Pizza USA Term Paper Essay

This illustration involves Pizza the States, a sm every(prenominal) self-governing chain eating house operation that offers both dine-in and carry- forth wait ons for guests that has received feedback for a potential change that allow require the implementation of fig sue to add services. Currently, nodes pret final stage indicated that they ar pleased with the food offered by the restaurant but they would increase pizza purchases if a lay outance service was available. This quandary ties into deuce separate issues. First, in order to remain competitive inside the perseverance, node wants and preferences need to be heard. After all, if you great deal non please your customer base, you result lose them. Secondly, the changes required must be done in a modality that combines data gathering and analysis and implementation of a device that outdo suites this particular type of caper in order to increase success.Customer service has been a recurring theme in legi on(predicate) discussions regarding pipeline trading operations and management in recent weeks. The prevailing legal opinion is that in order for your business to grow and be successful, you must recognise what your customers want and find a way to deliver it. This paper go forth analyze and discuss how process concept buttocks be utilise to assist this business to achieve its goals. Within the process design analysis and discussion, several factors will be reviewed to include identification of what customer joy means to the business and how we can identify the things that be closely worthy to customers, the potential net yield of achieving a high level of customer satisfaction and efficiency, and the characteristic of developing an efficient pizza actors line (from cooking stove to door) system. The paper will also assess creation of marketplaceplace advantages to non totally maintainbut grow the customer base.Pizza USA An Exercise in Translating Customer Requirem ents into Process headingIn the travel five years leading up to 2012, the Pizza Restaurants industry has entrance the results of a downturn in economy. Restaurants kick in been at one time affected by changing market conditions much(prenominal) as changes in intense competition, decrease consumer spending and an increase in overall health consciousness (Kalnins, A., & Mayer, K., 2004). However, condescension such overwhelming odds and challenges, businesses were able to overcome economic strong times by reinventing themselves done creative marketing and adjusting their menus to adapt to customers preferences (Kelso, 2012). This allowed the industry to recover effectively and consumer spending and market ontogenesis returned in 2010.As much consumers returned to the restaurants, overall demand increased. The U.S. Pizza industry averages about 410 million pizzas per year (Kelso, 2012). In 2012 alone, pizza sales be expected to reach an incredible $36.1 billion in revenue which is a 3.8 percent increase from the previous year (Kelso, 2012). This growth is expected to insure at a rate of 2.9 percent per year through 2017. found on gathered data, 97 percent of U.S. consumers have ordered food from a pizza restaurant or establishment within the foregone 12 months (Kelso, 2012). No matter how you look at it, pizza expenditure is on the rise and bring abouts an exceptional opportunity for success in this industry. gibe to Gregory Badishkanian, a CITI Analyst, the big three of the pizza industry Pizza Hut, dominos, and Papa Johns are shortly in position to increase market divvy up. (Bloomberg, 2012). Although the big three comprise of 30% of the total pizza market, the remain 70% comprise largely of other large duress with less(prenominal)(prenominal) market coverage and of dividing line the delicateer freelance chains (Kelso, 2012). temporary hookup the large chains are improving profits independent chains are struggling to stay afloat amid st the fierce competition among the larger more set up companies such as the big three (Kelso, 2012). arrest this dilemma, it would be approximately prudent for any independent restaurant instrument to maximize operations by insuring that internal process design enables not still efficient productivity but generates a process that is customer friendly and foc utilize on customers need and preferences (Kalnins, A., & Mayer, K., 2004). This would be critical in the business ability to survive in such a monopolistic type market. Successful operation within a smaller independent chain restaurant faces challenges that may not be as apparent to a larger and more established field of study chains.Pizza USA is a small chain operation that currently translates two services dine-in and carry-out options. Customers have commented that if delivery services were added to the restaurant offerings, they would potentially buy more pizzas (Jacobs & Chase, 2011). Based on this information, it is apparent that the proprietor needs to assess his business operations and consider a process design that would include adding this service to current operations. The addition of delivery services would potentially require supernumerary capital to finance changes and may involve the hiring of special cater. However, revenue increases as a result of the added service would off-set the costs associated with these additions. burn down and long-term implications would include survivability within such a competitive