COMPETITIVE ADVANTAGE 1
THE CHEESECAKE FACTORY
COMPETITIVE ADVANTAGES: STRENGTHS AND WEAKNESSES
Dorene Utley
Introduction to Business: BUS 100
Professor Cynthia McPherson
July 31, 2013
COMPETITIVE ADVANTAGE 2
The Cheesecake Factory boasts profits and productivity in a SWOT analysis with their strengths and weaknesses. To remain successful in a business, the company has to be aware of the strengths and weaknesses. This business started out back in the mid-twentieth century with great production and marketing skills that Oscar and Evelyn Overton achieved together. Unfortunately, the company struggled, when there were not enough money, workers, and product to help the business during those early years. Today there are
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Economically this was a weakness for the company, 0.6% fiscal in the Northeast storms”.
Another strength the Cheesecake Factory possesses on restaurantnewsresource.com (2013) has Chairman and Chief Executive Officer David Overton replies with, “Our performance in the first quarter demonstrates the strength of our restaurants domestically, as well as globally, with the initial licensed Cheesecake Factory restaurants in the Middle East performing at very
As mentioned in the case study, Panera Bread Company is known to be one of the leading bakery/café that offers freshly baked pastries and French inspired entrées across various states in the US. However in the recent years, Panera Bread faced a decrease in their usual high growth rate from 9.1% and 12.0% in the year 2000 to merely 0.2% and 0.5% of comparable sales and annualized unit volumes respectively.
Any business, no matter what, is going to fail if the product is not of good quality. You wouldn’t watch a poor quality movie, or eat a meal that wasn’t to your taste. So a business needs to work hard to ensure that their produce is of high quality, and Bakers Delight does so by making their products fresh and in good environments. Through quality food, Bakers Delight has stayed, and remained Australia’s most successful
It is a centralized system, where decisions and recommendations come from the top down. However it is also flexible giving any employee the freedom to reach out to an upper level director. This succession of power lets Cheesecake Factory operate smoothly and competently. Each location manager has to go through extensive training to be able to be in that position and is well qualified to look over the whole restaurant. Given the success of Cheesecake factory, I would say they should keep their hierarchal structure the same and if anything they should add higher monitoring of lower levels. The upper levels seem to operate efficiently, but upon reading employee reviews of working at Cheesecake factory, there were several that were unhappy with their general managers. Many of them claimed that the management was unapproachable, and did not pay attention to the hard work of the employees. It was also said that the managers tend to be overbearing and lack communication skills with employees. Another overarching theme was the inconsistent breaks because they are up to the discretion of the manager. My recommendation would be to invest more in the employees and the directors that are above the general managers to make sure that the employees are satisfied. Promote company values more and participative leadership and more incentive for employees to go above and beyond and focus on team building as opposed to individual competition. In one of the reports they even said themselves that the success of the business is due to happy employees. “Our future growth and financial success will be highly dependent on our ability to attract, develop and retain qualified staff members who are capable of successfully managing upscale, high-volume casual dining restaurants, and consistently executing our extensive and complex
The Cheesecake Factory is a successful restaurant in the urban areas in the United States of America (Kliman, 2006). The restaurant is popular because of the large proportions of food that it offers as well as its large menu. The company usually hires professional and qualified staff. This makes the company have fancy during service (Gabriel, 2008). The company has 165 restaurants in 29 states of the United States. David Overton founded the company in 1978. Since then, the company started growing a t high rate. The company later expanded to Middle East. There is a high expectation that the company will expand to other parts of the world in the near future. If this happens, the company will among the most successful company in the world
Some of the principles of classical management have been reflected in what has happened at Creamy Creations. One of those principles is that management is making all of the decisions. Based off of the case study, Burger Barns executives have made all of the decisions without any input from the staff. The other principle which reflects on Creamy Creations is the division of labor.
