Team 2 will present their analysis of Papa John's International, Inc. They will discuss Papa John's growth strategy, updated SWOT analysis, marketing strategy, and technology strategy. They will then analyze the pizza industry and Papa John's main competitors. Team 2 will also cover Papa John's franchise model, domestic and international expansion, and markets in the UK and China. Finally, they will conduct a financial analysis and discuss risks and recommendations.
Based on the information provided, Papa John's does attempt to differentiate its products compared to competitors through focusing on higher quality ingredients in its pizza dough and toppings. However, the document does not provide enough detail to conclusively determine whether Papa John's products possess a meaningful competitive advantage over major competitors like Domino's and Pizza Hut. The products appear fairly standard for the pizza delivery/takeout space.
Papa John's has experienced only incremental growth in the new century. Domestic revenue growth decreased to 1% in 2003 and operating income and net income have been declining for the past 4 years. Additionally, Papa John's stock performance has underperformed compared to industry benchmarks. Key issues include a saturated pizza industry, rising costs, and a need to return to faster growth and store expansion. Product differentiation and focusing on unique attributes are theories that could help Papa John's enhance its competitive position.
Papa John's has experienced only incremental growth in recent years. Problems include declining operating income and net income, slower domestic revenue growth compared to international, and underperforming stock returns relative to indices. The case discusses Papa John's business model, strategy of product differentiation based on quality ingredients and community involvement, and external analysis using Porter's Five Forces showing high rivalry in the mature pizza industry.
The document discusses the balanced scorecard and how Nestle uses it. It defines the balanced scorecard as a framework that provides an overarching view of a business's strategic plan from an executive perspective. The balanced scorecard helps communicate strategy, objectives, and performance among business units. The document then outlines how Nestle uses the balanced scorecard across four perspectives: learning and growth, business processes, financial, and customers. It also notes some challenges in implementing the balanced scorecard, such as developing a common vocabulary and cascading metrics to individual levels.
Strategy review, evaluation, and controlAaqib Sarwar
The document discusses strategy evaluation and control. It provides guidelines for evaluating strategies, including consistency, consonance, feasibility, and competitive advantage. It also discusses measuring organizational performance, taking corrective actions, and characteristics of an effective evaluation system. Contingency planning is important in case key events do not occur as expected. Strategy evaluation is an ongoing process that ensures objectives are being achieved and allows companies to adapt to changing environments.
1. Peter Hynes created an improved commercial paint spray and formed a corporation called Dispensers of California, Inc. with some friends to gain a patent for the spray.
2. The document includes transaction worksheets, trial balances, income statements, statements of cash flow, and ending balance sheets to analyze the financial performance and position of the new business.
3. It asks if you would invest in the company based on considerations like the profit plan, financial statements, return on equity, return on sales, and current ratio.
Based on the information provided, Papa John's does attempt to differentiate its products compared to competitors through focusing on higher quality ingredients in its pizza dough and toppings. However, the document does not provide enough detail to conclusively determine whether Papa John's products possess a meaningful competitive advantage over major competitors like Domino's and Pizza Hut. The products appear fairly standard for the pizza delivery/takeout space.
Papa John's has experienced only incremental growth in the new century. Domestic revenue growth decreased to 1% in 2003 and operating income and net income have been declining for the past 4 years. Additionally, Papa John's stock performance has underperformed compared to industry benchmarks. Key issues include a saturated pizza industry, rising costs, and a need to return to faster growth and store expansion. Product differentiation and focusing on unique attributes are theories that could help Papa John's enhance its competitive position.
Papa John's has experienced only incremental growth in recent years. Problems include declining operating income and net income, slower domestic revenue growth compared to international, and underperforming stock returns relative to indices. The case discusses Papa John's business model, strategy of product differentiation based on quality ingredients and community involvement, and external analysis using Porter's Five Forces showing high rivalry in the mature pizza industry.
The document discusses the balanced scorecard and how Nestle uses it. It defines the balanced scorecard as a framework that provides an overarching view of a business's strategic plan from an executive perspective. The balanced scorecard helps communicate strategy, objectives, and performance among business units. The document then outlines how Nestle uses the balanced scorecard across four perspectives: learning and growth, business processes, financial, and customers. It also notes some challenges in implementing the balanced scorecard, such as developing a common vocabulary and cascading metrics to individual levels.
Strategy review, evaluation, and controlAaqib Sarwar
The document discusses strategy evaluation and control. It provides guidelines for evaluating strategies, including consistency, consonance, feasibility, and competitive advantage. It also discusses measuring organizational performance, taking corrective actions, and characteristics of an effective evaluation system. Contingency planning is important in case key events do not occur as expected. Strategy evaluation is an ongoing process that ensures objectives are being achieved and allows companies to adapt to changing environments.
1. Peter Hynes created an improved commercial paint spray and formed a corporation called Dispensers of California, Inc. with some friends to gain a patent for the spray.
2. The document includes transaction worksheets, trial balances, income statements, statements of cash flow, and ending balance sheets to analyze the financial performance and position of the new business.
3. It asks if you would invest in the company based on considerations like the profit plan, financial statements, return on equity, return on sales, and current ratio.
- Accor is a major global hotel group founded in France in 1967 with 27 brands and over 4,900 hotels worldwide.
- The hotel industry is being disrupted by new digital entrants like Airbnb that have adopted more agile structures and customer-centric models.
- Accor is undergoing a digital transformation, moving from an asset-heavy hierarchical model to a more dynamic, mobile-first, and customer-centric organization through streamlining processes, developing new brands like Jo&Joe, and creating an ecosystem of partners.
The Case of Miami University_Evrim GözenerHayata Dokun
Miami University was founded in 1809 in Oxford, Ohio and has around 15,000 undergraduate students. It aims to provide quality education through teaching, scholarship, and service. While it has strengths like high graduate rates and brand image, it also faces weaknesses such as high fees and expenses. The university considers building new residential campuses and reducing fees to improve accessibility.
This chapter discusses strategy evaluation, review, and control. It explains that strategy evaluation involves examining strategy foundations, comparing expected and actual results, and taking corrective actions. It also discusses challenges in strategy evaluation, frameworks for evaluating strategies, measuring performance, and the importance of contingency planning and auditing in the evaluation process.
This document discusses the application of the SPACE (Strategic Position and Action Evaluation) matrix to analyze the strategic position of Mahde Beton Concrete Construction Company. The SPACE matrix assesses four factors: 1) industry attractiveness, 2) environmental stability, 3) competitive advantage, and 4) financial strength. It can help identify whether an aggressive, conservative, defensive, or competitive strategy is most appropriate. The document provides details on how to evaluate each SPACE matrix factor, including examples of financial strength measures. Based on the combination of ratings across factors, the SPACE matrix guides the selection of an optimal strategic agenda.
20140513 Presentation The Amazon Experience_SlidesharePascal Spelier
The document discusses Amazon's approach to customer experience. It highlights that Amazon aims to be the world's most customer-centric company where customers can find anything they want to buy online. It then examines Amazon's customer journey process and identifies several factors that contribute to its great customer experience, including low prices, fast delivery, reliable service, and helpful customer support. The document concludes by emphasizing Amazon's focus on keeping customers engaged at every step of the shopping and purchasing process.
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
This document provides an analysis of FedEx Corporation, including its mission, vision, strategies, and corporate social responsibility initiatives. It summarizes the company's financial performance and operating segments. Appendices include financial ratio analyses and strategic matrices assessing FedEx's internal strengths and weaknesses as well as external opportunities and threats.
Coda Coffee was founded in 2005 in Colorado with a goal of sustainable and socially responsible coffee wholesaling. Bext 360 was founded separately to use technology like machine vision, AI, blockchain and IoT to determine coffee quality. In a pilot project in Uganda, Bext 360's technology helped Coda Coffee and local coffee farmers by providing instant payment and supply chain transparency. This included quality details and premium payments for farmers accessible throughout the chain.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
Xiamen Airlines reformed its pilot compensation system in 2009 to better link pay to performance. Initial results were positive with improved productivity and satisfaction, but recruiting and retaining pilots remained challenging due to shortages and competition. The new system provided incentives like increased pay for extra hours flown and bonuses for achievements. Outcomes included pilots flying more hours, saving on hiring, experienced pilots training newcomers, and lower attrition. Profits increased nearly 500% from 2009-2010 under the new system. However, questions remained about sustainability if the industry became less profitable and what else the airline could offer to retain talent.
Shaan Foods is a leading Pakistani manufacturer and exporter of packaged spices. The document provides an analysis of Shaan Foods including its history, products, target market, competitors like National Foods, and marketing strategies. It also includes a SWOT analysis, identifying strengths such as a variety of product lines and weaknesses like limited marketing campaigns. The analysis shows Shaan Foods has opportunities for international expansion while facing threats from competitors with stronger local distribution.
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
This presentation discusses Microsoft Corporation and the Boston Consulting Group (BCG) matrix approach. It provides background on Microsoft's founding in 1975. It then analyzes different Microsoft operating systems according to the BCG matrix categories: Windows 10 is a cash cow; Windows 7 is also a cash cow; Windows Phone is a question mark with low market share and growth; Windows Vista is a dog with low market share. Finally, it recommends post-analysis strategies for each category, such as increasing investment in Windows Phone to make it a star, and harvesting Windows 10 to maximize profits.
International Business Strategy_AVON_ReportHungyu Lai
International Business Strategy
An international business strategy analysis report based on the assumption of the Avon company case
Researched and Presented in UCI IBOM class
This document presents LeapFrog Enterprises' expansion strategy into Latin America. It provides an overview of LeapFrog, discusses stakeholders in the potential expansion, and outlines strategic issues to consider. The strategic gap analysis identifies opportunities for LeapFrog in Latin American markets for English language and LeapPad products. The document analyzes countries like Chile, Argentina, Costa Rica and Colombia before presenting strategic alternatives and a timeline for implementation.
Alibaba Group is a Chinese multinational technology company focused on e-commerce, retail, internet, and technology. It was founded in 1999 by Jack Ma and 18 others. Alibaba has since become the largest online and mobile commerce company in the world. It operates major Chinese online marketplaces including Taobao and Tmall. Through strategic acquisitions and partnerships, Alibaba has expanded into many other related services and established itself as a dominant player in the global e-commerce industry.
Best Buy began in 1983 as an audio equipment retailer and has since grown to become the largest consumer electronics retailer in North America. However, Best Buy has faced challenges in recent years from increased competition from Amazon and Walmart. Best Buy's "Renew Blue" strategy aimed to enhance the customer experience in stores, improve employee training, and expand product offerings online. The new "Best Buy 2020" plan focuses on maximizing the multi-channel retail business, providing services to meet customer needs, and accelerating growth in Canada and Mexico. To address problems like showrooming, Best Buy must focus on exclusive products, charging manufacturers for store space, matching online prices, and improving after-sales service.
This slide deck was prepared in the spring of 2017 for the CRC Stock Pitch Competition. The team used a DCF model and comparables, among other methods, to value and analyze the company. One of the main arguments for growth in addition to the drivers was the undervalued Euro, and since presentation, has corrected itself and appreciated in value.
The document outlines an operational action plan for a coffee shop chain. It discusses pursuing self-serve vending machines and an Air Miles partnership to expand breakfast offerings and loyalty programs. An internal and external analysis examines the company's mission, markets, strengths, and competitive landscape. A PEST analysis covers political, economic, social and technological factors. Finally, a balanced scorecard outlines marketing, financial, customer, and learning & growth metrics to track progress against the company's vision.
Papa John's began as a single pizza shop in 1984 and has since grown to become the third largest pizza chain in the US through a strategy of franchising, international expansion, and maintaining high quality ingredients. While the pizza industry is mature and competitive, Papa John's differentiates itself through superior quality products, marketing focusing on community involvement, and an efficient commissary system. Going forward, the document recommends Papa John's focus on increasing domestic market penetration, expanding internationally into regions with growing incomes, and diversifying its business beyond pizza.
