Mgt599 Strategic Mgt Case Module 3

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Date Submitted: 05/31/2011 10:12 PM

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TUI University

Module 3 – CASE

Executive Summary:

The California Pizza Kitchen is very successful and profitable due to its rapid expansion both internationally by franchising and domestically. The company’s income is valuable and has the backing of its investors. The California Pizza Kitchen is committed to excellence and was the 2004 winner of the Chart Commitment to People Award which is reflected in its staff members continued training, service and quality.

The California Pizza Kitchen also saw and recognized the value of sales to the consumer home market and therefore, is still contracted to Kraft Foods, with this the company moved into mainstream casual dining without compromising its reputation and its name is built on strong marketing and community service.

The California Pizza Kitchen continually offers innovative menus which up to now have not been offered/ matched by its competition. The restaurant has an open kitchen which is welcomed by clients, a relaxed atmosphere is also deemed positive. The company offers vegetarian, gluten free and other healthy options along with its signature exotic combinations. However, the California Pizza Kitchen is in a position of weakness due to its upscale perceived position; this perception deters a majority of potential clients. In order to revive its top-line growth and improve its comparable store sales, California Pizza Kitchen plans to introduce new menu offerings and create brand awareness. Inflexibility with regard to pricing and image is costly to the company, customers and revenue when they are most needed. However, the company has started to focus on cost savings in order respond to the economic downturn.(

All California Pizza Kitchen staff members are offered more benefits and wages than other companies in comparison, but with its fixed costing for employees this then prevent flexibility in pricing. There is also management inflexibility...