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Literature & Language
Strategic Analysis of the California Pizza Kitchen (CPK) (Essay Sample)
the same writer that wrote my mgt599 module 1 should do this module 2 case and slp 2 im going to order its a continuation. The case in this course is a "ongoing" case, which means that we will be taking an intense look at one company over the course of 5 modules. This term, we will be conducting a strategic analysis of the California Pizza Kitchen (CPK). In order to be best prepared and perform well on the cases, you should complete the background readings and the SLP before writing the case. The objective for this case is to complete an external analysis for CPK, using the Porter 5-Forces Model and a PEST Analysis. Ulimately, this analysis will lead to some conclusions about opportunities and threats facing the company. (First part of the SWOT analysis) For some background information on SWOT analysis, please review the following: SWOT analysis: Lesson. (2009). Retrieved from Marketing Teacher. Web site: http://marketingteacher.com/Lessons/lesson_swot.htm Zahorsky, D. (2009). A business owner's secret weapon: SWOT analysis. Retrieved from About.com: Small Business Information. Web site: http://sbinformation.about.com/cs/bestpractices/a/swot.htm Obviously, this can be a very extensive undertaking, requiring far more time and resources than we have for this course. So you will want to limit your analysis to the identification and evaluation of one or two key items in each element of the two models, as described in the background readings for this module. Step One: Determine the scope of your analysis (entire company, selected business division?) and find the appropriate NAICS code. Step Two: Using the sources you identified in the SLP, collect some data to support an industry analysis of each of the 5 Forces in Porter's Model. Step Three: Using the sources you identified in the SLP, collect some data to support an analysis of each of the 4 elements in the PEST analysis. When considering economic data, use the most current data you can find. Step Four: In a 4-5 page paper, write up the results of your external analysis, and be sure to label each of the 5 Forces as either high, low or moderate. Taken together, the 5 Forces analysis and the PEST analysis should lead to conclusions about the opportunities and threats facing CPK as revealed by your research. The data you report from the 5 Forces and PEST analysis must be properly cited through intext citations and a reference list, or footnotes. Case Expectations: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as CPK's company consultant. This is a professional document. · Executive summary: a synopsis of the main points, conclusions and recommendations made in the longer report. If you have never written an executive summary before, or would like a refresher, check this website http://www.highendfinance.com/CommercialLoans/Docs/07-4%20ES%20Guidelines.doc · Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it. · Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings. and properly cite the sources for all information that you do not come up with as a result of your own individual reasoning. · Conclusion: Summarize paper in the light of your thesis statement. Module 2 - Background External Environment Analysis The next two modules will involve creating a SWOT analysis. SWOT Analysis SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats. The first two relate to an analysis of the internal organization (module 3), and the latter two to analysis of the external environment (module 2). The purpose of an external analysis is to scan the outside environment for factors which might open up new opportunities for the business - or present threats to survival. Then company managers and executives can formulate plans to take advantage of the opportunities and ward off or respond to potential threats. There are many, many elements outside of company that can have an effect on its sustainability. Customers, competitors, and suppliers are all pretty obvious entities that can affect profitability and practice. If we think a little more deeply, we can see that current as well as potential customers should be considered to look for opportunities and threats in terms of changing consumer tastes and preferences - which will in turn affect strategic choices about products and services. What about technology? Advances in technology can affect all three of our "obvious" external concerns: product features, how products are made and sold, what services are offered and how they are delivered, supply chains, inventory controls, and on and on... A failure to monitor the technological environment can spell obsolescence for a business in no time! Ease of substitution is something we always think of when considering competitors. How easy would it be to switch flying on one airline to another, for example? But thinking more creatively about substitution, we can see that teleconferencing and video conferencing (virtual worlds?) can eliminate the need for much business travel - thus acting as a substitute to airline tickets. Failure to think broadly enough would cause a planner to completely miss a MAJOR threat just on the horizon. The sheer number of possible external influences creating opportunities and threats is mind-boggling. This is why most strategic planners use analytic models to structure their thinking and help avoid perceptual biases which can interfere with clear and objective identification of opportunities and threats. In this class, we will be using two different models that approach the external environment from two different perspectives: 1. Industry environment - Porter's Five Forces Model 2. Macroenvironment - PEST Analysis Industry-level Environment Porter's Model of Five Forces is one of the most versatile frameworks to analyze the industry external environment. Employed by a variety of academics and