Ryan Yamashita

Pizza Business Strategy Exercise

Business Strategy Template
Name of Business: Pizza Palace
Customer Value Proposition (Describe):
Will provide excellent service, along with quality ingredients to get
the best pizza for the price they will pay.

Profit Formula:
Pricing Strategy (Circle One):
Lowest

Premium

Average

Lower

Cost Strategy (Circle One in each category):

Facilities: Upscale Average
Cheap
Labor:

Premium Wage Average Wage

Minimum Wage2

Ingredients: Premium

Average

Cheap

Investment Strategy: Borrow

Angel Investor

Life Savings Equity Partners

Vision Statement:
Eventually become a chain of successful pizza palaces

Mission Statement:
Give customers an enjoyable experience through positive service, quality
ingredients, and a great environment

Financial Objectives:
1. Make money
2. Invest in high quality ingredients and products
3. Set a good price, not too high or too low, where we can make the largest
profit

Strategic Objectives:
1. Good location
2. Expand
3. Add T.V.s to attract sports fans

Ryan Yamashita

External Analysis

PESTEL Analysis: (Circle One, T = Threat, O = Opportunity, N = Neither;

Briefly Describe Reasons)
Political Factors T
O
N
None, no political threats to intervene with business
Economic Conditions
T
O
N
Find people looking for jobs, make money to help both the individual
and the business
Sociocultural forces
T
O
N
Depending on how people change their lifestyles, it could be a
negative threat.
Technological factors
T
O
N
New technological advancements can threaten the simplicity of
creating the pizza, ordering the food, and delivery process
Environmental factors T
O
N
Depending on the location of the restaurant, there could be many
competitors in the area. If it was a less wealthy area, the prices may be
lower than an area with higher class.
Legal/Regulatory conditions
T
O
N
It should not be a threat to follow regulations and it is not an
opportunity.

Porters Five Forces:

Reasons)

(Circle One, Briefly Describe

Intensity of Rivalry
Strong
Neutral
Weak
Anywhere you go there will be pizza places, so no matter where you go
there will still be competition. It is not much different competition from
anywhere else.
Threat of New Entrants
Strong
Neutral
Weak
Pizza places open up pretty often but not too much because most
locations already have their group of popular pizza parlors.
Bargaining Power of Customers
Strong
Weak
Prices will be set, non arguable

Neutral

Ryan Yamashita
Bargaining Power of Suppliers Strong
Neutral
Weak
Will find the best ingredients for the price, and set up a relationship
with them to work
Threat of Substitutes
Strong
Neutral
Weak
Pizza places will close down due to the competitors success over
them, so others will open up in attempt to succeed.

Internal Analysis
Value Chain Description/Analysis
(Briefly Describe Each Element of the Value Chain for Your Business)
Key Supplies/Key Suppliers:
Purchase supplies from quality places at reasonable prices. Possibly
separate the pizza parlor from other pizza restaurants by making our
own dough, or pizza sauces.

Operations:
Operate the pizza parlor in an orderly fashion by having a system
that is fast and productive

Distribution:
Begin distributing pizza with special promotional deals such as buy
one get one 50% off to attract customers to try out the pizza, give
customers discounts on their next visit, etc.

Marketing/Promotion:
At first advertise through local ads, like newspaper or give coupons
to attract customers. Later on begin to advertise through local
television

Service:
Try to not only be friendly with customers, but interact with them to
make it an enjoyable experience that customers will remember and
want to experience again.

Ryan Yamashita

Evaluation vs. Rivals

(Circle One in each box)
Value Chain

Our Business

Supply

Operations

Distribution

+
-

Overall

Local
Competitors
+
o
-

+
-

Marketing/Prom
otion
Service

Large Pizza
Chains
+
o

o
-

+ = Advantage/Strength
o = Neither and Advantage/Strength nor a Disadvantage/Weakness
- = Disadvantage/Weakness

Strategy
Generic Strategy:
(What is Generic Strategy for Your Business?)
Generic Strategy
Low Cost (LC)
Broad Differentiator (BD)
Focused Low-Cost (FLC)
Focused Differentiator (FD)
Best Cost (BC)

Check
One

Why this strategy?

If I differentiate my business from every other pizza parlor, I will
have a competitive advantage over my competitors, attracting more
customers by being unique. Not only will it be cheap, but it will be
an experience for customers to want to return to for special events.
Key Competitors Strategy:
(What is Generic Strategy for Your Competitors Businesses?)
Provide good pizza at a cheap price.

Ryan Yamashita
National Chains:
Chain

Generic
Strategy
(Circle One)
Pizza Hut
LC BD FLC FD
BC
Dominos
LC BD FLC FD
BC
Papa Johns
LC BD FLC FD
BC
Pizza hut offers average pizza, but at a low cost, and also has many
stores nation wide. Dominos offers good prices but better deals
such as the 5-5-5 deal. Papa johns sells pizza using sports icons
such as Peyton Manning and Joe Montana to attract sports fans to
order their pizza.

Local Pizza Restaurants:

Chain

Roberts
Queens

Generic
Strategy
(Circle One)
LC BD FLC FD
BC
LC BD FLC FD
BC
LC BD FLC FD
BC

Job Design for pizza restaurant

1.) Cashiers- who will take orders and money from customers beforehand
2.) Managers- supervise employees, handle customers questions and problems,
payroll, etc.
3.) Waiters- bring food to customers tables
4.) Cooks- prepare pizza and other foods