FININSTITUTE OF BUSINESS MANAGEMENT

Researching Firm Level Strategy and

Competitiveness Broadway Pizza 2014

Submitted To: Mr. Javaid Ahmed

Submitted By:
Sheeba Obaid (12672)
Tooba Iftikhar (12795)
Salman Zaffar (13054)
Haris Amin (16461)
Huda Waqar (11578)
Hassaan Iqbal (14757)

This research instrument is used for researching the Business Strategy of the Broadway Pizza
Pakistan: its introduction, its current strategy; its external and internal researched environment,
its competitors and its strategic implementation framework

Table of Contents
INTRODUCTION...........................................................................................................................3
I.

INDUSTRY STRUCTURE AND MACRO-ENVIRONMENTAL ANALYSIS....................5

Industry Analysis.........................................................................................................................6
The Bargaining power of Buyers.............................................................................................6
The Bargaining power of suppliers..........................................................................................8
The Threat of Substitutes.........................................................................................................9
The Barriers to Entry and Exit...............................................................................................11
The Nature of Rivalry in the Industry........................................................................................13
Impact of Political, Social, Economical and Technological Changes on the Industry Structure
...................................................................................................................................................14
Political..................................................................................................................................14
Economical............................................................................................................................15
Social.....................................................................................................................................15
Technological.........................................................................................................................15
Industry Attractiveness Summary..............................................................................................16
Opportunities and Threats..........................................................................................................17
External Factor Evaluation (EFE).............................................................................................17
Key Driving Forces....................................................................................................................19

II.

COMPANY AND COMPETITOR ANALYSIS....................................................................22

Key Success Factors..................................................................................................................23
Competitive Profile Matrix (CPM)............................................................................................24

III.

INTERNAL COMPANY VALUE CHAIN ANALYSIS....................................................26

Value chain.................................................................................................................................27

~1~

Financial Ratios.........................................................................................................................29
Core Competencies....................................................................................................................31
Strategic Cost Management Tools.............................................................................................32
Strengths and Weaknesses.........................................................................................................33
Internal Factor Evaluation.........................................................................................................34
IV.

STRATEGIC ANALYISIS AND RECOMMENDATIONS...............................................36

Porter's Generic Strategy...........................................................................................................37

TOWS........................................................................................................................................39
SPACE Matrix...........................................................................................................................40
The Internal-External (IE) Matrix.............................................................................................43
Strategy implementation............................................................................................................44
QSPM........................................................................................................................................45
V.

STRATEGIC LEADERSHIP AND IMPLEMENTATION PROCESSES............................47

Blue Ocean Strategy..................................................................................................................48

VI.

CONTROL AND EVALUATION PROCESS....................................................................51

Balance Score Card....................................................................................................................52

~2~

INTRODUCTION

The name Broadway Pizza seeks its inspiration from the Broadway Musical which is a
themed musical theatre. Just like the Broadway Musical which creates a world of music
encompassing all the emotions catering to music lovers, Broadway Pizza idealizes the same
ambience and feelings for pizza lovers through their variety of indulging pizza feasts.
Broadway Pizza is widely known for its large size at a reasonable price, diverse menu and
personal services in Karachi and Lahore only. Broadway Pizza has grown from being a corner
pizza delivery place in Karachi to one of the most recognized pizza delivery house, operating
branches at 5 prime locations of Karachi: Khayaban-e-Shahbaz, Khayaban-e-Nishat, KDA,
SMR, North Nazimabad; with plans of expanding to other cities and countries soon. It is owned
and run by Mr. Shahbaz Javaid Khan whose also the acting CEO of Broadway Pizza.
Broadway Pizza provides their customers with an exceptional customer service. They know that
the driving force of its customers satisfaction is if its able to deliver 100% satisfaction through
their products and services. A passion for pizza and an unending devotion to keep delivering the
biggest, yummiest pizza in town, fuelled by love, encouragement and feedback of fans, gives
Broadway Pizza the power to expand its customer base beyond belief.
Their mission is to deliver fresh and hot pizza to all the pizza lovers who have been waiting for
something different and authentic. Broadway Pizza has introduced its unique pizzas through
delivery, with the plan to open outlets in the future all across Pakistan.
Quality ingredients
At Broadway Pizza the pizzas are prepared with the best quality ingredients available. Starting
from the dough to sauce to cheese to chicken. They prepare the dough with their own special
recipe, homemade pizza sauces which range from "mild" to "extra hot", also the cheese is
imported from the best source available. Even their pepperoni is imported from the best Halal
producers available in the foreign market. At Broadway Pizza Co. quality and consistency are of
the utmost importance and they are proud to provide an exceptional pizza that has yet to debut in
the pizza industry.
Experience in the country
Broadway Pizza is a highly experienced organization in the food and beverage industry with
other successful restaurants running in Pakistan. They believe in providing quality food items
~3~

and are excited to be able to provide an exceptional pizza that was yet to be tapped in Karachi
and Lahore until now. Those who miss the real authentic New York Style Pizza can certainly
expect a real treat.

~4~

I.

INDUSTRY STRUCTURE AND

MACRO-ENVIRONMENTAL
ANALYSIS

~5~

FIRMS EXTERNAL ENVIRONMENT

Industry Analysis
Each industry has a distinctive structure that shapes the nature of competitive interaction that
unfolds there. Understanding the underlying structure of a companys industry, now and in the
future, is a core discipline in strategy formation. This may be formulated by the analysis of
Porters 5 forces which are namely bargaining power of buyers, bargaining power of suppliers,
threat of new entrants, threat of substitutes and rivalry amongst competitors. Each of these 5
forces is then evaluated to see their cumulative effect on the industry structure which may make
it attractive or unattractive.

The Bargaining power of Buyers

The industry has a large number of buyers ranging from its customers as low as 8 years and
reaching to all above. All these buyers have different range and priorities. The customer base for
the food industry is huge and is still developing. Dinning out with friends and family is
considered a form of entertainment. The main target audience for pizza is the youth, whereas the
~6~

secondary market consist families. According to a research by Nelson, 60% of our income goes
into food. Therefore it is pretty obvious that the people spend a lot on food. Despite of its huge
customers, the amount ordered per person is not very high, as pizza is one food that you will not
have alone, but mostly ordered in a gathering of 2 or more people. Therefore losing a few buyers
wouldnt really affect the industry main players.

Broad way pizza has managed to develop its image in the minds of it customers that its the best
quality pizza provided at your doorstep at a very reasonable price. Therefore people buying
Broadway dont really have a problem with the price at which they are offering. If anyone does
face any problem in the price and quality of the pizza then there are always multiple options
available in the same pizza category. And in order to do so hell incur no further cost or waste
any time in doing so.
The need for cognition for pizzas is not very high. Customers dont really demand detailed
information about the food, apart from size and price. Everything else is clearly mentioned
briefly in the menu card about the product.

