Red Team Capstone: Week 4
Brianna Baldwin, Brittney Mendez, Catherine Thyben, Chelsea Slawson,
Christopher Mitchell, David Chavez, Gabriel Parra, Jill Peterson
Grand Canyon University: BUS-485
March 31, 2019
Running head: ASSIGNMENT TITLE HERE
Capstone: Week 4
Introduction. Include thesis.
Organization Plan (500 words/Chpt 4 &6)
Management Team
Describe who will comprise your management team and what talents or skills each of the team members will bring to the organization. Include a simple organizational chart.
(Jill’s suggestion: The management team will be comprised of four divisions; financial, purchasing, human resources, and public resources.)
McKinsey 7-S Assessment/Model
Outline a McKinsey 7-S Assessment/Model (strategy, structure, systems, shared values, style, staff, skills) as it applies to your business. Review the McKinsey 7-S Resources in the topic materials for additional information on completing this section.Strategy: (Jill) Multi-Fry-er’s strategy is create an entirely different experience in the world of quick food by providing outstanding customer service and unexpected french fry options within an environmentally friendly operation. By offering seasonal french fry varieties and toppings (think pumpkin spice in the fall and red, white, and blue fries for Independence day) and consistent customer interaction (Multi-Fry-er’s staff cares about building relationships with their customers), Multi-Fry-er is able to respond to competitive pressures by other food trucks and restaurants. Multi-Fry-er is sensitive to their customers desires. The company follows the latest food trends and menu items are changed accordingly. In the same way, the Multi-Fry-er is sensitive to changing needs in the environment. Multi-Fry-er leads the way with clean frying options and oil recycling programs. By partnering with organic suppliers and keeping up on the latest science in the industry, the Multi-Fry-er’s strategy is utilize its passion for environmentalism to differentiate itself from the competition.Structure: Gabriel
· How is the company/team divided?
· What is the hierarchy?
· How do the various departments coordinate activities?
· How do the team members organize and align themselves?
· Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing?
· Where are the lines of communication? Explicit and implicit?Systems: (Chelsea)
Multi-Fry-er has total quality management systems that run the organization effectively and efficiently. Total quality management is a process that focuses on committing to the customer to make continuous improvements while empowering the employees in the organization (Hitt, Ireland, Hoskisson, 2015). Total quality management systems focus on customer satisfaction, increasing and improving it, cutting costs, and reducing time to introduce new products (Hitt, Ireland, Hoskisson, 2015). As far as financial systems, Multi-Fry-er utilizes .
1. Red Team Capstone: Week 4
Brianna Baldwin, Brittney Mendez, Catherine Thyben, Chelsea
Slawson,
Christopher Mitchell, David Chavez, Gabriel Parra, Jill
Peterson
Grand Canyon University: BUS-485
March 31, 2019
Running head: ASSIGNMENT TITLE HERE
Capstone: Week 4
Introduction. Include thesis.
Organization Plan (500 words/Chpt 4 &6)
Management Team
Describe who will comprise your management team and what
talents or skills each of the team members will bring to the
organization. Include a simple organizational chart.
(Jill’s suggestion: The management team will be comprised of
four divisions; financial, purchasing, human resources, and
public resources.)
2. McKinsey 7-S Assessment/Model
Outline a McKinsey 7-S Assessment/Model (strategy, structure,
systems, shared values, style, staff, skills) as it applies to your
business. Review the McKinsey 7-S Resources in the topic
materials for additional information on completing this
section.Strategy: (Jill) Multi-Fry-er’s strategy is create an
entirely different experience in the world of quick food by
providing outstanding customer service and unexpected french
fry options within an environmentally friendly operation. By
offering seasonal french fry varieties and toppings (think
pumpkin spice in the fall and red, white, and blue fries for
Independence day) and consistent customer interaction (Multi-
Fry-er’s staff cares about building relationships with their
customers), Multi-Fry-er is able to respond to competitive
pressures by other food trucks and restaurants. Multi-Fry-er is
sensitive to their customers desires. The company follows the
latest food trends and menu items are changed accordingly. In
the same way, the Multi-Fry-er is sensitive to changing needs in
the environment. Multi-Fry-er leads the way with clean frying
options and oil recycling programs. By partnering with organic
suppliers and keeping up on the latest science in the industry,
the Multi-Fry-er’s strategy is utilize its passion for
environmentalism to differentiate itself from the
competition.Structure: Gabriel
· How is the company/team divided?
· What is the hierarchy?
· How do the various departments coordinate activities?
· How do the team members organize and align themselves?
· Is decision making and controlling centralized or
decentralized? Is this as it should be, given what we're doing?