business practitioners for over 3 decades, the Five Forces Model has proved its usefulness in a variety of arenas. The Porter model helps the user get a handle on the competitive and market characteristics of a specific industry. The factors covered by the Five Forces Model are: Threat of new entrants Bargaining power of suppliers Bargaining power of customers Availability of substitutes Degree of rivalry among competitors Macro-level Environment While the Porter analysis looks at the conditions in a specific industry, the PEST analysis looks at factors that affect the greater business environment. The factors addressed by this model include: Political (including regulatory) Economic Socio-cultural Technical REQUIRED MATERIALS: For a general introduction to the 5 forces, the following video interview with Michael Porter is very helpful for putting the exxternal analysis into perspective: The Five Competitive Forces That Shape Strategy. (2008) Harvard Business Publishing. http://www.youtube.com/watch?v=mYF2_FBCvXw The following chapter is rather long, but has a very detailed explanation of how to use the 5-Forces Model, and what data measures the Five Forces, which are essential in preparing your SLP and case. It also has a long section on internal analysis which we will return to in Module 3. To access this article, you will need to register with this site, but there is no fee involved. Read the first part of Chapter Two (starting on page 23) which deals with the external analysis: Comeford, R., & Callaghan, D. Environmental, industry, and internal analysis. Retrieved from University of Rhode Island. Web site: http://www.scribd.com/doc/19448976/STRATEGICMGMTCOMERFORD Connelley, D. (2005). Strategy for the External Environment. Power Point Presentation. Key forces in the external environment. (2009). Retrieved from The International Development Research Centre. Web site: http://www.idrc.ca/en/ev-28364-201-1-DO_TOPIC.html PEST analysis (2009). Retrieved from Value Based Management. Web site: http://www.valuebasedmanagement.net/methods_PEST_analysis.html Porter's Five Forces: A model for industry analysis. (2007). Retrieved from QuickMBA. Web site: http://www.quickmba.com/strategy/porter.shtml Case Readings: SWOT analysis: Lesson. (2009). Retrieved from Marketing Teacher. Web site: http://marketingteacher.com/Lessons/lesson_swot.htm Zahorsky, D. (2009). A business owner's secret weapon: SWOT analysis. Retrieved from About.com: Small Business Information. Web site: http://sbinformation.about.com/cs/bestpractices/a/swot.htm Optional Materials: Carrying out a PEST analysis (2005). Retrieved from The Free Library. Web site: http://www.thefreelibrary.com/Carrying+out+a+PEST+analysis-a0141751272 PEST analysis. (2007). Retrieved from QuickMBA. Web site: http://www.quickmba.com/strategy/pest/ Porter's Five Forces. (2009). Retrieved from Mind Tools. Web site: http://www.mindtools.com/pages/article/newTMC_08.htm Porter's Five Forces (2007). Retrieved from Themanager.org. Web site: http://www.themanager.org/Models/p5f.htm source..
STRATEGIC ANALYSIS OF THE CALIFORNIA PIZZA KITCHEN (CPK)
(10th, January, 2011)
Strategic Analysis of the California Pizza Kitchen (CPK).
This essay paper will utilize various resources like printed materials like books, journals, company annual and periodic reports as well as online resources including reviews, reports and publications to carryout an extensive strategic analysis of the California Pizza Kitchen (CPK) and to yield results that reflect on the current position of the company when SWOT analysis, Porters model of five forces and the PEST analysis. The paper will also yield conclusions that reflect current operations of the company and make recommendations on possible future undertaking of the company that go along way to ensuring that it remains profitable, sustainable and operational according to it set goals, objectives and vision (Cowley,1996).
California Pizza Kitchen (CPK) is a company with its head quarters in Los Angeles, California. The company offers restaurant services and it operates a chain of casual dining and it`s specifically focused on offering of premium pizza segment (California-style pizza). By the end of the year 2007 the company had 14,800 employees and it recorded revenues amounting to $633 million during the end of its fiscal year.
SWOT analysis is often a simple framework that is used to generate strategic alternatives from an analysis of a situation and it`s mostly applied both in corporate and business unit level. They are usually use in marketing planes. The analysis portrays the strengths, weaknesses, opportunities and threats that a company have, these are the analysis focuses issues that has a great impact on day to day and future opportunities of the company. SWOT analysis involves the in-depth analysis of both the internal conditions of the company (strengths and weaknesses) and the external conditions by the analyzing company`s opportunities and threats (Flax, & Rosenfield, 1999).
These are often internally generated long terms advantages to the company over its rivals in the market (Fifield, 2007). The California Pizza Kitchen (CPK) has the following strengths:
The company has a diverse menu which focus on showcasing various taste and flavors from across the world as well as creating imaginative toppings which do not basically associate with salads, pastas or even pizza (Pitts & Traill 1998). This is on the greatest strength of the company. Also the company offers variety of flavors from like the Jamaican Jerk Pizza, cheeseburger Pizza and California Club Pizza which are very unique in the industry thus giving the restaurant a competitive advantage over its competitors. On top of this the restaurants also serve various kinds of salads, pastas and deserts which attracts a diverse types of consumers (Pearse, 1997). Another strength of the company is the fact that they serve an extensive ch...
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