Scribd Logo
Upload

Welcome to Scribd!

  • BSB Inc.: Pizza Wars Come To Campus

    Uploaded by

    Zia
    7K views24 pages
    Renee Kershaw, manager of food services at a medium-sized private university in the Southeast, has just had the wind taken out of her sails. She had decided that, owing to the success of her year-old pizza service, the time had come to expand pizza-making operations on campus. However, yesterday the university president announced plans to begin construction of a student center on campus that would house, among other facilities, a new food court. In a departure from past university policy, this new facility would permit and accommodate food-service operations from three private organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service on campus had been contracted out to BSB, Inc. CAMPUS FOOD SERVICE BSB, Inc., is a large, nationally operated food-services company serving client organizations. The level of service provided varies, depending on the type of market being served and the particular contract specifications. The company is organized into three market-oriented divisions: corporate, airline, and university or college. Kershaw, of course, is employed in the university or college division. At this particular university, BSB, Inc., is under contract to provide food services for the entire campus of 6,000 students and 3,000 faculty, staff, and support personnel. Located in a city of approximately 200,000 people, the campus was built on land donated by a wealthy industrialist. Because the campus is somewhat isolated from the rest of the town, students wanting to shop or dine off campus have to drive into town. The campus itself is a “walking” campus, with dormitories, classrooms, and supporting amenities such as a bookstore, sundry shop, barber shop, branch bank, and food-service facilities—all within close proximity. Access to the campus by car is limited, with peripheral parking lots provided. The university also provides space, at a nominal rent, for three food-service facilities. The primary facility, a large cafeteria housed on the ground floor of the main administration building, is located in the center of campus. This cafeteria is open for breakfast, lunch, and dinner daily. A second location, called the Dogwood Room, on the second floor of the administration building, serves an upscale luncheon buffet on weekdays only. The third facility is a small grill located in the corner of a recreational building near the dormitories. The grill is open from 11 A.M. to 10 P.M. daily and until midnight on Friday and Saturday nights. Kershaw is responsible for all three operations. THE PIZZA DECISION BSB, Inc., has been operating the campus food services for the past 10 years—ever since the university decided that its mission and core competencies should focus on education, not on food service. Kershaw has been at this university for 18 months. Previously, she had been assistant manager of food services at a small university in the Northeast. After 3 to 4 months of getting oriented to the new position, she had begun to conduct surveys to determine customer needs and market trends. An analysis of the survey data indicated that students were not as satisfied with the food service as Kershaw had hoped. A large amount of the food being consumed by students, broken down as follows, was not being purchased at the BSB facilities: Percent of food prepared in dorm rooms 20 Percent of food delivered from off campus 36 Percent of food consumed off campus 44 The reasons most commonly given by students were (1) lack of variety in food offerings and (2) tight, erratic schedules that didn’t always fit with cafeteria serving hours. Three other findings from the survey were of concern to Kershaw: (1) the large percentage of students with cars, (2) the large percentage of students with refrigerators and microwave ovens in their rooms, and (3) the number of times students ordered food delivered from off campus. Percent of students with cars on campus 84 Percent of students having refrigerators or m

    Original Title

    BSB Inc.: Pizza Wars Come to Campus

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Renee Kershaw, manager of food services at a medium-sized private university in the Southeast, has just had the wind taken out of her sails. She had decided that, owing to the success of her year-old pizza service, the time had come to expand pizza-making operations on campus. However, yesterday the university president announced plans to begin construction of a student center on campus that would house, among other facilities, a new food court. In a departure from past university policy, this new facility would permit and accommodate food-service operations from three private organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service on campus had been contracted out to BSB, Inc. CAMPUS FOOD SERVICE BSB, Inc., is a large, nationally operated food-services company serving client organizations. The level of service provided varies, depending on the type of market being served and the particular contract specifications. The company is organized into three market-oriented divisions: corporate, airline, and university or college. Kershaw, of course, is employed in the university or college division. At this particular university, BSB, Inc., is under contract to provide food services for the entire campus of 6,000 students and 3,000 faculty, staff, and support personnel. Located in a city of approximately 200,000 people, the campus was built on land donated by a wealthy industrialist. Because the campus is somewhat isolated from the rest of the town, students wanting to shop or dine off campus have to drive into town. The campus itself is a “walking” campus, with dormitories, classrooms, and supporting amenities such as a bookstore, sundry shop, barber shop, branch bank, and food-service facilities—all within close proximity. Access to the campus by car is limited, with peripheral parking lots provided. The university also provides space, at a nominal rent, for three food-service facilities. The primary facility, a large cafeteria housed on the ground floor of the main administration building, is located in the center of campus. This cafeteria is open for breakfast, lunch, and dinner daily. A second location, called the Dogwood Room, on the second floor of the administration building, serves an upscale luncheon buffet on weekdays only. The third facility is a small grill located in the corner of a recreational building near the dormitories. The grill is open from 11 A.M. to 10 P.M. daily and until midnight on Friday and Saturday nights. Kershaw is responsible for all three operations. THE PIZZA DECISION BSB, Inc., has been operating the campus food services for the past 10 years—ever since the university decided that its mission and core competencies should focus on education, not on food service. Kershaw has been at this university for 18 months. Previously, she had been assistant manager of food services at a small university in the Northeast. After 3 to 4 months of getting oriented to the new position, she had begun to conduct surveys to determine customer needs and market trends. An analysis of the survey data indicated that students were not as satisfied with the food service as Kershaw had hoped. A large amount of the food being consumed by students, broken down as follows, was not being purchased at the BSB facilities: Percent of food prepared in dorm rooms 20 Percent of food delivered from off campus 36 Percent of food consumed off campus 44 The reasons most commonly given by students were (1) lack of variety in food offerings and (2) tight, erratic schedules that didn’t always fit with cafeteria serving hours. Three other findings from the survey were of concern to Kershaw: (1) the large percentage of students with cars, (2) the large percentage of students with refrigerators and microwave ovens in their rooms, and (3) the number of times students ordered food delivered from off campus. Percent of students with cars on campus 84 Percent of students having refrigerators or m