· Where are the lines of communication? Explicit and
implicit?Systems: (Chelsea)
Multi-Fry-er has total quality management systems that run the
organization effectively and efficiently. Total quality
management is a process that focuses on committing to the
customer to make continuous improvements while empowering
3. the employees in the organization (Hitt, Ireland, Hoskisson,
2015). Total quality management systems focus on customer
satisfaction, increasing and improving it, cutting costs, and
reducing time to introduce new products (Hitt, Ireland,
Hoskisson, 2015). As far as financial systems, Multi-Fry-er
utilizes systems to analyze sales forecasting, budget cost,
purchasing, and labor usage (2018). With Multi-Fry-er utilizing
these systems to stay organized and on track financially, it will
help create a competitive advantage over other food trucks in
the industry that are in the same area. QuickBooks Online will
be used for HR, reporting, transaction, and storing purposes as
Multi-Fry-er can make use of the reports section in the system
to analyze the profit and loss statement and many other
segments. The other positive to using QuickBooks online is the
fact that it is accessible remotely. For document storage Multi-
Fry-er has an in-home office space where confidential
documents are locked up and stored for the adequate time
frames that are legally set in filing cabinets. The controls are
being monitored and evaluated by the operational manager and
all information is shared to each employee so that everyone is
on the same page when it comes to goals and how to
strategically achieve them. The internal rules and processes the
team uses to keep on track is daily and weekly reports in order
to implement monitoring daily and analyze the trends to see
where Multi-Fry-er might need to make up in order to increase
revenue. The reports include progress and sales that were
made, recommendations from the staff about the status and then
actions that need to be done in order to continue operations
successfully. Once the reports are reviewed and all staff
members are on the same page, changes can then be executed.
Shared Values: (Chelsea) Comment by Brittney Mendez:
Should we have a source?
The core values of Multi-Fry-er are community connection,
customer service, sustainability, integrity, and continuous
quality and improvement. Community connection comes into
play with local farmers and vendors that are utilized. Customer
4. service is always present by ensuring the staff builds close,
authentic relationships within the communities and events that
are booked with Multi-Fry-er. Integrity is very important
because Multi-Fry-er promises to deliver a safe, clean, honest,
and accountable environment from the truck kitchen to the
transaction of money between the customer and staff member.
The corporate/team culture is happy, positive,
welcoming/inviting, and personable. The values within the
team culture are strong because all the employees and
management hold the same beliefs which sets a strong
framework on everyone being on the same page of priorities,
making decisions and how Multi-Fry-er deliveries the customer
service experience overall.
Style:
· How participative is the management/leadership style?
· How effective is that leadership?
· Do employees/team members tend to be competitive or
cooperative?
· Are there real teams functioning within the organization or are
they just nominal groups?Staff: (Catherine Comment by
Brittney Mendez: should we have a source?
The staff of our truck is the heart of our operation. There are
a few positions that are specialized, such as the chef and
bookkeeping positions. Our chefs will need to understand the
art of mis en plac, or in English “everything in place”. This is
the act of prepping for the next day. This will be vital to our
success, since the toppings are the most varied. Our bookkeeper
needs to handle all financials including payroll and tax
preparation. Other positions that need filling would be the
customer facing jobs. Taking orders, handling money and giving
people their food. Skills: (Christopher)
· What are the strongest skills represented within the
company/team?
· Are there any skills gaps?
· What is the company/team known for doing well?
· Do the current employees/team members have the ability to do
5. the job?
· How are skills monitored and assessed?
Business-level strategy (Jill)
.Describe your business-level strategy (chapter 4 – cost
leadership or differentiated) and explain how it fits with the
corporate-level strategy (chapter 6 – low, medium, or high
differentiation plus value creating, value neutral, or value
reducing) for your organization.
The Multi-Fry-er utilizes a differentiated business strategy.
French fries are standard fare at nearly every restaurant, in
order to differentiate the Multi-Fry-er can offer their customers
superior quality, organic components, or unique takes to stand
out (Kokemuller, 2019). By offering a variety of unusual french
fries and toppings, it stands apart from the average fast food
and food truck options, turning a side dish into a main course.
The Multi-Fry-er’s organic and vegetarian fries, combined with
their creative toppings and outstanding customer service set
their product apart from the rest.
At the corporate-level, the Multi-Fry-er has a low level of
diversification, as it only sells fries, toppings, and beverages,
which is a single-business diversification strategy. This strategy
allows corporate to share operational related activities across
many food trucks. As the Multi-Fry-er expands into franchising,
particularly internationally, its corporate-level strategy will be
aimed at value creating differentiation by sharing core
competencies with franchisees.
Operational Plan (500 words/chapter 3 and pages 88, 113, and
116)
Supply Chain (Christopher) Comment by Brittney Mendez:
should we have a source?