Francis Flores - Papa Johns Case Analysis Francis Flores
This document provides an analysis of Papa John's Pizza and the pizza industry. It includes an examination of Papa John's external environment, competitive forces, key rivals, internal strategy and finances. The document concludes that while Papa John's focuses on quality ingredients and customer service, it should expand its product line as consumer tastes change. It recommends Papa John's increase its international market share, diversify its marketing efforts beyond NFL sponsorships, and ensure customer needs remain the main focus of its strategy.
- Accor is a major global hotel group founded in France in 1967 with 27 brands and over 4,900 hotels worldwide.
- The hotel industry is being disrupted by new digital entrants like Airbnb that have adopted more agile structures and customer-centric models.
- Accor is undergoing a digital transformation, moving from an asset-heavy hierarchical model to a more dynamic, mobile-first, and customer-centric organization through streamlining processes, developing new brands like Jo&Joe, and creating an ecosystem of partners.
The Case of Miami University_Evrim GözenerHayata Dokun
Miami University was founded in 1809 in Oxford, Ohio and has around 15,000 undergraduate students. It aims to provide quality education through teaching, scholarship, and service. While it has strengths like high graduate rates and brand image, it also faces weaknesses such as high fees and expenses. The university considers building new residential campuses and reducing fees to improve accessibility.
This chapter discusses strategy evaluation, review, and control. It explains that strategy evaluation involves examining strategy foundations, comparing expected and actual results, and taking corrective actions. It also discusses challenges in strategy evaluation, frameworks for evaluating strategies, measuring performance, and the importance of contingency planning and auditing in the evaluation process.
This document discusses the application of the SPACE (Strategic Position and Action Evaluation) matrix to analyze the strategic position of Mahde Beton Concrete Construction Company. The SPACE matrix assesses four factors: 1) industry attractiveness, 2) environmental stability, 3) competitive advantage, and 4) financial strength. It can help identify whether an aggressive, conservative, defensive, or competitive strategy is most appropriate. The document provides details on how to evaluate each SPACE matrix factor, including examples of financial strength measures. Based on the combination of ratings across factors, the SPACE matrix guides the selection of an optimal strategic agenda.
20140513 Presentation The Amazon Experience_SlidesharePascal Spelier
The document discusses Amazon's approach to customer experience. It highlights that Amazon aims to be the world's most customer-centric company where customers can find anything they want to buy online. It then examines Amazon's customer journey process and identifies several factors that contribute to its great customer experience, including low prices, fast delivery, reliable service, and helpful customer support. The document concludes by emphasizing Amazon's focus on keeping customers engaged at every step of the shopping and purchasing process.
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
This document provides an analysis of FedEx Corporation, including its mission, vision, strategies, and corporate social responsibility initiatives. It summarizes the company's financial performance and operating segments. Appendices include financial ratio analyses and strategic matrices assessing FedEx's internal strengths and weaknesses as well as external opportunities and threats.
Coda Coffee was founded in 2005 in Colorado with a goal of sustainable and socially responsible coffee wholesaling. Bext 360 was founded separately to use technology like machine vision, AI, blockchain and IoT to determine coffee quality. In a pilot project in Uganda, Bext 360's technology helped Coda Coffee and local coffee farmers by providing instant payment and supply chain transparency. This included quality details and premium payments for farmers accessible throughout the chain.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
Xiamen Airlines reformed its pilot compensation system in 2009 to better link pay to performance. Initial results were positive with improved productivity and satisfaction, but recruiting and retaining pilots remained challenging due to shortages and competition. The new system provided incentives like increased pay for extra hours flown and bonuses for achievements. Outcomes included pilots flying more hours, saving on hiring, experienced pilots training newcomers, and lower attrition. Profits increased nearly 500% from 2009-2010 under the new system. However, questions remained about sustainability if the industry became less profitable and what else the airline could offer to retain talent.
Shaan Foods is a leading Pakistani manufacturer and exporter of packaged spices. The document provides an analysis of Shaan Foods including its history, products, target market, competitors like National Foods, and marketing strategies. It also includes a SWOT analysis, identifying strengths such as a variety of product lines and weaknesses like limited marketing campaigns. The analysis shows Shaan Foods has opportunities for international expansion while facing threats from competitors with stronger local distribution.
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
This presentation discusses Microsoft Corporation and the Boston Consulting Group (BCG) matrix approach. It provides background on Microsoft's founding in 1975. It then analyzes different Microsoft operating systems according to the BCG matrix categories: Windows 10 is a cash cow; Windows 7 is also a cash cow; Windows Phone is a question mark with low market share and growth; Windows Vista is a dog with low market share. Finally, it recommends post-analysis strategies for each category, such as increasing investment in Windows Phone to make it a star, and harvesting Windows 10 to maximize profits.
International Business Strategy_AVON_ReportHungyu Lai
International Business Strategy
An international business strategy analysis report based on the assumption of the Avon company case
Researched and Presented in UCI IBOM class
This document presents LeapFrog Enterprises' expansion strategy into Latin America. It provides an overview of LeapFrog, discusses stakeholders in the potential expansion, and outlines strategic issues to consider. The strategic gap analysis identifies opportunities for LeapFrog in Latin American markets for English language and LeapPad products. The document analyzes countries like Chile, Argentina, Costa Rica and Colombia before presenting strategic alternatives and a timeline for implementation.
Alibaba Group is a Chinese multinational technology company focused on e-commerce, retail, internet, and technology. It was founded in 1999 by Jack Ma and 18 others. Alibaba has since become the largest online and mobile commerce company in the world. It operates major Chinese online marketplaces including Taobao and Tmall. Through strategic acquisitions and partnerships, Alibaba has expanded into many other related services and established itself as a dominant player in the global e-commerce industry.
Best Buy began in 1983 as an audio equipment retailer and has since grown to become the largest consumer electronics retailer in North America. However, Best Buy has faced challenges in recent years from increased competition from Amazon and Walmart. Best Buy's "Renew Blue" strategy aimed to enhance the customer experience in stores, improve employee training, and expand product offerings online. The new "Best Buy 2020" plan focuses on maximizing the multi-channel retail business, providing services to meet customer needs, and accelerating growth in Canada and Mexico. To address problems like showrooming, Best Buy must focus on exclusive products, charging manufacturers for store space, matching online prices, and improving after-sales service.
This slide deck was prepared in the spring of 2017 for the CRC Stock Pitch Competition. The team used a DCF model and comparables, among other methods, to value and analyze the company. One of the main arguments for growth in addition to the drivers was the undervalued Euro, and since presentation, has corrected itself and appreciated in value.
The document outlines an operational action plan for a coffee shop chain. It discusses pursuing self-serve vending machines and an Air Miles partnership to expand breakfast offerings and loyalty programs. An internal and external analysis examines the company's mission, markets, strengths, and competitive landscape. A PEST analysis covers political, economic, social and technological factors. Finally, a balanced scorecard outlines marketing, financial, customer, and learning & growth metrics to track progress against the company's vision.
Papa John's began as a single pizza shop in 1984 and has since grown to become the third largest pizza chain in the US through a strategy of franchising, international expansion, and maintaining high quality ingredients. While the pizza industry is mature and competitive, Papa John's differentiates itself through superior quality products, marketing focusing on community involvement, and an efficient commissary system. Going forward, the document recommends Papa John's focus on increasing domestic market penetration, expanding internationally into regions with growing incomes, and diversifying its business beyond pizza.
Francis Flores - Papa Johns Case Analysis Francis Flores
This document provides an analysis of Papa John's Pizza and the pizza industry. It includes an examination of Papa John's external environment, competitive forces, key rivals, internal strategy and finances. The document concludes that while Papa John's focuses on quality ingredients and customer service, it should expand its product line as consumer tastes change. It recommends Papa John's increase its international market share, diversify its marketing efforts beyond NFL sponsorships, and ensure customer needs remain the main focus of its strategy.
The document discusses Papa John's operations in China. It performs a PESTEL analysis of the Chinese market, finding opportunities in economic growth but also threats such as pollution. It analyzes Papa John's using the VRINE framework, identifying valuable operating systems and recommending improving franchisee selection and differentiating their brand. It concludes by recommending slowing expansion pace and increasing advertising.
Market study & Analysis of pizza industryrichhuynh87
This document provides a market study and analysis of the pizza industry. It discusses key topics such as the market overview including size, growth trends, and international expansion. It analyzes major competitors like Pizza Hut and Domino's Pizza, focusing on their market share, pricing strategies, and menu changes. It also examines business conditions in the industry like rising costs, consumer confidence, government regulations, and market saturation. Finally, it looks at demographics, consumer behavior trends, and the role of social media and online ordering for top chains.
Papa John's Pizza aims to market to college students through social media and location-based apps on smartphones. Their goals are to generate more website traffic and orders through a Google AdWords campaign, penetrate the college food market, and be more interactive through social media and Foursquare. Challenges include competition from other pizza places near colleges and seasonal fluctuations when students are not on campus. Their strategy involves social media promotion, contests and sweepstakes, location-based apps, blogging, SEO, and a $50,000 budget pulsed throughout the year.
Darren Chaker http://darrenchaker,us/ notes, “[T]he First Amendment does not „belong‟ to any definable category of persons or entities: It belongs to all who exercise its freedoms.” First Nat. Bank. of Boston v. Bellotti, 435 U.S. 765, 802 (1978) (Burger, C.J., concurring). This federal court ruling found a Florida law preventing disclosure of police home address information to be unconstitutional for several articulated reasons based on the First Amendment. The court found the right to publish police home addresses did not fall within any category of speech the First Amendment allowed to exempt from protection.
This is a comparative study between two international business - Honda and Harley - Davidson Motorcycle Company adapted from the text book: Bed, K. (2006). Quality Management. New Delhi: Oxford University Press.
Southwest Airlines case analysis presentation (designing work organization - ...Aditya Kumar Varshney
Group A8 analyzed Southwest Airlines. Southwest's mission statement focuses on excellent customer service delivered with warmth, friendliness and company spirit for both external customers and internal employees. The mission statement is simple but does not align fully with business strategy or reflect a vision for growth. Southwest has experienced great success through its low-cost strategy of operating fuel-efficient Boeing 737 aircraft on point-to-point routes, keeping fares simple, and focusing on volume over frills. It also emphasizes a unique, fun-loving culture cultivated through employee profit-sharing and development. However, maintaining this culture as the company continues to grow poses a challenge.
This presentation provides an overview of the British luxury brand Burberry. It discusses Burberry's heritage dating back to 1856 when it was founded, its focus on outdoor wear and invention of gabardine. It outlines Burberry's product portfolio spanning womenswear, menswear, childrenswear, accessories, and home goods. The presentation also examines Burberry's market expansion, distribution channels, and recent marketing efforts such as its "Fresh Meat" campaign featuring new models.
Chipotle is an American chain of fast casual restaurants known for burritos and tacos made from natural ingredients. It was founded in 1993 in Colorado and has expanded across the US and Canada. The document discusses conducting a SWOT analysis and providing recommendations for Chipotle to expand into India. It identifies strengths such as innovation and brand equity, but also weaknesses in limited menus and higher prices. Opportunities include emerging markets and expansion abroad, but threats include increased competition. Recommendations include using a joint venture to mitigate risks and initially opening two locations in New Delhi and Bangalore.
Case Study (Presentation): How Cisco Spark is used at ZOOM InternationalZOOM International
This case study is available in written text (PDF) and slide format. It explains how ZOOM uses Cisco™ Spark, ZOOM WFO, Salesforce.com™, Cisco Tropo, Cisco Voice Platforms, and Cisco Webex to help achieve the #1 rank in customer satisfaction for the WFO industry.
The studies include details on the background, problem, solution, and results of ZOOM's customer-focused culture, people, process, and technology.
Pertemuan membahas analisis lingkungan eksternal dan persaingan perusahaan. Terdapat pembahasan mengenai faktor-faktor lingkungan eksternal yang mempengaruhi perusahaan, cara menganalisis lingkungan dan persaingan, serta penyusunan tabel EFAS untuk mengevaluasi peluang dan ancaman eksternal perusahaan.
