MOD Pizza: A Winning Recipe Case Solution
Abstract
Case Analysis: The case has been analysed through different marketing techniques used to evaluate the potential pros and cons of the company. It was determined that the culture will be negatively affected by the increasing level of growth strategy in the coming periods.
Alternative decisions: Three alternative decisions are given in order to overcome the potential problems faced by the company. These are Technological advancement, decentralized structure, and special promotional schemes to increase the promotional activities.
Recommendations:After the critical evaluation, it has been decided that some recommendations should be taken for company's internal growth such as to arrange proper cultural seminars, to hire service oriented employees and to increase the level of working hours.
Introduction
The founders of MOD Pizza, named Scott and Ally Swenson have decided to grow their restaurant chain from forty-five to two hundred chain store within two years. The question arose in their mind that with this roll out that is, the increase in chain store restaurants will accept the unique culture of MOD Pizza. The expansion of the company from a small to a large one, by taking the constraints of operations and new staff management without compromising their ethical value and core culture.
MOD Pizza is one of the leading brand names of pizza restaurants that provide fast service with made-to-order pizza segment. The company is continuing its growth opportunities with multi-unit franchise partnership in different areas of the United States, including, Kansas, Missouri, and Ohio, etc.
Based on the case, MOD Pizza upcoming markets were estimated at 61 in new, different locations with the expansion in eight new states of the US with additional hiring of 1300 employees and raised $45 million in private equity funding. The raising money with capital was a distraction for Scott, but they estimated positive cash flow at the end of 2015. In 2015 the company was the success by opening 92 stores with revenue of 200%. The company focused on the growth strategy not only domestically but also internationally with highly capable franchise partners.
With the company's marketing techniques, the company continued to invest in differentiating and improving its food experiences and also received achievement in its people drove culture in 2015 that became the key element of the company's success and continuously stepping up as a commitment to make the business a platform of a positive social impact.
The objective of the case is to establish the market differentiation product with strong customer skills that make a company strong growth prospects in every region of the country where it is going to expand.
The Problem Statement
With the expansion of the company's operations in different sites of the country, the number of problems the company faced including Hiring of employees and they made sure not to compromise balance, respect, operations, services and most importantly cultural and ethical values.
As there were a few employees, who were drug addicted and were fired because they were found as trouble finder for the customers and the company's environment as well. Their behavior led to mistreating of clients and fellow colleagues. Along with this, the company was facing stealing of material problem and due to this reason many general managers and assistant general managers were fired.
Therefore, such issues including theft, influencing of drugs or alcohol in the workplace and also punctuality led to reemployed some of the employees as they run their business with their core culture competencies.................
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