The organizational structure of the Cheesecake Factory demonstrates how organizational function, and organizational design can lead to having a successful franchise. “The company operates 150 upscale casual dining restaurants under the “Cheesecake Factory “brand“ (Datamonitor, 2011). The company utilizes point of sale cash register system to maintain financial and accounting controls in restaurants (Datamonitor, 2011). The company is known for the variety of flavors in cheesecakes, and also offers a wide selection of food to choose from in their daily menu’s.
The organizational structure of the Cheesecake Factory demonstrates how organizational function, and organizational design can lead to having a successful franchise. “The company operates 150 upscale casual dining restaurants under the “Cheesecake Factory “brand“ (Datamonitor, 2011). The company utilizes point of sale cash register system to maintain financial and accounting controls in restaurants (Datamonitor, 2011). The company is known for the variety of flavors in cheesecakes, and also offers a wide selection of food to choose from in their daily menu’s.
To evaluate the direction that Kudler Fine food wants to take the company has prepared a Strengths, Weaknesses, Opportunities and Treats (SWOT) analysis to assist the business leaders in making an intelligent decision regarding expansion. The company strengths, weaknesses opportunities and threats are listed below. The company strengths are the organization is small, no direct competition, lots of choices for the consumer, very customer oriented, good store locations, high level of repeat customers, and the owner has good personal relationships with staff.
Doughnut Time (2016) is a Brisbane based company, specialising in a variety of premium desserts that capitalise on the use of social media, unique locations and offerings (refer to table 1). Despite desserts being considered non-essential, high levels of competition and healthy eating trends (refer to table 1), the business has successfully established itself within the fast food and dessert industry, which is set to grow in the next five years (Tonkin, 2016). The company has a distinctive vintage flair, yet modern take on doughnut names and designs, becoming popular on social media (Doughnut Time, 2016). It’s vintage vans and small ‘hole in the wall’ stores make the company sort after, and appear unique from a large number of competitors
This paper will discuss the kroger company’s strategy and competitive advantage. It will also discuss competition and strategy from rival company Walmart. Research will show whether Kroger uses an offensive or defensive strategic approach to business practices. It will discuss mergers and acquisitions of The Kroger Company (Bethel University, 2017).
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
Competitive advantage is important in any company’s market structure. A good example of competitive advantage is when a customer asks why he or she should purchase this product over the company’s competitor’s product (Lambardo, 2017). For a company to obtain a substantial competitive advantage, a company has to gain a customer base that trusts their products over their competition’s product. For example, in the beer industry, Anheuser- Busch has created beer products that obtain a strong competitive advantage over their competitors. Budweiser was able to create this competitive advantage because they obtained a strong market structure. Also, there is a huge relation between company brand and competitive advantage (Abbas & Kraidy, 2017). For New Belgium brewing company, the brand and social responsibility are they key competitive advantages.
Also, according to break-even analysis operating with the single mold and excluding warehousing costs, a minimum of 12,035 units must be sold to break even. Under a similar situation with the double mold, 15,507 units must be sold to break even, which is about half of the optimistic sales projection. Also under the optimistic sales projection, a positive return on investment is expected. Because the company is turning profit,less additional investment is required. Additionally under the pessimistic and expected situation, the company turns losses, and under the optimistic projections, Chef’s Toolkit only has a net income of 13% of its revenues. Selecting Preferred alternative According to the above information and the projected pro-forma statements, Dale Reid should not invest his money in the company. The company’s lack of current assets, high expenses and low per-unit revenue create an unfortunate and unprofitable investment in pessimistic and expected situations. Only in the optimistic production and sales does the company begin to turn profit, but this profit is low. Chef’s Toolkit needs desperate restructuring and additional revenue sources before Dale Reid should invest. Developing
Using the 5 Forces Model, analyze Mrs. Fields’ Cooks. What challenges does Mrs. Fields’ Cookies, Inc. face in the next five
Kristen and her roommate are preparing to launch Kristen’s Cookie Company in their on-campus apartment. The company will provide fresh cookies to hungry students late at night. Evaluation of the preliminary design for the company’s production process will be required in order to make key policy decisions, including what prices to charge, what equipment to order and how many orders to accept, and to determine whether the business can be profitable.