Roman lyric poet Horace once famously said: “A picture is a poem without words (Galinsky, 2014).” In my rendition, pizza is a poem without words. And yet, I am desperately trying to put into words my love, my affection, and our everlasting affinity. I can’t recall how we first met, but the image got forever imprinted in the back of my mind.
Childhood
You were a childhood treat – a reward for good behavior or rather well-hidden lies. I get a flashback as swift as lightning, and I see myself as a kid in the backseat of my parent’s car – a little head full of ideas and pockets full of adventure. I’m begging mom to swing by the nearest Olive Garden on the way home. She’s reluctant at first, but when she agrees, I feel such immense joy that I can’t sit still. I remember the white tablecloth, pizza as hot and round as the sun and its puffy crust, and finger-licking tasty toppings (simile). In moments of nostalgia, I try to relive this experience, but chasing childhood is something I’m not good at.
Adolescence
Fast forward to my school years, pizza became something me and my mates would bond over. Lazy Sunday afternoon, the murmur of the trees in the backyard, and their evening shadows growing long and scrawny (personification). We’re sitting on the floor in my room at my parent’s house, playing video games and eating pizza. It’s almost automatic – we don’t care much for food as we care about playing, talking, and laughing. We finish another box slice by slice, and the comfort of my bedroom is so overwhelming as the time itself has stopped there. Matt’s parents pick him up first, and he takes some of the leftovers to nash on the way back. Children go home one by one. When I’m finally alone, I feel strange serenity that I may never be able to experience again. I didn’t realize how happy and careless I was back then. Now that epoch with its yells and shouts, silly jokes, and grease stains are nothing but a distant memory.
Youth
My college years are marked with ambition, insomnia, and striking ingenuity. I feel at the top of the world – away from home, free as a bird (simile). I think that when flying high above the ground, I see the full picture of my life. I am outstandingly and frustratingly stubborn about my habits, passions, and views. Sometimes, I am so overwhelmed by the beauty of solitude and self-autonomy that I shut down and stay up for hours past any reasonable bedtime. That’s where pizza reappears in my life again. It is my best companion – as warm and nourishing as it gets. Endless nights that I spend studying would become a little bit more bearable thanks to pizza. I splurge more money than I would like to, but I convince myself that my time is the most valuable resource. I am so caught up in the routine and the unexpected that I forget to eat. The pizza reminds me of my human nature and my human needs.
Conclusion
Whoever made the first pizza was an absolute genius. I don’t know food is more social and emotional than a pizza. It is a self-reward after a long day. It is something that you offer your friends when you want to cheer them up. It is a perfect option when you are running out of time and need to quench your hunger on the go (parallelism). So whenever someone tells me that I cannot have my cake and eat it too, I shrug in disbelief. Pizza forever has a special place in my heart and is there to stay.
Reference
Galinsky, K. (2014). Perspectives of Roman poetry: A classics symposium. Austin, TX: University of Texas Press.
Understanding not only the basics but also the intricacies of the digestive process is instrumental for ensuring patient safety and promoting healthy dieting. Therefore, an examination of the functioning of the digestive system using the example of a common food type will reveal a range of intricate details regarding the chemical and physical processes taking place within the digestive system. Since pizza with pepperoni and onions contains a substantial amount of saturated fats, the fermentation process leads to an increased risk of complications for the liver and the pancreas.
Examining the constituents of the specified meal, one must mention the prevalence of saturated fats in the specified dining option. Namely, a 14” slice of pizza with pepperoni and onions contains a substantial percentage of carbs (46%) and a significant amount of fats (37%), of which saturated fats constitute 26% (“14″ pepperoni pizza,” n.d.). In turn, the amount of proteins is admittedly low in a slice of pizza with onions and pepperoni. Specifically, the overall percentage of proteins in the specified portion of pizza amounts to a total of 18% (“14″ pepperoni pizza,” n.d.). The specified indicators point to the high likelihood of further issues with the digestion of the food in question.
In turn, the process of chemical breakdown of the specified meal in the digestive system involves a series of sequential processes. First, the food is split physically as it is ground with teeth, as well as separated into smaller components chemically as it is affected by the saliva (Perez-Castineira, 2020). Afterward, as pizza with pepperoni and onions is swallowed, it travels to the stomach, where it is further broken into smaller particles chemically as it is exposed to acid in the stomach (Perez-Castineira, 2020). Afterwar, nutrients are obtained from the food in the smaller intestine and transferred to the blood system, whereas the rest of the food mass is transported into the larger intestine, where it is dehydrated and compressed into waste (Perez-Castineira, 2020). While the specified process is sufficiently complex, it takes a reasonably small amount of time.
Finally, the hormonal mechanisms of the specified process need to be addressed in greater detail. Specifically, as the specified food is transported into the stomach, hormones required for the enhancement of the digestive process are released. These include the CCK, gastrin, and secretin, which contribute to the process of splitting pizza into particles and obtaining crucial nutrients from it. Namely, as the pizza is transported into the stomach, gastrin is secreted so that the food could be further broken down into smaller particles (Krieger, 2020). Afterward, secretin is generated by duodenum cells so that the acidic chyme could be neutralized and so that the liver could release bile (Krieger, 2020). Finally, CCK stimulates the gallbladder to produce bile and contribute to the further digestion of the food (Krieger, 2020). The specified processes lead to the eventual disintegration of the food into nutrients that are further transported within the bloodstream (Krieger, 2020). Thus, one obtains the little nutritional value that pizza with pepperoni and onions can offer, while also gaining a substantial amount of saturate fats.