market. As a customer, the primary focus of my satisfaction with this type of business relates mainly to efficiency and the level of customer service provided. If delivery service was provided, the two areas that would be just about prevalent in my mind would be the delivery time and the state of the pizza once received. Far too often, Ive received delivered food that was warm and in some subject areas cold. Needless to say, I never contacted that restaurant again.The thing that would create a unique bear would be the restaurants ability to not only deliver within an exceptional time period but also to provide a pizza that is piping hot as it would be firearm dining in. Another aspect would be an incentive to order delivery by way of discounting or some type of rewards service. These are experiences that have not been typical in my experience with pizza deliveries. MethodThe comprehend situational analysis are as follows Strengths-Due to the smaller nature of the business, It could potentially create a more personal experience for the customers thus increasing customer satisfaction Weaknesses-As a smaller business entity, they have less resources and modified options in implementing changes to pertain customer demands. Also, the business would be less extensive of negative impacts that may result from changes compared to larger established chains with supernumerary resources available Opportunities-A stronger customer relationship tends t o allow more flexibility repayable to stronger loyalty among satisfied customers. Loyal customers are willing to wait changes out rather than making an initial determination and moving on to other businessThreats-The primary threats are of course the larger and more established chains such as the big three. Again, due to resourcing issues, these smaller and independent operations have less flexibility and opportunity if changes suffer less than desirable. The primary causes and effects are business survivability and customer satisfaction. Although these two areas are mentioned separately, they are in fact one. If changes are not made to meet customer needs and preferences, the business guesss losing clientele and eventual closure. The term customer loyalty has been described as a process of capturing how well an musical arrangement is performing in three critical market measures customer retention, share of wallet, and price sensitivity carnal knowledge to competitors (Jacobs & Chase, 2011).Studies have shown that customer loyalty relates directly to business success and survivability. There exists a major distinction among product design from the users standpoint from what may have been intend by the manufacturer (Jacobs & Chase, 2011). The main difference deals primarily with the intended versus perceived usefulness of a given product. In short, if the customers input is not considered, product or process design could potentially be a major screw up of time on the from end of the send offning cycle with even a worse outcome once in the market.Table-1 below indicates quick-serve satisfaction rates among the top companies in the market to include the big three (Verma, R., & Thompson, G., 1999). As you can see, each of the larger chains has high overall scores in customer satisfaction. Albeit, this is only one of some(prenominal) areas that could potentially be assessed. The independent chains can learn something from this data. The large chains didnt survive the market and become who they are today without success in this particular area (Verma, R., & Thompson, G., 1999). Table-1Although the case situation described is consistent with most other business operations, what can be done to be more profitable? it is unique in itself due the detail andlevel of changes discussed. There are probably 100 areas that could be looked at that deals with efficiency and customer satisfaction. However, for the purpose of this paper we will only analyze the above mentioned areas.If assessing profitability and customer satisfaction is an everyday occurrence, which is the case in most businesses, then this case could most certainly be considered as a preexisting situation. However, this paper has little to do with assessing a documented loss in profits or revenue streams so the evolution is unknown at best. There are many course concepts that can be applied to understand this situation. However the two most prevalent areas of operations philosoph y that comes to mind are Chapter 3-Product and Service Design and Chapter 5-Process Analysis. Quality Function Deployment (QFD) in chapter 3 discusses the process of get the customers voice involved in design specifications (Jacobs & Chase, 2011). This concept and use relates to any and all industries and organizations.It is directly related a process of studying and listening to customers to improve upon a product or service (Jacobs & Chase, 2011). standard Process Performance in Chapter 5 primarily deals with how well a particular process is performing. This is accomplished by assessing many distinct types of rhythmic pattern such as productivity, efficiency, flow time, throughput, and value added time to name a few (Jacobs & Chase, 2011). In order to adequately analyze whether your operation is track efficiently, a system of measurement is required to assess the performance. Results/DiscussionThe business of addressing the customers needs and preferences are easily solved. Immediately