Hillcrest Products is introducing a glass cleaner and glass cleaning wipes under its brand. It is considering pricing for the two product types - a Duo-Pak and 32-ounce refill. Market research shows consumers prefer Windex and favor lighter bottles. Costs include production, marketing, and distribution expenses. Competitor prices range from $2.79 to $5.49. The document recommends setting the refill price at $3.99 and Duo-Pak at $4.99 based on a breakeven analysis, and expanding distribution, packaging, and the product line.
Management 315: International Management, Professor In Hyeock Lee
Loyola University Chicago Spring 2013
This case study analyzes Starbuck's overall performance as a multinational enterprise using the company's revenue data, 4 distances, firm specific advantages, country specific advantages, foreign direct investment, and much more.
Are your measures strategic? Are you measuring the right things to make sure your organization is strategically successful? Top-down versus bottoms up tracking.
- IKEA is a Swedish multinational group that sells ready-to-assemble furniture, appliances, and home accessories. It was founded in 1943 and is headquartered in the Netherlands.
- IKEA's vision is to offer well-designed, functional home furnishing at low prices so that the majority of people can afford them. It has grown from a one-man mail order business to over 300 stores worldwide serving over 699 million visitors annually.
- IKEA sources materials globally, with top suppliers in China, Poland, Sweden, Italy, and Germany. It pursues a strategy of cost leadership through standardized, low-cost products while allowing some local product customization and marketing adaptations across its stores.
This document provides an overview and summary of Ethical Corporation's 2016 State of Responsible Business report, which surveyed over 2,000 sustainability professionals from 114 countries. The report found that while sustainability is becoming increasingly important to organizations, there are still challenges in accurately measuring returns and increasing budgets. It also examined how respondents' view of issues like the UN Sustainable Development Goals and Paris Agreement were impacting strategies. The summary highlights the report's key findings on topics like organizational structure, priority areas, and future prospects for responsible business.
The document analyzes the dividend policy of Gainesboro Machine Tools Corporation, a company that manufactures machine tools and industrial machinery. It discusses Gainesboro's financial performance over the past few years, two restructuring efforts, and projected growth from a new product line. The problem is determining which dividend policy Gainesboro should adopt going forward: maintaining the current level, reducing payout, or changing to a residual dividend approach.
Sustainable Momentum_Sustainalytics' 2014 Sustainability ReportNina Van Ewijk
Sustainalytics is an independent ESG research and analysis firm that provides sustainability insights to investors. This document is Sustainalytics' second sustainability report, which summarizes the company's sustainability performance in 2014. It describes Sustainalytics' mission to provide insights for more sustainable decision-making, as well as its commitment to applying sustainability practices within its own operations. The report also outlines Sustainalytics' company structure, clients, employees and offices around the world.
1) Primero is committed to ethical, transparent governance and sustainability in its operations. It has a Corporate Responsibility Committee that oversees health, safety, environment and social matters and reports to the Board of Directors.
2) In 2014, the Committee reviewed Primero's materiality assessment process for sustainability reporting and ongoing policy implementation related to health and safety, environment and corporate social responsibility.
3) Primero respects human rights and ensures no discrimination or violations of indigenous peoples' rights at its mines. All workers have freedom of association and collective bargaining rights.
This document is a group report submitted by five students to their lecturer at North South University for their FIN440 course. It includes an executive summary comparing the financial performance of Square Pharmaceuticals and BSRM Steels Limited over three years. It also provides overviews of the two companies, describing their histories, missions, visions and objectives. The report then analyzes the financial performance of the companies using ratio analysis of their financial statements from 2013-2015.
Visited National Foods Ltd to make a report for Mangement course. where we met Abdul Munam who gave us every possible ans which we needed. I must say as we studied NFL, there are running a wonderfull corporation, they know their responsibility not only to make revenue but also social and moral responsibility.
CapitaLand decided to privatise its subsidiary CapitaMalls Asia (CMA) in 2014, five years after CMA's listing. CapitaLand initially offered S$2.22 per CMA share, but later revised it to S$2.35 due to shareholder dissatisfaction. Both offers were reviewed by CMA's Independent Board Committee and Independent Financial Adviser and deemed fair. By June 2014, CapitaLand had acquired 92.7% of CMA shares to delist it. However, questions arose regarding the independence of CMA's Board given connections between CMA Directors and parent company CapitaLand. The case allows discussion of issues like conflicts of interest between parent and subsidiary company directors,
Here are the key points from the literature review:
- Current and quick ratios have improved over time but are still below optimal levels, indicating some liquidity issues.
- Receivables turnover and average collection period have fluctuated, showing some inefficiencies in receivables management.
- Inventory turnover has increased steadily, with days in inventory decreasing, showing improved management of inventory levels.
- Total assets turnover and operating assets turnover have increased over time, demonstrating improved revenue generation from existing assets.
- Operating margin, return on assets, and return on equity have fluctuated over the past 5 years, with some years performing better than others.
- Overall the literature indicates that while some financial ratios for B
This document provides a financial analysis report for BSRM Steels Ltd. prepared by a group of students. The report analyzes the company's financial performance over the last 3 years using various ratios to measure activity, liquidity, solvency, and profitability. Key findings include that inventory turnover and receivables turnover have decreased in recent years, while current and quick ratios indicate adequate liquidity. Recommendations are provided for improving the company's financial condition further. The analysis was conducted using annual reports from 2013-2015 to evaluate the company's past performance.
Financialanalysisofbsrmsteelltd 171007085120Shakho saha
This document provides a financial analysis report for BSRM Steels Ltd. prepared by a group of students. The report analyzes the company's financial performance over the last 3 years using various ratios to measure activity, liquidity, solvency, and profitability. Key findings include that inventory turnover and receivables turnover have decreased in recent years, while current and quick ratios indicate adequate liquidity. Recommendations are provided for improving the company's financial condition further. The analysis was conducted using annual reports from 2013-2015 to evaluate the company's past performance.
the financial statement analysis of Pakistan tobacco company.Financial performance of Pakistan tobacco company (ptc) and Philip morris pakistan limited (pmpkl) Through ratio analysis Tobacco industry in pakistan.
Team 6 analyzed opening an indoor sports complex called Cheesehead Sports in Green Bay, Wisconsin. Their report included an environmental analysis of the growing indoor sports facility industry and local market. Their business concept is to provide a space for kids aged 8-14 to practice various sports. They developed two demand scenarios forecasting 343 teams per month initially. Their marketing plan utilizes social media, websites, billboards and newspapers. Financial projections show the business has a positive NPV, high IRR and short payback, indicating it is a feasible and profitable venture.
Download at http://Parker.com/aboutus
Parker has long recognized the connection between the health of our company and economic, environmental and social factors. Our sustainable efforts broadly focus on our employee welfare, responsible use of resources, and our social responsibility to the communities in which we serve.
We have a strong focus on employee welfare through employee health, safety and wellness programs as well as a commitment to a work environment that is inclusive, engaging and empowering.
We actively engage in the reduction of resource use and have a significant environmental impact through developing and providing technology that reduces resource use in application.
We support and invest in the communities in which we operate as we realize their success is critical to our success and we realize that this is a journey and are committed to continue to improve in these areas and provide transparency in our efforts. The information in this report
addresses how Parker is making a positive impact on the world by
applying its core technologies and creating exciting growth potential.
All data corresponds to Parker’s fiscal year 2013 (July 1, 2012 through June 30, 2013) unless otherwise noted.
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1.2. Definition of Terms
In this guideline, unless the context requires otherwise;
A. “Account planning” means an activity that involves conducting in-depth reviews of current activity and future sales prospects for each major client and/or prospects of the bank. It is the process of building strategic plans to improve value-driven relationships with our key clients that can help to gain a more in-depth understanding in long-term development and retention, thereby maximizing the banks revenue potential;
B. “Bank” means the Commercial Bank of Ethiopia (CBE);
C. “Brand Positioning” means a unique space a brand occupies in the minds of customers or target market by associating emotions, traits, feelings and sentiments with it which makes it stand out from competitions;
D. “Business Entities” means a natural persons or organizations that are engaged in business or trading activities;
E. “Client Service Team” means a team that acts as a liaison between the bank and its customers and serve end-to-end needs of customers;
F. “Corporate Customers” means customers having better investable assets, trading transaction and return from business and high contribution for the bank’s profit. They are the upper class of wholesale banking customer segments of the bank;
G. “Customer Experience” means customers’ collective experience in interacting with various touch points of the bank or the accumulation of all the interactions that a customer perceived along the entire journey;
H. “Customer Facing Division” means unit of the bank which interacts with customers through all touch points, serve their needs and solve their problems on continuous basis;
I. “Customer Segmentation” means the approach of classifying a large and diverse customer of the bank to smaller groups based on related traits in order to identify and choose the most profitable customer groups to focus on;
J. “Customer Service” means giving support to customers during the use of the Banks products and services that help them to have a convenient and value adding exercise through all service channels;
K. “Customer Value Proposition” means the value that the bank promises to deliver to its customers and that clearly explain the bank’s customers experience when they do business with the bank;
L. “Customers” means wholesale Banking customers;
M. “Digitization” means the process of automating manual and time-consuming processes into digital formats with the adoption of technology;
N. “Hot lead’’ is someone who has an interest in the banks product, trusts the bank, and really just needs a small nudge to make the final decision. These leads want our product or service now and are willing and able to buy from us. A hot lead has a clear timeframe they are working within to implement the banks product or service as a solution to their problem;
O. “Institutional Customers” means wholesale Banking customers encompassing non- government organs, associations, regional and international organizations, embassies,
Similar to Case Analysis Project - Papa Johns (20)
1. Papa John’s
International Inc.
Course J401 | Section 21414
C 40 – C 49
Team Leader:
Mariana Freitas
Team Members:
Peyton Balazs
Autumn Gordon
Simran Saini
Ashton Wagler
April 14, 2016
Team 2
2. Peyton Balazs: Senior | Marketing Major
Autumn Gordon: Junior | Accounting & Finance Major
Mariana Freitas: Junior | Finance & International Studies Major |Economics Minor
Simran Saini: Junior | Accounting & Finance Major | Economics Minor
Ashton Wagler: Senior | Accounting & Finance Major
TEAM MEMBERS
Papa John's | Final Case Analysis | 2
3. In this presentation, Team 2 will present a final analysis on Papa John’s International, Inc. We
will begin with an overview of the mission and values of Papa John’s, the board of directors, and
a brief recap from the Case IQ presentation.
Firstly, Team 2 will focus on Papa John’s growth strategy along with an updated SWOT analysis,
marketing strategy, and technology strategy. We will then present an overview of the pizza
industry and discuss Papa John’s main competitors. We will then cover the franchise component,
domestic and international expansion, and an analysis on the U.K. and China market. Lastly, we
will conduct a financial analysis on the company.
To conclude, Team 2 will highlight system-wide risk factors and risks specific to Papa John’s, as
well as provide recommendations from analysts and our group members.
Please contact us via e-mail with any questions or concerns regarding our presentation
Mariana Freitas mm233@iupui.edu
Peyton Balazs pbalazs@iupui.edu | Autumn Gordon augordon@iupui.edu
Simran Saini sainis@iupui.edu | Ashton Wagler atwagler@iupui.edu
EXECUTIVE SUMMARY
Papa John's | Final Case Analysis | 3
4. TABLE OF CONTENTS
Papa John's | Final Case Analysis | 4
Company Overview.........................................................................................................................................
Company Facts.................................................................................................................................
Mission and Values..........................................................................................................................
Board of Directors............................................................................................................................
Case IQ Recap...................................................................................................................................................
Papa John’s Strategy 2013-2015......................................................................................................................
Growth Strategy................................................................................................................................
SWOT Analysis.................................................................................................................................
Marketing Strategy...........................................................................................................................
Papa Rewards...................................................................................................................................
Technology Strategy.........................................................................................................................
POS System FOCUS........................................................................................................................
The Pizza Industry 2013-2015........................................................................................................................
The Pizza Industry...........................................................................................................................
Competitors......................................................................................................................................
Papa John’s Global Expansion 2013-2015....................................................................................................
Franchise vs. Corporate...................................................................................................................
