Management Simulation Exam Case Study

    a) Identify and critically discuss the key aspects of Marketing, Operations, Human Resources and Finance, which may have contributed to Nona’s Pizza performance.
    b) Conduct analysis using the SWOT and PESTEL frameworks to identify the key factors that may have contributed to Nona’s Pizza performance and explain their potential impact on relevant business functions.
    c) Assess Nona’s Pizza competitive situation and critically discuss the potential action plan in order improve on its achieved position.

    the case will be uploaded
    the structure of the assignment must similar as the document i uploaded called ‘Case Study 1 with outline answers’ and ‘Case Study 2 with outline answers’

     

    Nona’s Pizza, a pizza shop located on Trafford Road Salford, M5 4QD (next to Shell) has been owned and run by the same family since it opened 15 years ago. Initially, the business was successful making an average annual profit of roughly £30,000 in the first 11 years. In the last four years, however, the owners have seen both sales volume and sales revenue decline until last year the business broke even. This is a serious problem for the owners as they do not claim a wage, but live off the business’s profits.
    The shop itself is 80m2 and has a number of simple old tables and chairs for customers who choose to eat on the premises. Most weeks the number of customers who choose to do this is less than ten, however, when the local football team play in the evening, demand often exceeds the operational capacity of Nona’s Pizza and many customers are turned away. The décor of the shop is clean but old fashioned and the equipment is in good working order. There is parking for six cars at the rear of the shop but it is poorly lit and does not seem very secure.
    Since Nona’s Pizza opened they have only ever sold medium quality, low priced pizza, garlic bread and non alcoholic drinks. They do, however, sell an exceptionally wide range of pizzas and in an attempt to entice the new residents of Salford Quays the owners have recently trialled a number of new recipes sold as ‘Premium Pizzas’. These have been on sale for £6.50 which is 30% above Nona’s Pizza’s average price. The owners cite restaurants such as Dough Pizza Kitchen in Manchester as inspiration for recipes such as Jamaican Pizza, Hoi Sin Duck Pizza and Paella Pizza. Whilst free samples handed out in the shop to existing customers have received very good feedback for taste, sales of these new pizzas have been extremely low and no significant new demand has been created within the Quays.
    The staff of Nona’s Pizza are the husband and wife owners who work in the shop, two additional shop assistants and two delivery drivers, all of whom are paid the minimum wage (excluding the owners). The takeaway is open Tuesday to Thursday from 2pm – 10pm and Friday to Sunday from 6pm – 2am. The owners work during all opening hours and the two shop assistants split the work evenly at 28 hours a week each (i.e. there is always one and only one assistant in the shop). There is only one delivery vehicle and delivery staff alternate work and rest days (one day on, one day off). The delivery drivers only handle deliveries and undertake no additional jobs in the takeaway. The owners have noticed that the number of complaints relating to delivery time and cold pizzas is on average doubled when one particular driver is working.
    The local area comprises a large neighbourhood which has been historically linked with high levels of crime, unemployment and deprivation, however this neighbourhood has been shrinking since 2000 due to a re-housing scheme instigated by the council to tackle the crime rate. Long term plans for the neighbourhood are thought to be to convert it into middle class housing by 2018. A large number of new apartments have been built near to Nona’s Pizza and the inhabitants tend to be a mix of students, young professionals and young families. Salford Quays is a quarter of a mile away and has experienced a social transformation over the last five years to become an area of above average household income and employment.
    Nona’s Pizza currently accepts orders by phone and in person and posts flyers through 1,000 local letterboxes (not including Salford Quays) every six months. They do not use social media or web advertising at all but have high repeat custom from the large neighbourhood which has been targeted by the council for regeneration. Nona’s Pizza have identified that 40% of their customers collect their order from the takeaway, with about half of that group also ordering in the shop.

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