The supply chain seems relatively simple for Multi-Fry-er since
it is a smaller locally run enterprise. This does not mean it will
not have some small hiccups or hurdles. Multi-Fry-er will
acquire much of its product from local farms if possible that
specialize in organic produce. The exact farms depend on the
area their mobile operation will be in (more info in next section:
6. suppliers). Since they will be local, there is the opportunity to
pick it up directly from the farm orby using one of the farms
contracted services for delivery (ex. Sterns Produce). This will
enable Multi-Fry-er to use the freshest quality products to serve
to their customers. With the majority of their products being
local there will be less of a chance for delivery issues, as well
as time constraints of when the product will be delivered.
Multi-Fry-er will have to have a solid plan/outlook for the
coming weeks however, in order to be aware of the availability
of certain produce due to seasonal changes. This will be an
issue with using smaller suppliers. Though an order has been
made, there is not 100% certainty that every single one will be
filled. Bad crops, less crops, and weather issues can all affect
the orders from a supplier. Should there be any issues,
exceptions might have to be made. Other suppliers may have to
be contacted in an emergency capacity in order for Multi-Fry-er
to have the product they need to stay in business. By staying
local and keeping the delivery services to a minimum will help
with higher nationwide costs. This will allow Multi-Fry-er to
keep any shipments that are outside the local area to a minimum
(specialty item only available in another part of the country).
Multi-Fry-er will be an important part of the supply chain by
showing the consumers the quality and value of using local
produce. Since they will be the end result of the supply chain,
the consumers will have the ultimate opinion of the end product.
Partners and Suppliers (Brit)
Multi-Fry-er will partner with reputable local farms that
specialize in organic and non-gmo produce. To ensure Multi-
Fry-er has access to ample supply for its business needs, the
company will contract with three separate farms. Blue Sky
Organics in Litchfield, Arizona will be a main source for the
west side events happening in Arizona. Crooked Sky Farms will
be our source for Phoenix events. Lastly, Sunizona Farms in
Wilcox will be a source that delivers to Multi-Fry-er’s base
location for all events. Sunizona Farms is known for its
“veganically” grown produce that reduces the use of products
7. that have animal-related elements such as animal fertilizer
(goveganic.net, 2010). By contracting with three different farms
in varying locations Multi-Fry-er will have an effective
contingency plan to handle low or no supply, delivery delays,
and weather problems farms may be facing. Multi-Fry-er will
use Restaurant Depot in Phoenix and Webstaurantstore.com
online for additional needs such as napkins, plasticware and
serving paper products.
Operational Effectiveness (David)
The Multi-Fry-er’s operations manager will utilize sales
forecasting and write down sales forecasts for each day of the
week, this will limit the risk of purchasing too much or too
little food products. Sales forecasting is the first of a critical
operational system every food truck should perform (Gupta,
2019). The Multi-Fry-er will also plan to have the right amount
of staff members on hand for each daily event, this will ensure
customers are satisfied and staff members are not being paid to
not work. The operations manager will build a budget to
determine cost of goods sold and determine staff level targets.
Determining the Multi-Fry-er’s cost of goods allows the
operations manager to categorize food expenses, comparison
shop to find better pricing, measure ingredients in food-
preparation procedures, adjust the menu or prices accordingly
when using seasonal ingredients and design specials that reduce
waste using slow moving stock (Myrick, 2019).
The Multi-Fry-er will use a purchasing operations system to
implement sales forecasts every month. The purchase operations
system will allow the operations manager to see all purchases
made by customers and create a better understanding on how
much ingredients, staff and money to have on hand. The
purchasing operations system will also help create an accurate
forecast and determine the right amount of supplies to
efficiently purchase on a weekly basis (Myrick, 2019).
The last step in operational effectiveness for the Multi-Fry-er is
maintaining inventory par levels. The operations manager will
ask food and beverage suppliers to provide a report of previous
8. purchases for the previous month. These reports will help
determine how much of every ingredient is needed based on
forecasting for the upcoming customer volume. Maintaining
inventory par levels will allow the Multi-Fry-er to effectively
keep overhead costs down and increase profit margins (Gupta,
2019).
Value Chain (Brit)
In addition to having a highly trained staff operating the trucks
at events, Multi-Fry-er will employ a full office staff to assist
with management of employee schedules and paychecks,
bookkeeping, marketing and event scheduling in have a
complete value chain. The Human Resources department
personnel will ensure employees are scheduled and paid in a
timely fashion. The department will also strive to make certain
each employee’s needs are met, concerns are heard and working
toward solutions is a top priority. The marketing department
will focus on building relationships with event coordinators and
venues all over the valley. Additionally, marketing personnel
will establish relationships with other businesses doing similar
work to create a coordinated effort to bring more events and
business to the Metro Phoenix area. Lastly, management will
oversee all departments as well as handle orders and supplier
relationships. With this team in place, Multi-Fry-er will create
positive relationships with employees, customers and suppliers
and maximize “social capital” (Hitt, Ireland, Hoskisson, 2015).