International Locations....................................................................................................................
Global Units Openings....................................................................................................................
International Markets......................................................................................................................
China Market....................................................................................................................................
6
7
8
9-10
11-12
13
14
15
16-17
18
19
20
21
22
23
24
25
26
27
28
29
5. TABLE OF CONTENTS
Papa John's | Final Case Analysis | 5
Financial Analysis 2013-2015.........................................................................................................................
Stock Analysis..................................................................................................................................
Revenues...........................................................................................................................................
Debt and Margins............................................................................................................................
Free Cash Flow….............................................................................................................................
Growth..............................................................................................................................................
Risk Factors, Looking Forward, and Recommendation...........................................................................
Risk Factors......................................................................................................................................
2016 Guidance..................................................................................................................................
Analyst Recommendation..............................................................................................................
Team 2 Recommendation...............................................................................................................
Questions...........................................................................................................................................
References..........................................................................................................................................................
Work Papers......................................................................................................................................................
Attendance........................................................................................................................................
Meeting Minutes..............................................................................................................................
Timesheets.........................................................................................................................................
30
31
32
33
34
35
36
37
38
39
40
41
42-43
44
45
52
59
6. Papa John's | Final Case Analysis | 6
COMPANY OVERVIEW
7. COMPANY FACTS
Beginning: Jeffersonville, Indiana
Headquartered: Louisville, Kentucky
Financial Year End: December
Employees as of December 27, 2015: 22,350
Market Cap: $2.14B as of April 13, 2016
Ticker Symbol: PZZA
Exchange: NASDAQ
Papa John's | Final Case Analysis | 7
First Papa John’s Restaurant in Jeffersonville, IN
Source: Yahoo! Finance, Bloomberg Terminal
8. Source: Papa John’s Website
MISSION & VALUES
Customers
Papa John’s will create superior brand loyalty, i.e. “raving
fans”, through (a) authentic, superior-quality products, (b)
legendary customer service and (c) exceptional community
service.
Team Members
People are our most important asset. Papa John’s will provide
clear, consistent, strategic leadership and career opportunities
for Team Members who (a) exhibit passion toward their work,
(b) uphold our Core Values, (c) take pride of ownership in
building the long-term value of the Papa John’s brand and (d)
have ethical business practices.
Franchisees
We will work as a team with our franchisees to create
continued opportunity for outstanding financial returns to
those franchisees who (a) adhere to Papa John’s proven Core
Values and systems, (b) exhibit passion in running their
businesses and (c) take pride of ownership in building the
long-term value of the Papa John’s brand.
Shareholders
We will produce superior long-term value for our
shareholders.
P.A.P.AAccountability
Attitude
Constant
Improvement
Focus
Superiority
Papa John's | Final Case Analysis | 8
9. Norborne P. Cole Jr. Chair of the Compensation Committee | Appointed in 2003
Christopher L. Coleman Audit Committee & Corporate Governance and Nominating
Committee | Appointed in 2012
Olivia F. Kirtley Chair of the Audit Committee & Compensation Committee
|Appointed in 2003
Source: 2014 Annual Report
BOARD OF DIRECTORS
John Schnatter Founder, Chairman & Chief Executive Officer | Appointed in 1984
Papa John's | Final Case Analysis | 9
10. Laurette T. Koellner Audit Committee & Corporate Governance and Nominating
Committee | Appointed in 2014
Sonya E. Medina Corporate Governance & Nominating Committee | Appointed in
2015
Mark S. Shapiro Audit Committee | Corporate Governance and Nominating
Committee | Appointed in 2011
W. Kent Taylor Compensation Committee | Appointed in 2011
Source: 2014 Annual Report
BOARD OF DIRECTORS
Papa John's | Final Case Analysis | 10
11. Papa John's | Final Case Analysis | 11
CASE IQ RECAP
12. Founder John
Schnatter
History
1984-2013
Marketing and
Advertising
Industry
• Market Share
• Industry Trends
Competition
• Direct
• Indirect
Strategy
• Five Components
• SWOT Analysis
Franchises
• Requirements
• Modifications
Porter’s Five
Forces
Source: Team 2 Case IQ Presentation
Papa John's | Final Case Analysis | 12
13. Papa John's | Final Case Analysis | 13
PAPA JOHN’S STRATEGY
2013-2015
14. GROWTH STRATEGY
6 Year Plan
2013 Plan: Open 1,200
net units globally by
2018 (180 to 210 net
global unit openings a
year)
• #1 in the 2015
American Customer
Satisfaction
• Leader in the pizza
category and #2 in
total of all QSR in
customer experience
in the Temkin
Experience Rating
Customer
Satisfaction
Maintain Premium
Pricing • Clean Label Initiative
• Quality Guarantee
• Papa’s Lighter
Choices menu
offerings and Online
Nutrition Calculator
• Summer 2016: First
national pizza chain
to use poultry raised
without human or
animal antibiotics, as
well as fed with a
100% vegetarian diet
Quality Focused
Reduce “pass-
throughs” and
reimbursements in the
form of discounts, and
invest that in marketing
to build the brand and
to create a stronger
emotional connection
with customers
Source: 2013 Q1 & Q4 Earnings Call, 2015 Q1, Q3 & Q4 Earnings Call
Papa John's | Final Case Analysis | 14
15. SWOT ANALYSIS
Source: Papa John’s Website, 2014 & 2015 10K, Franchise Help Holdings LLC, Statista, Fast Food Menu Prices, BLS, Tampa Bay Times, 2015 Nielsen Global Health and
Wellness Survey, United States Department of Agriculture
Strengths
• Community Oriented – Contributed more than $1
million toward disaster recovery and relief since 2012.
Also donated approximately $1.3 million to the JA
Program
• Better Quality – Ranked #1 in customer satisfaction by
American Customer Satisfaction Index for 13/15 years
• Marketing Techniques – Official sponsor of over 350
professional and collegiate sports teams
• Efficient Operating System – Implementation of
FOCUS
Opportunities
• Franchising – Signed agreements to open
approximately 1,000 international franchise units over
the next six years
• Social Media Advertising – Only 16% of people in the
United States place orders online
• Projected Industry Growth – Expected growth of
3.06% by 2020 in the United States
Weaknesses
Threats
• Limited Menu – Does not offer options such as
sandwiches, salads, or pasta, compared to other
industry leaders
• Higher Price – Approximately $1-2 above other
industry leaders
• Dine-In Options – “Few” locations because it
reduces operating costs
• Delivery Driving Service – Fatalities in Driver/Sales
occupation occur at a rate of 24.3%, approximately
seven times more than overall workplace average
• High Competition – Moved from third-largest pizza
chain to fourth place
• Health Awareness – 2015 Nielsen Survey indicated
69% of consumers are eating healthier
• Price of Ingredients – Food prices increased 2.9% in
2015
SWOT
Analysis
Papa John's | Final Case Analysis | 15
16. • Local Level
- Target consumers within the
delivery area of the restaurant
- Community orientated activities
within schools, sports venues, and
other organizations
- Special promotions
• National Level
- Television, print, direct mail, digital,
mobile marketing, and social media
- “Co-op” – Individual Papa John’s
may be obliged to contribute
percentage of sales towards market-
wide advertising campaign
MARKETING STRATEGY
Papa John's | Final Case Analysis | 16
• Papa John’s Marketing Fund
• International Level
- Focus: people who live or work within
a small radius of a Papa John’s
restaurant
- Radio, television, mobile-marketing,
print materials, and digital marketing
- Local promotions to raise awareness:
community events, sporting events,
and school programs
Source: 2015 Annual Report, 2014 Q1 Earnings Call
17. • Official Pizza Sponsor of the NFL
- 41% polled named Papa John’s most
active sponsorship of NFL (2013)
• Peyton Manning
- 62% named him face of the NFL (2013)
- Owner of 27 Papa John’s Franchises
- Market Cap was $900 M in 2012
(Manning), now $2.14 B
• J.J. Watt
- New spokesman for Papa John’s
- All Pro defensive player, considered
one of the most prominent faces of the
NFL
• Specials and Promotions
- “Double Cheeseburger Pizza”
- Official pizza of the MLB (April 3, 2016)
Source: 2013 and 2015 Q4 Earnings Calls, 2015 Annual Report, PapaJohns.com/Investor Relations
Papa John's | Final Case Analysis | 17
MARKETING STRATEGY
18. • Four step loyalty program that allows
Papa John’s customers to earn discounts
based on their amount of spending
- Example: large 2-topping pizza – 20
points; garlic knots – 10 points
Source: 2016 Company Presenation, PapaJohns.com, 2015 Annual Report
Papa John's | Final Case Analysis | 18
• Increases loyalty in a value-driven
category
- Papa Rewards surpasses other major
brands as favorite dining/QSR loyalty
program in Bond Brand Loyalty Report
• “Papa Card”
1. Sign up online
for Papa Rewards
2. Place order
online
3. Earn 1 point
with every $5 you
spend
4. Redeem your
points for Papa
John’s products
PAPA REWARDS
19. • Highest digital sales mix in category
- Mobile represents over 50% of total digital sales
• Highest rating according to The Search Agency
Report “The Mobile Experience Scorecard –
Restaurants and Catering”
• iOS app upgrade (Feb 24, 2015)
- Current iOS version: 969 Customer Reviews with
an average rating of greater than 4 out of 5 stars
• Fully responsive web design to improve the
customer online/mobile experience
- Ability to change size and aspect ratio based
upon individual screen size
• e-Commerce
- Pay Share (April 2015)
Source: 2015 Annual Report, 2016 Company Presentation, 2013 Q4 Earnings Call, iTunes Store
Papa John's | Final Case Analysis | 19
TECHNOLOGY STRATEGY
20. • New point-of-sale system (FOCUS)
• Implementation: 2015, in all North
American traditional restaurants
- Lowered income before taxes by $1.8 M
- Increased Other Sales by $8.9 M
primarily due to FOCUS equipment
being sold to franchisees
Papa John's | Final Case Analysis | 20
Source: 2015 First Quarter Results, 2015 Q1 Earnings Call, 2015 Annual Report
• Expected to improve labor costs over
time
- Quicker employee training
• Touch screen technology
- Improve in-store customer experience
- Drive speed and order accuracy
POS SYSTEM FOCUS
21. Papa John's | Final Case Analysis | 21
THE PIZZA INDUSTRY
2013-2015
22. THE PIZZA INDUSTRY
6.5%
7.9%
14.8%
9.9%
20.2%
40.9%
Market Share Percentage of Sales
Pizza Industry - 2014
Papa John's Little Caesars
Pizza Hut Domino's
Other Chains Independent Chains
Papa John’s ↑0.5% Domino’s ↓0.1%
Little Caesars ↑3.2% Pizza Hut ↑3.3%
Other Chains ↑0.6% Independent Chains ↓7.3%
Percentage Change in Market Share Since 2013
Source: Thompson, Crafting and Executing Strategy: The Quest for Competitive Advantage (20th Ed.), 2016, Business Insights, Yahoo! Finance
33.65
6.83
2.14
Market Cap in Billions
Big Four in the Pizza Industry 2015
Yum! Brands
Domino's
Papa John's
Note: Little
Caesars is
privately held
Papa John's | Final Case Analysis | 22
• Overview of the Pizza Industry
- Worldwide sales for 2012 and 2017
(projected) were $42.8 B and $49.5 B,
respectively
- Estimate worldwide sales for 2015 were
$46.7 B (CAGR 2.95%)
- Worldwide establishments in 2012 and
2017 (projected) were 74,400 and 86,493,
respectively
- Estimate worldwide establishments for
2015 were 81,441 (CAGR 3.06%)
23. COMPETITORS
Source: Thompson, Crafting and Executing Strategy: The Quest for Competitive Advantage (20th Ed.), 2016, Pizza Hut 2015 Report, Pizza Hut Website, Domino’s 2015
Annual Report, Little Caesars Website
• Growth strategy is increasing net openings outside of the U.S.