Since pizza as an accurate example of fast food contains a substantial amount of saturated fats and the related nutritional components that enhance the production of bile, the increase in the workload of the liver and the pancreas is likely to lead to a rise in complication risks. Therefore, the specified example of a meal demonstrates the importance of a proper choice of dieting options. Specifically, the health risks that the specified process entails combined with a substantially low nutritional value suggest that pizza with pepperoni and onions should not be seen as a regular element of the daily menu.
Pizza refers to a type of baked bread that is often topped with special kinds of meat and vegetables. Pizza is one of the best selling types of fast foods in the market apparently due to its diverse forms, mouth-watering aroma, and numerous ingredients (Torres par. 14). The modern pizza traces its origin to Italy albeit it has been customized to reflect the differentials in the customers’ tastes and preferences.
Pizza is an all-time food that may be served at any time during the day. While the majority of people prefer pizza during breakfast, others like it at other times of the day when it is hot. Pizza is prepared diversely in different countries, and it may be sold fresh or frozen. However, inasmuch as pizza has gained acceptance among global consumers, it is attributed to certain health issues. Its high fat content and high-energy contents are attributed to obesity, hypertension, and cancer among other health complications (Gallus et al. 75). This paper analyzes the facts about pizza to gain insights on the reasons why it has gained much popularity across the globe.
Reasons for its wide acceptance
Affordability
One of the reasons why pizza is attractive to the American populace is its pocket-friendliness. Unlike other types of foods, pizza is affordable to many people across the globe. The affordability of pizza is attributed to its customizability, which allows the clients to choose what to be added to the basic formulation. The pizza prices vary greatly from one restaurant to the other depending on the ingredients added. For low-income earners, the meat may be excluded from the final pie to make it affordable. For the middle-income earners, the pizza may be prepared at high-quality standards and sold at a premium price.
The wide variety of ingredients compatible with pizza facilitates its customization based on the cost, thus, making it affordable for most people. In the contemporary US restaurants, pizzas are sold at different prices depending on the quality of the product (Galazka par.11). The pizzas also vary in size with the small ones retailing at a lower price than the bigger ones. The varying sizes facilitate the consumption of the meal in parties owing to the view that consumers can purchase one big pizza as opposed to many small pies. Therefore, price discrimination based on the client’s needs makes the pizza affordable and attractable to every individual.
Deliciousness
The other reason why pizza has turned into a worldwide favorite is its lusciousness. Pizza may be customized to fit the customer’s tastes and preferences and reflect different religious and ethnic backgrounds. It is important to note that the customers’ tastes are largely subject to their beliefs (Torres par. 16). In some religions, some types of meals are not allowed owing to stereotypical stories attached to them. Given that pizza may be customized to reflect such differences, it becomes attractive to the majority of individuals.
In most restaurants, it is prepared based on the specifications given by a customer when placing the order. This aspect eliminates the chances of inclusion of ingredients that may not fit the customers’ dietary requirements. Tourists specifically have different tastes, and they may not find their local food in foreign restaurants. Therefore, to bridge this satisfaction gap, tourists tend to order customized pizzas to ensure that they consume only what they prefer. The colorful nature of this fast food makes it exceptionally appealing to the consumers. Additionally, pizza may be served with different soft and alcoholic drinks based on the customers’ tastes.
All-time food
Another feature that makes pizza irresistible is its all-time edibility nature. It may be served at different hours during the day, and it is not restricted to certain meals based on time. It may be served fresh or frozen, which increases the customers’ choices (McGuire 456). For example, most people may prefer a freshly fits owing to the high served pizza in the morning and a frozen one at some other time during the day.
Therefore, the fresh-frozen aspect of this meal makes it consumable at any time of the day. As opposed to other types of foods that cannot be served at certain types of the day, pizza may be consumed at any time of the day. The variation of the ingredients is the most important factor to consider when making a choice to eat pizza during breakfast or subsequent meals. For example, the morning pies may be served with vegetables while meat could be added to the pies served during lunch or dinner. Therefore, the ability to input different ingredients makes it servable at different meals.
One-stop balanced diet
The dietary value attributed to the Pizza makes it even highly attractive to the consumers, as it tends to satisfy all the dietary requirements in one meal. This foodstuff is made up of wheat flour, meat, and certain selected types of vegetables. The three listed ingredients represent different types of diets including carbohydrates, proteins, and vitamins respectively. Medics recommend that an individual should eat a whole meal containing all the three listed types of foods for healthy living (Gallus et al. 75).
Sourcing each of the three dietary components from different types of foods may not be as satisfying as pizza would. Pizza is a kind of a one-stop meal for the entire dietary requirements. The addition of different ingredients to the pizza makes it a form of a balanced diet meal, and thus, people tend to prefer it to taking the different classes of foods separately to achieve a balanced meal. The color is attractive by itself due to the addition of the various vegetables such as tomato sauce and onions. As noted previously, pizza may be served at any time during the day. Therefore, one may take it for all the meals and be assured of a balanced diet.
Health benefits
The health benefits attributed to the consumption of this food are cited as another factor that contributes to its increased consumption. Pizza is arguably one of the limited types of food that reduce the chances of contracting chronic illnesses. Research indicates that regular eaters of this meal have a reduced chance of experiencing cardiac illnesses owing to the inclusion of the tomato sauce into the recipe. The tomato sauce ingredient added to pizza is rich in lycopene, which is an oxidant that is attributed to better cardiac health (Bruso par. 4).