Yes (+)
1. Are there a large number of buyers relative to the number

of firms in the business?

2. Do you have a large number of customers, each with

relatively small purchases?

3. Does the customer face any significant costs in switching
suppliers?
4. Does the buyer need a lot of important information?

No (-)

5. Is the buyer aware of the need for additional information?

6. Is there anything that prevents your customer from taking
your function in-house?
7. Your customers are not highly sensitive to price.
8. Your product is unique to some degree or has accepted
branding.
9. You provide incentives to the decision makers

~7~

Analysis
The bargaining power of the buyer is low in the industry due to the following reasons:

There are larger numbers of buyers, each with relatively small purchases. Customer base for
food industry is huge because dining out with friends and family is also a form of
entertainment in our country and losing out one customer would not have any significant
influence over the industry players.
14th Street Pizza has created its image in the market in terms of quality and uniqueness (size)
reduces the bargaining power of buyers
Customer doesnt face any significant cost while shifting to another supplier or fast food
outlet.
Buyers dont need much information before making the buying decision/purchase.

However, adverse economic condition is making the customers slightly price sensitive.

The Bargaining power of suppliers

The bargaining power of suppliers for Broadway pizza is low. It is because the inputs for the
product are standard rather than unique or differentiated. Pakistan is an agricultural country so
obtaining inputs for food products is not very difficult. Since the inputs are standardized it is
relatively easy to switch suppliers and incurs negligible costs, making the bargaining power low
and therefore having a favorable impact on the industry attractiveness. The switching cost is very
easy and cheap since the inputs are easily available. There is no unique or differentiated good
which will harm the company in switching over. The raw materials such as vegetables, chicken
are easily available. The boxes used to pack pizzas and other items are either plastic or cardboard
which is not difficult to obtain.
There are a huge number of suppliers whose business depends on customers business too.
Broadway Pizza provides huge business to many suppliers therefore it is necessary for the
suppliers to stay associated with the company. The supplier has many competitors in the market
which makes the bargaining power of the supplier very low since the inputs can be switched very
easily. There are many suppliers which can easily cater the needs of the customers making the
bargaining power low for the suppliers. The switching cost for the company is also low since the
company hasnt invested in heavy specialized goods but has simple raw materials and other
inputs which are easily available.

~8~

The business provided to the suppliers by the company is very important since Broadway is a
new emerging name in the fast food industry and the future prospects of this chain is bright due
to its quality and pricing. The cost of purchase has no influence on the overall cost of the goods
made. There are several suppliers of such inputs though or even Broadway can practice
backward integration to take over its supplying needs, making the bargaining power low and
therefore having a favorable impact on industry attractiveness. . Thus as the favorable impacts
outweigh the unfavorable impacts, we can conclude that the bargaining power of suppliers is low
which results in making the oral hygiene industry attractive.
Yes (+)
1. My inputs are standard rather than unique
differentiated.
2. I can switch between suppliers quickly and cheaply.

or

3. My suppliers would find it difficult to enter my business

or my customers would find it difficult to perform my
function in-house.
4. I can substitute inputs readily.
5. I have many potential suppliers.

No (-)

6. My business is important to my suppliers.

7. My cost of Purchases has no significant influence on my

overall costs.
Analysis
The Bargaining power of suppliers is low due to the following reasons:

Industry suppliers are local& foreign suppliers, which they can switch easily.
Input is standard rather than differentiated
There are a huge number of suppliers whose business depends on customers business
too.
The Threat of Substitutes

There is a whole list of substitutes for our industry where their performance and product quality
matches the price they are offering to the market.

~9~

The customers will not incur any considerable additional costs if they decide to buy a substitute
product such as other fast food like burgers, steaks, fine dining, sandwiches, etc. This is because
the only thing the customer will have to do when switching towards a substitute product is
ordering from another company by dialing a different number or driving up to another location
instead of ours.

Our customers have not only one but several other substitutes for our product if they are in the
mood to have a good meal. Substitutes available to our customers are:

Subway
Burger King
Hardees
Arizona Grill
Grill house
Ginsoy
Karachi Broast

Our customer is definitely likely to opt for substitutes if he/she is not satisfied with the products
being offered in this industry at any level. As they have a very wide variety of options open in
front of them it will not require any effort from their side. It just requires some thinking process.

Yes (+)
1. Substitutes have performance limitations that do not
completely offset their lowest price. Or, their
performance is not justified by their higher price.
2. The customer will incur costs in switching to a
substitute.
3. Your customer has no real substitute.
4. Your customer is not likely to substitute.

No (-)

Analysis
Threat of substitute for the industry is high because we have defined our industry in two tiers
which are:
1) Pizza Industry (First tier)
2) All other fast food chain ( Mc Donalds , KFC , Hardees and etc)
~ 10 ~

So overall threat to pizza industry is high because lots of alternatives are there in the market such
as:

BBQ (BBQ Tonight , Meerath)

Chinese(Ginsoy , Chairman Mao)
Burger (KFC ,MC DONALDs)
Frozen Foods (frozen Pizza from MONSALWA , MENU and etc)

The Barriers to Entry and Exit

To open a take away and home delivery Pizza restaurant does not require a lot of money. As there
is no place to dine in so the land does not require a large cost. As the capital required is not very
high so it increases the threat of new entrants.

As the Pizza industry has grown quite a lot in the previous decade so the materials and recipe are
not rare to find. The suppliers are available in large numbers and so are people with required
skills.

There is very high demand for the fast food industry especially the trend is shifting towards
Pizza. This has encouraged many restaurants like 14 th street and California to enter in the market
and many more are planning to do so.

As these Pizza restaurants dont have large variations in their prices so the customers dont
consider the prices very much while eating a new Pizza. They just get to eat Pizza with new taste
and so the switching cost element is not there.All these factors together signal that the threat of
new entrants is very high and Broadway Pizza should be ready with strategies to fight with new
competition.
Yes (+)
1. Do large firms have a cost or performance advantage in
your segment of the industry?
2. Are there any proprietary product differences in your
industry?
~ 11 ~

No (-)

3. Are there any established brand identities in your

industry?
4. Do your customers incur any significant costs in
switching suppliers?
5. Is a lot of capital needed to enter your industry?
6. Is serviceable used equipment expensive?
7. Does the newcomer to your industry face difficulty in
accessing distribution channels?
8. Does experience help you to continuously lower costs?

9. Does the newcomer have any problems in obtaining the

necessary skilled people, materials or supplies?
10. Does your product or service have any proprietary
features that give you lower costs?
11. Are there any licenses, insurance or qualifications that
are difficult to obtain?
12. Can the newcomer expect strong retaliation on entering
the market?

