Case Study on "Cpk Analysis California Pizza Kitchen (Cpk) Strategic"

Case Study 4 pages (1199 words) Sources: 2

[EXCERPT] . . . .

CPK Analysis

California Pizza Kitchen (CPK) Strategic Analysis

The mission, strategy and organizational components critical to the long-term viability and success of CPK need to be focused on delighting and exceeding the expectations of customers on a regular basis. Due to the many threats and opportunities the company has had to navigate through in the midst of an economic recession however, the mission, strategy and organizational components are not as aligned as they need to be for CPK to gain new customers and profitably extend their brand globally. Choosing to create the low-end CPK ASAP stores in airports internationally partially solved the lack of geographic distribution of the stores, yet detracted from the customer experience and risks positioning CPK as a commodity. The same could be said of the very profitable strategy of allowing the licensing of their pizzas to Kraft, who sold their high-end pizza business to Nestle in 2010. Of these two strategies, the one that is least congruent or aligned with the mission, strategy and organizational components of CPK is the development of the ASAP stores (Ruggless, 2007). What CPK needs to consider is how to sell more on value, less on price and availability, as the direction the strategy and components are going in today is more commoditized in nature, risking long-term brand strength for short-term financial gain.

Introduction

Thesis statement: CPK needs to reconsider its direction and put delivering value and exceptional customer experiences at its center first, then consider expansion strategies based on that foundation. CPK has quickly responded to the threats of an uncertain economy and the need to grow geographically by making very rapid expansion plans with its ASAP chain of outlets in airports globally and licensing agreement with Kraft (now Nestle) (Fair Disclosure Wire, 2010). This has solved the liquidity and flat lining of revenues due to consumers not frequenting their full-service restaurants and the rising costs of their real estate investments. It has not however created more value or contributed to a greater level of customer experience delivered in their flagship restaurants. By choosing this direction of the ASAP stores and licensing, the brand is becoming more commoditized and less differentiated on value and the experience the company is capable of delivering in its restaurants.

Aligning Mission, Strategy and Organizational Components on Value

CPK initially defined itself as unique, high quality restaurant chain that centered its messaging, menu, market position, and location selection all on delivering a unique experience. The CPK full-service restaurants are brightly lit, family friendly, have a high energy level with the kitchens viewable by patrons and strive to be upscale yet affordable. The value proposition initially was focused on excellent food that was uniquely Californian delivered in a fun, high-energy yet relaxed restaurant. The attention to detail and quality in the regional full-service restaurants led to high levels of customer loyalty and the establishment of the brand as a favorite with families with kids.

As the global economic recession began to affect the incomes of these loyal customers, per ticket spending and visits declined through 2009, with 2010 seeing a slight gain in sales in the flagship restaurants throughout the west coast of the U.S. (Fair Disclosure Wire, 2010). During this same period the Kraft Foods partnership was heavily invested in to gain greater profits by licensing the food company to produce and sell CPK pizzas through their retail channels. Nestle has since bough the high end pizza business from Kraft, which potentially could further dilute the brand. In 2007 at the onset of the recession CPK rushed to create the ASAP chain, which has… READ MORE

How to Reference "Cpk Analysis California Pizza Kitchen (Cpk) Strategic" Case Study in a Bibliography

Related Papers:

Strategic Choices California Pizza Kitchen Case Study

Strategic Choices California Pizza Kitchen

California Pizza Kitchen

Low Cost

Differentiation

Pre-emptive

Strengths

Exceptional control over franchise operations costs (Fair Disclosure Wire, 2010)

R&D costs for new entrees exceptionally low… read more

Case Study 2 pages (693 words) Sources: 2 Topic: Business / Corporations / E-commerce

---

California Pizza Kitchen Analysis Structure Tess Stynes Case Study

California Pizza Kitchen Analysis

Structure

Tess Stynes. (2010, April 12). California Pizza Kitchen Board Authorizes Strategic Review. Wall Street Journal (Online).

California Pizza Kitchen (CPK) has a highly decentralized organizational… read more

Case Study 3 pages (1191 words) Sources: 2 Topic: Business / Corporations / E-commerce

---

Internal Analysis and SWOT Analysis on California Pizza Kitchen SWOT

Internal Analysis and SWOT analysis on California Pizza Kitchen

Internal Analysis and SWOT Analysis of California Pizza Kitchen

California Pizza Kitchen (CPKI) has as of October 2010 a total of… read more

SWOT 4 pages (1128 words) Sources: 2 Topic: Business / Corporations / E-commerce

---

Nestle in 2008 Case Study

Nestle Company

Nestle's long history began with founder Henri Nestle's infant saving formula. More than 140 years later, the company has grown into an international powerhouse centering on nutrition, health… read more

Case Study 50 pages (13087 words) Sources: 1+ Topic: Business / Corporations / E-commerce

---

View 100+ more related papers  >>