However, the health benefits only accrue to the eaters of hot pizza as opposed to the cold ones. Hot pies are arguably good sources for lycopene hence consumers seeking to improve their cardiac health should go for the hot ones. It is alleged that deep-fried hot pies are richer in oxidants than the ones prepared using other cooking methods. Besides, heavy feeders of pizza may not benefit from cardiac benefits owing to the high-fat contents in the pies.
The view concerning the effectiveness of this meal in the reduction of cardiac conditions is well known amongst most Americans, which explains the high embracement of the meal. Another important health benefit accruing from occasional consumption of pizza is the prevention of cancer. The tomato sauce added to the pies not only helps in the prevention of the cardiac conditions, but it also deters the multiplication of the cancer cells. A section of medical experts argue that eating pizza at least once a week may reduce the chances of getting stomach, colon, mouth, prostate, esophageal, and lung cancer significantly (Knight par. 9). With the increasing number of cancer patients, pizza could be recommended as a preventative measure.
Festivals
Another important factor worth mentioning when exploring the reasons why pizza consumption has increased tremendously over the past few decades is the fact that it is at the heart of every celebration. In the US and some parts of Canada, people devote a day for the celebration of this meal. In the mentioned regions, pizza festivals are held in October each year where people buy additional pies for themselves and their families (Bruso par. 6). The devotion of a day for the described purpose has increased the overall popularity of pizza in the US. The festivals ignite competition in the making of the pies among the American chefs. Such competitions increase the public awareness of the availability of the commodity in the market leading to more consumption.
Criticisms
Even though the consumption of pizzas has increased tremendously in the past few decades, there have been health concerns about overconsumption. Critics state that inasmuch as this foodstuff has some health benefits as described earlier in this paper, the heavy consumption might be counterproductive. The argument about health issues arising from pizza consumption is based on the view that the pies are rich in fat and calories. Pizza is attributed to high fat and energy contents, which increase the chances of contracting illnesses such as obesity, heart attacks, and cancer among others (Galazka par. 8).
Scientifically, high fat consumption may predispose a person to heart diseases or obesity. Therefore, the high fat contents may predispose heavy consumers to the highlighted health conditions. On the other hand, the high-energy content may lead to the development of diabetes type 2 and obesity in the long-term. The mentioned two illnesses are deleterious, and their attachment to pizza consumption makes it unattractive to some people across the globe.
Conclusion
Pizza is a worldwide food icon that meets different dietary needs owing to its customizability. The consumption of this foodstuff has increased tremendously over the past few decades apparently due to its deliciousness and affordability. The health factors associated with this meal have also increased its consumption. Pizza is said to offer a solution to cardiac illnesses and certain types of cancers. Besides, the pies are usually prepared in different sizes and with varied ingredients to fit the consumers’ tastes.
This food fits perfectly in various festivals including birthdays and weddings. In some countries, such as the US and Canada, people celebrate The Pizza Day every October. In such festivals, chefs compete for the preparation of the best pies. Such events increase awareness among the consumers about the product hence raising its annual consumption rates.
Gallus, Silvano, Renato Talamini, Cristina Bosetti, Eva Negri, Maurizio Montella, Silvia Franceschi, Attilio Giacosa, and Carlo Vecchia. “Pizza Consumption and the Risk of Breast, Ovarian, and Prostate Cancer.” European Journal of Cancer Prevention 15.1 (2006): 74-76. Print.
McGuire, Shelly. “Rhodes DG, Adler ME, Clemens JC, LaComb RP, Moshfegh AJ Consumption of pizza: What we eat in America, NHANES 2007–2010. Food Surveys Research Group Dietary Data Brief No. 11. February 2014.” Advances in Nutrition 5.4 (2014): 456-57. Print.
Karam’s Objective was to gain competitive advantage and retain loyal customer base that had made him a success in the first place.
The Pizzeria’s three greatest Strengths
At the initial stage, Karam Pizza & Samosa experienced continuous growth due to the unusual menu choices with good quality foods;
Karam maintained its governance with high degree of compliance and general norms of corporate practice, for instance, Karam had taken major decisions considering the opinion of other shareholders;
Karam had financial capability to pay dividends to the shareholders after second and third year.
The Pizzeria’s three greatest Weaknesses
About half of the total customers were from the area just north and north east of the store;
customers preferred to purchase from larger urban centre because they were outside Karam’s free delivery area;
Lack of employees and ovens, it was very difficult for Karam to serve the customer on time. Therefore, most of the customers were turning away and some customers were getting food after long waits;
Opportunities to solve the problems or expand
It has opportunity to hire more cooks during the peak period;
Integration of new technology could retain loyal customer base;
It has scope to open new outlets in suitable location to sustain in competitive markets;
It has opportunity to consider joint-venture strategy to expand business
Threats to its business or even its survival
The presence of strong competitors like Pizza Hut and Pizza Pizza were real threat for this restaurant since the customers would be able to purchase Indian foods from competitors;
Karam failed to satisfy and retain loyal customers;
The location of the business was in a suburban area away from official and industrial sites, which was the prime factor getting little lunch traffic.
First Alternative
The First Alternative to meet the objective of Pizzeria to gaining competitive edges was to renovation of kitchen of the restaurant by adding more ovens and increase human resource for the operation of increased cooking facilities.
Two primary positive outcomes of this alternative are that it would facilitate the ‘Pizzeria’ to serve the customers quickly and the customers may not back with delayed service. This imitative would generate a base of satisfied customers and increase sales for dinner.
The negative outcomes of this alternative is that it would bring extra burden of working capital for additional human resource while it would be used for additional two and half hours and the rest period would be unutilised.