Analysis

The threat of entrants is high in the fast food industry due to the following reasons:

No huge capital requirement to enter the industry

New comer does not face any difficulty in obtaining the necessary people, material or
skills.
No retaliation for the new comer by big players while entering the industry
High demand encourages potential entrants to enter in the food industry
The customer doesnt incur any significant cost in switching to a different supplier.

The Nature of Rivalry in the Industry

The fast food industry in Pakistan is undergoing an escalated boom. Despite fierce rivalry, this
industry has managed to generate profitability and is well-received by the local masses as well.
Pakistan is a land where various cultures co-exist and this disparity is reflected in the eating
~ 12 ~

habits of the general population as well. Recently, remarkable transformation has occurred in
food consumption of the Pakistani masses. Fast food consumption has increased radically. This
dramatic shift towards fast food consumption is primarily because people prefer convenience and
good taste. Because of the emerging market trends in this particular industry, the casual
taste among the masses is now congregating.

The changing consumer preferences, shifting lifestyles and presence of multinational chains have
further facilitated and triggered fast food consumption in Pakistan. The aforementioned survey
results also indicate the dominance of multinationals, this is because these chains have resorted
to market led approaches and transformed their menus in order to satisfy consumer needs.

Yes (+)
1. The industry is growing rapidly.

No (-)

2. The industry is not cyclical with intermittent overcapacity.

3. The fixed costs of the business are relatively low portion
of total costs.
4. There are significant product differences and brand

identities between the competitors.

5. The competitors are diversified rather than specialized.

6. It would not be hard to get out of this business because

there are no specialized skills and facilities or long-term
contract commitments etc.
7. My customers would incur significant costs in switching
to a competitor.
8. My product is complex and requires a detailed
understanding on the part of my customer.
9. My competitors are all of approximately the same size as I
am.

Analysis
The rivalry amongst the existing firms is high as due to the following reasons:

Competitors are coming up with similar products with low cost.

~ 13 ~

Established brand identities lead to the restaurants competing rigorously to maintain their
market share and attract more and more customers.
Low setup costs makes rivalry worse as industry players plays on aggressive mode such as
market penetration.

Impact of Political, Social, Economical and Technological Changes on the Industry

Structure

The PEST analysis is based on the political, economical, social and technological factors.
Following are the analysis of the following factors.

Political

Political factors are basically to what degree the government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law, environmental
law, trade restrictions, tariffs, and political stability. Political factors may also include goods and
services which the government wants to provide or be provided (merit goods) and those that the
government does not want to be provided (demerit goods). Furthermore, governments have great
influence on the health, education, and infrastructure of a nation. There are health laws set by the
government but are not practically followed or inspected.
Unrest in the city due to differences between political parties acts as a barrier to entry for new
entrants, making the industry less attractive for them. There are unexpected delays in supply due
to disrupted transportation network which only well-established food chains are able to cope up
with.
If the government grants subsidies to local competitors to match the international chains, the
rivalry will increase. Political unrest can cause delay in the supplying activities for Broadway
Pizza. If food supplies get expensive due to the increase tax rate then the bargaining power of
suppliers will increase.
If the government puts import restrictions or tariffs, the cost of imports will surely increase. As
per the case of Broadway pizza, the one of their main essence of delicious flavor is because of
their imported cheese.

~ 14 ~

Economical

Rapid growth in inflation poses a direct threat for new entrants with regard to their survival.
Only well-established players will be able to absorb the brunt of inflation and use their margins
to balance the increasing cost of production. Whereas the smaller players would have no other
choice but transfer their burden towards the consumers, decreasing their bargaining power.
The fake economic growth has increased the availability of funds; therefore the competitors can
match international chains now. Thus, the rivalry will increase.

Social

Good health is an important personal and social requirement. People are becoming more aware
of health care problem, like obesity that people in the abroad nations are suffering from and they
also have an idea about several diseases it leads too. This is a negative indicator to our industry
since pizza is one of the high calorie fast food, and may have a small impact on our sales. This
would definitely decrease rivalry to some extent.
The leading social trend and consumers behavior is to eat out more often due to friends
gathering, or for convenience, therefore despite the fact of its health related awareness the
demand keeps on increasing for pizza. Bargaining power of the supplier decrease as production
levels have increased and the numbers of suppliers are more than the number of buyers in the
industry, a positive effect on the industry. People are becoming more and more health conscious
therefore it is important for keeping this issue under consideration. People are more outgoing
these days so they would prefer more dine in outlets which can be an opportunity for the
company.

Technological

Technology has made it possible for competitors to affectively reduce cost, thereby, enabling to
match each other and copy the others competitive advantage. This will increase the rivalry
between competitors. Modern scientific and technological advances in science are forcing
industry players to adapt ever faster to the evolving environments in which they participate.
Scientific advancements have also increased the need for increased spending on research and
development in order to encourage innovation.

~ 15 ~

If we look at the local technological scenario, we dont observe much of the advancements in
Pakistan as they are in other developing countries. But still this industry requires technological
advancements in order to improve consistency in their performance. Similarly new technologies
in order processing, delivery and manufacturing is resulting in increased rivalry. However this
rivalry is resulting in a constructive way as it is providing best quality services and food to the
consumers. Bargaining power of the supplier will decrease as the new technology may result in
efficient use of raw materials and increased productivity which is positive for the industry.

Industry Attractiveness Summary

COMPONENTS

IMPLICATIONS

Threat of new entrants

HIGH

Bargaining power of buyer

LOW

Threat of substitutes

HIGH

Bargaining power of suppliers

LOW

Intensity of rivalry among competitors

HIGH

Analysis:
According to the porters five model and the pest analysis we can come to the conclusion that the
industry has a mediocre approach towards the attractiveness. It is because the bargaining power
~ 16 ~

of the buyers is low and so is the suppliers power making the industry attractive. However the
threat of new entrants is high since the industry has many advantages for the new entrants. This
increase the threat of possible new entrants and keeping in view that in Pakistan food industry is
one of the fastest growing industries.