implement planning to make up your customers request for the added feature of delivery service. Consider the most efficient manner of transition to minimize disruption to current business operations eon planning the change. Insure that extra feedback is coqueted and gathered from customers to re-validate the need to add the additional service and proceed with design process reviews and analysis to achieve goals. This satisfies the forward discussion regarding identification of what the customer really wants and prefers. The task of developing and implementing the plan is what is the most difficult.Recommend that the owner begins with data gathering methods such as GAP Analysis. This method is use to assess the business performance relative to the expectations of its customers (Jacobs & Chase, 2011). An additional form of Gap Analysis includes the benchmarking of certain industry standards and measures the business performance against established standards within th e industry (Jacobs & Chase, 2011). Questions to be asked would be What are other smaller independent chains offering? Is delivery service a value added service or just a waste of money?What are the industry standards in regards to delivery times and what is considered delightful to customers? Do have the resources to provide that type of service or will it require additional equipment, supplies, vehicles and staff? This will allow the owner to see where his restaurant is versus where he wants to be. Moreover, this would be an ideal tool to gather additional information from Customers to obtain additional feedback. It can be accomplished in many ways such as through paper or email mailers and in store surveys. The method selected would primarily depend on the owners available resources and preferences and of course size of targeted populationThe follow-on good word is to conduct a cost impact and payoff analysis development a ending tree or what some would call a consequence diag ram. This process allows the planner to map out several alternatives with different end results to assess risk (Jacobs & Chase, 2011). In essence it is a risk matrix. When planning or considering restaurant equipment purchases or even additional staff hires, this process could be beneficial in assessing the risks involved with each decision (Jacobs & Chase, 2011). Table-2 is a representation of a typical decision tree used to make informed decisions. As you can see, it is a process of identifying the fuss (or situation) and working through several COAs to determine what works best for you. Table-2Implementation is the next step. I would recommend the utilization of responsibility charts to bring up and manage tasks. Again, this particular tool is a type of matrix that lists all the projects and tasks to be completed while identifying certain responsible parties or stakeholders (Jacobs & Chase, 2011). In such a small business environment, it would probably be most beneficial for th e owner to get all staff involved with the design process to obtain full buy-in. this can be accomplished through the use of this tool.Of all the steps involved with planning and execution, this is probably the most labor intensive due to the potential resourcing required. After plans are implemented, the owner needs to assess the customer reactions to the added service. Anticipating a given response and getting the actual response are sometimes two different things. Again, the similar process used during the Gap Analysis can be used to capture post-implementation feedback from customers (Jacobs & Chase, 2011).The bottom line is that as a small business, you more reliant on customer loyalty than larger chains and operations. As a result, you must pay attention to any feedback received regarding your products and services, In this case were talking about pizzas but it applies in many other situations and industries as well. Once the feedback id obtained develop a smart and low-pric ed plan and implement the plan. Once you have transitioned fully into your new plan, solicit additional feedback from customers to see how things are going. You may find other areas of your business operations that require attention. Customer feedback has to be a part of your quotidian operations. Without it, your business is at serious risk.ReferencesKalnins, A., & Mayer, K., (Dec 2004), Franchising, ownership, and experience A study of pizza restaurant survival. Management Science Journal, Vol. 50 Issue 12, p1716-1728, 13p, 3 Charts. inside 10.1287/mnsc.1040.0220 Kohli, A., & Gupta, M., (Apr 2010), Improving operations strategy Application of TOC principles in a small business. Journal of Business & Economics Research, Vol. 8 Issue 4, p37-45, 9p Verma, R., & Thompson, G., (1999), Managing service operations based on customer preferences. International Journal of Operations and toil Management. Vol. 19Issue 9/10, p891-908, 18p, 6 Charts Jacobs, F. R., & Chase, R. B. (2011), Opera tions and upply chain management. (13th ed.), youthful York, NY McGraw-Hill/Irwin Kelso, A., (Sep 2012), Survey U.S. pizza market tops $40 billion, pizzamarketplace.com, Retrieved 1 murder 2013 http//www.pizzamarketplace.com/article/200667/Survey-U-S-pizza-market-tops-40-billion AP News, (Sep 2012), Analyst Big pizza chains could take large slice, Bloomberg Business Week News, Retrieved 1 Mar 2013 http//www.businessweek.com/ap/2012-09-18/analyst-big-pizza-chains-could-take-bigger-slice