Reference no: EM133770376
Problem
Case study about Telepizza
CASE: TelePizza, HBP No. 899080
Entrepreneurship and International Expansion
TelePizza
The case describes TelePizza, Spain's leading chain of pizza restaurants and delivery services. TelePizza has experienced rapid growth to about 500 stores since its creation in 1987. The company went public on the Spanish stock market in late 1996. Franchising has played an important role in the firm's expansion to date. For further growth, the founder and CEO, Leopoldo Fernandez, is contemplating three different strategies: further expansion in Spain, international expansion, or the creation of new restaurant concepts. Consider the following:
1) Why has TelePizza done so well?
2) Leopoldo Fernandez has developed different paths for growth. What is your assessment of these options? Which (ones) would you advise Leopoldo to adopt? Be specific in your recommendations.
3) What implications do your recommendations regarding growth have for TelePizza's current franchising strategy?
4) What is your assessment of TelePizza's stock market valuation in October 1998.