The potential risks of the project to the shake shack

Assignment Help Operation Management
Reference no: EM131440792

The potential risks of the project to the Shake Shack, including financial implications. (focus on expansion growth mostly)

The followings are financials for Shake Shack:

Total revenue increased 234% to $190.6 million past 4 years

Shack sales increased 63.5% to $183.2 million last year

Net loss was $(8.8) million

Total revenue to be between $237 million and $242 million in 2016.

Primary challenge will be rising labor costs in 2016.

Shake Shack's lofty goal of opening 450 stores runs the risk of over expanding and drastically lowering its profit margin

Locations in new markets are likely to be less profitable and may carry higher operating costs than existing locations

Shake Shack's expansion to new markets runs the risk of competition with similar burger establishments

By expanding to new markets, the company will have to establish brand recognition and compete with rapid-growth companies.

Reference no: EM131440792

Questions Cloud

Using the realistic job preview approach : The organization wants to improve the number of high-quality candidates who decide to accept a job offer. One consideration is using the Realistic Job Preview (RJP) approach with each candidate as encouragement to join the company. Design a practical..
Discuss details on methodology : You have been assigned to design and conduct a 30-minute segment on adult learning theory and learning styles as part of a train-the-trainer program. Fully describe the content you would include in the segment and how you would deliver it. Be specifi..
Determined that corporation needs new distribution warehouse : Joe. Is the sole shareholder of Manatee Corp. a C Corp. Because Manatee’s sales have increased significantly over the last several years, Joel has determined that the corporation needs a new distribution warehouse. Joel has asked your advice as to wh..
Principal cause of the failed negotiation : Research a failed negotiation using an online search engine like Google. Identify what you think was the principal cause of the failed negotiation. You should consider the common judgment errors that often undermine our abilities to negotiate optimal..
The potential risks of the project to the shake shack : The potential risks of the project to the Shake Shack, including financial implications.
Compartments and complements while pursuing network strategy : Briefly explain each of the four major categories of financial ratios. What does each one tell you about your hospital. What is the difference between compartments and complements while pursuing a network strategy. Please give me a set of examples fo..
Threat of destructive competition in industry is lower when : Intensity of competition in an industry is usually the most powerful of the five forces. Threat of “destructive” competition in an industry is lower when. As seen in Porter's Five Forces model, conditions under which a supplier group can be powerful ..
What are the steps in rational decision making : Why is it possible to recommend less than a total integrated approach to security? What laws exist that establishes what level of use of force can the private security industry use? Describe how negligence, torts, and civil liability are applicable i..
What content should orientation programs include : What content should orientation programs include, and how can we ensure the program will be effective? Discuss ways to engage the learners in this event. What are some potential impacts if the orientation is not properly conducted?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd