1) How well or poorly do the various elements of the Pronto concept - its menu

choices, HR system, quality measures, etc. - support the goal of "Great Italian

cuisine without the wait?"

The Pronto connect is well supported by the vision statement which says that there is no

wait. Right from the menu choices to the service deliverables the various elements inter

twined very well and was well connected. The menu choices were best suited to the

limited fare nature, which were standard menu at moderate prices and came in with

service quality, food quality, pricing branding location and ownership sustainability

issues. Pronto’s strategies to make this concept successful was the process excellence

which depended upon operational efficiency and cost strategy which depended very

heavily on all departments of Pronto. These were the strategies of efficient processes,

food at lower cost, faster service and as such the niche segments were addressed. The

human resource strategy such as employee cost and rewards strategy, stock options,

employee’s leave encashment, performance bonus were all routed towards the

organization vision of hiring the people with the right attitude so that they can be trained

on very important service deliverables like communication and inter personal relationship

building .The use of Information technolgy which was enhanced using the Wi- Fi facility

in all occasions to enable customers to use the internet while dining, big television

screens to show the Porcini Pronto’s experience and marketing promotions of Pronto

including the very important entertainment value add. All this went a long way in

aligning the firm’s vision towards instant great service with great people. (Chase &

Heskett, 1995)

.
2.I f you were a member of Porcini's top management, which of the available growth
options for Pronto would you choose? Why

The available growth opportunities for Porcini are syndicating, company operated hotel

models and franchising .The hotelier has to maintain its quality and excellence in service

if it has to grow. Franchising is the best option for Pronto, which can bring in profits and

still be very efficient. Franchising will enable Pronto to look at forward integration as a

related strategy of franchising. Forward integration as a strategy works very well when a

firm wants to gain ownership of its distributors and retailers. The firm opens its own

retail stores to combat the competition. Franchising is a very important way of achieving

forward integration. In this age of highly competitive environment it is a must that firms

are able to deliver goods at the most competitive prices and sustain operations. (George

& Heskett, 1988) This strategy has been particularly helpful in allowing businesses to

recognize this need.

1. When a firm’s distributors are very expensive and unreliable this strategy will be good

to pursue.

2. Quality distributors are hard to come by and hence cannot offer competitive advantage.

3. The industry within which the firm operates is growing very fast and its inability to

diversify makes it look for forward integration.

4. When a firm has abilities to manage it owns distribution networks.

5. The firm has stable production and hence can cater to increased demand through this

strategy.

6. The ability of a firm to capitalize on the huge profits that the distributors get by

integrating forward and thus sustaining the profits within themselves. (Lombardi, 1996)
3.What are the implications of your choice (Q4) for profitability return on

investment (ROI), product and service quality, and the quality image of the

Porcini's brand?

If Porcini went into franchising option for its growth then it will provide the greatest

return on investment however there have to be certain very essential compromises made

to the business model.

Franchising may lead to the franchisee compromising on Porcini’s brand of excellent

service. Handing over control of a location may lead to erosion of brand value to an

outsider who neither holds dear the vision of Porcini nor is neither conversant with the

Porcini concept of work. This may become just another runway incident. The value of

Porcini brand is very high but Porcini may not be able to bring in high royalties and fees

from franchisees. Since this a food outlet, maintaining quality as per the host conditions

of brand may become very difficult, as franchises may not take seriously the brand

association leading to more danger than advantages. (Walker & Vaughn, 1975)
4) Recommendations and Conclusions

Porcini can make a viable footprint in the restaurant industry, which is saturated through

its sheer value driven approach versus the core competency that Porcini enjoys.

1. Location advantages are a major source of competitive effeciencies hence Porcini

should look at buying land and location and lease out where it is not possible. There

should be balanced location strategy.

2. Porcini should look at time and demand management strategy so that the customer

experiences low waiting time.

3. Organizational efficiency by bringing in highly skilled staff and a tradeoff between

profit and service.

4. Porcini should consistently look at launching the pronto concept very well.

5. Growth strategy should be attuned to close alignment with company owned approach.

6. Porcini should look at a pilot market base test run to understand the viability of the

Pronto concept

7. Customers should look at a concept of high service coupled with great menu fares.
 References

Chase, R., & Heskett, J. (1995). Introduction to the Focused Issue on Service

Management. Management Science, 41(11), 1717-1719. doi:10.1287/mnsc.41.11.1717

George, W., & Heskett, J. (1988). Managing in the Service Economy. Journal Of

Marketing, 52(1), 146. doi:10.2307/1251692

Lombardi, D. (1996). Trends and Directions in the Chain-Restaurant Industry. Cornell

Hotel And Restaurant Administration Quarterly, 37(3), 14-17.

doi:10.1177/001088049603700313

Walker, B., & Vaughn, C. (1975). Franchising: Its Nature, Scope, Advantages, and

Development. Journal Of Marketing, 39(4), 113. doi:10.2307/1250606