The BJ’s mission is “as a company committed to quality in everything we do, sustainability goes beyond policy; it’s a core value of our company,” and Round Table Pizza’s mission is “Champion Brands and the People Who Build Them.” Both company’s goal is to surpass customer satisfaction through consistent, high-quality food and service. The companies strive to increase their presence by expanding continuously in different regions and by increasing product offerings in relations to consumer demand. They strive to hire the most qualified staff to enable it in providing the best hospitality service amongst other restaurants.
BJ’s onward objectives are based on many elements in their operation. It anticipates maintaining its position in the industry and expects to prevail against competitors. Their objectives reflect current and future goals they aspire to achieve. The following is the list of these objectives:
Growing comparable Restaurant Sales and Overall Revenue
Identify retail locations to open new stores and attract new customers.
Increase profit margins.
Increase dividend payments and share repurchase.
Round Table Pizza has been using the best ideas and strategies to achieve the most of their goals. However, a lot of competitors are also using the same marketing and management strategy. In order to stand out as a organization, Round Table needs to redefine their culture and image. It should also change its missions and objectives in order to achieve the best outcomes. With a new marketing strategies, it can become a stronger and better organizations.
BJ’s is doing what it has been doing for many years. When comparing weaknesses and strengths, Bj’s definitely has an edge over its competitor.. It is agreeable that BJ’s is currently having a better mission and objectives than Round Table. This knowledge explains why Bj’s does not need to change its objectives and mission.
Strategic Alternatives
Alternative 1: Expanding to different countries where other major competitors restaurants don’t have a presence in, expansion in those countries is through master franchising.
Pros:
Round Table will have a competitive advantage of being the first mover.
Increase recognition of its brand internationally.
Revenue and customer base will increase.
Reduces dependence from its US locations.
No price war involved between competitors.
Cons
The political situation in developing countries is not as stable.
Round Table can lose focus on its current market.
Currencies fluctuations can affect profitability and cost.
Round Table may need to modify their menu to meet the preference of the
consumers in the international market.
Round Table need extensive market research before entering
Alternative 2 : Reduce the price, cutting gross margin and eliminating some unnecessary products. Change Round Table’s image from a mid-cost casual restaurant to a low-cost restaurant that can serve more customers who are price sensitive
Pros
Increase revenue and customer base.
A low-cost strategy to implement.
Price is one of the major factors that allow consumers to decide on their purchase.
Reducing the number of products on its menu can reduce the cost of the operation
Cons
Reducing the price and brand image can drive away current consumers who are brand conscious.
Creates a price war with competitors.
Round Table customers will get the feeling that they aren’t receiving the best quality.
Restaurants will have to serve more customers for a lower profit margin.
Suggested Implementation:
Round Table should expand to international locations where other major competitors restaurants don’t have a presence in. However, Round Table will need to go through many steps to successfully expand internationally through master franchising.
Step 1: Set up a marketing team that will be responsible for evaluating potential countries that can be the most profitable for the master franchisee.
Step 2: Narrow the list down to 5 countries that have the highest chance of success. The marketing team will then need to design brochures and franchising packages designed for the region it wants.
Step 3: Analyze potential investors who are willing to purchase the master franchising right for the region. Round Table must make sure they possess the required financial resources and business experience to make it a profitable deal for both Round Table and the master franchisee.
Step 4: Implementation process will be to train and support the master franchise in selling franchise locations in their territory.
Culture and levels of preparedness
Cultures and levels of preparedness will not affect the implement because if Round Table expand internationally through master franchising, the master franchisee will bear most of the risks. Human resources and capital are also provided by the master franchisee to grow the franchisee within the region. Round Table will be paid an amount by the company for selling the rights to expand its franchisee internationally. Master franchising the rights for Round Table increases the chances of being successful due to the master franchisee having more knowledge of the cultural, legal and business practices of their territory than Round Table does.