Opportunities and Threats

Opportunities

Broadway pizza can diversify its product line and explore into other fast-food products to
make themselves more attractive to the customers.
Growing trend of dine outs and home deliveries.
Increase in disposable incomes in general
Introduction of new toppings of pizzas and different flavors.
Changing lifestyle

Threats

Large number of competitors

Increasing level of health awareness among the population.
Limited entry barriers in the industry.
Security issues and instability in the city.
Rise in inflation rate

External Factor Evaluation (EFE)

Key External Factors

Opportunities
1. Changing lifestyle
2. Growing trend of eating outside.
3. Increase in disposable incomes

~ 17 ~

Weight

Rating

Weighted
Score

0.10

0.30

0.15

0.60

0.06

0.06

4. Technological advancement for consistency

5. Introduction of new toppings and different
flavors
Threats
1. Security issues and instability in the city.
2. Increase level of health awareness in population
3. Likelihood of new entrants due to low barrier to
entry.
4. High competition from competitors
5. Rise in inflation

0.07

0.21

0.12

0.48

0.10

0.30

0.12

0.36

0.12

0.36

0.10

0.40

0.06

0.06

1.00

3.02

EVALUATION OF EFE:
Currently their total weighted score of 3.02 is higher than the industry average of 2.5. They are
properly exploiting the opportunities in the food industry to their advantage and are combating
the threats. Their major opportunity is to introduce dine in facility since it the changing lifestyle
and people getting more and more involved in dine in and restaurant eating. This would give
them exposure to a very large new market and also help them in expanding the business. People
do order at home but if the dine in option would be available the Pizza freaks would definitely
dine in to enjoy the freshly baked Pizzas.

Also the introduction of new toppings and flavours will prove to be beneficial for Broadway.
Everyone would be served, people who want desi, spicy, cheesy or European flavours.
More usage of technology is also helping them to choose and pick their customers with highest
probability of being successful. The trend of using social media websites is increasing and so a
large audience is targeted in one go.
The most challenging threat is tough competition from current competitors. As this industry is
growing rapidly, new businesses are also entering. This forces Broadway to be on their toes all
the time.

Increase in health awareness has become a challenging factor as it was not given such
importance previously. But now Broadway has to make sure that each and every ingredient from
~ 18 ~

raw form up to the baked Pizza is healthy and been cleared by all quality and hygiene checks.
Security problems in Karachi have raised concerns of delivering orders at the committed time.
Many areas have become insecure specially during late night and so the riders might face any
incident which would prevent them from delivering on time or probably even delivering in those
areas. There is not any practical solution which could give them 100% security without incurring
huge costs.

The inflation is increasing the prices of raw material. Efficiency in the production will help in not
only controlling costs but also keeping the quality premium at all times. This might become very
dangerous over time and becoming efficient will be a very good solution.

Key Driving Forces

The Internet and new E-Commerce opportunities

The Internet can revolutionize the entire restaurant industry by including the aspects of ordering
food online. In this way consumers could be provided with more convenience and be more
informed about the menus.

Technological Change

Advances in technology can dramatically transform the restaurant industry. Technological

developments can competitively produce significant changes in the distribution channel and
logistics and reduce the costs in the value chain.

Entry or Exit of major firms

Exit of major firms in the restaurant industry can lead to changes in market shares of all the
companies that compete with such firms. Entry is relatively easy and keeps on leading to
increased competition in this industry.

Regulatory influences and government policy changes

Regulatory influences or policy changes such as increased quality and hygiene standards can
drive up costs of firms but would lead to better and safer food items.
~ 19 ~

Changing societal concerns, attitudes and lifestyles

Emerging social issues and changing attitudes and lifestyles can be powerful driving forces of
industry change. The trend of eating out has been increasing consistently in Pakistan giving more
opportunities for new companies to come with more and more variety for the public.

~ 20 ~

~ 21 ~

II. COMPANY AND

COMPETITOR ANALYSIS

~ 22 ~

Key Success Factors

Fast food is always a popular choice for consumers, but simply opening a shop or a franchise
doesn't necessarily guarantee success. Several key success factors in a fast food business come
together to determine whether or not it will turn a good profit.

Marketing
Getting the word out about the company is essential to success. When someone wants to order,
the business' name should be at the forefront of their mind. Print up magnets with the phone
number is a useful item that means that the customer will always have the number on hand.
Fliers can also be sent out, coupon inserts in local newspapers and ad placement in the Yellow
Pages is also useful.

Market Penetration
A firm needs to enter new markets and make new customers in order to grow its self. It can be
done by through strategies such as bundling, advertising, lower prices, or volume discounts.
Employees
The right employees can be a key factor in success. Employees are the first point of contact with
customers and a good or bad experience can influence whether or not the customer comes back.
Free or discounted food can be given to employees. This will not only increase their job
satisfaction, but will help them to offer suggestions to customers who are ordering food.

Geographical Coverage
The number of competing restaurants in the area can play a big role in success. Locating
restaurant in a small rural town could be a smart move, as there may be just two or three similar
businesses in the area. If there are several competing businesses, we need to separate ourself
from the crowd by offering lower prices, better service or better quality.

~ 23 ~

Customer Loyalty
It is a key factor for success as customers make or break a business. Customers generally view
pizza as an affordable meal for the family. Purchases can be encouraged by offering coupons or
special deals on certain pizzas. For example, a buy-one-get-one-free deal or deep discounts on
your slowest nights can be offered.
Market Share
The greater a firms market share the greater chances are of it in succeeding as it will capture a
larger market and hence more customers.
Product Quality
Customers prefer better quality than anything else when enjoying fast food items. A firm needs to
keep a check on its quality throughout in order to expand and be successful, this way the
customers keep coming back.

Competitive Profile Matrix (CPM)

Broadway
Pizza
Critical Success Factors

New York
Pizza

14th Street
Pizza Co.

Weight

Ratin
g

Score

Ratin
g

Score

Ratin
g

Score

Marketing

0.15

0.30

0.45

0.60

Market Penetration

0.12

0.24

0.12

0.36

Employees

0.15

0.15

0.45

0.30

Geographical Coverage

0.25

0.75

0.50

1.00

Customer Loyalty

0.10

0.30

0.40

0.20

Market Share

0.08

0.08

0.16

0.24

Product Quality

0.15

0.45

0.60

0.30

Total

1.00

2.27

~ 24 ~

2.68

3.00

Internal competencies the company needs to address the key success factor

Competitive Profile Matrix elaborates the positioning of competitors based on critical success
factors. According to the CPM model that we have exhibited in the table the company needs to
work on its market share since it lacks in its market share from 14th street and New York pizza as
well. Also it needs to work on its promotions since it needs to compete with its competitors. It
also needs to work on its market penetration since it needs to increase its reach in the minds of
the consumers and also it has to increase its geographical coverage.
We can clearly analyze that Broadway is doing quite well in their marketing and it is definitely
one of their success factor. Secondly, customer quality is their greatest forte since it is direct
under control of the owner of the company. Speaking to Mr Shahbaz Javed he mentioned that
due to their positive approach towards customers many customers have shifted from 14th street
to Broadway Pizza. Their product quality is kept under great consideration. It is because of a
special Quality Control department of the firm. The employees as well as the higher authority are
all kept in vigilant under this department.
Broadway is performing well in terms of customer loyalty so it needs to guard this strength to
benefit from it in the future as well.
Broadway needs to step up in its strategies for advertising: This can be done by expanding into
new markets for its BTL which includes colleges and universities. Focusing on new mediums of
advertising like social media.
They need to work on the turnover rate of the employees since the employees are not at all
motivated and tend to leave the job very quickly

~ 25 ~

III. INTERNAL COMPANY

VALUE CHAIN ANALYSIS

~ 26 ~

Value chain
A value chain is a set of activities that an organization carries out to create value for its
customers. Porter proposed a general-purpose value chain that companies can use to examine all
of their activities, and see how they're connected. The way in which value chain activities are
performed determines costs and affects profits, so this tool can help you understand the sources
of value for your organization.