• Want to sharpen brand position by concentrating on product customization, transparency, and
leading innovation/engagement through technology
• Planning to split into Yum! China and Yum! by the end of 2016
• 2015 Year End Store Count: 16,063
• Growth strategy is dependent on global expansion
• Transforming all locations by the end of 2017 to increase hospitality in locations
• Leader in technology with apps in many different operating systems
• Convenient store locations and efficient supply chain
• 2015 Year End Store Count: 12,530
• “Highest-Rated Chain – Value for the Money” based on a nationwide survey of quick-service
restaurant consumers conducted by Sandelman & Associates, 2007-2014
• Innovation - recognized pioneer in pizza industry, such as the "two pizzas for the price of one" deal
Commonalities: All the major players in the pizza industry are focused on franchising, expanding
internationally, and utilizing technology
Papa John's | Final Case Analysis | 23
24. PAPA JOHN’S GLOBAL EXPANSION
2013-2015
Papa John's | Final Case Analysis | 24
25. • Owning corporate restaurants
helps franchises implement Papa
John’s best practices and strategies
• Outperformance of company
stores relative to the franchises
- Corporate stores are in more
tenured and penetrated markets
• Papa John’s is in the process of
weeding out the franchisees that
are not engaged
- Higher store closures in 2015
Source: 2013 Q1 Earnings Call, 2015 Q3 & Q4 Earnings Call
FRANCHISE vs. CORPORATE
Papa John's | Final Case Analysis | 25
Company-
owned
Franchised
North
America
665 2,621
International 58 1,084
Company-
owned
Franchised
North
America
707 2,681
International 45 1,460
Worldwide Net Units as of December 27, 2015
Worldwide Net Units as of December 29, 2013
26. Source: Papa John’s 2016 Company Presentation
INTERNATIONAL LOCATIONS
Papa John's | Final Case Analysis | 26
Papa John’s global presence and net units in each country as of December 27, 2015
27. • As of 2013: 4,200 units in 34 countries and
plan is to open 1,200 net units in the next 6
years
• Opened a total of 730 net units from 2013 to
2015
• The plan was to open approximately 200 net
units a year, therefore, Papa John’s exceeded
their goal by 21.7% in the past 3 years
• Projection for 2016: to open 180 to 210 net
units worldwide
Q1
34
Q2
55
Q3
44
Q4
132
Q1
12
Q2
47
Q3
50
Q4
126
Q1
36
Q2
35
Q3
52
Q4
107
2013
2014
2015
Units Opened per Quarter 2013-2015
Net units opened in North America and Internationally
from 2011 to 2015
Source: Papa John’s 2016 Company Presentation, 2013 Q1 Earnings Call, 2015 Q4 Earnings Call
GLOBAL UNITS OPENINGS
Papa John's | Final Case Analysis | 27
28. INTERNATIONAL MARKETS
Source: Market Line, 2015 Q3 Earnings Call
U.K.
319 franchises
China
45 company-owned and 199 franchises
Why the U.K. and China? The U.K. and China are the two international markets with the highest
number of Papa John’s restaurant units. After conducting research, Team 2 constructed an analysis chart
with possible reasons to why these two markets are favorable to Papa John’s.
• GDP growth from $2.40 trillion to $2.58 trillion*
• Unemployment rate decreased from 7.92% to 5.70%*
• Corporate tax reduction to 20% as of April 1, 2015
• Stable governance system ensures that there is
remarkable consistency in its policies
• The country scores high in business, labor, trade,
investment and financial freedom
• According to Market Line, it ranks 17th in “getting
credit”, meaning companies face fewer hurdles in
terms of meeting working capital and long-term
capital requirements
• GDP growth from $4.87 trillion to $5.6 trillion*
• Middle class and consuming class potentially
growing to 600 million over the next 5 to 6 years
• According to S&P, the government initiatives to
reduce corruption, measures to enhance business
environment and liberalize the financial sector,
will boost the economy
• As of June 2015, China’s central bank cut the
benchmark interest rate 4 times since Nov. 2014. The
recent interest rate cut by 25 basis points in June 2015
was to support the development of the economy
Papa John's | Final Case Analysis | 28*From 2013 to 2015
29. CHINA MARKET
Source: 2014 Q2 & Q3 Earnings Call, 2015 Q4 Earnings Call
• Why is China the only International
market that has corporate-owned units?
- China is a different market than any
market in the world, therefore, Papa John’s
must approach it differently
- By owning corporate restaurants in China,
franchisees can better understand how to
implement Papa John’s best practices and
strategies
• 2014: Partnership deal where Papa John’s is the
official pizza sponsor of the Guoan Football
Club in Beijing
• 2014: OSI incident in China held back growth
• 2015: Long-term plan is to close the company-
owned in China and let another qualified
franchisee take over operations
Strategic
Model
Incorporate
Menu
Branding
Aspects
Marketing
Changes
Model
Design
Papa John's | Final Case Analysis | 29
30. Papa John's | Final Case Analysis | 30
FINANCIAL ANALYSIS
2013-2015
31. Source: Bloomberg Terminal, http://ir.papajohns.com/calculator.cfm
STOCK ANALYSIS
• IPO on June 8, 1993 traded
at $2.90 a share and netted
$12 M
• Stock Splits:
- 3-for-2 (two in 1996)
- 2-for-1 (2005 and 2013)
• If you had invested $1,000
at the time of the IPO, by
April 8, 2016, the value
would be $24,920.98
Papa John’s IPO to current stock price (04/10/2016)
Papa John's | Final Case Analysis | 31
32. REVENUES
• 2015 revenue of $1.6 B, a
2.5% increase compared
to 2014 (increase of 4.2%
for North America and
6.9% internationally)
• Only brand that has had
12 consecutive years of
even or positive sales
• CAGR from 2011 to 2015
of 7.68%
Revenues from 2011 to 2015 for Domestic Company-Owned Restaurants,
Domestic Commissaries, Domestic Franchising, and International Restaurants
Source: Bloomberg Terminal, 2015 Q4 Earnings Call
Papa John's | Final Case Analysis | 32
33. Source: Bloomberg Terminal, 2015 Annual Report
• Debt-to-Equity: 506.24%
- 2015 net debt was $256 M,
an 11% increase
- Significant increase in
investments in technology,
marketing, and
international markets
• Profit Margin: 5.92% &
Gross Margin: 32.4%
- Profit margin and gross
margin are very erratic due
to the volatile environment
(i.e. commodity prices,
restaurant level bonuses,
competitors pricing)
Total Debt to Total Equity, Profit Margin, and Gross Margin from 2011 to 2015
DEBT & MARGINS
Papa John's | Final Case Analysis | 33
34. Source: Bloomberg Terminal, 2013 Annual Report
Free Cash Flow from 2011 to 2015
FREE CASH FLOW
Papa John's | Final Case Analysis | 34
• Capital primarily used for:
- Development,
acquisition, renovation
and maintenance of
restaurants
- Development, renovation
and maintenance of
commissary print and
promotions facilities and
equipment
- Enhancement of
corporate systems and
facilities
• CAGR 14.06% from 2011
to 2015
35. Source: Bloomberg Terminal, 2015 Annual Report
• ROCE: 130.7%
• Dividends: 32.7%
- Initial payout 2013
- Annual Dividend $0.70
• SGR: 87.8%
- Increased retained
earnings 54% in 2015
ROCE, Dividends Payout Ratio, and SGR from 2011 to 2015
GROWTH
Papa John's | Final Case Analysis | 35
36. Papa John's | Final Case Analysis | 36
RISK FACTORS, LOOKING
FORWARD, &
RECOMMENDATIONS
37. Source: 2015 Annual Report
• Increase in commodity prices
- Competitive strength is quality
- Refuse to compromise to save money
- Cheese is largest food cost
• Foreign currency risk
- Negative impact of $2.7 million in 2015
- Pressurizes franchisees’ cash flows
• John Schnatter
- No employment agreement
- No “key man” life insurance
- Major component in promotions
- Owns 27% of common stock
• Lawsuits
RISK FACTORS
Papa John's | Final Case Analysis | 37
38. Source: 2015 Q4 Earnings Call
2016 Annual Meeting of Shareholders
Thursday, April 28, 2016 – 11:00 AM ET
International growth opportunities 5 years out: Brazil, South Africa, Australia and countries
throughout Western Europe
Consolidated revenues growth of 4% to 6% and 180 to 210 net global unit openings, substantially all of
which are expected to open in the final three quarters of the year
North America full-year comparable sales growth of 2% to 4% and International full-year comparable
sales growth of 5% to 7%
Anticipate opening their 5,000th store globally Summer 2016
2016 GUIDANCE
Papa John's | Final Case Analysis | 38
39. Source: Bloomberg Terminal
ANALYST RECOMMENDATION
According to the Bloomberg Terminal as of April 8, 2016, 4 out of 7 analysts from the firms listed
below recommend to buy Papa John’s stock
Analyst recommendations from the Bloomberg Terminal
Papa John's | Final Case Analysis | 39
40. TEAM 2 RECOMMENDATION
Papa John's | Final Case Analysis | 40
As a group, Team 2 reached a consolidated conclusion that we would buy Papa John’s
stock. Papa John’s has a great potential for growth, as they are constantly investing in the
company. They have developed innovative ways to run the business and expand into
new markets. They also strongly believe in quality, so customers and investors can rely
on carefully-inspected and prepared food. Although Papa John’s may be growing slower
than their competitors, they focus on their long-term strategy and refuse to compromise
their quality in order to compete on pricing. These qualities forecast long-term success
and a profitable investment.
41. “When it comes to quality there is absolutely no compromise, no
compromise ever” – J. Schnatter
QUESTIONS?
