Papa John’s

papa bathrooms analytic thinking Alex Quiquia 3/19/13 MGMT 4800 St grazegic Analysis of protactinium seats IntroductionWe already know that papa magics is a major fraud in the pizza pie industry but what does the future hold for them. One of the business-level strategies that Papa fast nonpareils implemented was product differentiation through the use of fresh dough and superior-quality ingredients. deception Schnatter believed that other pizza eaterys used inferior ingredients and that he could do it better. This strategy was implemented from the very base in the linked States.Another successful business-level strategy that concentrate on product diversification employed by Papa bottoms was the use of technology to order pizza. In 2001 they became the archetypical pizza family to offer online ordering. The nigh signifi croupet corporate-level strategy used betimes on by Papa rears was mergers and acquisitions. In the late 90s, the comp either acquired 205 Perfe ct Pizza restaurants in the UK. They continued aggressively getting international restaurants until the early 2000s when they began to focus their acquisition efforts domestic all in ally.In just under 30 years since opening its first store, Papa pottys has added everyplace 4,000 stores (papajohns. com). Thats an average of over 140 new stores every(prenominal) year since inception, an undreamt of pace. They excessively decided to use the franchisee model. Although this model has its critics, it can be a very useful authority to generate revenue without adding to store overhead, etc. The franchisee model has been successful for Papa tricks. Papa bums was relishing a 5+ percent average revenue ingathering rate for the previous quintuple years. The company also boasted one of the highest re rises on invested capital in the restaurant social class of the markets.Total assets grew steadily from 2003 to 2007 as well. This growth was financed mostly by debt, but debt/equity r atios remained healthy. Apparently Papa Johns holds a competitive profit in its fresher, higher-quality ingredients. When a customer is looking for a restaurant-quality pizza with ease of delivery, they turn to Papa Johns. External Analysis During this study, the pizza industry was extremely competitive. Barriers to debut were few and competitors could re impress prices for pizza ingredients extremely low, enabling them to easily undercut other competitors prices.Food commodity prices also took a 20 percent jump in 2007, which didnt make the industry any more than winning. One of the attractive features of the industry is that because pizza ingredients are commodities, supplier power is very low. Suppliers cannot dictate prices to buyers, because they can go somewhere else. Buyer power, however, is very high. If someone doesnt wish to buy a $12. 00 pizza at Papa Johns, they can go across the street to Little Caesars for a $5. 00 pizza that tastes virtually the same. The two ma jor competitors of Papa Johns are Dominos and Pizza Hut. Both of these companies enjoy a larger market share than Papa Johns.These companies are focused more on price savings than Papa Johns, who is focused on quality pizza. entirely like any other sub-section of the food industry, thousands of pizza restaurants are opened each year, which continues to make bread more trying to obtain. Internal AnalysisThe commissary system is an important part of what gives Papa Johns an edge over its competitors. Every Papa Johns restaurant belongs to a subdivided voice, and each region has what is known as a commissary. These commissaries send fresh ingredients and cleaning supplies twice per week to all the Papa Johns restaurants within their region.This ensures fresh ingredients and all the supplies needed to clean the restaurants. This also maintains consistency from restaurant to restaurant as all of the commissaries are controlled at the corporate level. By servicing several units from o ne commissary, labor cost are also driven down. Papa Johns international growth is also an advantage it has over many of its competitors. By taking advantage of all different markets round the world, Papa Johns ensures that business is most likely thriving somewhere at all times. All of these factors get to a competitive advantage for Papa Johns.Recommendations Based on this synopsis of Papa Johns, the following recommendations are made to help the company continue its profitability. 1. Expand internationally as a great deal as possible. With several stores in diverse locations throughout the world, Papa Johns will be well diversified and able to absorb losses in one orbit better. 2. Continue to move more toward the franchisee model even more so than they are currently doing. By furthering this model, overhead and administrative costs at the corporate level are drastically reduced.Papa JohnsPapa Johns Analysis Alex Quiquia 3/19/13 MGMT 4800 Strategic Analysis of Papa Johns Intr oductionWe already know that Papa Johns is a major player in the Pizza industry but what does the future hold for them. One of the business-level strategies that Papa Johns implemented was product differentiation through the use of fresh dough and superior-quality ingredients. John Schnatter believed that other pizza restaurants used inferior ingredients and that he could do it better. This strategy was implemented from the very beginning in the United States.Another successful business-level strategy that focused on product diversification employed by Papa Johns was the use of technology to order pizza. In 2001 they became the first pizza company to offer online ordering. The most significant corporate-level strategy used early on by Papa Johns was mergers and acquisitions. In the late 90s, the company acquired 205 Perfect Pizza restaurants in the UK. They continued aggressively acquiring international restaurants until the early 2000s when they began to focus their acquisition eff orts domestically.In just under 30 years since opening its first store, Papa Johns has added over 4,000 stores (papajohns. com). Thats an average of over 140 new stores every year since inception, an incredible pace. They also decided to use the franchisee model. Although this model has its critics, it can be a very useful way to generate revenue without adding to store overhead, etc. The franchisee model has been successful for Papa Johns. Papa Johns was enjoying a 5+ percent average revenue growth rate for the previous five years. The company also boasted one of the highest returns on invested capital in the restaurant category of the markets.Total assets grew steadily from 2003 to 2007 as well. This growth was financed mostly by debt, but debt/equity ratios remained healthy. Apparently Papa Johns holds a competitive advantage in its fresher, higher-quality ingredients. When a customer is looking for a restaurant-quality pizza with ease of delivery, they turn to Papa Johns. Extern al Analysis During this study, the pizza industry was extremely competitive. Barriers to entry were few and competitors could drive prices for pizza ingredients extremely low, enabling them to easily undercut other competitors prices.Food commodity prices also took a 20 percent jump in 2007, which didnt make the industry any more attractive. One of the attractive features of the industry is that because pizza ingredients are commodities, supplier power is very low. Suppliers cannot dictate prices to buyers, because they can go somewhere else. Buyer power, however, is very high. If someone doesnt wish to buy a $12. 00 pizza at Papa Johns, they can go across the street to Little Caesars for a $5. 00 pizza that tastes almost the same. The two major competitors of Papa Johns are Dominos and Pizza Hut. Both of these companies enjoy a larger market share than Papa Johns.These companies are focused more on price savings than Papa Johns, who is focused on quality pizza. Just like any other sub-section of the food industry, thousands of pizza restaurants are opened each year, which continues to make profits more difficult to obtain. Internal AnalysisThe commissary system is an important part of what gives Papa Johns an edge over its competitors. Every Papa Johns restaurant belongs to a subdivided region, and each region has what is known as a commissary. These commissaries send fresh ingredients and cleaning supplies twice per week to all the Papa Johns restaurants within their region.This ensures fresh ingredients and all the supplies needed to clean the restaurants. This also maintains consistency from restaurant to restaurant as all of the commissaries are controlled at the corporate level. By servicing several units from one commissary, labor costs are also driven down. Papa Johns international growth is also an advantage it has over many of its competitors. By taking advantage of all different markets around the world, Papa Johns ensures that business is most like ly thriving somewhere at all times. All of these factors create a competitive advantage for Papa Johns.Recommendations Based on this analysis of Papa Johns, the following recommendations are made to help the company continue its profitability. 1. Expand internationally as much as possible. With several stores in diverse locations throughout the world, Papa Johns will be well diversified and able to absorb losses in one area better. 2. Continue to move more toward the franchisee model even more so than they are currently doing. By furthering this model, overhead and administrative costs at the corporate level are drastically reduced.