Second Alternative
The second alternative is to develop marketing, sales, management, and business automation through B2B model. The most effective outcomes of this alternative are that it would boost the business with enhanced revenue and generate strong base of satisfied customers.
The primary limitation of this imitative is to remove “disliking” of Karam for business automation and improve his skills for credit sales or engage a new manager with required skills.
Third Alternative
The third alternative is to reopen another store in a suitable place. This solution would provide additional facilities to boost sales and turn the Pizzeria into a ‘Chain Shop’, but the fundamental problem is that the investors of Pizzeria are satisfied with their present return and they have no additional resources for further investment. If Karam himself goes for the investment of the new location, he would get none to risk sharing.
The reputation of the business as the only restaurant that offers unique and best quality is amongst the strengths of Karam Pizza business. The reputation ensures increased clientele as well as helps in building the business brand loyalty. The strong reputation the business has built in the last three years will help it retain its customers. It will also aid the business gain the needed competitive edge.
Outsized client base accruing from the operational environs
The large pull of customers is a strength to the business. The customer base consists of the delivery businesses alongside the increasing number of the office workers. These large pools of customers will result into the increment in pizzeria sales revenues. This will eventually be used for its global expansion and growth.
Quality foodstuff and remarkable menu choices
Along with the provision of unique menu, the pizzerias are also committed to providing quality products to its customers. Given the fact that the competitors are capable of copying and introducing the pizzeria exceptional menu, the only way to set apart its food is through quality. This will make certain the customers sustainability.
From the time when it was instituted, Karam Pizza has seen an incredible growth because of the extraordinary menu choices its clients have. Karam Pizza brings together an assortment of Italian and Indian cuisines. This amazing menu is amongst Karam Pizza’s biggest strength that augments its competitive advantage.
Weaknesses
Centered on producing particular food products
Karam Pizza has various weaknesses. One of the weaknesses of the restaurant is that Karam Pizza is facing lack of diversification. The restaurant specializes just in one of its pooled cuisines. Different form its market competitors that have diversified offers, the restaurant only offers one best combination.
This would lead the restaurant into losing its competitive edge across the global markets. This is because some independent competitors are adding favorite food items into their menus. Thus, they lure more customers in their restaurants compared to Karam Pizza.
Inadequate financial resources
Karam Pizza appears to lack funds and this is perceived as a hindrance to its rapid global expansion. Karam Pizza is just a mere one-shop restaurant but faces strong antagonism from other entrenched restaurants. As a result, Karam Pizza has not generated enough pool of capital to expand on its business and market operations. Moreover, the restaurant is not large enough to benefit from the economies of scale. Lack of enough capital or financial resources has a negative effect on its capacity to deliver services to its global clientele.
Inability to service the arriving clientele
The pizzeria limited, Karam Pizza’s capacity to service a large pool of walk-in customers contributes negatively to its sales revenues. As the restaurant reputation grew, its capacity to serve customers especially during dinnertime was very limited. The limitations were seen in terms of the quantity of food as well as efficiency in delivering services. Order delays together with low food productions have made the restaurant lose some of its loyal customers who made it succeed.
Opportunities
The prospective to enlarge the business
Karam Pizza has numerous promising opportunities for it to expand its business operations particularly into new areas. Moreover, the business can expand its services on the business-to-business (B-2-B) basis. Other areas where the business can expand its restaurant services are the business functions including sales meetings and birthday lunches.
Improved demand for take-away
The Karam Pizza restaurant should take advantage of the increasing demand for take-away. The increasing number of take-away customers that throng the restaurant during evening hours offers an incentive for the growth of the restaurant. The restaurant should increase its capacity to meet the rising demand that will eventually provide revenues for expansion.
Innovative menus that are exclusive of direct rivals
The restaurant has an opportunity to offer new menus that are not presented by other market competitors. Offering an original menu that is different from those in the market can provide the Karam Pizza restaurant with an increased competitive edge. The opportunity to offer a new-fangled menu with no direct competitors will increase the demand for its food items thereby increasing the consumer base.
Tremendous development reported in the pizza market division
From the case, it is apparent that there is growth potential in the restaurant business, as additional cuisines are needed. Moreover, the growing number of the working class in the community where the restaurant operates provides a new opportunity for business growth. Besides the growing number in the walk-in customers, there is simultaneous growth in the number of business within the area. This also presents a growth opportunity for Karam Pizza.
Threats
Market rivals are prone to implementing identical menu
The pizzeria offers a combination of foodstuffs that can easily be imitated by other restaurants. Currently, the Independent Restaurant is already offering some of its combinations luring some of its customers to their businesses. This results into the reduced number of its customers and sales revenue. Besides, the pizzerias are facing the threat of increments in prices of inputs as well as the cost of doing business.
Rivalry budding from entrenched restaurants
From the case study, the biggest threat facing the restaurant is competition from large and well- time-honored food restaurants. These restaurants already have networks around the town where Karam Pizza is operating. Moreover, self-governing contenders that offer some of its combinations also pose serious threats to Karam Pizza business.
Enlarge the efficiency and capacity of the pizzeria
From the case, Karam Pizza has the alternative of increasing its capacity to meet the needs of all its customers. In essence, the restaurant should thrive to ensure that both the walk-in and business customers are serviced as required. The advantage is that Karam Pizza will continue to expand its sales while building its reputation and global brand image.
Another advantage is that the business will not continue to lose its customers, but instead amplify its client base. However, increasing the capacity can be costly to Karam Pizza business. The other disadvantage is that the pizzeria will be forced to charge different prices. For instance, lower prices will be charged to the individual walk-in customers while higher prices will be charged to business deliveries.
