History of Ohs

EXECUTIVE SUMMARY

Hamburger Haven is a international chain of fast food restaurants that has over 20,000 locations worldwide. Their strategy is to franchise out their restaurants for a fee, as well as a guaranteed royalty and contributions to their marketing fund. Currently, PEC is a large holder of Hamburger Haven franchises, with ownership interest in fifty locations. One of the locations that PEC runs has been experiencing financial troubles since its opening in November of 1999, only realizing 79% of the sales it was forecasted to, which has dropped even further to 75% in 2001. Not only is the Windham location not meeting its sales objectives, there is a large debt

OBJECTIVE

The objective of this case is to determine the best course of action to take with the Windham, Ohio location of Hamburger Haven, which could include closure, management restructuring, or increased marketing efforts. This location is having a detrimental effect on the entirety of the Patterson-Erie Corporation, and must be dealt with in order for the company to continue on with their traditions of financial success.

ANALYSIS

SWOT-PATTERSON-ERIE CORPORATION

Strengths

- Large holder of Hamburger Haven franchises

- Strong relationship with the banks

- Been in business since 1967

- Have multiple business investments and access to capital

- Effective organizational structure

- Geographically, the Windham location has great potential

Weaknesses

- Operations managers overworked

- Lack of financial success at the Windham location of HH

- Customers are getting poor service at the Windham location of HH

- Large bank debt

- The Windham location has earned a bad reputation with consumers

- Small labour pool in the town of Windham

- Inaccurate sales forecasting for the Windham location of HH

Opportunities

- Can make use of the marketing initiatives being set forth by Hamburger Haven Corp.

- Expanding target market

- American’s spend $111.1 billion a year on fast-food

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