CASE ANALYSIS By Divya Uthra Manickaraj.S Ramkumar.K
Introduction• The case is about the traditional sweet shop owner’s dilemma to go for purchase of franchise in GFA for western pizza products because of consumer’s preference pattern
CASE AnalysisFollowing the success of Pizza corner in North western regions of region, retail outlet was started in chennai and it was also a great success But the launch of new outlets like Newyork deli,coffee world and cream were not successful Consumption of pizza kept increasing in India and were not that successful outside India Amar’s traditional sweetshop’s profit was dipping in Jaipur because of the presence of Mcdonald’s pizza outlet GFA holding company of pizza corner and coffee world were looking food franchising This inclined Amar to go for the franchise with GFA for the pizza retail outlet in Jaipur
Problem Statement and Characters involved• Problem Statement: The increase in consumption of western food like pizza resulted in dip in profit of Mr.Amar’s sweetshop.Which inclined him to go for the franchise of GFA’S pizza corner and coffee world.He is in dilemma whether he will be successful or not in this new venture• Characters Involved: Mr. Amar GFA Mc Donalds
VRIO ANALYSIS Forces for change Forces against change VALUE RARITY Drop in profits of Losing Traditional sweet shop business Increase in pizza IMMITABILITY consumption Business risk involved From sweet shop to in investment Franchise for PizzaORGANIZATION corner and Coffee world Existance of Mc Donald GFA providing allnecessary assistance Failure in new venture Not confident of would end in loss in owning new both the businesswesternized food retail
ALTERNATIVE SUGGESTIONS AND SOLUTIONSWhat should Amar do? He can invest in franchising either in Pizza corner (Rs 45,00,000 to 75,00,000) or coffee world (Rs 34,00,000 to 44,00,000) along with the sweet shop which would reduce business risk instead of investing an total of Rs 1,19,00,000 Can use western outlet to help improve his profit in sweet shop by giving discounts to sweets-value addition to the customer Based on his sales volume and profit he can expand his business in future
Conclusion• Amar should not completely go for western outlet instead he could use this outlet for increasing his profit in sweetshop.• He could use this problem as the opportunity to increase the sales of sweetshop by primarily introducing the complement system as advertisement to widespread his traditional business
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