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7K views24 pages

    BSB Inc.: Pizza Wars Come To Campus

    Uploaded by

    Zia
    Renee Kershaw, manager of food services at a medium-sized private university in the Southeast, has just had the wind taken out of her sails. She had decided that, owing to the success of her year-old pizza service, the time had come to expand pizza-making operations on campus. However, yesterday the university president announced plans to begin construction of a student center on campus that would house, among other facilities, a new food court. In a departure from past university policy, this new facility would permit and accommodate food-service operations from three private organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service on campus had been contracted out to BSB, Inc. CAMPUS FOOD SERVICE BSB, Inc., is a large, nationally operated food-services company serving client organizations. The level of service provided varies, depending on the type of market being served and the particular contract specifications. The company is organized into three market-oriented divisions: corporate, airline, and university or college. Kershaw, of course, is employed in the university or college division. At this particular university, BSB, Inc., is under contract to provide food services for the entire campus of 6,000 students and 3,000 faculty, staff, and support personnel. Located in a city of approximately 200,000 people, the campus was built on land donated by a wealthy industrialist. Because the campus is somewhat isolated from the rest of the town, students wanting to shop or dine off campus have to drive into town. The campus itself is a “walking” campus, with dormitories, classrooms, and supporting amenities such as a bookstore, sundry shop, barber shop, branch bank, and food-service facilities—all within close proximity. Access to the campus by car is limited, with peripheral parking lots provided. The university also provides space, at a nominal rent, for three food-service facilities. The primary facility, a large cafeteria housed on the ground floor of the main administration building, is located in the center of campus. This cafeteria is open for breakfast, lunch, and dinner daily. A second location, called the Dogwood Room, on the second floor of the administration building, serves an upscale luncheon buffet on weekdays only. The third facility is a small grill located in the corner of a recreational building near the dormitories. The grill is open from 11 A.M. to 10 P.M. daily and until midnight on Friday and Saturday nights. Kershaw is responsible for all three operations. THE PIZZA DECISION BSB, Inc., has been operating the campus food services for the past 10 years—ever since the university decided that its mission and core competencies should focus on education, not on food service. Kershaw has been at this university for 18 months. Previously, she had been assistant manager of food services at a small university in the Northeast. After 3 to 4 months of getting oriented to the new position, she had begun to conduct surveys to determine customer needs and market trends. An analysis of the survey data indicated that students were not as satisfied with the food service as Kershaw had hoped. A large amount of the food being consumed by students, broken down as follows, was not being purchased at the BSB facilities: Percent of food prepared in dorm rooms 20 Percent of food delivered from off campus 36 Percent of food consumed off campus 44 The reasons most commonly given by students were (1) lack of variety in food offerings and (2) tight, erratic schedules that didn’t always fit with cafeteria serving hours. Three other findings from the survey were of concern to Kershaw: (1) the large percentage of students with cars, (2) the large percentage of students with refrigerators and microwave ovens in their rooms, and (3) the number of times students ordered food delivered from off campus. Percent of students with cars on campus 84 Percent of students having refrigerators or m

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 24

    UIAM

    BSB Inc.: The Pizza Wars Come to Campus


    AN OPERATIONS MANAGEMENT PRESENTATION
    PRESENTED BY DETY NURFADILAH MUHAMMAD USMAN MIRZA ZIA NURUL HIDAYAH G1215654 G1210517 G1213229 G1133678

    Introduction
    BSB Inc.

