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GOVERNMENT COLLEGE UNIVERSITY,

LAHORE (GCU)

ASSIGNMENT ON
“Porcini’s Pronto:
“Great Italian cuisine without the wait”

Submitted To: Sir Ali Hussain Farrukh


Submitted By: Awais Zulfiqar
Roll No: 1111-BC-2015
Subject/Major: B.Com (7th Semester) 2015-2019
How has the Porcini’s maintained high product and service quality, and how
does it plan to do so for its new Pronto Concept?

Porcini’s Inc. had started its operations in1969 as a family oriented restaurant by “Ventola-
Family”, from Boston North end and further expanded to 23 locations in the region, through
opening new outlets in Newport, Rhode, Ceennecticut, Providence and Massachusetts.
Porcini’s Inc. has maintained high product and service quality through:
 Planning short-menu outlets, to better serve travelers.
 Appropriate process of managing human resource by selecting right person, for right job,
at right time, in right numbers, then appraising these employees, and rewarding them by
reasonable compensation.
 Automation of the operations through digital (Wireless) order taking devices which saves
the time of consumers and employees and helps in avoiding long ques, and proper and
efficient management of orders, and proper communication to the organizational staff.
 Providing the facility of Debit/Credit card payments to the customer maximizes
customer’s convenience, as well as saves time of customer and employees, since the
transaction may be initiated through a click of a button.
 Chef “Molise” designs menu for Porcini’s Inc. who were awarded “Coveted James Beard
award, and helps Porcini’s Inc. to make items comparatively less pricy.
 Fast & Quick quality service provided by staff, who is encouraged to please customer,
which is achieved by performance evaluation of employees, and appraising them through
reasonable compensation and rewards. The measures Porcini’s Inc. taken to deal with
employee turnover is to encourage experienced employees, through trainings, quality
assurance workshops, implementation of Rapid Quality Service strategy, which helps in
improving employee’s communication skills, dependability, professional behavior.

What does the proposed customer questionnaire system tell you about
Porcini’s approach to quality? What are the System’s strengths and
weakness? Can you suggest ways to supplement this tool?

The Porcini’s Inc. has used Questionnaire to evaluate the accuracy and the efficiency of
its operations, Product and Service Quality, Customer feedback (How much the
consumer is satisfied with the Food, serving time, staff response, Quality of Food), In
other words it describes how much Porcini’s Inc. is flexible to make variations in its
operations due to customer feedback, and also it will serve as the individual
response/opinion for future improvements, to increase customer satisfaction, which
makes the process more efficient, which leads to more appropriate utilization of available
resources as well as to procure new resources, which will results in greater customer
value creation through the performance optimization.

Since, most of the consumers today, due to insufficient time does not pay much attention
in filling the questionnaire, which may be a hindrance in the process improvement,
innovation and performance optimization. In this scenario, the system’s strength would
likely be to offer some incentives to fill Questionnaire like discounts, promotions, add-
ons etc.
In this case Porcini’s Inc. is offering $3 off for proving feedback on any future purchase
at Porcini’s outlets.

To be competitive and appropriate for customer value creation Porcini’s Inc. may use
Questionnaire approach continuously as a part of product and service quality
improvement technique, but having too much reliance on its approach or making it
centralized upon which quality management revolve around could be the weakness of the
system, because every customer has different taste, culture, values, norms, quality notion
and they analyze the product or service quality and process efficiency according to the
same.

To deal with the weakness of the System we should use the other analytical tools such as
Research & Development, Market Research, Market Trends Analysis, Technological
Surveys, Process Analysis etc., to achieve maximum customer satisfaction.
How Well or Poorly do the various elements of the Pronto concept- Its
menu choices, HR systems, Quality measures, etc. – Support the Goal of
“Great Italian Cuisine without the Wait?”

The key elements of the pronto concept is Quality of its products (Food items) and
Services (which makes the Food available to customer), Short menu to better serve the
customer, interstate locations.

The Porcini’s Inc. ins considering to acquire two existing restaurants situated at different
locations to test its new Pronto strategy of short menu, designed by Chef “Molise”, which
would be less pricy from Porcini’s traditional offerings. The Rapid Product and Service
Quality helps to design menu.

Exhibit 2 Porcini’s versus Pronto: proposed dinner menu (by menu category and average prices)

Porcini’s Porcini’s Pronto

# of offerings Average price # of offerings Average price


Antipasti 12 $10 5 $8
Soups 3 $6 2 $5
Salads 7 $8 2 $6
Pizza a a 4 $11
House specialty entrees 6 $17 3 $14
Pasta entrees 20 $15 6 $12
Seafood entrees 5 $19 2 $15
Meat and chicken entrees 9 $17 4 $14
Side dishes 5 $6 3 $4
Desserts 5 $6 3 $5
Wines (choices available) 24 5b

Coffees 5 $4 5 $4

Pizza is on Porcini’s lunch menu only

By the glass only at Ponto’s (porcini’s pronto) “Great Italian cuisine without the wait!”

The Porcini’s Inc. is determined to deliver high product and service quality, for this
purpose they used their Human Resource Management Strategies by recruitment of
competent Personnel, by appraising them through (trainings, workshops), Rewarding
them by rewarding them reasonable compensation, and bonuses, Evaluation and
monitoring of their performance continuously, Timely Promotion and encouragement to
reduce high Employee’s turnover from 75% to 42%.
Location Analysis.

