Reference no: EM13336406

Running head: Savor Case Study

Case

The company has admitted that the current dilemma is expanding without sacrificing business going forward. What can be seen as a advantage as well as a disadvantage a relatively new staff. The company wants to acquire more of the market share in the catering business without hurting there restaurant business. There first option would be to move there catering business to a second location opening up more space for the restaurant location, they currently use the catering space at busy times if it is available. The restaurant although is considered a successful business, but needs a larger capacity and the dinner crowd could use fifty more in it's capacity so the move seems like a logical thing. The major problem facing them is the have to move relatively close, not only distance but demographics as well to maintain their customer base. So the major question facing Savors is how far will people travel and if you increase prices to make this expansion plus will your customer buy into it.

Problem Identification

The current space as it stands is not large enough to handle the current business needs so a decision needs to made. This problem is a multifaceted business decision and a marketing plan that if not well though out can cause confusion to your current customers plus those you are hoping to attract for a healthy expansion. Another major problem is that the catering business is relatively unknown, and Anna the restaurant and catering manager points out the money derived from this venue will be needed to fund the potential expansion. So in retrospect this part of the business can not be considered as John the general manager likes to refer to it as gravy. A biggest part of this problem is that now Savors has to develop a marketing strategy to increase this half of the business.

Root Cause

If we want to look to root cause it could be taken from the mouth of the general manager that Savors would seem to be a success, this can sometimes lead to complacency. In reading the case study it would seem to me that this action was long over do, and still a little stagnant. He also seemed to be a little reluctant because of the hiring of the new staff leaders possibly not wanting to move forward with the expansion until they settled in. The most apparent root cause is that the catering business was relatively unknown to even the most devoted patrons to the restaurant portion of the business, so now its like starting a new business from the ground up.

Threats

Competition - several restaurants in the same demographic area Not being able to expand without excluding current customers

Moving the new location to a new demographic area, because the restaurant business could ceas to be a good selling point for the catering business.