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HRM 4410 Chapter Notes - Chapter assignment: Competitive Advantage, Italian Cuisine, Molise


Department
Human Resources Management
Course Code
HRM 4410
Professor
Mark Podolsky
Chapter
assignment

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Strategy- The organization’s overall strategies are to launch the Pronto’s concept and adapt a
company owned-and-operated model. Porcini’s is looking for new opportunities to establish its
brand into new markets within the Northeast region.
One of the challenges about this is that the markets for full service restaurants are nearing its
dissemination point in shopping mall locations and within cities across the US. Motivated by this truth,
Porcii’s is strogly cosiderig opeig liited-menu outlets at iterstate highways, called Proto’s.
I a effort to icrease their footprit, Porcii’s is cosiderig the optios of frachisig, sydicatio,
and company-ownership models, all while attempting to maintain its reputation for exceptional food
and service. After a careful examination of all of the ownership models and how they affect the
operations and service management for the restaurant, it is gathered that the most comprehensive
model for Prontos would be syndication; primarily because it allows the restaurant to preserve its brand
image and have full control of its service operations.
Background
Starting out in 1969 as a family-owed Italia restaurat i the Bosto area, Porcii’s, Ic., soo
expanded to many locations in the Northeastern United States. Known for its consistent deliverance of
high-quality food and service at all of their locations, it was apparent for the restaurant to consecutively
win awards like the one they...
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Goal:Porcini’s goal to expand in the domestic market without having to compromise on food
and service quality, and therefore management is looking to launching a new chain of lower-cost,
limited-menu restaurants called Porcini Pronto. Porcinis is seeking growth in the restaurant
market, as it seeks to work on establishing better brand name recognition but the restaurant is
limited in terms of access to capital. In addition to that, the company does not possess brand
recognition as compared to the other restaurants that are in the Porcini’s competition
Product Focus Market: Porcini's Pronto is in the restaurant food chain and serves high-quality
Italian cuisine made from fresh ingredients. The restaurant market is divided into three segments.
As for Pronto, it will be a fast food, single location full service restaurant and part of a full-
service chain restaurant. Porcini’s Pronto will mainly serve frsh Italian food. The new outlets
will be located along busy interstate highway exits in the region and will serve outstanding fast
Italian food at reasonable prices to both travelers, and local residents
Value Proposition: Pronto is positioned at a lower price point when compared to traditional
Porcini’s restaurants, Pronto’s will have a limited menu, courtesy of Chef Molise and her
introduction of flash cooking techniques which improves service time. Pronto will serve high
quality food similar to Procini’s which will differentiate from other competitors. these will
differentiate from competitors. Alessio had persuaded Porcini’s senior executives to consider
opening limited-menu outlets,
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Porcini’s “Pronto,” to serve interstate highway travelers. Most competitors serving this
market were fast-food or low let outlets. Pronto could offer a quality difference that travelers
would value, but it can also be challenging for a brand that is not well recognized
Quality is the core competency that differentiates Porcini from others and Pronto will have the
same concept.
Core Activities: Smaller-sized eateries and locations selected will be convenient for customers,
with a strong emphasis in keeping high product and service quality, attributes relevant and
valuable for the target consumers. In addition, the use of wireless technology as a way of
improving waiting times is being taken into consideration. A customer-based questionnaire
system is introduced in order to measure service levels, and the results are linked to specific
business areas of responsibility, which allows for the introduction of performance-variable
salaries and incentive systems.
Quality Food- Innovative recipes, fresh ingredients and creative presentations.
Rapid Service- Selective hiring, quality training, wireless technology and “Great Italian Cuisine
without Wait”.
Value and Convenience: Priced lower than Procini and location is convenient.
Management Preferences
Management authorized Alessio to form a team to further develop the concept and gave it a
budget sufficient to engage a real estate consultant and a market researcher. Tom Alessio,
marketing vice president at Porcinis gave an idea of opening a new chain named “Pronto.” These
restaurants can be established at inter-state highway offering limited-menu. The main feature of
these will be Porcinis quality food as compared to other competitors and a limited selection of
beer and wines.
Leveraging its brand recognition in New England, Porcini’s chief differentiator from its
competitors is its attention to quality. A prominent New England restaurant guide selected
Porcini’s as its “Best Chain Service” award for four consecutive years. This accomplishment
occurred by a combination of table service and food quality. Porcini’s limited resources and lack
of brand power restricts its growth opportunities to the domestic market. Three viable options for
Porcini’s growth are carryout locations, catering, and Porcini’s Pronto. The carryout locations
and catering became less viable because of managements concern of intense competition with
carryout locations and no internal champion with catering expertise to drive the enterprise.
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Management is concerned that a poor customer experience at Porcini Pronto could tarnish the
company's well-established and successful restaurant brand. The management team asks the vice
president of marketing to develop the concept and to create an operating strategy for the new
outlets. The VP must also analyze three alternative expansion strategies before management will
make any commitments to the project. If Porcini's builds and operates the new restaurants, the
company will maintain complete control of operations and the customer experience but
expansion will take a very long time.
As a restaurant chain seeking growth, Porcini’s, formerly a family-owned chain operating in
Northeastern United States, considers the option of expanding its business into a new concept
Porcini’s Pronto. Located at interstate highway exits within the operating region of traditional
Porcini’s restaurants, in order to leverage its brand awareness, Pronto is focused in serving quality
table-served meals with a fast, quality service.
Positioned at a lower price point when compared to traditional Porcini’s restaurants, Pronto
offers a limited menu, courtesy of Chef Molise and her introduction of flashcooking techniques
which improve service time. Smaller-sized, convenient locations for customers were chosen,
with a strong emphasis in keeping high product and service quality, attributes relevant and
valuable for the target consumers. Additionally, the use of wireless technology as a way of
improving waiting times is considered. A customer-based questionnaire system is introduced in
order to measure service levels, and the results are linked to specific business areas of
responsibility, which allows for the introduction of performance-variable salaries and incentive
systems. Alessio had persuaded Porcini’s senior executives to consider opening limited-menu
outlets,
Porcini’s “Pronto,” to serve interstate highway travelers. Most competitors serving this market
were fast-food or low let outlets. Pronto could offer a quality difference that travelers would
value, but the challenges were substantial
Being comprehensive according to the dimensions of structure, process and outcome, the
questionnaire system lacks depth in terms of measures and is relatively ambiguous; moreover, it
allows for little controllability and identification of potential problems. A comparison with
customer expectations or competitor benchmarking is also not available in the current system.
Therefore, supplementary measurement approaches are suggested employee surveys and
suggestion systems, mystery shopping, expert observations, SERVQUAL, FRAP, blueprinting
and analyzed taking into account the setting of Pronto, in order to overcome the weaknesses posed
by the current questionnaire system.
Constant service levels, only possible due to specialized HR systems (which consequently lead to
low turnover rates and an extensive hiring process), and the masterful combination of high product
quality with a fast-paced service at a competitive price are the two sources of sustainable
competitive advantages for Porcini’s Pronto.
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