Documente Academic
Documente Profesional
Documente Cultură
Presented By:
Kristoffer, Subash, Georg & Mehadi
Index
Overview
Situation and Problem analysis
Prontos Value drivers analysis
Growth Alternatives and their Pros/Cons
Financial analysis
Recommendation
Overview
Company Name : Pochini Inc.,
- Family owned restaurants based in Boston
- 23 location and 954 employees
- Revenue generated : $94.53 million
Segment : Fastfood ,Full Service Chain Restaurant .
Success factor- High Quality food and service at each location
Performance : Despite rescission and saturated fast food market its profit
margin has increased .
Purchase real estate locations, borrow capital and operate each new location.
Slow growth.
3 Franchising:
-
A franchise is a business relationship in which an individual franchisee pays a fee to the franchisor and, in return,
has use of a trade name.
4 Syndication:
-
Comparison of Alternatives
Comp
any
owned
-andoperat
e
Brandi
ng
Franc
hising
Syndi
cation
Pros:
Pros:
Same
- T
- O as
o
v compa
t
e ny
a
r owned
l
a -andc
ll operat
o
p e
n
r
tr
o
o
s
l
o
- E
f
Financial Analysis
NPV @ 2,5% GR
Company owned
$ 6 714 535
Assumptions:
Financing cost included in 94% margin
Pronto grow rate = Industry rate = 2,5%
Hurdle rate = 6%
All values pre-tax
Recommendation
Greatest prospects with
Company Own and Operate
Com
pany
Owne
d
Syndi
catio
n
Franc
hise
Gener
ating
Profit
Good
Avera
ge
Poor
Brand
Image
Good
Good
Averag
e
Custo
mer
Satisfa
Good
Avera
ge
Poor
We recommend Company
own-and-operate approach
because it will enhance the
pace
of
growth
and
profitability as well as create
customer value.
Risk Assessment
Risks
Mitigation
Failure of
the
Pontos
concept
Effective strategic
plan.
Damage
to
porcinis
reputatio
n
Improper
Pontos
Traffic Study.
Direct management
involvement.
Conclusion
Launch Porcini's Pronto concept.
THANK YOU!