    UIAM

    Nationally operated food-services company catering to organizations Target markets:


    o

    Corporate

    Airlines

    University/College

    Operating organizational food-services for the past 10 years Contracted to cater to 6,000 students and 3,000 faculty at the university

    Introduction
    The University

    UIAM

    The university is a walking university; dorms, classes, bookstore, sundry shop, barber shop, branch bank, and food-service facilities are all within close proximity

    The Cafeteria

    The Dogwood Room

    The Grill

    Large cafeteria on the ground floor of the main administrative building

    Located on the 2nd Floor of the Administration Building Serves upscale lunch buffet on weekdays only

    Located at the corner of the recreational building near the dorms

    The cafeteria is open for breakfast, lunch and dinner

    Open from 11 A.M. to 10 P.M. weekdays, and until 12 A.M. on Fridays and Saturdays

    Introduction

    UIAM

    Renee Kershaw joined as the manager of food-services at the university 18 months ago Undertook survey to determine customer needs and market trends Survey revealed the following:

    Food consumed offcampus 44%

    Prepared at dorms 20%

    Major reasons to consume food off-campus 1. Lack of variety

    Food delivery offcampus 36%

    2. Inconvenient timings

    Introduction
    100% 90% 80% 16% 38% 57%

    UIAM

    Other findings from the survey:

    70%
    60% 50% 40% 30% 20% 10% 0%

    1. Large percentage of students with cars


    2. Large percentage of students with refrigerators and microwave ovens in the rooms

    Students with cars on campus, 84%

    Students having refrigera tors or microwa ves in their rooms, 62%

    % of food consume d outside BSB, Inc., facilities, 43%

    3. Substantial amount of food was consumed from outlets others than BSB Inc.

    Students with cars on campus Students having refrigerators or % of food consumed outside microwaves in their rooms BSB, Inc., facilities

    Introduction
    In response to the survey, Kershaw made the following changes: Decided to expand the menu at the grill to include pizzas Installed a pizza oven Allocated space to store pizza ingredients and make pizzas Pizzas offered had limited topping options, so as to minimize lead time

    UIAM

    Started delivery service that covered the entire campus Hired existing personnel to deliver pizzas by bicycle

    Introduction
    Aftermath
    The Good,
    Sales 10 months after the introduction of pizzas, sales and profits increased steadily

    UIAM

    Customers indicated satisfaction with the reasonable pricing and speedy delivery service the Bad,

    Increased demand put strain on The Grills facilities, existing equipment and space allocated were now insufficient to meet demand Growth Introduction
    Maturity

    Decline

    Led to delay in delivery Sales began leveling off Request for off menu orders increased
    Large orders could not be serviced easily

    Increasing in delivery times


    Lack of product variety

    Introduction

    UIAM

    ..And the Ugly!

    The University recently announced the construction of a new student center which would house three private food-service providers, Taco Bell, Dunkin Donuts and Pizza Hut Kershaw is especially concerned with the entry of direct competitor Pizza Hut Pizza Hut is expected to offer a limited selection of pizzas Will not accept phone orders Will not offer delivery service

    Question 1
    By Mirza Zia

    UIAM

    Does BSB, Inc., enjoy any competitive advantages or core competencies?

    Answer
    Competitive Advantage

    UIAM

    Close proximity to customers

    Location, Location, Location..

    Market knowledge

    This means

    Food consumed at facilities other than BSB 43%

    Quick delivery times


    Food consumed at BSB facilities 57%

    Lower costs More in tune with customer needs

    Question 2
    By Muhammad Usman

    UIAM

    Initially, how did Renee Kershaw choose to use her pizza operations to compete with off-campus eateries? What were her competitive priorities?

    Answer
    Kershaw chose to compete on two fronts
    Price Convenience

    UIAM

    Pizzas were reasonably priced Allowed BSB Inc. to compete with off-campus operators Price was the order qualifier

    Quick delivery times were ensured by: Preparing pizzas before hand Delivering through bicycles Delivery was the order winner

    Question 3
    By Muhammad Usman

    UIAM

    What impact will the new food court have on Kershaws pizza operations? What competitive priorities might she choose to focus on now?

    Answer
    New competition will slice the food-service market (get it, pizza, slice..)

    UIAM

    The new food court will bring BSB in competition with the new food operators. In effect, BSB will lose its monopoly over the university campus market The Bad News.. 1. The new competition will enjoy the same location advantage as BSB Inc. The Good News.