Supporting activities
Human Resource Management: This is how well a company recruits, hires, trains, motivates,
rewards, and retains its workers. People are a significant source of value, so businesses can
create a clear advantage with good HR practices.
Speaking to the marketing manager of the Broadway Pizza it was explained that Broadway Pizza
turnover rate is high. It is because the internal staff is not motivating.
~ 27 ~

Firm Infrastructure
Every organization needs to ensure that their finances, legal structure and management structure
work efficiently and help drive the organization forward. Inefficient infrastructures waste
resources, could affect the firm's reputation and even leave it open to fines and sanctions.
Broadway Pizza has no proper infrastructure. However, it has different managerial positions such
as marketing manager who manages all the marketing activities, accounts manager, shifts
manager etc. Broadway Pizza has strong delivery channel because their effective timely delivery
is their USP.
Technological Development
These activities relate to managing and processing information, as well as protecting a company's
knowledge base. Minimizing information technology costs, staying current with technological
advances, and maintaining technical excellence are sources of value creation.
Broadway Pizza is one of the most digitally active Pakistani fast food brands. It has a strong
following on social platforms like Facebook and twitter. It uses these mediums to communicate
brand awareness and engage its customer by creating a customer community.
Procurement
Obtaining raw material and supplies were never a problem for this company it is because they
have strong and effective relationship with their suppliers. Due to the bargaining power of
suppliers being low procurement and obtaining goods and supplies is not a problem for
Broadway Pizza.
Sales and Marketing
These are the activities related to maintaining the value of your product or service to your
customers, once it's been purchased. Broadway Pizza provides its customers more than just taste
it also aims to establish a relationship by staying in contact with its customers and answering any
queries. They can write their questions and complaints directly to Broadway. They also stay in
touch with customers through their recently launched website. During delivery procedure they
tend to take your email ids and try to connect with their customers.

PRIMARY ACTIVITIES:
Inbound
Inbound logistics is an integral element of business operations for a manufacturing firm,
involving the processes of receiving, storing and distributing raw materials for use in production.
~ 28 ~

Broadway Pizza is an international brand so it has its some of its ingredients imported for that
they have a database in order to ensure the inflow and outflow of the material. They are in
collaboration with KnNs for the supply of chicken.
Operations
Broadway Pizza has no proper outlet or production houses but it has small kitchen based
operational houses located in various areas of the city. They have strong SOPs for hygiene
because it is one of their commitments to provide hygienic yet quality goods.
Outbound
These activities deliver your product or service to your customer. These are things like
collection, storage, and distribution systems, and they may be internal or external to your
organization.
Broadway being a delivery service activity it has extremely strong. Broadway Pizza markets and
distributes its offerings to various parts of the country. It is done through different channels, of
distribution. The organizations marketing department itself is not that active in reaching its
targeted and desired customers. Broadway Pizza controls the transportation, distribution and
marketing costs effectively. To ensure consistency and regularity, customer feedbacks are
extracted nearly after every transaction or visit. It houses its own delivery process and assets.
Furthermore, private channels or intermediaries such as food panda and eatoye.com are assisting
this business in order placements and delivery management.

Financial Ratios

RATIOS

Broadwa
y 2013

Broadwa
y 2014

Industry
Average

Gross Margin

24.75%

25.%

26.2%

Operating
Margin

5.0%

5.2%

4.1%

Current Ratio

1.70

1.73

1.60

Acid Test
Ratio

1.60

1.65

1.45

~ 29 ~

Debt to equity 54.5%

ratio

55%

50%

Note: The ratios have been calculated from the figures of the sales of Italian food industry. The
industry average is calculated from competing firms
A. The Gross Margin is derived by gross profit / sales. The industry itself is excelling, but
the competence of Broadway Pizza shows a reduced performance as compared to the
industry. Although, over the 2 year period, it is able to increase and manage its gross
margin minutely. The reason for the declined figure, as compared to the industry, is the
increasing cost of goods sold or cost of supplies. The only way to come up to the industry
competitiveness is to work on the sales.
B. Broadways Pizza, a newer venture is able to control many of the costs which the other
key players are not able to control. These comprise of operating expenses, marketing
costs, maintenance charges etc. for the time being the management of these costs is
favorable, but it is expected that with the passage of time, these costs will become
inevitable to be incurred.
C. Current Ratio is derived by dividing the current assets with the current liabilities. This
shows the current assets held in comparison to the amounts due to creditors. In case of
Broadway Pizza, there is excelling ratio since the company is managing its due amount to
suppliers. It started off with a lower value as compared to the end value. Although it has
very few amounts due from debtors, since most of the transactions is carried out on cash
basis. Although, a few businesses who order larger quantities for some occasions do
become debtors of the business for a short period.
D. The quick ratio showed an improvement over the years due to two possible reasons:
1. Either the company has reduced the mounts of stock/ inventory or
2. The company has retained more amounts of non-inventory assets such as cash and bank
balances i.e more liquidity.
This ratio is a stricter measure of a firms liquidity. As it considers the most liquid assets.
E. Broadway shows increased dependence on the finances availed through loans. Increased
financed are taken from non equity sources. This concludes that this company is more
risky as compared to the industry.

~ 30 ~

Core Competencies

When we talk about core competencies we usually highlight the combination of skills and
resources that a company uses to create and advantage over other competing brands. A
competitively important activity that a company performs better than other competitively
important activities is termed as core competence. Whereas, distinctive competence is something
a company does well relative to competitors. Broadway believes in maintaining its core
competency in the following three ways:
1. Customer servicing: Providing prompt customer service is one of the major priorities for
Broadway Pizza. This department is directly under the CEO. He makes sure that not a
single customer gets unsatisfied. In order to get customers' feedback Broadway has an
email address and also a call centre. The customers can complaint or give suggestions or
just give their opinion over there. The feedback is then responded by the CEO. For the
market which they are targeting that is the youth of Middle and upper middle class needs
excellent service and also compensation for any mishap.