Source: 2015 Q3 Earnings Call
Papa John's | Final Case Analysis | 41
43. RECOMMENDATIONS
• 2015 First Quarter Results
• 2015 Nielsen Global Health and Wellness Survey
• http://ir.papajohns.com/calculator.cfm
• Bloomberg Terminal
• Bureau of Labor Statistics
• Business Insights
• Domino’s 2015 Annual Report
• Fast Food Menu Prices
• Franchise Help Holdings LLC
• Little Caesars Website
• Market Line
• Papa John’s 2014 & 2015 Annual Report
• Papa John’s 2016 Company Presentation
• Papa John’s 2013, 2014, & 2015 Earnings Calls
• Papa John’s Website
• Pizza Hut 2014, 2015 Report
• Pizza Hut Website
• Statista
• Tampa Bay Times
Papa John's | Final Case Analysis | 43
• Thompson, Crafting and Executing
Strategy: The Quest for Competitive
Advantage (20th Ed.), 2016
• United States Department of Agriculture
• Yahoo! Finance
46. Attendance – March 29th, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
47. Attendance – March 31st, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
48. Attendance – April 7th, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
49. Attendance – April 11th, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
50. Attendance – April 13th, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
51. Attendance – April 14th, 2016
Team 2: Papa John's International, Inc.: Its Strategy in the Pizza Restaurant Industry
J401 - Section 21414
Location: Library
Team Leader Signature: _____________________________________________________
Members Signature
Peyton Balazs
Autumn Gordon
Mariana Freitas
Simran Saini
Ashton Wagler
52. Papa John's | Final Case Analysis | 52
MEETING MINUTES
53. MINUTES
Team Meeting
BUS J401 BS2007
March 29th, 2016
3:00PM-4:00PM
1. Met with group 30 Minutes
• Discussed Case 2 and topics to focus on
2. Met with Professor Steele for advice and feedback 30 Minutes
Team Leader Signature: _____________________________________________________
54. MINUTES
Team Meeting
BUS J401 BS2007
March 31st, 2016
3PM-4:30PM
1. Met with group 1hr 30 minutes
• Split up tasks
• Read over research done by team members so far
• Elaborated a strategy in order to move forward
Team Leader Signature: _____________________________________________________
55. MINUTES
Team Meeting
BUS J401 BS2007
April 7th, 2016
3PM-4:00PM
1.Met with group 60 minutes
• Reviewed PowerPoint
• Made changes to PowerPoint
Team Leader Signature: _____________________________________________________
56. MINUTES
Team Meeting
BUS J401 BS2007
April 11th, 2016
4:30PM-5:30PM
1. Met with group and Nestor to review PowerPoint 60 minutes
• Took notes on where to make changes
• Went over PowerPoint with Nestor
• Fixed the order of the slides
Team Leader Signature: _____________________________________________________
57. MINUTES
Team Meeting
BUS J401 BS2007
April 13th, 2016
3:00PM-5:30PM
1. Met with group 2hr 30 minutes
• Final review of the PowerPoint
• Met with Nestor for a Final review
• Met with librarian Katherine Macy
• Attempted to find information on the worldwide pizza industry
• Practiced presentation
Team Leader Signature: _____________________________________________________
58. MINUTES
Team Meeting
BUS J401 BS2007
April 14th, 2016
9:00AM-10:15AM
1. Met with group for final practice 1hr 15 minutes
Team Leader Signature: _____________________________________________________
60. Weekday Calender Date Location Description Start Time End Time Total Daily Hours
Monday 3/28/16 Home Read the case 7:30 PM 8:00 PM 0:30
Tuesday 3/29/16 Library Met with group & Prof. Steele 3:00 PM 4:00 PM 1:00
Tuesday 3/29/16 Library and Bloomberg Terminal Conducted research on Bloomberg Terminal 3:55 PM 4:45 PM 0:50
Wednesday 3/30/16 Library and Bloomberg Terminal Conducted research on Bloomberg Terminal 12:00 PM 1:15 PM 1:15
Wednesday 3/30/16 Library and Bloomberg Terminal Conducted research on Bloomberg Terminal 7:00 PM 10:30 PM 3:30
Wednesday 3/30/16 Home Worked on breaking down data and PowerPoint 11:30 PM 2:00 AM 2:30
Thursday 3/31/16 Library Met with group 3:00 PM 4:30 PM 1:30
Friday 4/1/16 Library and Bloomberg Terminal Conducted research on Bloomberg Terminal 11:00 AM 1:30 PM 2:30
Saturday 4/2/16 Home Research on Market Line and worked on PowerPoint 1:00 PM 5:30 PM 4:30
Saturday 4/2/16 Home Research on Market Line and worked on PowerPoint 8:00 PM 10:00 PM 2:00
Monday 4/4/16 Home Summarized 2013 & 2015 Earnings Call 9:00 PM 1:00 AM 4:00
Tuesday 4/5/16 Home Finished summarizing 2015 Earnings Call 5:30 PM 7:30 PM 2:00
Tuesday 4/5/16 Home Summarized 2014 Earnings Call 10:00 PM 11:30 PM 1:30
Wednesday 4/6/16 Home Summarized 2014 Earnings Call 11:15 AM 12:00 PM 0:45
Wednesday 4/6/16 Home Finished summarizing 2014 Earnings Call 3:40 PM 6:00 PM 2:20
Wednesday 4/6/16 Home Worked on PowerPoint 9:00 PM 1:00 AM 4:00
Thursday 4/7/16 Library Met with group 3:00 PM 4:00 PM 1:00
Friday 4/8/16 Meeting with Nestor Met with Autumn and Nestor (PowerPoint) 1:00 PM 2:50 PM 1:50
Friday 4/8/16 Professor Steele's office hours Met with Prof. Steele to discuss Case 2 3:15 PM 4:30 PM 1:15
Sunday 4/10/16 Home Worked on PowerPoint 10:30 PM 2:00 AM 3:30
Monday 4/11/16 Meeting with Nestor Met with Nestor to go over the PowerPoint 3:40 PM 4:20 PM 0:40
Monday 4/11/16 Library Met with group 4:30 PM 5:30 PM 1:00
Tuesday 4/12/16 Home Worked on PowerPoint 7:00 PM 11:30 PM 4:30
Wednesday 4/13/16 Home Fixed Timesheets and finished PowerPoint 8:00 AM 12:00 PM 4:00
Wednesday 4/13/16 Practice Met with group 3:00 PM 5:30 PM 2:30
Wednesday 4/13/16 Home Wrote my script and practiced individually 8:00 PM 9:00 PM 1:00
Thursday 4/14/16 Practice Met with group 9:00 AM 10:15 AM 1:15
57.10 Total Time
Print Name Sign Name Date
Kelley School of Business Honor Code
Team 2
Second Papa John's Case Analysis: Total Working Time
Mariana Freitas - Time Sheet
The honor code applies to any course offered by the Kelley School of Business. All students participating in Kelley classes are expected to uphold the code, regardless of their academic
pursuits or major. Students who have been admitted to the Kelley School of Business are expected to continue their commitment to ethical behavior in all of their endeavors, including, but
not limited to, course work outside of the Kelley School of Business, internships, co-op programs, community service, and overseas study.
By signing below, I acknowledge that I have abided by the Kelley School of Business Honor Code. I also acknowledge that my time sheet is ligitimate and that my hours have not been
falsified.
61. Weekday Calender Date Location Description Start Time End Time Total Daily Hours
Friday 3/25/16 Home Research for Case 1 Q&A 3:00 PM 3:45 PM 0.45
Monday 3/29/16 Library and Bloomberg Terminal Team Meeting, Professor Steele's office 3:00 PM 4:00 PM 1:00
Wednesday 3/30/16 Library and Bloomberg Terminal Listened to 2015 earnings call 7:30 PM 8:45 PM 1:15
Wednesday 3/30/16 Home Read earnings call transcripts (2013 & 2014) 9:30 PM 11:30 PM 2:00
Thursday 3/31/16 Home Researched news and read 2014 annual report 9:15 AM 10:00 AM 0:45
Thursday 3/31/16 Library Team Meeting: Assigned Case 2 tasks 3:00 PM 4:30 PM 1:30
Friday 4/1/16 Home Researched risk factors and added to PPT 11:30 PM 1:00 AM 1:30
Saturday 4/2/16 Home Researched financials and added to PPT 9:00 AM 11:00 AM 2:00
Saturday 4/2/16 Home Financial research, PPT, and compiled notes 8:30 PM 12:30 AM 4:00
Sunday 4/3/16 Home Researched stock fluctuations; finsihed notes 12:45 PM 1:45 PM 1:00
Monday 4/4/16 Library Met with Mariana to discuss Case 2 progress 4:15 PM 5:15 PM 1:00
Tuesday 4/5/16 Home Researched competition and strategies 6:00 PM 7:30 PM 1:30
Thursday 4/7/16 Library Team Meeting: Finalized presentation approach 3:00 PM 4:00 PM 1:00
Friday 4/8/16 Meeting with Nestor Discussed Case 2 and showed PPT 1:15 PM 2:50 PM 1:35
Friday 4/8/16 Professor Steele's office hours Discussed Case 2 and showed PPT 3:15 PM 4:30 PM 1:15
Saturday 4/9/16 Home Research for updated SWOT analysis 10:30 PM 1:30 AM 4:00
Sunday 4/10/16 Home Research for updated SWOT analysis 6:00 PM 6:45 PM 0:45
Monday 4/11/16 Meeting with Nestor Team Meeting: reviewed PPT and assigned slides 4:30 PM 5:30 PM 1:00
Tuesday 4/12/16 Home Studied Mariana's earnings call notes 8:00 PM 9:00 PM 1:00
Wednesday 4/13/16 Practice Team Meeting: practiced presentation 4:30 PM 5:30 PM 1:00
Thursday 4/14/16 Practice Team Meeting: practiced presentation 9:00 AM 10:15 AM 1:15
31:05 Total Time
Print Name Sign Name Date
Kelley School of Business Honor Code
Team 2
Second Papa John's Case Analysis: Total Working Time
Autumn Gordon - Time Sheet
The honor code applies to any course offered by the Kelley School of Business. All students participating in Kelley classes are expected to uphold the code, regardless of their academic
pursuits or major. Students who have been admitted to the Kelley School of Business are expected to continue their commitment to ethical behavior in all of their endeavors, including, but
not limited to, course work outside of the Kelley School of Business, internships, co-op programs, community service, and overseas study.
By signing below, I acknowledge that I have abided by the Kelley School of Business Honor Code. I also acknowledge that my time sheet is ligitimate and that my hours have not been
falsified.
62. Weekday Calender Date Location Description Start Time End Time Total Daily Hours
Tuesday 3/29/16 Library Met group to start case 2 analysis 3:00 PM 3:20 PM 0:20
Tuesday 3/29/16 Professor Steele's office hours Meeting with Professor Steele 3:30 PM 4:00 PM 0:30
Tuesday 3/29/16 Library and Bloomberg Terminal Research on Bloomberg Terminal 4:10 PM 4:35 PM 0:25
Tuesday 3/29/16 Library Research on Factiva 4:35 PM 5:00 PM 0:25
Thursday 3/31/16 Home Secondary research and Powerpoint updates 12:15 PM 1:30 PM 1:15
Thursday 3/31/16 Library Team meeting 3:00 PM 4:30 PM 1:30
Thursday 3/31/16 Home Powerpoint slides 8:20 PM 9:25 PM 1:05
Friday 4/1/16 Home Powerpoint slides/research 7:30 PM 8:45 PM 1:15
Saturday 4/2/16 Home Powerpoint slides/research 8:00 PM 10:15 PM 2:15
Tuesday 4/5/16 Home Powerpoint notes for slides 1:00 PM 2:30 PM 1:30
Tuesday 4/5/16 Home Powerpoint notes for slides 7:00 PM 8:45 PM 1:45
Thursday 4/7/16 Library Met group 3:00 PM 4:00 PM 1:00
Monday 4/11/16 Home Read earnings calls summary 12:00 PM 1:25 PM 1:25
Monday 4/11/16 Meeting with Nestor Team meeting with Nestor 4:30 PM 5:30 PM 1:00
Monday 4/11/16 Home Update notes for presentation 8:00 PM 9:15 PM 1:15
Tuesday 4/12/16 Home Finalize notes/slides 6:00 PM 8:00 PM 2:00
Wednesday 4/13/16 Practice Team practice/finalize notes 3:00 PM 5:30 PM 2:30
Wednesday 4/13/16 Home Personal Practice 6:30 PM 7:30 PM 1:00
Thursday 4/14/16 Practice Team practice 9:00 AM 10:15 AM 1:15
23:40 Total Time
Print Name Sign Name Date
Kelley School of Business Honor Code
Team 2
Second Papa John's Case Analysis: Total Working Time
Peyton Balazs - Time Sheet
The honor code applies to any course offered by the Kelley School of Business. All students participating in Kelley classes are expected to uphold the code, regardless of their
academic pursuits or major. Students who have been admitted to the Kelley School of Business are expected to continue their commitment to ethical behavior in all of their
endeavors, including, but not limited to, course work outside of the Kelley School of Business, internships, co-op programs, community service, and overseas study.
By signing below, I acknowledge that I have abided by the Kelley School of Business Honor Code. I also acknowledge that my time sheet is ligitimate and that my hours have not
been falsified.
63. Weekday Calender Date Location Description Start Time End Time Total Daily Hours
Tuesday 3/29/16 Library Talked about case and met with Prof. Steele 3:00 PM 4:00 PM 1:00
Wednesday 3/30/16 Home Read current news and listened to earnings calls 12:00 PM 3:00 PM 3:00
Thursday 3/31/16 Library and Bloomberg Terminal Research on Bloomberg Terminal 12:45 PM 1:30 PM 0:45
Thursday 3/31/16 Library Met with team to split tasks 3:00 PM 4:30 PM 1:30
Friday 4/1/16 Home Started slides 7:00 PM 9:00 PM 2:00
Saturday 4/2/16 Home Competition and current news research/slides 7:30 PM 1:30 AM 6:00
Sunday 4/3/16 Home Re-did slides 8:00 PM 11:00 PM 3:00
Thursday 4/7/16 Library and Bloomberg Terminal Met with librarian and looked for credible sources 12:30 PM 1:30 PM 1:00
Thursday 4/7/16 Library and Bloomberg Terminal Meeting with team and Bloomberg Terminal 3:00 PM 4:00 PM 1:00
Monday 4/11/16 Home Powerpoint, earnings calls and other docs on canvas 8:00 PM 11:30 PM 3:30
Tuesday 4/12/16 Home Read current news on Papa John's 12:00 PM 1:30 PM 1:30
Tuesday 4/12/16 Home Worked on powerpoint & did external research 9:00 PM 11:00 PM 2:00
Wednesday 4/13/16 Practice Practice 3:00 PM 5:30 PM 2:30
Thursday 4/14/16 Practice Practice before presentation 9:00 AM 10:15 AM 1:15
30:00 Total Time
Print Name Sign Name Date
Kelley School of Business Honor Code
Team 2
Second Papa John's Case Analysis: Total Working Time
Simran Saini - Time Sheet
The honor code applies to any course offered by the Kelley School of Business. All students participating in Kelley classes are expected to uphold the code, regardless of their academic
pursuits or major. Students who have been admitted to the Kelley School of Business are expected to continue their commitment to ethical behavior in all of their endeavors, including, but
not limited to, course work outside of the Kelley School of Business, internships, co-op programs, community service, and overseas study.