Enlarge operations into the business-to-business ventures
Though the business-to-business deals might not be potential now, it offers the best opportunity for future growth. As the number of business increases, the business-to-business deliveries are viable for future growth. The advantage of business-to-business deliveries is that they are highly priced thereby increasing the revenue generated by business enterprises.
Another advantage is that such deliveries are undemanding since they only require a few staffs to accomplish. The disadvantage with these kinds of businesses is that they are prone to competition. Furthermore, they may take long before making any payments.
Curtailing the charged prices
Given the increased rivalry from independent pizzerias offering comparable combination of cuisines, Karam Pizza can opt for price reductions. However, to attain the reduced prices objective, the business must offer large quantity of food while increasing its operational efficiency.
Mass production will cover the costs incurred while ensuring that the business enjoys economies of scale. However, in situations where the customer base reduces, price reduction might not be feasible. Finally, the competitors may equally curtail their prices and this might negatively affect Karam Pizza business plans.
According to the daily breeze (2010) Porter’s five forces framework of competition is composed of the following elements; supplier power, barriers to entry, threats from substitutes, rivalry and buyer power (p. 17). The similarities and differences between USA and Mexico can are summarized by the following table:
Strategy
USA
Mexico
Supplier power
There is a strong supply of raw materials and labor, suppliers are concentrated, high costs of switching suppliers, consumers are powerful and a huge threat of forward integration by suppliers
Strong supply of labor and raw materials, weak consumers, concentrated purchasers, huge threat to backward integration by consumers and high costs of switching suppliers.
Barriers to entry
Easy entry and exit because of low threshold, easy access to distribution channels, common technology and little brand franchise.
Entry is difficult because of difficulty of brand switching, high scale threshold and limited access to distribution channels
Threats from substitutes
A lot of substitutes of high quality exist posing a high threat.
Substitutes exist in the market but the quality is slightly different.
Rivalry
Rivalry is intense especially from dominos, Little Caesars, Papa John and Pizza Hut
Rivalry is not that intense since the market does not have many established restaurant chains.
Buyer power
Buyers are concentrated, can buy products from competitors and purchase a high percentage of the output.
Buyers are concentrated, can buy products from competitors and purchase a high percentage of the output.
The pizza industry accounts for around 10% of the total food sales which occurred in the United States between June 2009 and June 2010 (Franchise direct, 2011). This proves that the industry is very viable and earns a lot of revenue therefore attracting a lot of companies in the industry.
In USA there are over 25 pizza chains in the industry which is mainly dominated by Domino’s, Little Caesars, Papa John, Pizza Patron and Pizza Hut who control about 36% of the entire industry (Pizza today, 2009). The situation in Mexico is not any different. Due to the high returns earned from the industry, several new pizza restaurants have been coming up increasing the competition (Porter 2010, p. 88).
Market winning capabilities
Market winning capabilities are strategies which a business can use to win consumers in a competitive market. For a business to be successful, it must understand the consumers needs (Jugger 2009, p. 53).
It is through this knowledge that the business knows what the consumers want, how they want it and when they want it. If the information is applied effectively then the consumer will end up being satisfied by the product thus earning his loyalty into the brand.
The business also needs to produce products of a high quality and maintain these standards. By doing so, consumers will always come back to purchase the product and will also spread the word to other people in the market about the high quality products the business has. This is because of the superiority the product has over the other substitutes that are present in the market (Krohn, 2011).
Lastly, the products should be within a certain price range that if affordable to the consumers (Haubul 2010, p. 7). Having expensive products is always a turnoff to customers especially if it is beyond their purchasing power. Selling goods at a low price will lead the business into losses due to poor sales returns.
Therefore, the best way is to sell the product at a reasonable price where the price is not so much for the consumer to pay and will earn the business a reasonable profit (Romaniuk & Hartnett 2010).
Institutional differences
In the works of Peter et al (2009) institutional framework is the organization of entities, financial procedures and practices which should be followed and the regulation and supervision of a market or an industry. Institutional frameworks consist of rules, regulations, procedures and standards which are to be followed while conducting a business within a certain industry (Portada 2011).
These rules and regulations have been set up to ensure that professionalism is adhered to while businesses conduct their activities so as to avoid issues like monopolies or price fixing (Solomon et al 2009, p. 14).
The institutional frameworks in USA have come about due to specific historical, political and economical circumstances. The market in USA has got an easy entry and exit mode although a lot of legal requirement have to be met. Mexico on the other hand has got strong institutional frameworks its enforcement is very poor. People tend to breach the rules and guidelines that have been stipulated by law in order to achieve their goals.
Pizza Patron has tried as much as possible to ensure that there is consistency in the manner in which all its restaurants operate both in the United States and in Mexico. However, there are slight differences regarding to the manner in which operations are conducted (Peter et al, 2009). This is because the management wants the restaurant to reflect the community in which it is based in.
Therefore, the restaurants located in USA have got an American style while the restaurants located in Mexico have got a Latin style (Portada 2011). This aims at attracting the customers and making them to feel at home while at the restaurant. Although the restaurants have a Spanish culture, they also try to carter for the needs of other Americans too.
Entry to Mexico
Pizza Patron can enter the Mexican market through joint ventures, direct production or indirect productions (Gofman and Mets 2010, p. 157). Through joint ventures, they can form partnerships with restaurants that have been already established in Mexico thus it will be easy to gather customers. However, its brand name will not be fully recognized due to the partnership effect.