Conclusion
Conclusion. Restatement of the thesis.
References
Sunizona Family Farms. (2010). Retrieved from
http://www.goveganic.net/article156.html
Gupta, R. (2019). Two Sides of a Coin: Strategy and
Operational Effectiveness. Retrieved from
https://www.entrepreneur.com/article/302782
Myrick, R. (2019). Controlling Your Food Truck COGS |
9. Mobile Cuisine. Retrieved from https://mobile-
cuisine.com/business/controlling-food-truck-cogs/
5 Food Truck Operational Systems Your Truck Needs | Mobile
Cuisine. (2018). Retrieved fromhttps://mobile-
cuisine.com/business/5-food-truck-operational-systems/
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic
management: Competitiveness & globalization (11th ed.).
Stamford: Ct. Cengage Learning.
Kokemuller, N. (2019). Differentiated business strategy.
Retrieved from https://smallbusiness.chron.com/differentiated-
business-strategies-20638.html
Red Team Capstone: Week 3
Brianna Baldwin, Brittney Mendez, Catherine Thyben, Chelsea
Slawson,
Christopher Mitchell, David Chavez, Gabriel Parra, Jill
Peterson
Grand Canyon University: BUS-485
March 24, 2019
Running head: ASSIGNMENT TITLE HERE
1
Capstone: Week 3
10. No matter what business you are in, whether it is small and
family owned, a larger corporation with many outlets, or
something as simple as a food truck, a marketing plan is a
necessity. Knowing where the business fits within the system or
market is key to any sort of success. The Multi-Fry-er will show
through research of a SWOT analysis that keys in on the
strengths, weaknesses, opportunities and threats they may face,
where their business lies. They will also analyze the 4 P’s;
product/positioning, pricing, promotion, and placement, as well
as the 4 I’s; intangibility, inconsistency, inseparability, and
inventory. A close examination of this data will help The Multi-
Fry-er pinpoint where their plan will work best. It will all start
with one of the important questions for any firm which is, what
is The Multi-Fry-er’s target market?
Target Market
The Multi-Fry-er appeals to foodies of all sorts, including
vegetarians. The target market includes event goers ages 21-40.
These individuals are technologically adept (ie: often on their
phones and social media). They follow the latest trends and
enjoy updated takes on the classic fare (such as the many
sophisticated varieties of grilled cheese or mac-n-cheese or hot
chocolate). Thus, the Multi-Fry-er with its updated take on
French fries is poised to appeal to them. They are eco-conscious
and want sustainable, environmentally friendly products and
will appreciate Multi-Fry-er’s partnership with local farmers
and sustainable frying practices, including the use of air fryers
and oil recycle programs. Many of the members in this target
market are craft beer aficionados, making the Multi-Fry-er’s
collaborations with local breweries a big hit. And of course,
French fries and beer go great together!
In the Phoenix area alone, there are more than 200,000 21-40
years old’s (Current population, n.d.). Phoenix hosts more than
150 festivals every year (Frigerio, 2018 and 2019). There is
even an event dedicated to fries, the Fried: French Fry and
Music Festival. And festivals are only one market that the
11. Multi-Fry-er operates in. In addition to festivals, Multi-Fry-er’s
target market can be found in and around Phoenix’s 35 college
campuses (My college options, n.d.). Finally, brewery
partnerships expose the Multi-Fry-er to even more French fry
fans.
SWOT Analysis
Strengths:
-Niche market with French fries
-Menu variety with healthy options
-Exclusive contracts with events and venues with high
attendance
-Mobile business can go where there are business opportunities
-Easy to eat and vegan options
-Small staff with minimal training
-Community building business
Weaknesses:
- Non-proprietary recipes that could lead to increase in
competition
-Shortages in menu items due to local supply (Myrick, n.d.)
-Minimal space due to limited size of cooking area/food storage
-No sit-down space, always grab and go
-No consistent location, difficult for advertising
Opportunities:
-Growing industry as local events become more and more
popular
-Cultural following possible with loyal customer base
-Plans to build a strong social media presence (Myrick, n.d.)
-Franchise opportunity in multiple areas with strong following
and customer base
-Adding locations is easy
Threats:
-High competition at event venues without exclusivity
-Potential licensing issues may prevent business at certain
venues (Myrick, n.d.)
-Choosing low-attendance events / venues
-Increased fuel and ingredient costs
12. -Change in permit requirements
-Economic recession could lead people wanting to eat in
The 4 P’s
Product/Positioning
Multi-Fry-er will use the highest quality, local ingredients so
that they can remain tied to the community as well as giving
customers a firm understanding of what they are eating and
where it came from. Multi-Fry-er will position this as a positive
attribute to their food trucks over the others that may throw
together higher priced, processed or prepackaged foods. Multi-
Fry-er products will stand out amongst the others as versatile,
with vegan/vegetarian options, as well as plenty for the
carnivore in each family!