By signing below, I acknowledge that I have abided by the Kelley School of Business Honor Code. I also acknowledge that my time sheet is ligitimate and that my hours have not been
falsified.
64. Weekday Calender Date Location Description Start Time End Time Total Daily Hours
Tuesday 3/29/16 Home Prepared ideas for group meeting 12:30 PM 1:00 PM 0:30
Tuesday 3/29/16 Library Group meeting and met with Prof. Steele 3:00 PM 4:00 PM 1:00
Thursday 3/31/16 Home Read Company Earnings Calls 12:00 PM 2:30 PM 2:30
Thursday 3/31/16 Library Group meeting 3:00 PM 4:30 PM 1:30
Saturday 4/2/16 Library Worked on PowerPoint slides 2:00 PM 3:30 PM 1:30
Thursday 4/7/16 Library Group meeting about new ideas 3:00 PM 4:00 PM 1:00
Friday 4/8/16 Home Edited/Created new PowerPoint slides 3:00 PM 5:00 PM 2:00
Monday 4/11/16 Library Discussed PPT layout, final touches as a group 4:30 PM 5:30 PM 1:00
Monday 4/11/16 Home Read earnings call summary -- Case IQ 10:00 PM 11:00 PM 1:00
Tuesday 4/12/16 Home Edited PowerPoint slides with new information 4:30 PM 5:45 PM 1:15
Tuesday 4/12/16 Home Prepared notes for presentation 7:00 PM 9:30 PM 2:30
Tuesday 4/12/16 Home Practiced for presentation 10:00 PM 11:30 PM 1:30
Wednesday 4/13/16 Practice Practiced with team 3:00 PM 5:30 PM 2:30
Thursday 4/14/16 Practice Practiced with team 9:00 AM 10:15 AM 1:15
21:00 Total Time
Print Name Sign Name Date
Kelley School of Business Honor Code
Team 2
Second Papa John's Case Analysis: Total Working Time
Ashton Wagler - Time Sheet
The honor code applies to any course offered by the Kelley School of Business. All students participating in Kelley classes are expected to uphold the code, regardless of their academic
pursuits or major. Students who have been admitted to the Kelley School of Business are expected to continue their commitment to ethical behavior in all of their endeavors, including,
but not limited to, course work outside of the Kelley School of Business, internships, co-op programs, community service, and overseas study.
By signing below, I acknowledge that I have abided by the Kelley School of Business Honor Code. I also acknowledge that my time sheet is ligitimate and that my hours have not been
falsified.
Editor's Notes
On February 18, 2016, the Compensation Committee of Papa John’s International, Inc. (the “Company”) approved compensation changes to further align the compensation of Founder, Chairman and Chief Executive Officer, John H. Schnatter, with the Company’s other executive officers. Mr. Schnatter’s short term incentive target was set at 75% of his base salary (previously 90% of base salary), the same target as the Company’s President and Chief Operating Officer, Steve M. Ritchie, and the Company’s other executive officers. The Compensation Committee also increased Mr. Ritchie’s base salary from $650,000 to $800,000 and his annual long-term incentive value from $750,000 to $1,000,000 (consisting of $100,000 in performance-based restricted stock units vesting at the end of a 3-year performance period, and the remainder in equal values of time vested restricted stock and stock options with a 10-year term and 3-year graded vesting schedule). The Company’s executives are also eligible for the annual cash incentives and benefits described in the Company’s Proxy Statement filed March 25, 2015.
The Compensation Committee also increased the long-term incentive values for each member of the executive leadership team, other than Founder, J. Schnatter.
Long-term incentive values: annual equity, restricted stock and stock options, annual cash incentives, performance share award, and benefits.
2015: Youngest of the top four chains, so the runway is much longer for Papa John’s
Corporate profits doubled and are getting ready to triple over four or five years ago
Acquisitions – 19 in Florida, because they were a good fit with current corporate base. No long-term strategy change (20% range for corporate)
Announced Better Ingredients, Better Pizza clean label Jan. 1, introduced Papa’s Lighter Choices menu offerings and Online Nutrition Calculator; in mid-December, were the first national pizza chain to announce that the grilled chicken pizza toppings and chicken poppers will consist of poultry that is raised without human or animal antibiotics as well as fed with a 100% vegetarian diet by summer 2016. First national pizza chain to announce that they removed artificial flavors and synthetic colors from the entire food menu. Introduced a Quality Guarantee to underscore commitment to delivering quality pizzas to customers (Papa John’s is guaranteeing customers will love the pizza, but if they don’t, tell them and get one for free – latest milestone)
Lower commodities contributed to slightly more discounted pricing across the industry. Papa John’s offered some promotional offers, but maintained the focus of being the superior-quality pizza provider with the higher perceived value, featuring three premium LTOs at $12 each during the quarter.
Hope 2015 is an exception relative to G&A deleveraging. Revenues are not going to grow as quickly as they typically would because commissary is such a big piece of revenue number and the cheese numbers bringing the commissary revenue number down and actually keeping it flat, so you don get the typical revenue growth you would see that would keep you from deleveraging on G&A
Corporate acquisitions (i.e. Minneapolis) that were underperforming, now are doing fine.
Clean Label initiative - By the end of 2015, eliminate all artificial flavors and colors from their food, except soft drinks (first in the pizza industry to make this statement)
Enhanced loyalty program – besides earning free pizzas, customers can enjoy sides and desserts
Clean label (started 4 or 5 years ago); more defensive, from an integrity point of view. Deep moat around Better Ingredients, Better Pizza. Millenials like more natural ingredients.
Strategy to maintain premium pricing by reducing “pass-throughs” and reimbursements in the form of discounts, and investing that in marketing to build the brand, to create a stronger emotional connection and to get credit and reinforce the benefit to the brand
Focus on quality and customer experience continues to be a winning strategy for Papa John’s
2015 American Customer Satisfaction Index gave Papa John’s top spot
Rated as the leader in the pizza category and two in total of all QSR (quality system regulations) in customer experience in the Temkin Experience Rating
2015: Renewing contract with NFL.
Q2: Added garlic knots and cinnamon knots to menu and paired it with limited-time offers, Philly Cheesesteak Pizza and Greek Pizza
Showcase ongoing efforts through a mix of ads and press releases Introduced Papa’s Lighter Choices (fewer calories)
Launched new iOS app and website is in the process of being implemented
Papa Rewards (loyalty program launched in 2010) – other competitors discussed plans to add a loyalty program. Evolve the program as a response to competitors? / competitor is testing in Detroit; Papa John’s is watching them closely / stronger effort in the marketplace to promote Papa Rewards, increased acquisition and membership, and along with conversions.
Papa rewards – 25 points for one pizza, and now they also offer sides and desserts for as low as 10 points. Specialty pizzas for 30 points.
2013
LTO pipeline award-winning Buffalo Chicken Pizza, Chipotle Chicken & Bacon pizza, and Mega Chocolate Chip Cookie, double cheeseburger pizza.
2014
Patent with new partner Indiana Pacers’ All-Star forward Paul George – campaign with Paul to promote new Sweet Chili Chicken Pizza
Per unit cost of the POS system – $20,000 per store
2015: PayShare (safe and secure way to split their bill)
FOCUS – improve order speed, accuracy, delivery service and team member training (enhance customer experience)
Technology enhancement – adapts to mobile, tablet, and desktop; did a re-launch of the iOS app.
Q4 2015: Current promotion - $9.99 5 toppings pizza directly aligned with Quality Guarantee (implemented to drive new customers from other brands to Papa John’s)
Price war in pizza category. Papa John’s has the highest perceived value; manage the business long-term. Only brand who has had 12 consecutive years of even or positive sales.
Unique things that contrast to some of the competitors is from a national to a local. Provide flexibility with the local marketing spend, so they can choose and pick their spots (i.e. California is higher than Louisville), which provides the franchisees the opportunity to do what they have to compete and win.
A lot of the business is coming from the millennials, because like Chipotle, we use better ingredients and the kids can taste the difference. Take share from the regional and independent chains. National players continue to grow at a more significant clip.
Lower commodity drove a slightly more aggressive pricing environment than have been seen in several quarters, with number of very aggressively discounted promotional offers across the value segment of the industry
More aggressive pricing activity from some of the national, regionals, and some of the independents within the category, which gave Papa John’s a slightly lower than anticipated comp for the quarter.
Discounts from competition caused some issues, mostly from larger players (Little Caesars $5, Domino’s $5.99, Pizza Hut $6.99)
Small consumer base that is looking for that value and variety. Pizza Hut advertising and visibility to cheaper pizza has been driving customers away from Papa John’s.
Despite competition doing aggressive promotions, high commodities forces them to use cheaper ingredients or put less on, causing a decline in the product quality attributes
Higher commodity prices is painful short-term, but long-term it’s advantageous because it weeks out the weaker players and those who don’t believe in quality
Relationship with franchisees has been more collaborative than it’s been since maybe in the early 1990s when they were just getting started. Sometimes there are disagreements on pricing between corporate and franchisees.
Company-owned out execute franchisees. Use corporate restaurants to lead and drive best practices to influence the franchise system.
Could not lead the franchisees if they didn’t have corporate stores. With 650 stores that perform, just on every matrices is better than the franchisees, Papa John’s has tremendous clout on guiding the system and influence the system and leading the system. One competitor has 1,000 stores and 1,200 stores and in that situation it is not healthy.
In the process of weeding out the franchisees that are not engaged, resulting in the high store closures.
Relationship with franchisees has been more collaborative than it’s been since maybe in the early 1990s when they were just getting started. Sometimes there are disagreements on pricing between corporate and franchisees.
Company-owned out execute franchisees. Use corporate restaurants to lead and drive best practices to influence the franchise system.
Could not lead the franchisees if they didn’t have corporate stores. With 650 stores that perform, just on every matrices is better than the franchisees, Papa John’s has tremendous clout on guiding the system and influence the system and leading the system. One competitor has 1,000 stores and 1,200 stores and in that situation it is not healthy.
In the process of weeding out the franchisees that are not engaged, resulting in the high store closures.
2015: 26 conversion units in International Business in 2015, but no similar conversions planned for 2016. Approaching 400 stores in the UK, 400 in the region of Latin America, and 100 stores in Russia. Focusing on some challenges throughout Asia.
Expansion in the US is a long-term deal. Opportunity to go beyond 4,000 is there, but those would be non-trad.
Opened 107 units (230 global units in 2015)
Q2: International units approaching 1,500 stores in over 40 countries
Closures mostly on the domestic side on the nontraditional side of the business. Some of those are contractual agreements that Papa John’s must enter into that have leases that tie up to it. Not an indication of any poor performance happening across the domestic, international business, just continued headwinds that result from commodities from the last couple of years and coming to the tailwind of the investments that were made to the new POS system FOCUS
Projection for 2016: papa john’s does a sensitivity analysis where they do a worst, base case, best case, because they don’t want to be too optimistic as the environment in the food industry is always changing.
Variability and penetration in some of the franchise markets and the predominant amount of growth has been in the franchise markets. Corporate side in most penetrated markets leads the pack.
