Question

Duncan’s Pizzas is a chain of pizza stores. Pizzas are made fresh in-store, and then delivered to customers by a fleet of drivers. The senior management team has identified the strategic priorities for the business as on-time delivery and product quality. Required: a) For each of the strategic priorities, suggest three performance measures. b) If the company is successful in achieving challenging targets for these performance measures, will it also necessarily achieve high profitability? Explain your answer. (4 marks, maximum 400 words)

Answer 1

On time delivery and product quality are two important strategies and these are what helps to hold customers. Both of these are of high importance to customers, this is the basis on which they judge between restaurants.

Especially since its a pizza chain, if the pizzas are not delivered on time and are not available to eat in a fresh and crisp manner, then whats the whole point of buying a pizza after all. Quality is something that needs no explanation, Almost everyone would always prefer quality over quantity. If you provide good quality food, people who ate from your restaurant will always be lured back even if the prices are a bit high.

Performance measures for these strategies could be, Customer feedback via app or online portal on the timeliness of delivery and also the quality of the product. Customer is king and their feedback is our main source for improvement. We have to adapt to the needs of customers and only those restaurants which do so end up being succesfull.

Another one could be asking the delivery boys, the time thats taking for the deliveries , whether its being done on time, whether the making time is too high and hence they are having trouble to reach the destination on time etc.

in terms of product quality , invite bloggers and reviewers and give them a sample of your products and let them taste and say the quality of the food and this will also help to create an image amongst the people in the area.

It would be good to check once in a while, the number of orders that couldnt be delivered on the agreed time, analyse what the issues were and then provide a solution for it.

Similarly Duncan pizza is a chain of pizza stores and when you have more than 1 store it is essential that the quality and taste of the products be the same in all the branchces. Customers might try from different branches on different days and if they dont get the same feeling, then thats bound to make them lose interest in your pizzas.

If these straytegic measures are well loooked after, that will surely lead to happy and satisfied customers, which will increase customer loyalty and hence the profit of the company. Its always better to have a bunch of loyal customers who would always reach out to you when they need pizzas becasue then it becomes like a fixed source of income. Sometimes these measures could prove to be a bit expensive than usual, but even then that extra amount being paid is still worth it. Because quality is what matters and customer is king, So making them happy is our main priority along with making profits.

Hope this answers the question. If you liked the answer, please give an up-vote. It would be highly encouraging for me. Thank You.