Pricing
Thanks to very lean operating processes and a focus on local
suppliers, Multi-Fry-er is able to sustain competitive pricing.
Utilizing local suppliers for produce and other supplies is really
what sets Multi-Fry-er apart from its competitors. Multi-Fry-er
is not only able to set the bar high for quality, but offer it at a
premium price. While pricing may vary a little form one end of
the menu to the other, as Multi-Fry-er has a wide range of
treats, Multi-Fry-er guarantees to have something to meet
everyone’s budget.
Promotion
Multi-Fry-er will promote through a user-friendly website and
social media including Facebook, Instagram, Twitter and
Snapchat. Establishing a strong relationship with the customer
base will help ensure that customers visit the truck, even with
the changing locations. Multi-Fry-er will also work closely with
the popular events to ensure that promotion of Multi-Fry-er is
prominent on all the marketing materials for the event (Myrick,
n.d.).
Placement
Since Multi-Fry-er is mobile, strategy is an important part of
the business plan. Multi-Fry-er will establish contracts with
13. popular venues for exclusive vending at events. The Food truck
will also be scheduled throughout the week to make routine
stops at businesses with 50+ employees. Lastly, Multi-Fry-er
will conduct business at popular weekend events with projected
high attendance (Myrick, n.d.).
The 4 I’s
Intangibility
Intangibility really comes into play with Multi-Fry-er’s business
model because this is where the item can’t be touched or seen
before the customer makes a purchase. Multi-Fry-er will focus
on providing a fully detailed menu with proper pictures and
adequate descriptions of toppings and options in order for the
customer to connect their taste buds with the available product.
Inconsistency
Inconsistency will be a struggle internally, but Multi-Fry-er will
set itself up so that the customers will always have a consistent
experience when it comes to the food, pricing, and customer
service. Multi-Fry-er will be able to purchase products via
wholesale pricing in order to budget for consistent prices on the
menu. As far as customer service goes, with training and quality
control the customer will be receiving the same customer
service experience from all staff members.
Inseparability
The inseparability between services and providers that Multi-
Fry-er will deal with is the food truck itself with vendors for
food and supplies, social media platforms, and technology to
run transactions.
Inventory
Inventory will be something that requires a lot of focus and
attention because Multi-Fry-er’s products are perishable. Since
the products are perishable the demand for service becomes
very important.
Conclusion
There are many products aimed at 21-40-year old’s in the
greater Phoenix area, but Multi-Fry-er stands uniquely poised to
capture a substantial portion of the food truck industry share.
14. With a focus on event attendance and local business
partnerships, both at the food supply level and with craft
breweries, Multi-Fry-er is ready to meet its market on their
terms. Coupled with excellent customer service and up-to-the
minute social media promotion, Multi-Fry-er will create a
unique relationship with their customers that will keep them
coming back for more. And by keeping an eye on the areas of
weakness or concern, Multi-Fry-er will tackle concerns before
they become problems. Through a solid understanding of who
their customers are and what the customers want, Multi-Fry-er
will continue to raise the bar and stay ahead of the competition.
References
College search. (n.d.). Retrieved from
https://www.mycollegeoptions.org/college-
search/AZ/Arizona/0/Phoenix.aspx
Current Phoenix, Arizona population, demographics and stats in
2019, 2018. (n.d.) Retrieved from
https://suburbanstats.org/population/arizona/how-many-people-
live-in-phoenix
Fried: French fry music festival. (n.d.). Retrieved from
https://www.universe.com/events/fried-french-fry-music-
festival-tickets-phoenix-J1S2CB
Frigerio, J. (2018). Phoenix festivals 2018: 90+ food, drink,
music and art festivals you cannot miss this fall and winter
Frigerio, J. (2019). Phoenix festivals 2019: 70+ food, music,
and art festivals you do not want to miss this spring. Retrieved
from https://www.abc15.com/entertainment/events/phoenix-
festivals-2018-90-food-drink-music-and-art-festivals-you-
cannot-miss-this-fall-
winterhttps://www.abc15.com/entertainment/events/phoenix-
festivals-2019-70-food-music-and-art-festivals-you-do-not-
want-to-miss-this-spring
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic
management: Competitiveness & globalization (11th ed.).
Stamford: Ct. Cengage Learning.