Pizza Patron can also decide to enter the market directly and work on its own. By doing so, it will have a high chance of making its brand name grow in the new market although this will take a long time. It will also be tricky to gather consumers in the new market because the brand has got no influence (Lou, 2010).
The best way for the brand to enter Mexico is through a joint venture since it entails sharing of financial costs and risks. These are factors which are to be considered when entering a new market (King 2011, p. 3).
Gofman, A and Mets, T. (2010) Consumer Behavior. Journal of Consumer Marketing, 27 (2), 157–168.
Haubul, G. (2010) Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids. Journal of Marketing Science, 19 (1), 4- 21.
Jugger, S. (2009) The Power of Consumers. Admap Magazine, 14 (2), 51-55.
King, M. (2011) Public Policy and the Corporation. London, Chapman and Hall Ltd.
Krohn, L. (2011) Consumer protection and the law: a dictionary. Manhattan, ABC- CLIO.
Lou, Y. (2010) Entry and Cooperative Strategies in International Business Expansion. London, Greenwood Publishing Group.
Romaniuk, J. and Hartnett, N. (2010) Understanding, Identifying and Building Distinctive Brand Assets. Adelaide , Ehrenberg-Bass Institute for Marketing Science.
Peter. J.P., Olsen. J.C. and Grunet. K.G. (2009) Consumer Behaviour and Marketing Strategy. European Edition, Mcgraw-Hill international.
Island Greek Donair and Pizza is a restaurant that specializes in creating specialty Greek cuisine.
Products
The company creates an assortment of products such as pizzas, burgers, and other traditional Greek cuisines such as gyros and salads.
Promotion
The primary method that the company utilizes in promoting the restaurant consists primarily of social media accounts, a website, and flyers. While this has enabled the company to bring in a lot of customers, there are more clients than it could potentially bring in if it expanded its promotion into other areas such as radio.
Pricing
The average price of the products ranges from $8 to $10, with some of the more expensive products reaching $15 to $25. When examining the price of the products, it is apparent that they are relatively expensive as compared to fast food places. However, when compared to other specialty restaurants in the area where the dishes cost $20 to $30 on average, the price at Island Greek is actually reasonable. This gives it a certain competitive advantage when it comes to price, however, it should be noted that given the small location of the restaurant, this limits the ability of the restaurant to maximize its daily income.
Internal Analysis
Presently, Island Greek Donair and Pizza averages roughly 30 people within a given day (more on weekends) with an average of roughly $30 per customer. On a given day, that is equivalent to $900 a day, and within a month is equivalent to $27,000. Considering the fact that the restaurant’s location is relatively small, it does not pay as much when it comes to renting and with some of its tables located outside, its overhead costs on electricity are lower than most places. This results in a large percentage of the profits going directly to the owners of the company. It must also be noted that such numbers have been steadily increasing, as seen in its performance in 2013, which averaged around 50 to 60 during the weekends, as stated by the manager of the restaurant.
Customers Per day Comparison Between 2010 and 2011
This is indicative of the fact that as the popularity of Greek food continues to grow within Sydney, the more likely it is that the number of customers on average that patronize Island Greek Donair and Pizza will increase over the next couple of years. Another aspect that should be taken into consideration is the current position of the restaurant in the market as the premier source of authentic Greek cuisine in Sydney and the fact that it has marketed itself more prolifically as compared to other specialty restaurants within the city through its social media accounts and website. In fact, when examining the sheer amount of positive user rated views of the company online, it can be seen that the financial performance of the company will certainly get better and increase over time as the number of its patrons continues to grow.
Weaknesses
One of the main weaknesses of the restaurant is sudden cost changes to ingredients brought about by natural calamities such as floods, earthquakes, red tide, etc. This directly impacts the restaurant’s bottom-line since if the dished served costs more to make than its indicated price on the menu, then the restaurant would, of course, lose money as a direct result. Considering the fact that the restaurant is specialized in food from Greece and utilizes authentic products from that region of the world, this makes it more vulnerable to sudden price shocks as compared to other local restaurants that utilize more mundane and easily obtainable ingredients.
Market Analysis
When examining the current market for Island Greek, initially, it would seem as if there would be little in the way of significant demand for the products of the restaurant. However, further analysis of the market shows that there are 600,000 to 700,000 second and third-generation Greeks within the country, which is a sizeable population that the restaurant can appeal to.
Furthermore, a large percentage of this population is located within Sydney, which further increases the likelihood of them patronizing Island Greek since the restaurant serves authentic Greek cuisine. Aside from this, it is also important to note that the experience that customers get out of the restaurant outstrips what is available in a fast food place. In a documented interview, entrepreneurs Rob and Pablo, creators of “Snog,” a UK based chain of yogurt outlets, state the following regarding what it takes to become a successful entrepreneur “now we are in a recession, and we see businesses that are successful I think the one thing you see that they all have is the experience which is the most important part in everything so we made sure that there was an experience.”
The “experience” that Rob and Pablo refer to is not just the quality of the product itself but what customers feel when they enter into a particular establishment. In the case of Island Greek, the restaurant has a warm and friendly ambiance which is not only family friendly but actually promotes, in their words, “a happy feeling” for customers. This creates a significant barrier to entry given the ambience of the restaurant and the quality of the food which would be hard to replicate.
Competitor Analysis
As the only authentic Greek specialty restaurant within Sydney, Island Greek Donair and Pizza does not have much in the way of direct competition. However, when taking into consideration the fact that the restaurant also happens to serve pizza and burgers, this does place it in direct competition with various local fast food chains such as Mc Donald’s, Pizza Hut, Dominos and other fast food restaurants. However, there are advantages that the restaurant has over its fast food counterparts.
The first relates to the quality of the service that it is able to leverage. Since it is a relatively small restaurant, it is able to pay more attention to its customers and give them a better dining experience as compared to eating at a fast food restaurant. Aside from this, the food at the Greek specialty restaurant was made to order resulting in a product that is of superior quality as compared to what is available at a fast food restaurant where most of the food is pre-made.
Customer Analysis
The primary customer of the restaurant consists of second and third generation Greeks who migrated to Australia. It does also have a significant amount of customers that are not Greek and continue to patronize the restaurant due to the quality of the food. However, it should be noted that during the weekend the restaurant does have foreign tourists but these are relatively small as compared to its regular customers.
In any business, the primary goal is to satisfy customers. A business person who makes decisions that bring customers’ satisfaction is a good business manager. “The customer is always right” and therefore, a business person should be able to provide his/her clients services, which they need. This paper will discuss a number of ways to address problems faced by Karam’s business.
One of the biggest Pizzare’s strengths is popularity growth over the years. Karam Pizza and Samosa business has grown popular because of its dynamic menu. The ability to provide quality and variety of foods including a fusion of Indian and Italian foods adds as an advantage in this competitive business. Secondly, Karam Pizza and Samosa business has many customers. Every day between 5 pm and 7.30 pm customers come in large number to make their orders.
Having such number of customers is an advantage in this business. The third strength in Karam Pizza and Samosa business is that stakeholders and friends are supportive. There are no misunderstandings between stakeholders. Additionally, Karam’s friends are supportive in terms of ideas.
One of the weaknesses faced by Karam Pizza and Samosa business is stiff competition. There are a number of businesses, which are providing services similar to those offered by the Karam’s Pizzare. Secondly, lack of funds is another major weakness encountered by the business. Stakeholders and Karam as well do not have adequate funds to expand the business. Lastly, most customers are outside Karam’s free delivery area, which makes it hard for Karam to supply them with Pizzas.
Free delivery services combined with supportive friends, relatives, and stakeholders can help Karam’s business to expand. However, competition, failure to meet customers’ needs, and lack of adequate funds are major threats to expansion of Karam’s business.
One option that can help to improve services in Karam’s business is increasing number of staff members. Advantages associated with this strategy include ability to serve customers faster, provision of better and quality services, and the ability to effectively serve many customers during peak hours. However, disadvantages of this strategy are that more funds are required to hire employees and the management will be subjected to more pressure.
The second alternative is to open a new branch. Opening a new branch will ensure that Karam’s business is flexible to handle many clients. Secondly, this strategy will ensure that Karam’s business is accessible by clients in other regions, which will facilitate free delivery services. One disadvantage associated with this strategy is that there are no funds to open up a new branch and hire staff members. This strategy will also put more pressure on the current business.
The third strategy is to open a website (e-commerce) where clients can make orders online. This will minimize queuing as clients will only come to pick their orders. Additionally, this strategy will enhance delivery service since clients can opt to have their orders delivered to their places. Disadvantage associated with this strategy is that it is expensive to maintain the website. Secondly, more management and employees will be required to provide efficient online services.
In order to be a step ahead of other competitors, there is a need to meet customers’ demand, which is a key element of business strategy. Having a well defined customer service policy is a good way of ensuring that one is able to respond to clients’ needs for success.
Pizza is among the most favored meals in the United States. It is worth noting though that pizzas are sold all over the world very successfully. People like pizza for its taste and the opportunity to have it delivered already cooked considerably quickly. The combination of all these characteristics makes pizza businesses very successful. Papa John’s Pizza, as one of the top four brands in the world’s market of pizza producers, has a strong position on it, but the issues are still present. Considering the situation at Papa John’s Pizza, the paper aims at exploring the current issues, the strategic intent of the company, its difference from the rivals, conducting SWOT analysis, and proposing the alternative course of action.
Performance
Currently, Papa John’s Pizza shows good performance, assessing the increasing revenues year per year ($1,439 million in 2013). The company opens new company-owned and franchised units domestically and abroad every year (82 and 183 respectively). The market share grows as well. The competitive standing of the company has remained stable since competitors such as Pizza Hut, Domino’s, and Little Caesar did not implement radical changes to the business processes, so they did not get a competitive advantage. The company has the reputation of the socially responsible company that supports different social programs for children, for example.
Issues
The challenges faced by Papa John’s Pizza are not critical but still considerably noticeable. They are increasing rivalry, the changing trends in the awareness of customers regarding the healthiness of the ingredients, changes in the technologies used in the industry, and the unclear economic situation on several markets where the company is present. The combination of these issues had led to the negative dynamics of revenue growth.
Strategic Intent
The strategic intent of the company is to build a very strong brand loyalty in the industry of pizza production. The reasoning of such a strategic intent is simple if to think about the peculiarity of pizza market. The product of all brands is rather similar in its concept, and it differs in details only, so to gain and keep customers, the brand has to propose an appropriate atmosphere and environment to them.
Difference from the Rivals
Papa John’s Pizza is different from the rivals because of its approach to the customers’ satisfaction assurance. The company uses the Quality Control Centers to assure the standard (the best) quality of the products sold under its brand regardless of location. Domino’s, as the major competitor, has a greater number of outlets and franchises more units than Papa John’s Pizza does, having larger total sales and total revenues. However, the focus of Domino’s on the sales generation was on the delivery of pizzas.