2.

Quality assurance: Broadway has very strict quality control standards. By

implementing these, Broadway ensures highest possible quality of Pizzas and best
possible taste. As their target market is very much quality sensitive they have to be very
strict and persistent in providing high quality food. The ingredients are checked for
quality assurance as soon as they are delivered and if anything is below standards it is
immediately returned. They have specific suppliers for each ingredient and those are all
very well briefed about the requirements.

3. Hygiene control: Broadway has strict policies regarding hygiene. All the employees
especially the cooking staff is reminded about hygiene standards and what problems
might occur if they do not meet those standards. We being the customers also hate it
when we find anything unwanted in our food or if we notice any irregularity in taste,
colour or anything else.

Strategic Cost Management Tools

~ 31 ~

Strategic cost management not only leads to incremental performance improvement but also to
transformational change across the value chain. Strategic costing is viewed as part of a larger
business process to influence decisions on pricing and profitability across several dimensions:
product, customer, region, and distribution channel.
Strategic planning is a management tool, period. As with any management tool, it is used for one
purpose only: to help an organization do a better job - to focus its energy, to ensure that members
of the organization are working toward the same goals, to assess and adjust the organization's
direction in response to a changing environment.
In short, strategic planning is a disciplined effort to produce fundamental decisions and actions
that shape and guide what an organization is, what it does, and why it does it, with a focus on the
future.
The process is about planning because it involves intentionally setting goals (i.e., choosing a
desired future) and developing an approach to achieving those goals. The process is disciplined
in that it calls for a certain order and pattern to keep it focused and productive. The process raises
a sequence of questions that helps planners examine experience, test assumptions, gather and
incorporate information about the present, and anticipate the environment in which the
organization will be working in the future.

The strategic cost management process

Strategic costs are recorded through traditional accounting system, done by a team of
accountants hired by the company. Based on the specific activities being performed and then
assigning costs to the appropriate activity responsible for creating the cost. The Strategic costs of
Broadway Pizza include the following costs:
Functional Costs (stores, production and service)
Broadway Pizza is competing head on with the key players of the Italian food industry. Those
reputable key players have set up several standards and benchmarks which should be prudently
maintained and further enhanced (if possible). Broadway Pizza Outlets maintain a neat and
updated facility for customer satisfaction and maximum retention. However, the key issue is the
maintenance of quality, power generation, hygiene and cleanliness alongside their operations. All
the processes need to be fast and efficient. For the above mentioned requirements, efficient, fast
and competent staff and workforce is required. Broadway Pizza houses such workforce members
and ensures timely training.
Raw Material Cost

~ 32 ~

Being in a Muslim country, Broadway is to ensure the supply and procurement of halal
ingredients only. Thus the raw material cost borne by Broadway Pizza is aligned with what is
borne by the other key players. However exploitative suppliers contribute to higher costs.
Distribution and marketing Cost
Broadway Pizza markets and distributes its offerings to various parts of the country. It is done
through different channels, of distribution. The organizations marketing department itself is not
that active in reaching its targeted and desired customers. Broadway Pizza controls the
transportation, distribution and marketing costs effectively. To ensure consistency and regularity,
customer feedbacks are extracted nearly after every transaction or visit. It houses its own
delivery process and assets. Furthermore, private channels or intermediaries such as food panda
and eatoye.com are assisting this business in order placements and delivery management.
Constant marketing and promotional activities are also performed by these intermediaries.
Therefore costs are definitely associated and need to be regulated.

Strengths and Weaknesses

Strengths

Strong delivery channel, their effective timely delivery is their USP.

Most digitally active Pakistani fast food brands. It has a strong following on social
platforms like Facebook and twitter. It uses these mediums to communicate brand
awareness and engage its customer by creating a customer community.
Strong relationship with customers. They stay in contact with customers and answer any
queries. They can write their questions and complaints directly to Broadway. They also
stay in touch with customers through their recently launched website. During delivery
procedure they tend to take your email ids and try to connect with their customers.
Able to control many of the costs which the other key players are not able to control.
These comprise of operating expenses, marketing costs, maintenance charges etc.

Weaknesses

High turnover rate. Internal staff is not motivated.

No proper infrastructure. No proper outlet or production houses.
As they are not cooking Pizzas on a very large scale so we do not enjoy the Economies of
scale. So our cost is not as low as we would like to have.
Lack of consistency due to less motivated employees.

~ 33 ~

Internal Factor Evaluation

Key Internal Factors

Weight

Rating

Weighted
Score

Strengths
1. Strong delivery channel, their effective timely
delivery is their USP.

0.20

0.80

0.08

0.32

0.06

0.18

0.10

0.40

0.08

0.32

0.20

0.20

0.10

0.20

0.05

0.10

0.08

0.24

2. Strong relationship with customers.

3. State of art Online order taking through website.
4. Strict SOPs for Quality management.
5. Social media marketing.
Weaknesses
1. Lack of production consistency due to Human
element
2. No proper outlet or production houses
3. Do not enjoy economies of scale .
4. High turnover rate

1.00

2.70

EVALUATION OF IFE

The total weighted score of Broadway Pizza is higher than the industry average. Thats because
14street pizza have successfully created their strengths and reduce weaknesses with the help of
their strengths.
Their total quality management policy has worked wonders for them as customers are very much
happy with the quality of their products. They have simple, user friendly website and an extreme
effective social media marketing which has helped them in retaining customers as well as
attracting them to try their new products. Broadway Pizza should further increase its variety and
work on bringing new and innovative products related to pizza which have not yet been
introduced in Pakistan or at least not by its competitors.
~ 34 ~

However, the turnover rate is a serious threat to the company. They need to work in their
infrastructure since it is small outlet which may intervene in its innovation. Consistency is a
major attribute for the success of any organization. The company lacks in consistency due to less
motivated employees.

~ 35 ~

IV. STRATEGIC ANALYISIS AND

RECOMMENDATIONS

~ 36 ~

Porter's Generic Strategy

Porter's generic strategy describes how a company pursues competitive advantage across its
chosen market scope. There are three generic strategies, either lower cost, differentiated, or
focus. A company chooses to pursue one of two types of competitive advantage, either via lower
costs than its competition or by differentiating itself along dimensions valued by customers to
command a higher price. A company also chooses one of two types of scope, either focus
(offering its products to selected segments of the market) or industry-wide, offering its product
across many market segments. The generic strategy reflects the choices made regarding both the
type of competitive advantage and the scope.

Pizza Hut

14th street Pizza

NEWYORK
PIZZA

Penny
Pizza

BROADWAY
PIZZA

Currently, Broadway Pizza is situated in the "differentiation Focus" region of the Porter's generic
strategy model. Broadway Pizza aims for differentiation as its source of competitive advantage
and it targets a narrow segment of the market.
Penny Pizza lies in the "cost Focus" region as they focus more on making their product available
to the customers at low costs. They target the middle income group.

