Pizza USA Term Paper Essay

This nerve involves pizza pie USA, a sm both indie chain restaurant transaction that offers both dine-in and carry- disclose religious services for guests that has received feedback for a potential change that ply require the implementation of flesh sue to add services. Currently, customers keep back indicated that they be pleased with the food offered by the restaurant moreover they would step-up pizza purchases if a oral communication service was available. This dilemma ties into 2 separate issues. First, in order to remain competitive within the pains, customer wants and preferences need to be heard. After every, if you gougenot please your customer base, you will lose them. Secondly, the changes required must be done in a means that combines data concourse and analysis and implementation of a purpose that best suites this crabbed fiber of line of merchandise in order to maximize success. node service has been a recurring theme in many discussions rega rding air trading operations and guidance in recent weeks. The prevailing thought is that in order for your business to grow and be successful, you must identify what your customers want and find a way to verbalise it. This paper will analyze and discuss how movement design can be implemented to assist this business to fall upon its goals. Within the process design analysis and discussion, some(prenominal) factors will be reviewed to include identification of what customer satisfaction means to the business and how we can identify the things that be virtually valuable to customers, the potential net make up of achieving a high level of customer satisfaction and efficiency, and the characteristic of evolution an economic pizza preservation (from stove to door) system. The paper will to a fault respect creation of trade advantages to not only maintainbut grow the customer base.Pizza USA An Exercise in Translating Customer Requirements into do DesignIn the last five yea rs leadership up to 2012, the Pizza Restaurants industry has roll in the hayd the results of a downturn in economy. Restaurants have been directly affected by changing market conditions much(prenominal) as changes in intense competition, decreasing consumer spending and an increase in overall health consciousness (Kalnins, A., & angstrom unit Mayer, K., 2004). However, despite such evoke odds and challenges, businesses were able to overcome economic hard prison terms by reinventing themselves by dint of creative marketing and ad incisivelying their menus to adapt to customers preferences (Kelso, 2012). This leave aloneed the industry to recover effectively and consumer spending and market growth returned in 2010.As more consumers returned to the restaurants, overall demand increased. The U.S. Pizza industry averages ab push through 410 billion pizzas per year (Kelso, 2012). In 2012 alone, pizza sales are expected to tump over an incredible $36.1 billion in revenue which i s a 3.8 percent increase from the previous year (Kelso, 2012). This growth is expected to continue at a rate of 2.9 percent per year through 2017. Based on pull together data, 97 percent of U.S. consumers have ordered food from a pizza restaurant or establishment within the past 12 months (Kelso, 2012). No matter how you look at it, pizza consumption is on the sneak and prepares an exceptional opportunity for success in this industry.According to Gregory Badishkanian, a CITI Analyst, the fully grown lead of the pizza industry Pizza Hut, Dominos, and Papa Johns are currently in position to increase market division. (Bloomberg, 2012). Although the big three stand for of 30% of the total pizza market, the remaining 70% comprise largely of other(a) large chain with less(prenominal) market insurance coverage and of course the little independent chains (Kelso, 2012). While the larger chains are improving profits independent chains are attempt to stay afloat amidst the fierce co mpetition among the larger more ceremonious companies such as the big three (Kelso, 2012).Understanding this dilemma, it would be most prudent for any independent restaurant operator to maximize operations by insuring that internal process design enables not only efficient productivity but generates a process that is customer friendly and pore on customers unavoidably and preferences (Kalnins, A., & Mayer, K., 2004). This would be vital in the business ability to survive in such a monopolistic type market. Successful operation within a smaller independent chain restaurant faces challenges that whitethorn not be as apparent to a larger and more launch national chains.Pizza USA is a small chain operation that currently provides 2 services dine-in and carry-out options. Customers have commented that if bringing services were added to the restaurant oblations, they would potentially misdirect more pizzas (Jacobs & Chase, 2011). Based on this information, it is apparent th at 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 extra capital to finance changes and may involve the hiring of excess staff. However, revenue increases as a result of the added service would off-set the costs associated with these additions. just 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 most 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 or so slicknesss cold. Needless to say, I never contacted that restaurant again.The thing that would create a unique expe rience 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 era 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 perceived 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 limited options in implementing changes to butt customer demands. Also, the business would be less kind of negative impacts that may result from changes compared to larger established chains with superfluous resources available Opportunities-A stronger customer relationship tends to allow more flexibility repayable to stronger l oyalty 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 become 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 risks losing clientele and eventual closure. The term customer loyalty has been described as a process of capturing how well an organisation is performing in three critical market measures customer retention, share of wallet, and price sensitivity congeneric to competitors (Jacobs & Chase, 2011).Studies have shown that customer loyalty relate s directly to business success and survivability. thither exists a major peculiarity between product design from the users standpoint from what may have been intended by the manufacturer (Jacobs & Chase, 2011). The main digression deals principally 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 waste of time on the from end of the curriculumning cycle with even a worse outcome once in the market.Table-1 below indicates quick-serve satisfaction rates among the fall out 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 dozens in customer satisfaction. Albeit, this is only one of many 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 wit hout success in this particular area (Verma, R., & Thompson, G., 1999). Table-1Although the case situation described is accordant 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 positiveness and customer satisfaction is an everyday occurrence, which is the case in most businesses, wherefore this case could most certainly be considered as a be 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 utilize to understand this situation. However the two most prevalent areas of operations doctrine that comes to mind are Chapter 3-Product and Servic e Design and Chapter 5-Process Analysis. Quality Function Deployment (QFD) in chapter 3 discusses the process of getting the customers voice convolute in design specifications (Jacobs & Chase, 2011). This concept and application 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). Measuring Process Performance in Chapter 5 primarily deals with how well a particular process is performing. This is accomplished by assessing many different types of metrics such as productivity, efficiency, flow time, throughput, and value added time to name a some (Jacobs & Chase, 2011). In order to adequately analyze whether your operation is rail efficiently, a system of measurement is required to assess the performance. Results/DiscussionThe job of addressing the customers needs and preferences are easily solved. Immediately implement planning to submit yo ur customers request for the added feature of delivery service. Consider the most efficient manner of transition to minimize disruption to current business operations patch planning the change. Insure that additional feedback is solicited 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 utilise 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 the industry (Jacobs & Chase, 2 011). 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 acceptable 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 animal to gather additional information from Customers to concord 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 surface of targeted populationThe follow-on recommendation is to conduct a cost impact and subject analysis using a decision tree or what some would call a consequence diagram. This process all ows 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 problem (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 organize and manage tasks. Again, this particular shot is a type of matrix that lists all the projects and tasks to be completed opus identifying certain responsible parties or stakeholders (Jacobs & Chase, 2011). In such a small business environment, it would probably be most beneficial for the 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 intense 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 resolution and getting the actual response are sometimes two different things. Again, the same 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 dependent 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 affordable 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 daily 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 event 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 Production Management. Vol. 19Issue 9/10, p891-908, 18p, 6 Charts Jacobs, F. R., & Chase, R. B. (20 11), Operations and  upply chain management. (13th ed.), New York, NY McGraw-Hill/Irwin Kelso, A., (Sep 2012), Survey U.S. pizza market tops $40 billion, pizzamarketplace.com, Retrieved 1 Mar 2013 http//www.pizzamarketplace.com/article/200667/Survey-U-S-pizza-market-tops-40-billion AP News, (Sep 2012), Analyst heroic pizza chains could take bigger 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