SWOT Analysis
Strengths of the company are in its focus on the customer satisfaction through providing the highest quality of the products. The loyal franchising policy has also provided Papa John’s Pizza with a competitive advantage.
Papa John’s Pizza has no apparent weaknesses except for, perhaps, a certain influence of the unstable markets’ situation on the company’s sales and revenue. However, the company is still not at the first position in the top four of the major pizza brands, so certain issues are present.
As for the opportunities, the company should focus on the use of new technologies that would provide it with a competitive advantage. One of such opportunities could be the use of the advancements in drones’ design and manufacturing costs. Pizzas delivered by drones can become a buzz factor for the hesitating customers.
The threats are the new potential competitors entering the market and the growing interest of pizza consumers to the healthier food. It would require from Papa John’s Pizza new products to develop and grant their cost effectiveness.
Alternative Courses of Action
Papa John’s Pizza should develop an alternative approach to the process of pizza delivery. Currently, the delivery drivers have a dangerous job to perform. It adds expenses for delivery services. The potential of pizza delivery using drones is tremendous. Such an approach has the following advantages: the image of the technologically advanced company; the environment friendliness of the company; and cost effectiveness considering the cut of expenses for the delivery drivers.
There are some disadvantages as well. They are as follows: the complexity of the new technology; potential theft of equipment; issues at the first stage of implementation due to the unusualness of the delivery method; and lack of the offers on the current market that would provide professional solutions for solving such a complex task
Conclusion
Summing, the paper explored the current issues of Papa John’s Pizza, its strategic intent, the difference between rivals, and conducted SWOT analysis as well as proposed the alternative course of action. Despite the challenges Papa John’s Pizza currently has, the potential of the company to expand in the foreign markets and develop as the pizza producer is still substantial. The company should implement more innovative methods of pizza (and other products offered by the company) delivery to gain a competitive advantage.
In addition, these methods should be cost effective and technologically advanced. Considering the trends and successes in the area of unmanned aircrafts usage for various purposes, it can be a potentially advantageous idea to use drones for pizza delivery.
Dough Pizza needs to implement mechanisms that will enable the targeted market to get constant information regarding its products. Creating awareness about the existence of a new product influences customers’ purchase decisions. Dough Pizza has a variety of strategies, which it can adapt to persuade clients to purchase its pizza, salads, and subs. For instance, this company can influence consumers’ purchase plans through televised advertisements where issues regarding the quality and affordability of its commodities are communicated to the audience.
It can also deploy social media as a tool that can effectively encourage customers to acquire the company’s commodities (Flórez, Escobar, Restrepo, Arango-Botero, & Valencia-Arias, 2018). This business can also use word-of-mouth to familiarize the market with its commodities. Using the above strategies will enable the targeted market to obtain the appropriate information concerning Dough Pizza’s exceptional products, hence influencing customers’ decisions to acquire them.
However, the use of social media is the most effective way of promoting and advertising Dough Pizza’s products. This claim is founded on the awareness that many of its anticipated clients are college students and other individuals who have embraced technology to the extent of being in constant access to the Internet where they socialize with their colleagues (Flórez et al., 2018). Hence, using Facebook or Twitter will be a remarkable promotion and advertisement opportunity for Dough Pizza because it will have the chance to interact with the highest number of clients.
Some of the critical marketing activities that Dough Pizza needs to do persistently to ensure that its commodities are sold include:
Responding to customers’ requests in time
Continuously emphasizing the uniqueness of its commodities
Preserving the recommended product quality standards
Communicating constantly to customers using a straightforward language
Engaging in continuous market research
Marketing Budget
Strong businesses ensure that clients are familiar with them, including what they offer and their specific locations (Katz & Green, 2017). Hence, they need effective marketing strategies that enable them to be recognized by prospective clients (Leone, 2018). Although such marketing approaches communicate the existence of a business, including its products, the anticipated goals cannot be accomplished without a marketing and advertisement budget. Such a budget is accompanied by practical actions, for instance, the printing of brochures, public relations campaigns, and financing television advertisements (Leone, 2018; Katz & Green, 2017).
For Dough Pizza, advertising and marketing its commodities may cost approximately USD 20,000 per year. This amount is high because Dough Pizza is a new business that has to constantly advertise itself on many platforms, including roadshows and the use of marketing agents who need to verbally convince clients’ of this company’s outstanding products.
The above budget is adequate to facilitate the generation of the projected revenue of USD 96,000 for the first year. It covers the cost of advertising, marketing, and public relations activities. Part of this money, approximately USD 4000, will cover print and televised advertising where it is expected to persuade college students to acquire Dough Pizza’s quality products at a reasonable price. Constant reminders through television will help to boost the loyalty of the existing clients while at the same time attracting new others.
Another amount, USD 5000, will be allocated to the designing and printing of materials such as brochures, which will be used by marketing agents to create community responsiveness about the existence of Dough Pizza. This strategy is expected to draw additional clients who will contribute to the realization of the projected revenue. Public relations, roadshows, and website development will cover USD 11,000.
This amount will ensure that Dough Pizza is available on various social media platforms, including Twitter and Facebook, where most of its potential customers will be obtained. Hence, the overall purchases from customers will be enough to generate the projected yearly revenue of USD 96,000.
References
Flórez, L. E. G., Escobar, M. I. C., Restrepo, A. H., Arango-Botero, D., & Valencia-Arias, A. (2018). Influence of social networks on the purchase decisions of university students. Cuadernos de Gestión, 18(1), 61-84. Web.
Katz, J., & Green, R. P. (2017). Entrepreneurial small business (5th ed.). New York, NY: McGraw-Hill Education.