The success of California Pizza Kitchen can be attributed to many factors. First, CPK diversifies its revenue streams. Instead of relying on the main business of operating company owned stores for revenue, they also receive revenues from royalties from franchised locations and royalties from Kraft for selling CPK frozen pizzas. Second, CPK’s core customers had an average household income of over $75,000. This allows CPK to weather downturns in the economy better than their competitors since their customers have more disposable income.
By taking the first mover approach Papa John’s was able to capture a larger market size while their competitors rushed to catch up. After researching Papa John’s further, I concluded that there are several risks and opportunities currently facing the company. I believe that the pizza market is somewhat saturated. Take for example Bend; there are dozens of pizza parlors all around the area and only more are showing up. The barriers to entry for this specific market are somewhat low, and it can be difficult for existing companies to keep their market share (see figure 2).
(Laudon C Kenneth, 2012) Domino’s Strategy to Improve Customer Service Domino's, is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. “Domino's started out small – with just one store in 1960. However, in 1978 the 200th Domino's store opened, and things really began to cook. By 1983 there were 1,000 Domino's stores and 5,000 in 1989. Today, there are over 11,000 stores – including more than 5,000 outside the United States.” (Domino’s) Unfortunately, Domino’s was previously agreed by Americans that their home delivery pizzas were among the worst, and they had to do something about it.
If a monopolistically competitive firm wanted to maximize its profit’s, they have to have it where marginal revenue is equal to marginal cost. The problems firms are dealing with now are that so many people want to get their hands in the batter and join this market and it is affecting existing firms. Let’s say Charlie’s cupcake shop has been running business for the last couple of
The advantages to these technological appliances are that they have contributed in simplifying our daily lives. Electrical appliances have revolutionized the way we prepare our meals. These inventions have made tasks simpler and faster. They are able to combine certain jobs into one for more accuracy and a faster preparation time. These advances are still improving today.
Gross Margin J. Net Profit Margin K. Return on Total Assets L. Return on Net Worth III. Solutions A. Current Ratio i. 1990 = 300,000 / 110,000 = 2.727 ii.
Running Header: Apply the Learning Curve Theory Pizza Store Layout Simulation OPS/571 March 5, 2012 Pizza Store Layout Simulation Mario’s Pizzeria, located in Palm Springs, CA, has been open since 1950 and has become popular for its quality and authentic taste. The owner of Mario’s is looking to retire and will be turning the business over to his grandson. However, like any business there have been challenges, even though the customers enjoy the uniqueness in the food, the waiting time has been a concern for the business and to the company’s profitability. Mario’s grandson must examine alternative ways to run processes and apply the learning curve concepts to test the alternative against the existing process. The objective is to increase organizational performance in order to maximize profits for Mario’s Pizzeria.
2-9 (a) Ending current ratio 1.91:1. 2-10 (b) Current ratio 3.0:1. 2-11 (b) 2007 Free cash flow $461,808. P2-1A Total assets $11,513,608 P2-2A Net income $25,700, Retained earnings $44,700, Total assets $79,000 P2-3A Net income $1,800, Retained earnings $3,075 Total assets $9,116 P2-4A (a) Earnings per share, Bedene $3.28, (c) Free cash flow: Groneman $1,000 P2-5A (ii) Current ratio 2.0:1 (iii) Free
In other words, consumers’ buying power and spending pattern may rise due to higher amounts of disposable income. This will affect purchasing behaviours. Socio Demographic Increasing health awareness: Doughnut appeals to all major demographic groups, including age and income. Easy to eat on the run and affordability of doughnuts were the major reasons for the popularity of doughnuts in the US market. In the recent years there has been an increase in the concerns about healthy living as the low-carbohydrate and the weight watching craze swept the people living in the US.
Case Study Questions: 1. Make a list of pizza delivery attributes that are important to you as a customer. 2. Combine your list with the lists of a few other class members and categorize the items under a series of major headings. | Julie | KC | Pino | Alan | Quality | | | Pizza is delivered hotPizza appears as seen in advertisements | | Price | | | Affordable | | Speed | | | Time to deliver is less than 30 minutes | | Mode of payment | | | Cash or accepts credit card | | Attitude of the Delivery boy | | | Delivery boy is polite | | 3.