Objectives and Strategic Analysis of Papa Johns

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Strategic Analysis and Choice

Corporate-level strategies address the entire strategic scope of the enterprise. This is the "big picture" view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. Thus Corporate Strategy is concerned with the overall purpose and scope of the business to meet stakeholder expectations.

It is useful to examine the competencies that Papa Johns possesses in its current operations. It has been theorized that companies deliver superior customer value by performing exceptionally well in one or more of three areas, Operational Excellence, Customer Intimacy, and Product Leadership. Based on the environmental analysis, it is relatively easy to theorize that Papa Johns primary strengths lie in Product Leadership .

Strategic Alternatives
1. Continue current horizontal growth strategy of expanding the restaurants throughout the world and also widening the menu
Pro: Uses core competency to expand.
Cons: Need to significantly increase marketing effort and expenses.

2. Follow vertical growth strategy of moving upstream.
Pros: Less reliance on Vendors and better efficient supply chain management
Con: Likely to significantly increase the capital expenditure and may loose focus

3. Investigate merger with other food chain.
Pros: May increase sales and reduce costs in every area.
Con: May loose its focus and profitability.

4. Pause Strategy:
Consolidates various acquisitions to find economies and to encourage innovation among the business units.
Advantages: may lead to increase in the short term profitability.
Disadvantages: There may be risk of loosing the market share and revenues.

We propose the growth strategy through international expansion and product innovation
They have clearly specified their focus on restaurants and food industry. They have to pursue multidimensional strategy. They have to expand internationally quickly especially in the emerging economies. Moreover they should also widen the product range or menu. There are different segments which they can look to:
Emerging health conscious segment
Dining with whole family
The customers who are eating out more frequently.
Age category ( Young, Old)
Martial Status ( Single, Married, Family)]
Regional and Income classification

I will suggest expanding its menu to cater to the family and other segments.
Also they should reach to frequent fast-food consumers who lead an active lifestyle and are seeking a balance of nutrition, taste, and value. For the healthy food trend that more and more people expect, if Papa John's ...