~ 37 ~

Pizza Hut is a considerably senior player in this industry and has been a part of this industry long
before either Penny Pizza or Broadway Pizza. Their strategy has a broad focus. They have their
outlets located all over the country especially in all the major cities of Pakistan.
The generic strategies the company needs to gain a competitive advantage is
"Differentiation Focus"
Gaining customer loyalty by focusing on their taste and quality differentiation
If they develop their unique taste in pizzas which differentiates them from other brands of pizzas
available in the market, they will start have customers recognizing them for their unique good
taste.
Customers recognizing them for their unique taste will ultimately result in decreasing the threat
of new entrants in the industry and also give them a competitive advantage among the present
competing firms.
Geographical expansion within big cities
At present, Broadway Pizza is only based in 2 of the major cities of Pakistan. Geographical
expansion is likely to prove to be a good strategy for gaining competitive advantage in the
industry. They can start with the major cities like Islamabad and Quetta. This strategy will help
them gain more and more market share.
Pros of generic strategy:
What Broadway will gain by making the company differentiation focused is a positive image in
the minds of current and prospective customers. When customers will relate Broadway to a
specific good taste of pizza they will become loyal to the company and Broadway will have
customers coming back to them again and again looking for taste and quality.
Increased customer loyalty will lead to increase in sales and hence increase in profits. In this way
Broadway will be able to increase its share in the market. Increase in customer loyalty will also
shield Broadway against the lack of entry barriers situation.
Cons of generic strategy:
When Broadway decides to expand to other big cities of Pakistan, it will be faced with huge
capital requirements. They will have to hire additional management staff for each city hence
increasing their cost of production.

~ 38 ~

TOWS

Internal
Factors

External
Factors

OPPORTUNITIES (O)
1. Low cost of
diversification.
2. Growing trend of dine
outs and home deliveries.
3. Increase in disposable
incomes in general
4. Introduction of new
toppings of pizzas and
different flavors.
5. Changing lifestyle

STRENGTHS (S)
1. Strong delivery channel, their
effective timely delivery.
2. Most digitally active. strong
following on social platforms.
3. Strong relationship with
customers. They stay in
contact with customers and
answer any queries. Able to
control many of the costs
which the other key players
are not able to control. These
comprise of operating
expenses, marketing costs,
maintenance charges etc.

WEAKNESSES (W)
1. High turnover rate.
Internal staff is not
motivated.
2. No proper infrastructure
No proper outlet or
production houses.
3. As they are not cooking
Pizzas on a very large
scale so we do not enjoy
the Economies of scale.
So our cost is not as low
as we would like to
have.
4. Lack of consistency due
to less motivated
employees.

SO STRATEGIES
Diversify their product
line towards other fast
food products.
(S1,S3,O1O3)
Carry out promotional
campaigns to increase
customer loyalty.
(S2,S3,O2)

WO STRATEGIES
Conduct employee
training workshops
and adopt employee
promotional
techniques(W1,W4,)

~ 39 ~

1.
2.
3.
4.
5.

THREATS(T)
ST STRATEGIES
Large number of competitors
Diversify into "healthy
Increasing level of health
Food" line.(S3,T2)
awareness among the population.
Limited entry barriers in the
industry.
Security issues and instability in
the city.
Rise in inflation rate

WT STRATEGIES
Collaborate with
another firm in the
same industry for
ordering raw
materials, hence,
minimizing costs
through discounts.
(W2,T5,T1)

SPACE Matrix

FINANCIAL POSITION (FP)

Broadways Gross margin is 1.2% lower than the industry Gross
Margin figures (concluded by internal audit)

RATINGS
3.0

The Companys operating margin figures are 5.2% while the industry average
is at a lower rate of 4.1% (concluded by internal audit)

5.0

The Current Ratio of Broadway is 0.13 times better than the industry average of
1.6 (concluded by internal audit)

4.0

Acid test ratio serves to be 1.65 compared to 1.45 of the industry average
(concluded by internal audit)

4.0
4.0

INDUSTRY POSITION (IP)

High threat of entrants (concluded through industry analysis)
Growing trend of dine outs and home deliveries, growth potential increases
(concluded by industry analysis)

RATINGS
5.0
_5.0__
5.0

STABILITY POSITION (SP)

Pakistan is faced with political instability in terms of protests against the
~ 40 ~

RATINGS
-6.0

government (derived from pest)

Pakistan has been immune to price changes and inflation is still not under
desirable limits which affect disposable income of consumers (derived from pest)

-4.0

Limited entry barriers in the firm making the company attractive for new entrants

-4.0

Large number of competitors increasing the competitive pressure

_-4.0_
-4.5

COMPETITIVE POSITION (CP)

Broadway has hold over its suppliers, this makes the bargaining power of
suppliers low

RATINGS
-1.0

They tend to have a Quality Control department for their product quality

-2.0

Customers loyalty towards the firm

-2.0

Technological knowhow in the firm

_-2.0_
-1.75

CONCLUSION
SP Average is -4.5
CP Average is -1.75

________________________
IP Average is 5.0
FP Average is 4.0

Directional Vector Coordinates: x-axis: -1.75+(+5.0)=+3.25

y-axis: -4.5+(+4.0)=-0.5

~ 41 ~

Analysis of SPACE matrix

In the space matrix Broadway Pizza is in the competitive quadrant. A firm which is in this
quadrant must use its internal strength in order to compete in the market. It must take advantage
of its external opportunities which I derived from the industry and the company itself. These
potential opportunities help to grow the company at a larger scale. In order to be competitive the
firm must eradicate its internal weaknesses so that it does not face any issues. Joint ventures,
concentric diversification, product development can be feasible strategies for the company.

