fluctuating prices of commodities and services. Conditions in the economy are always changing. This can be attributed to the current advancements in technology