Porcini’s has following location benefits:

 Near to interstate Highway.


 Near to Gas station where travelers will arrive for refueling.
 Near the Office Locations (“Alessoio” the Voice president, and HR director of
Porcini’s, expects 50% of customers would be locals)
 Situated at appropriate distant place from competitors (e.g. “Olive Garden”)

It is important, to maintain high customer service, to retain existing customer as well to


attract new customers, for this purpose Porcini’s initiates customer’s feedback, conduct
online surveys, advertisements, new locations, evaluating process performance, keeping
menu short for appropriate management of orders (to deliver Quality food at lessor time,
to create maximum Customer value).

If you were a member of Porcini’s top management, which of the available


growth options for Pronto would you choose? Why?

The Porcino’s Project team is baffled over the growth options (Business Expansion
Models). The key concern of the management is how these different options would affect
the Product and Service Quality or Value Creation Chain.

If the project is approved, Pacino’s Inc., would initiate the acquisition of two restaurants,
which are situated at ideal locations and operate them as test points, if they succeeded, a
wider rollout would follow. “The real estate consultant estimated the total cost for land,
building, and fitting out at $2.1 Million (Versus $4.3 Million for the most recently built
Porcini’s). The project team estimated that each site would generate $2.4 Million in
annual revenues after an initial start-up Period”.
(Porcini’s: “Great Italian Cuisine without The Wait!”)
As the Member of top Management of Porcini’s Inc., I would consider two growth
options for the expansion i.e. Franchising and Syndication.

Franchising is very popular strategy, used as an expansion option by Food Chains e.g.
80% of McDonald’s outlets were owned and operated by Franchisees.
“A Franchise is a business where an individual “Franchisor” authorizes the “Franchisee”
to use his brand name, and operate the business owned by “Franchisee”, A fee is paid by
franchisee to franchisor, usually, Franchisor is responsible for advertisement, promotion
of the products and services, However the franchisee is himself responsible for
construction of facility, but he is obligated to operate the business as per Franchising
agreement.

Porcini’s Inc. would likely to have following Franchising prospects:


 Make 2% from each restaurant in revenues.
 Hard to control Product and Service Quality.
 Fastest way to grow the brand name worldwide.
 28 franchises are to be constructed by the end of 2018.

Syndication refers to a setup where the investor owns the property while giving
full operational control to the organization. Syndication would give the Porcini’s
full control of hiring, performance management, and the consistency of Product
and Service Quality.

 Porcini’s puts the initial investment.


 Investors then acquired the property.
 Full operational control over each restaurant.
 Make 4% of revenues from each location.
 20 locations by the end of 2018.

By analyzing above mentioned prospects, as a member of top management I’ll prefer


Syndication as growth option, because it’ll provide full operational control to Porcini’s,
and the Product and Service Quality would not be affected (which is the key concern of
Porcini’s top management, Syndication also earns 4% as revenue rather 2% from
Franchising.
What are the implications of your choice (Q4) for profitability, return on
investment (ROI), product and service quality, and the quality image the
Porcini’s brand?

In Question 4, we have three Growth options i.e. company owned operations,


Franchising, Syndication. All of them bears their own characteristics, having different
Return on investment and different expansion potential, the growth options are
differentiated by organizational control over operations, product and service quality,
process design etc.

I have preferred Syndication because of high return on investment, minimal operating


costs, comparatively more control over the operations, human resource management,
provides surety of Product and Service Quality because the restaurant carry out the
operations activity as before. It is one of the best option to expand the business around
the globe. Since it minimizes the fixed cost of porcini’s Inc., as the investors procure
facility, buildings and equipment, which will provide a greater chance of concentrating to
achieve Rapid Product and Service Quality, to deliver the maximum customer
satisfaction.

The organization’s overall stratigies are to launch the Pronto’s concept and adapt adopt a
syndication growth model. Porcini’s is looking for new opportunities to establish its
brand into new markets within the Northeast region.
One of the challenges about this is that the markets for full service restaurants are nearing
its disseminations point in shopping locations and within cities across the U.S motivated
by this truth, Porcini’s is strongly considering opening limited-menu outlets at interstate
highways, called “Pronto’s”, in an effort to increase their footprint.

Brand name is something which defines product and service offering to the general
public, it plays very crucial role in company’s expansion of business, this is the only
disadvantage of Porcini’s or it is something which Porcini’s Inc. should pay special
attention to, because brand recognition plays a vital role to achieve progressive stages of
global expansion.
Does Pronto have any sustainable competitive advantages? Why or why
not?

A competitive advantage is something which the company has over its competitors, by
performing its operations more efficiently, producing products and services more
effectively, than the others is known as competitive advantage. It may be achieved by
Location, Strategy, Growth etc.

The porcini’s competitive advantage is that it is specifically designed for the travelers,
that no other restaurants is designed for. That’s what which makes porcini’s different
from others, it implements its operating strategy to capture the specific part of the market,
which is helped by interstate highway locations, on which the restaurants are situated,
where 50% customers are local and rest of them are travelers.

The Porcini’s competitive advantage over its close competitors (Olive Garden) is
supplemented by following factors:

 The Porcini’s restaurants are reasonably distant from competitors.


 The Porcini’s has effective Human resource management.
 The competitive advantage is supported by Molise menu designs.
 The short menu to better serve customers.
 The rapid product and service quality.
References:

(Poricni’s Pronto: “Great Italian cuisine without the wait.”) case study.

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