Challenging pricing competitive environment puts pressure in some underpenetrated markets
China
Franchises: from 144 to 199 (2013-2015)
Company-owned: from 58 to 45
2015: New Senior VP of International business (Jack Swaysland) – anticipate a lot of synergies and opportunities to accelerate the overall international business; new Regional VP for Southeast Asia business (Marc Helman) – lived in Korea for over 20 years and speaks Mandarin. The reason they are not doing well in the Asian Pacific is because they don’t have the right folks in place and the right franchises, but they are going to change that.
improved China results as a result of reduced depreciation from held for sale accounting. Foreign currency impacted sales negatively by $600,000
Strategic model in China – incorporates menu, model design, marketing changes, and some branding aspects. Too early to trying to take a look at an outcome.
Decided to refranchise the 46 stores in the Beijing and Tianjin markets and is actively seeking a high quality franchise market. There have been improvements in the Beijing’s financial results in 2015 but they feel this market will strategically be the most successful long term.
Selling the operations in China – don’t expect significant gain or loss.
U.KFranchises: from 246 to 319
2015: UK – double digit comp sales performance driven by operation execution, strong digital initiatives, and successful launch of largest national TV campaign in the UK to date.
Q2: 300th restaurant in the UK
UK – scale is the overall driver to success; national media campaigns with promotion
2013 - Partnership with the Football League in the UK (72 clubs, annual attendance of 16 million)
China – Asian-Pacific region is pretty tough on all fast food right now. Haven’t figured out China yet. Keep chipping away at it, keep learning, keep trial and erroring and eventually figure out that part of the world. 236 stores in all of China, which is less than 5% of the global portfolio. Growing middle class of 300 M and growing to potentially up to 600 M in the middle class and the consuming class over the next five years to 6 years. Important market. Headwinds since the OSI incident in July, 2014. Different corporate and franchise business. On the corporate side they have a different model in about half of the restaurants, have a delco business (performing well in terms of traffic and sales growth), delivery, and carryout. Most franchises in China are casual dining model. In the process of working on their marketing, menu, model, customer journey and experience. Have completed a significant amount of research as it relates to the design and the menu. Now it becomes around implementation of that work as they work parallel to source and find a very high-qualified franchisee to run the 46 restaurants in Beijing and Tianjin.
Too early to trying to take a look at an outcome.
testing ground completed extensive market research and are testing a number of different adjustments to the operating
It takes time to work in a big market to establish good base of stores that are clustered well and operate consistently
Papa John’s decided to buy its Beijing-area outlets as a way to learn. “Owning and operating restaurants and a quality control center in Beijing will allow us to better understand the China market, better support our franchisees in Asia,” Robb Chase, the former international president of Papa John’s, explained in a 2006 press release about the acquisition of the Beijing stores. It has evidently been a costly lesson.
Increase throughout 2013: Board declared $0.25 regular dividend (first payment Sept. 20). 23% increase in EPS since 2012. Increase in units domestically and internationally. 7.3% increase in revenues in Q1
Peak 03/31/14: began rollout of POS system ??
Decrease 09/30/2014: EPS – biggest headwind is commodity market and investments made in the company
Increase throughout 2014 and 2015: shares rallied 26% on the pizza chain’s surging profit growth and technological advancements, making it one of the richest restaurant stocks around. The race to build more sophisticated ordering technology has made pizza chains more efficient. By letting customers pick out their pizza on an app or website, companies can reduce errors and potentially use less labor. Last December, Papa John’s said it was the first of its competitors to generate 50 percent of its sales through digital channels. That technology could be a bludgeon that helps Papa John’s keep small pizza chains at bay, Saleh said. Many restaurants can’t afford those capabilities, he said. "The digital technologies are very expensive to implement,” said Saleh, who has a buy rating on Papa John’s. "It makes it very hard for the independents to compete for the younger customers."
Decrease throughout 2015: sluggish third and fourth quarter sales, investors expected better. Investors were underwhelmed by its adjusted EPS of $0.45, and a 0.3% drop in revenue along with a negative change in the company’s full-year forecast. By most marks, the company had a decent quarter. Its EPS of $0.45 was up from $0.39 a year ago and system wide comparable sales increased by 3% in North America and 8% internationally. Revenue did drop the aforementioned 0.3% from $390.4 million in the same period in 2014 to $389.3 million this year.
According to Investopedia, the primary motive for stock splits is to make shares seem more affordable to small investors even though the underlying value of the company has not changed. It signals the share price has increased, thus lifting demand and prices.
Q4 2015: Revenues were down slightly; offset by lower FOCUS equipment sales and lower cheese block prices, which reduced PJ Food Service revenues.
For the full year, revenues were up 2.5% with strong comp sales increases of 4.2% for NA and 6.9% for international, again somewhat reduced by lower FOCUS sales and lower block cheese prices. Neither of these significantly impacted profitability.
Q3: Revenues were slightly lower than last year because comp sale increases of 3% in NA and 8% internationally were offset by lower FOCUS equipment sales and lower cheese block prices, which reduced PJ Food Service revenues (do not have a high impact on profitability)
Q2: Revenues increased due to a 5.5% increase in the number of units (offset by lower cheese block prices, which drove lower revenues in PJ Food Service business since Papa John’s had a constant dollar mark-up on cheese
The Debt-to-Equity ratio shows Papa John's debt relative to its equity and the resulting financial leverage. The profit margin and gross margin consider profitability compared to sales revenue.
Q2 2015: Increase in G&A due to timing and rollover issues. Non-recurring reduction in equity comp last year due to an executive department, which impacted comparisons. Higher health insurance costs, mainly on the claims side, as well as higher legal expenses.
Investment internationally, technology, marketing internationally, increased salary and benefit cost for existing employees.
Will continue to balance driving strong increases in profitability with making the resource investments necessary to drive the long-term growth of the business
Profit margin and gross margin very erratic due to the volatile environment (commodities price, restaurant level bonuses, competitors pricing)
2013
Lower profit margins: lower price from competitors and higher commodity prices
Lower gross margins: higher commodities, lower national promotion pricing, and increased restaurant level bonuses
2014
Lower gross margins: due primarily to the higher cheese prices
Lower margins: Higher infrastructure costs to support digital ordering and lower margins at print and promotions business decreased $1.6 M on all other segments. Food Service was a little stronger in Q2 of 2013, which made Q2 of 2014 look a little weaker. Bringing in drivers and transportation in-house and there’s some costs that were underestimated. Insurance claims were higher.
2015
G&A up – increases in performance based incentive comp and operations bonuses at the supervision level driven by strong performance. Higher legal and insurance expenses. Marketing investment into international franchise business.
Impact of the preliminary settlement of the Perrin, collective and class action, which is a one-time item that negatively impacted the results about $12.3M pre-tax or 0.20 of EPS. Higher insurance cost of $4.5 million due to adverse automobile insurance claims.
Dropped significantly during the beginning of 2014 to an increase in costs.
By the end of 2015, Papa John’s was able to recover its profit margin. The reasons for this recovery:
Cost of sales was 1.3% lower due to lower commodity costs, primarily cheese
Advertising costs were 0.2% lower due to benefit of higher sales
Occupancy costs and other restaurant operating costs were 0.8% lower due to higher sales and lower mileage reimbursement (lower gas prices)
Taxes were 0.8% lower
2011: Cash flow provided by operating activities decreased to $92.6 million in 2010 from $103.8 million in 2009. The consolidation of BIBP (BIBP is a franchisee-owned corporation that conducts a cheese-purchasing program on behalf of domestic Company-owned and franchised restaurants) increased cash flow from operations by approximately $6.8 million in 2010 and $22.5 million in 2009. Excluding the impact of the consolidation of BIBP, cash flow was $85.8 million in 2010 as compared to $81.3 million in 2009, primarily due to higher net income.
2012: Cash flow provided by operating activities was $104.4 million for the full-year 2012 as compared to $101.0 million in 2011, primarily due to higher net income, partially offset by unfavorable working capital changes. Cash flow provided by operating activities increased to $101.0 million in 2011 from $92.6 million in 2010. The consolidation of BIBP increased cash flow from operations by approximately $6.8 million in 2010. Excluding the impact of the consolidation of BIBP, cash flow was $101.0 million in 2011 as compared to $85.8 million in 2010, primarily due to higher net income and favorable working capital changes, including deferred income taxes.
2013: increased purchases of property and equipment in 2013 and 2012 primarily relate to expenditures on equipment for New Jersey dough production, technology investments, including our new domestic POS system, (“FOCUS”), and China new store builds. Cash flow provided by operating activities was $101.4 million for 2013 as compared to $104.4 million in 2012. The reduction in 2013, as compared to 2012, is primarily due to working capital needs offset somewhat by higher net income. Cash flow provided by operating activities increased to $104.4 million in 2012 from $101.0 million in 2011, primarily due to higher net income and favorable working capital changes, including deferred income taxes.
2014: Cash flow provided by operating activities was $122.6 million for 2014 as compared to $101.4 million in 2013. The increase of approximately $21.3 million was primarily due to higher net income and favorable changes in working capital and other operating activities including higher depreciation and amortization expense. Cash flow provided by operating activities decreased to $101.4 million in 2013 from $104.4 million in 2012, primarily due to working capital needs offset somewhat by higher net income. The purchases for 2014 include FOCUS equipment costs for domestic Company-owned restaurants and technology investments, including FOCUS software development costs. The purchases for 2013 include expenditures on equipment for New Jersey commissary dough production, technology investments, including FOCUS software development costs, and China new restaurant builds.
2015: Cash flow provided by operating activities was $160.3 million for 2015 as compared to $122.6 million in 2014. The increase of approximately $37.7 million was primarily due to higher operating income and favorable changes in inventory and other working capital items. The prior year included higher inventory levels of equipment to support the rollout of FOCUS to our domestic franchised restaurants. The Perrin legal settlement does not impact 2015 cash provided by operating activities as it was not paid until January 2016.
The non-GAAP results shown above, which exclude the items impacting comparability, should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s GAAP results. Management believes presenting the financial information without these items is important for purposes of comparison to prior year results and analyzing each segment’s operating results. In addition, management uses these non-GAAP measures to allocate resources, and analyze trends and underlying operating performance. Annual cash bonuses, and certain long-term incentive programs for various levels of management, are based on financial measures that exclude the Incentive Contribution. See “Results of Operations” for further analysis regarding the impact of these items.
In addition, we present free cash flow in this report, which is a non-GAAP measure. We define free cash flow as net cash provided by operating activities (from the consolidated statements of cash flows) less the purchases of property and equipment. We view free cash flow as an important measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP and as a result our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of our performance than the Company’s GAAP measures. See “Liquidity and Capital Resources” for a reconciliation of free cash flow to the most directly comparable GAAP measure.
The presentation of the non-GAAP measures in this report is made alongside the most directly comparable GAAP measures.
The following ratios provide insight to shareholders and potential investors. They indicate the return of shareholders and the proportion of earnings distributed to shareholders. Further, the rate of growth Papa John’s can withstand without external financing.
Q2 2015: Increased dividend from $0.56 to $0.70
2011: ROCE – 27.074 / SGR – 27.074
2012: ROCE – 31.852 / SGR – 31.852
2013: ROCE – 42.92 / SGR – 36.209 / Div – 15.636
2014: ROCE – 65.089 / SGR – 45.79 / Div – 29.649
2015: ROCE – 130.698 / SGR – 87.837 / Div – 32.794
2015: Commodities: cheese is 35% to 40% of cost. Hedge cheese, so in case price goes up it doesn’t put the year in jeopardy with Wall Street. Stay anywhere from 9 to 12 months out in front and by decreasing amounts as they go further.
Have a moderate amount of cheese at the corporate level locked in through the end of the year, which gives predictability and visibility to what’s going on
Opened first restaurants in Israel and announced the signing of a development agreement to open over 100 restaurants in Madrid and the surrounding area. Plans to open in northeastern France. Later this summer, they anticipate opening their 5,000th store globally.
Opened first restaurants in Israel and announced the signing of a development agreement to open over 100 restaurants in Madrid and the surrounding area. Plans to open in northeastern France. Later this summer, they anticipate opening their 5,000th store globally.