15. Jones, A.J. (2017). Four P’s of Marketing. Retrieved from
https://www.investopedia.com/terms/f/four-ps.asp
Myrick, R. (n.d.). Food truck industry growth trends. Retrieved
from https://mobile-cuisine.com/off-the-wire/food-truck-
industry-growth-trends/
Myrick, R. (n.d.). Developing a SWOT Analysis for Your
Mobile Food Business. Retrieved from https://mobile-
cuisine.com/business/swot-analysis-mobile-food-business/
Myrick, R. (n.d.). The 4Ps Of Food Truck Marketing | Mobile
Cuisine. Retrieved from https://mobile-
cuisine.com/marketing/the-4ps-of-food-truck-marketing/
Red Team Capstone: Week 2
Brianna Baldwin, Brittney Mendez, Catherine Thyben, Chelsea
Slawson,
Christopher Mitchell, David Chavez, Gabriel Parra, Jill
Peterson
Grand Canyon University: BUS-485
March 17, 2019
Running head: ASSIGNMENT TITLE HERE
16. 1
Capstone: Week 2
Food trucks are a fast-growing segment in the food-service
industry providing a myriad of opportunities for growth
(Myrick, n.d.). In order to capitalize on the opportunities
available in the food truck market, it is necessary to evaluate
the environment in which they operate. An environmental
analysis can reveal not only areas of potential growth, but also
areas of potential trouble. With this information, a company can
make a more informed strategic plan (Arthur, n.d.). A thorough
study of the five forces of competition, Multi-Fry-er’s
competitive advantage, the hurdles to international entry, and
the outlook, forecast, and trends for the industry demonstrates
that Multi-Fry-er is poised to be successful in the industry.
Industry Analysis: Five forces of competition
Threat of New Entrants
Understanding the new entrants into the market is key to staying
competitive. New entrants increase the production. This can
pose a problem if consumer demand is not growing at the same
rate (Heizer, Render, Munson, 2017). Multi-Fry-er is unique in
two ways. First, it is a food truck which differentiates itself
from your more common food services. Second, it has a very
unique menu. Multi-Fry-er looks to stay ahead of trends and to
forecast ways to stay sustainable regardless of new entrants and
whatever it is they may bring to the marketplace. Multi-Fry-er
will continue to seek out untapped markets and niches as to
always keep its product unique to the specific demographic they
are targeting. In order to stay competitive, Multi-Fry-er will
remain adaptable; looking to evolve its product line toward
consumer desires and areas where there are currently limited
offerings in the industry.
Threat of Substitute Products
It is important to identify products that could compete for
consumer interest. Substitution poses a threat when there is
17. minimal cost or difficulty to switch. This can weaken a
company’s position in the market (Johnson, 2017). Multi-Fry-er
combats this by, in a sense, providing the substitute. Everyone
has to eat, what drives the masses in determining what to eat
becomes the focus. Multi-Fry-er looks at the leading forces that
drive the public in making this decision, including cost, health,
and quality. Multi-Fry-er is able to keep prices down by
utilizing local suppliers, cater to the health nut by offering
vegan and organic products, and offer a quality product by
ensuring freshness and uniqueness. Ultimately the Multi-Fry-
er’s ability to adapt and evolve is their biggest virtue when it
comes to competitor substitutes.
Bargaining Power of Buyers/Bargaining Power of Suppliers
Bargaining power of buyers and suppliers is relevant in many
businesses, food trucks included. (Hitt, Ireland, & Hoskisson,
2015). Just like stationary restaurants, food trucks must go
through suppliers that handle a multitude of products. There is
the initial setup of the truck with the appliances and cooking
equipment. If the appliances are new it places the bargaining
chip in the hands of the supplier. If the choice is made to
purchase older equipment, such as last year's model, Multi-Fry-
er would have a better position to request a lower price. Having
multiple suppliers in the area would also help to lower prices by
encouraging healthy competition between the companies.
The biggest opportunity for bargaining, however, is in the
acquisition of all of the fresh food items that Multi-Fry-er will
need to fill the customers’ orders. One of the benefits that they
have is that the staple item that their product is based on is
potatoes. Potatoes are a relatively inexpensive and abundant
product so they should stay available throughout all seasons and
stable price wise. For the other items chosen, the bargaining
position will vary. Some of these items will fluctuate in price
due to seasonal changes, shortages, and surpluses of those
products. An example of this is fresh corn. Corn is widely
available during the summer months at lower prices. Winter,
however, shows an increase in the price of fresh corn due to the
18. lack of available crops. Multi-Fry-er would then have to decide
to continue to use this product at the higher price or go to
another option such as canned. In this option, the supplier has
the advantage. The only option Multi-Fry-er could have would
be to advocate the purchase of the entire lot of corn at a
discounted price. This way the supplier would sell out of their
item with little loss and Multi-Fry-er would have an item they
wanted. To combat this Multi-Fry-er might have to keep their
menu fluid and available to be changed to coincide with what
products are the freshest for the season.
Rivalry among Competing Firms
The external environment plays a critical role in shaping the
future of entire industries and those of individual businesses
(Hitt, Ireland, & Hoskisson, 2015). The Multi-Fry-er will know
who its direct and indirect competitors are. Knowing the
competing firms will help the Multi-Fry-er adjust their menu,
allowing their unique food options and customer service stand
out. By setting competitive prices and utilizing innovative
marketing campaigns, Multi-Fry-er will stay ahead of the
competition. The Multi-Fry-er has a new, authentic brand that’s
relevant to their market and will offer options competitors
won’t. The brand will also connect directly with patrons on
social media and engage their followers in a fun way. The
Multi-Fry-er will compete consistently with rivalry competition
by offering a higher quality menu with easy to eat, vegan, and
organic options that meets the needs of the customers. By
offering superior service and convenience, the Multi-Fry-er
Food Truck will separate itself from rivalry firms and create a
following of customers looking for a food truck going above
and beyond what customers have come to expect. These values
will build customer loyalty and put the Multi-Fry-er food truck
a step above its rivalry competing firms.
Competitive Advantage
The sources of competitive advantage start first and
foremost with the people, the team internally. The staff behind
Multi-Fry-er drives the competitive advantage the most. The
19. staff is motivated to succeed by an innovative employee
compensation program. Happy employees bring enthusiasm to
their jobs (Hyken, 2017). Employees then create, craft,
innovate, and establish relationships in the community in order
to generate business. Multi-Fry-er might have a big
competition line up when it comes to other food trucks in the
industry, but no other food truck can copy the staff that is on
deck. Some of the other sources of competitive advantage that
Multi-Fry-er has is the culture of the organization, the processes
and practices that are in place, the products that are used, and
local resources that are incorporated into the menu. The culture
in the organization is one that will be directly reflected to the
customer. Multi-Fry-er wants to deliver a happy, bright, and
unique experience to keep the customer frequenting the food
truck. The Multi-Fry-er uses a unique cooking process and the
freshest ingredients to create fries the competitors will have a
difficult time duplicating.
International Entry Modes
Multi-Fry-er’s global expansion will be executed through
an affordable and low risk licensing program (Miley, 2018).
Through an easily duplicated business model, interested buyers
can successfully start a Multi-Fry-er business. Licensing
opportunities would consist of a detailed contract that would
allow the new business owner to purchase equipment, complete
training, and utilize the established Multi-Fry-er name, designs,
menus, and ongoing support. Certain expectations will be
outlined in the contracts to ensure new owners uphold Multi-
Fry-ers exceptional standards.
Global Expansion: Canada
Multi-Fry-er will start it’s expansion in Canada because of
the similar economy and culture to America. Multi-Fry-er would
begin it’s efforts in highly populated provinces. The food truck
industry is booming in Canada where street vending has been
one of the best-performing industries five consecutive years.
According to a recent research report in May of 2018, Canadian
street vendors have made 314 million annually with annual
20. growth of 2.3% (Street vendors, 2018). Since Canada is a
neighboring country, Multi-Fry-er will be able to easily
transport it’s trucks to new buyers. French is the other language
widely spoken in Canada provinces, so Multi-Fry-er will ensure
it has a team of French speaking employees to accommodate the
needs of prospective buyers. Additionally, Multi-Fry-er would
ensure that all business material is in English and French to
ensure new franchisees can communicate effectively with the
customer base.
Outlook, Forecast, or Trends
Food trucks are organizations that are equipped to prepare
and sell food. Food trucks are such as sell frozen, prepackaged
food or ice cream trucks, (Mintzer, 2015). In many
circumstances, food trucks have their own kitchens and prepare
food on the spot. External environmental analysis is the process
where food truck organizations identify all the external
elements that can affect the performance of the organization.
The external analysis assesses the presence of the level of
threats and opportunities of the factors. Some of the threats and
opportunities that may affect food truck organizations are as
follows.
The price index of the agricultural products is an indicator of
the price merchants can hope to pay for the ingredients expected
to set up their suppers. At the point when the costs of these
ingredients increment, working costs increment also, ordinarily
bringing about lower overall. The industry is threatened by any
rise of price of the agricultural inputs.
The business gets profits by development in purchaser spending.
The inevitable spike in unemployment has resulted to
consumption decline during time of recession. At the point
when there is high buyer spending, consumers are bound to
spend much money on feasting out in food trucks. The potential
opportunity for the industry is presented by the expected
increase on consumer spending.
Conclusion
The five forces of competition, competitive advantage,
21. international entry points, and current trends reveal a number of
ways that Multi-Fry-er can improve their product and build on
their strengths. By catering to the current cultural interest in
unusual and authentic food, Multi-Fry-er can leverage its unique
product and by paying branching into other countries through
franchising opportunities, Multi-Fry-er can expand its brand. By
combining cutting edge technology, fresh local produce, and
highly engaged staff, the Multi-Fry-er will stay ahead of the
competition and maintain its competitive advantage.
References
Arthur, L. (n.d.). The implications of environmental analysis on
strategic plan. Retrieved from
https://smallbusiness.chron.com/implications-environmental-
analysis-strategic-plan-35303.html
Heizer, J., & Render, B. (2005). Operations management and
student CD (8th ed.).
Upper Saddle River, NJ: Prentice Hall.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic
management: Competitiveness & globalization (11th ed.).
Stamford: Ct. Cengage Learning.
Hyken, S. (2017). How happy employees make happy
customers. Forbes. Retrieved from
https://www.forbes.com/sites/shephyken/2017/05/27/how-
happy-employees-make-happy-customers/#358ff7975c35
Johnson, J. F. (2017). 5 Forces. Retrieved from
https://www.investopedia.com/terms/p/porter.asp
Miley, M. (2018). Five modes of entry into foreign markets.
Retrieved from https://budgeting.thenest.com/five-modes-entry-
foreign-markets-25303.html
Mintzer, R. (2015). Start your own food truck business: Cart
trailer kiosk standard and gourmet trucks mobile catering
bustaurant. Entrepreneur Press.
Myrick, R. (n.d.). Food truck industry growth trends. Retrieved
from https://mobile-cuisine.com/off-the-wire/food-truck-
industry-growth-trends/
22. Street vendors - Canada market research report. (n.d.).
Retrieved March 13, 2019, from
https://www.ibisworld.ca/industry-trends/market-research-
reports/accommodation-food-services/street-vendors.html
Red Team Capstone: Week 1
Brianna Baldwin, Catherine Thyben, Chelsea Slawson,
Christopher Mitchell,
David Chavez, Gabriel Parra, Jill Peterson
Grand Canyon University: BUS-485
March 10, 2019
Running head: ASSIGNMENT TITLE HERE
1
Capstone: Week 1
Context and Organization
Multi-Fry-er is a food truck that serves the community a variety
of french fries and toppings to go along with them. The Multi-
23. Fry-er is cheap for the customer, easy to frequent, and serves
finger food in a way that is fun and functional to eat while
walking around at different festivals or events. With the variety
of toppings and options Multi-Fry-er serves the entire family
with options catered to every age group and food palette. As
well as having the privilege of serving up these world class,
main course, side-dishes, Multi-Fry-er heavily invests in the
community. Multi-Fry-er partners with local schools offering
summer internships, affording students first-hand, real-world
experience in business ethics and best-management practices,
all while having the opportunity to humbly serve the
community. Multi-Fry-er also partners with local suppliers who
are heavily vetted ensuring they hold and maintain similar
practices, values, and ethics.
Vision, mission, and strategy of the organization
Vision Statement: To make Multi-Fry-er a mobile destination
that provides delicious, local food to fit every diet and budget
in a fun atmosphere that will bring customers back again and
again. The tantalizing variety of french fried veggies offers
customers several options, ranging from old fashioned potatoes
to eggplants and other seasonal creations, all made to to order
with fun toppings. Customers with a sweet tooth, Multi-Fry-er
has them covered with delicious Funnel Cake Fries!
Mission Statement: The Multi-Fry-er’s mission is to provide a
fun, affordable, and accommodating experience to their
customers and their families by providing a unique touch to one
of the most common and favorable side dishes in America.
Strategy: Multi-Fry-er’s strategy in order to achieve a strong
competitive advantage and earn adequate returns/profits will be
to execute a strong presence on social media on various
platforms. Multi-Fry-er will also employ a strong management
team to ensure resources, purchases, capabilities, and strengths
and weaknesses are identified and focused on in order to
achieve overall success. By relying on social media and
connecting with the community the outreach and knowledge of
the Multi-Fry-er should reach consumers in the respective areas
24. quickly, therefore generating a buzz.
Nature of the business opportunity
The Multi-Fry-er Food Truck will provide a service to
customers who want a unique twist on the classic french fry.
The Multi-Fry-er Food Truck will provide a variety of french
fry options. These options include potato fries, zucchini fries,
and eggplant fries. Additionally, ingredients offered will be
organic, produced by local farmers, with vegetarian and vegan
topping options.
The target demographic is 18 to 40 year old and the Multi-Fry-
er will seek a variety of venue options consistent with this
demographic. The Multi-Fry-er Food Truck will satisfy a
growing need in the food industry to partner with craft beer
breweries (Watson, 2019), music festivals venues, sporting
events venues and outdoor special events venues to provide an
easy to eat finger food that also offers heather vegetarian and
vegan options. The service offered by the Multi-Fry-er Food
Truck allows these venues the opportunity to provide food to
their patrons without having to invest in an on premise food
facility and avoid the risks associated with on premise food
sales. The Multi-Fry-er Food truck satisfies the need of a
mobile food provider and allows these venues to concentrate on
growing their business.
References
Watson, B. (2019). Analyzing 2017 Craft Brewery Growth |
Brewers Association. Retrieved from
https://www.brewersassociation.org/insights/analyzing-2017-
craft-brewery-growth/