    1. BSB Inc. will likely retain its delivery service advantage


    2. Limited variety at Pizza Hut could be an advantage for BSB Inc. 3. Given standardized menus of large franchises such as Pizza Hut, they might be unwilling to lower costs. BSB may likely retain its cost advantage

    2. New competitors are backed by brand names and reputation


    3. The new competition offers varieties such as snacks and fast food 4. Of the three, Pizza Hut would be of major concern, since it will directly compete with BSB in the pizza market

    New competitive priorities for BSB should include


    UIAM

    1. Product Flexibility

    2. Volume Flexibility

    3. Operating Flexibility

    Expand offering to include different types of pizza toppings,

    ..snack foods (to compete with Dunkin Donuts) and

    .fast food (to compete with Taco Bell)

    Increase pizza production to meet rising demand

    Expand operating hours to capture night-owl market and during times Pizza Hut and the other operators are closed

    Question 4
    By Dety Nurfadilah

    UIAM

    If she were to change the competitive priorities for the pizza operation, what are the gaps between the priorities and capabilities of her process? How might that affect her operating processes and capacity decisions?

    Answer
    New Priorities

    Product Flexibility

    UIAM

    Volume Flexibility

    Operation Flexibility Insufficient space and equipment for making pizzas putting strain on Grill operations

    The Gaps

    Higher demand from groups who order pizzas in volume for various on-campus functions affecting delivery times
    Increasing request from student for pizza toppings and combinations currently not on menu.

    If product flexibility and volume flexibility become more important, then the implications are:
    1. Inventory issue

    UIAM

    Kershaw needs to stock additional toppings because of demand for variety. This will aid product flexibility.
    2. Delivery service If BSB Inc. hopes to keep up with the increase of demand and capacity, it will have to increase its delivery fleet to ensure on time delivery of pizzas to dorm rooms across campus.

    3. Capacity issue
    Facility: Kershaw need to add capacity to meet increased demand. She may even have to consider moving into a new area that fully focusing on the pizza operation. Equipment: Furthermore, Kershaw will have to invest in larger ovens and equipment to meet the rising demand Personnel: Additionally, it will have to manage staff to operate late nights. This will help BSB achieve volume and operation flexibility.

    Question 5
    By Nurul Hidayah

    UIAM

    What would be a good service strategy for Kershaws operations on campus to meet the food court competition?

    SWOT Analysis for BSB Inc.


    Strength
    Convenience: Offers phone order and delivery service

    UIAM

    Weakness

    Affordability: Through a standardized menu offering, BSB Inc. is able to offer affordable meals to students on campus
    Market knowledge: BSB is an experienced market player and has deep knowledge about the student food preferences.

    Limited Capacity: The existing capacities is not sufficient, and is putting strain on its delivery service
    Limited Variety: Standard offering below customer expectations

    Opportunity
    Operating Hours: It is unlikely that Pizza Hut will be operating late nights. BSB currently operates The Grill until 12 A.M. on Fridays and Saturdays. Standardized Menu: For Pizza Hut, are expected to offer a limited selection of pizzas

    Threats
    Lack of Brand Recognition: BSB lacks the reputable brand name of the new entrants, who are well established in the market Lack of Convenience Food Offering: Taco Bell and Dunkin Donuts offer easy/ready-to-go fast food matching with the student situations (hectic situation and always on the move)

    Aspects in Operations Strategy


    UIAM

    Products

    Operating System

    Services

    Sourcing Operations Strategy

    Process & Technology

    Facilities

    Capacity

    Quality

    Human Resources

    Good competitive service strategy that can be taken by Kershaw:


    UIAM

    Varied Menu

    Operating Hours

    Innovation

    Add new types of items such as fast food options and snacks Add new types of pizza toppings and combinations

    Expand operating hours especially during examination and special events on campus

    Extend the menu (with same ingredients to maintain low cost) but encourage product innovations. E.g. Make your own pizzas

    Delivery

    Volume

    Affordability

    Kershaw might take advantage of being the only food-service provider offering delivery service on campus and advertise heavily highlighting their competitive advantage, i.e. fast delivery on campus.

    Kershaw is currently operating at The Grill at full capacity. They will have to increase production capacity to increase pizza production. For this, they will have relocate to a larger area. The cafeteria is a viable candidates for relocation

    Compete on the basis of price. Large foodservice franchises charge similar prices nationwide. They will most likely be unwilling to lower prices, giving BSB the price advantage

    Conclusion
    1. Volume, Variety 2. Operating Hours 3. Innovation In Tandem With

    UIAM

    Affordability and Delivery

    BSB Market Share

    QUESTIONS?
    Wed tell you a pizza joke, but it would be too cheesy.

    UIAM

    You might also like