~ 42 ~

The Internal-External (IE) Matrix

Analysis of IE matrix
The IE matrix score fall in the category of Quadrant II. The main characteristics of this quadrant
are market penetration, market development, product development, forward integration,
backward integration, horizontal integration and concentric diversification.
Broadway Pizza falls under quadrant II, keeping in mind total weighted scores of both IFE and
EFE matrices, which indicates Hold and Maintain Strategies to be followed in the best interest of
its future growth. Thus, under this following approaches are best for Broadway Pizza to pursue:
Market Penetration: It can improve on its consumer market share by reaching consumers
moreover through promoting new products through various promotional techniques such as
exciting deals. Broadway Pizza must do more and more advertisement in order to have a strong
brand recall.
Product Development: Product development can take place in order to reach more and more
customers. This can be done through Kiosks or mobile kitchens where Broadway Pizza can be
on wheels in order to facilitate its customers.
~ 43 ~

Strategy implementation

Strategy 1: Product Development

Broadway Pizza should involve in product development. They can do this by introducing a
mobile caravan which is not done by any local pizza chain. This will attract the customers since
it is different from conventional method of delivery and takeaway. Another way of product
development is to create a mobile app for the easier availability for the customers.
Strategy 2: Mergers with local fast food chain
Mergers and collaboration with local fast food chain will extend the food varieties but at the
same time. However, mergers can be a bit more complex and it can cause internal distress
amongst the employees. It might be that the particular food chain might not have some taboo
attached to it or it may not be very successful chain causing a bad reputation to the name of
Broadway

~ 44 ~

QSPM
Weights

Product
Developmen
t
AS
TAS

Mergers with
local fast food
chains
AS
TAS

STRENGTHS
Strong delivery channel, their effective
timely delivery is their USP.

0.20

0.80

0.60

0.08
0.06

3
3

0.24
0.18

2
2

0.16
0.12

0.10
0.08

4
3

0.40
0.24

3
4

0.30
0.32

Lack of production consistency due to

Human element
No proper outlet or production houses
Do not enjoy economies of scale

0.20

0.40

0.80

0.10
0.05

4
3

0.40
0.15

2
4

0.20
0.20

High turnover rate

0.08

0.32

0.16

0.10
0.15

3
4

0.30
0.60

4
2

0.40
0.30

0.06
0.07

2
2

0.12
0.14

3
1

0.18
0.07

0.12

0.36

0.48

0.10

0.20

0.10

0.12

0.36

0.24

0.12

0.36

0.48

0.10

0.20

0.30

0.06

0.12

0.24

Strong relationship with customers.

State of art Online order taking
through website.
Strict SOPs for Quality management.
Social media marketing.
WEAKNESSES

1
OPPORTUNITIES
Changing lifestyle
Growing trend of eating outside.
Increase in disposable incomes
Technological advancement for
consistency
Introduction of new toppings and different
flavors
THREATS(T)
Security issues and instability in the
city.
Increase level of health awareness in
population
Likelihood of new entrants due to low
barrier to entry.
High competition from competitors
Rise in inflation
1
TOTAL

3.89
~ 45 ~

3.65

Analysis of QSPM
According to the QSPM matrix Broadway should go for new product development and invest
more in their R and D for that matter. The new product development strategy yields a higher
score of 3.89 than acquiring a local company which is of 3.65. Although both strategies give an
attractive overview of the industry but the first strategy is most acceptable. If the product enters
into the strategy of product development it will be favorable. Since it will enhance the
attractiveness of the product within its the customers. If Broadway does the Kiosk activity it will
secure a high customer base and higher profits. Mergers and collaboration can be risky as well as
time consuming. However, mergers can be a bit more complex and it can cause internal distress
amongst the employees. It might be that the particular food chain might not have some taboo
attached to it or it may not be very successful chain causing a bad reputation to the name of
Broadway.

~ 46 ~

V.

STRATEGIC LEADERSHIP
AND IMPLEMENTATION
PROCESSES

~ 47 ~

Blue Ocean Strategy

Businesses are always looking for ways in which they can better compete with their competitors;
however, the blue ocean strategy suggests they would be better off looking for ways in which
they are competing against no one but themselves.

The Blue Ocean framework provides a useful understanding of how a firm can escape the
existing market dynamics of the moment to create a market and future for itself at the same time.

Value Proposition
4.5
4
3.5
3
2.5
2

14th Street Pizza

1.5

#REF!

Broadway Pizza

0.5
0

The value vectors chosen and depicted in the diagram for the Broadway Pizza company are
employees, price, variants, target audience and convenience. Employees are the backbone of any
organization. The 14th street pizza has an edge over its employees since the turnover rate is the
higher in Broadway Pizza rather than 14th street. Since Broadway is a new entrant in the market
so they have kept their prices low in order to satisfy the needs of the customers at a lower cost.
Variants of Broadway are more than that of 14th street making it a competitive advantage for
~ 48 ~

Broadway. Its more varieties and flavors makes the customers more attracted towards the
product.

Profit Proposition
Eliminate

Reduce

Delivery services

Raise

Number of outlets
Price

Create

No of SKUS
Variants/flavors

Convenience
. Frozen product market

One of the main aspects of the profit proposition is how Broadway has the ability and option to
cater to a larger target audience as compared to its competitors who are restricted to some
segments of the target population. . This can lead to higher revenue generation through a larger
audience who can actually relate to and use the product with ease and convenience.
The second aspect is the introduction of new variants for untapped segments of the population.
Through this aspect, demand is created and generated by catering to the increasing needs of the
population. The new variants are introduced due to the changing lifestyle and demographics of
the country.
People Proposition
People proposition talks about how the employees at Broadway are motivated

People proposition talks about how the employees at Broadway are motivated and what factor
drives them to do better at their work. This is highlighted through the motivational programs and
~ 49 ~

training activities to empower and improve the employees. This derives a sense of belonging
within the employees create a sense of belonging within the employee. In the previous strategies
employees were not much motivated so in the upcoming strategy we can motivate the employees
so that the product excels.

~ 50 ~

VI. CONTROL AND

EVALUATION PROCESS

~ 51 ~

Balance Score Card

The balanced scorecard is a strategic planning and management system that is used extensively
in business and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and external
communications, and monitor organization performance against strategic goals. Its used as a as a
performance measurement framework that added strategic non-financial performance measures
to traditional financial metrics to give managers and executives a more 'balanced' view of
organizational performance.

Organizational learning
Broadway Pizza is a new international chain in Pakistan therefore it must gather all the
information regarding different competitors that how they are competing in the market. This is
done in order to evaluate the success and failure they faced. Broadway must also keep in
consideration the past experiences of expansion in order to expand their product line and once
the strategy is out of the experimental stage Broadway should then announce a training and
appraisal for the employees to effectively embed the launch of the product and motivate
them.
Internal Perspective

~ 52 ~

In order to satisfy the customers they need to focus all their attention on technology. Introduction
of technology and use of latest equipment would result in to faster processes. They can introduce
new flavors, toppings and exciting deals in order to satisfy the customers. It is a small
operational industry but still an effective R&D can help to satisfy the needs of the customers.
Customer Perspective
In order to have a stronger customer base and to excel in order to satisfy the customers
Broadway Pizza must work to introduce variety in their menu and also to attract customers by
their customer services so that may retain their customers for a longer period of time.
Financial Perspective
Broadway chief perspective is to succeed and prosper in their business. This can be done by
improving their operations and also by avoiding losses which would reduce cost and increase
cash flows in operations leading to higher gross margin.

~ 53 ~