Impact of Climate Change on Prezzo's Business and Innovative Strategies to Address Threats

This report discusses the impact of climatic and environmental changes on the business development of Prezzo. It highlights the fundamentals of the Innovation theory and the four forms of innovation, and suggests several innovative business strategies to address the threats. The report also provides ways in which the strategies would have a far-reaching impact on the sustenance of the business and ecosystem.

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Management
Student’s Name
University Name
Author’s note

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 business background of Prezzo........................................................................................3
2.2 Threats to Prezzo from Climate Change..........................................................................3
2.4 Summarisation of Innovation Theory...............................................................................6
2.4.1 Disruptive Innovation................................................................................................6
2.4.2 Incremental Innovation..............................................................................................6
2.4.3 Breakthrough Innovation...........................................................................................6
2.4.4 Game Changing Innovation.......................................................................................7
3. Kinds of threat to the business from climate change.............................................................7
3.1 Disruptive Innovations for addressing threats..................................................................7
3.1.1 Early adopters of innovative products/services.........................................................9
3.1.2 Deployment of innovation from wider markets.........................................................9
4. Conclusion............................................................................................................................10
Reference List..........................................................................................................................11

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1. Introduction
In the course of this report, the major impact of climatic and environmental changes
up on business development of Prezzo have been considered. Highlighting the fundamentals
of the Innovation theory and the four forms of innovation, several innovative business
strategies have been suggested in their light. The ways in which the strategies would have a
far reaching impact on sustenance of the business and ecosystem have been provided here
also.
2. Discussion
2.1 business background of Prezzo
The chain of British owned restaurant, Prezzo, has an elaborate food chain which is
inspired from Italian cuisine. There are over 180 branches of the restaurants throughout the
country. The major competitors of the organisation are Ask, Strada as well as Pizza Express.
In the year 2006 Prezzo was the owner of 73 restaurants. By dropping their price per
share they started to do a major expansion of their business. They were successful in raising
7. 12 million pound for funding their program of further expansion. In the year 2012 there
was an overall increase of 10% in the number of restaurants all over UK for the brand. They
offer a wide range of dishes inspired from the Italian cuisine which includes pasta salad pizza
as well as meat dishes. In fact the restaurant also offers low calorie food which contains more
fat as well as are served with salad.
Pure vegetarian also have ample of options from the menu since there are 13
absolutely meet free dishes.
2.2 Threats to Prezzo from Climate Change

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One of the key sensitivity of the society to climate is food. An abruptness in the
nature of rainfall or one hot spell or one cold snap in the wrong time the year or extreme
conditions like floods as well as Storms can have immense impact on the field of local crop
as well as livestock production. As held up by Ritala and Aarikka-Stenroos (2016), it has
been confirmed that accessory video carbon or gas carbon and solid coke SPM particles in
the air is mainly responsible for the abrupt nature of Climate Change in various parts of UK.
Many UK based firms that provide raw materials directly to the restaurants has
invested in modern farming related Technologies that can help to reduce the level of
vulnerability and interviews production. Serials are a major source of the main course that is
served in Prezzo. The restaurant authority has confirmed that recent drops that took place in
USA Russia Jewellers China had large impact on cereals production all of the world. Since
the major raw material suppliers of the restaurant chain will located in these areas who
provided the best and cheapest products to them, the rate at which they procured raw
materials, were hiked suddenly. As an impact of this, the restaurant has to fetch whole wheat
flour, refined flour as well as other food items that are the basic component for their food at
much higher rates. There is a basic difference of 20 to 25% between the rates they are playing
now and what they used to pay 5 to 6 years earlier (Carrigan et al. 2017). majority of the
supply chains that provides raw materials to restaurants around UK confirm that the rates at
which the cell raw materials now has reason by 15 to 20% by the minimum because of the
climatic changes and their impact on the Food grade that is permissible to be served in 3 star
or 5 star restaurants around UK. If they want to maintain the quality of the food and the
standard food red level the restaurant owners have to pay higher prices for getting the same
quality of the food grains since owing to several climatic changes, as Bitzer and Hamann
(2015), has studied 5% of the production quality Has Fallen and more than 10% carbon

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proportion in the raw food items are found nowadays which was absent even 2 to 3 years
earlier.
On the other hand the disposable income of the social class that constituted the main
target market of the restaurants in UK has not increased in that proportion. An evidence can
be stated here. A family restaurant that is rated 5 star by the UK food Council might charge
around 12 pounds and 35 cents for a medium sized pizza. Now as the CSO of the restaurant
confirms, the making charges of the same food product was 10 to 12 times lower than what
use to we now compared to that which was 5 to 6 years earlier.
In fact as Epure and Sohl (2017), notices, the livestock production has also been
hampered as the Rough order that they consume has fallen in quality and not only that
comma the level of impurity in the nature as well as well as the feeding grounds where they
graze, has made them vulnerable to various life taking diseases. That is why evidently the
price of raw meat has also increased in the UK industry. Again as stated by Rosca, Arnold
and Bendul (2017), the price of raw meat in the wet markets, Fresh market as well as the
supermarkets has not much increased since the retail price has been vehemently checked by
the government. However there has been a large impact on the wholesale price at which
retailers as well as the large restaurant owners purchase raw meat directly from the farm
owners.
Lastly there are threats from the government also. As large corporate group, the
government and the pressure parties expect that organisational change like that of Prezzo will
set a standard for the other new as well as emerging restaurants like them by making ample
reduction in the carbon output that they do regularly. In this context one big problem that is
faced by the higher management of the organisation is that we are mainly reliant on Wood
burner oven where coal is used for burning. This is the basis of enhancement of Taste in

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Italian food and is evident in all the traditional recipes of Italia (Saguy and Sirotinskaya
2016). As a theme restaurant, Prezzo also attempts to maintain the same quality as well as to
ensure the originality of an Italian restaurant the wood burn ovens with charcoal grills are a
part of their team Italian design also. The decor and theme design is one major reason why
customers like to visit the place. Standing in this context the government forces them to
reduce their carbon output which implies that they have to switch over to electrical ovens and
electrically heated Grills first emails and making food. These are the primary hindrances to
their operations that they are facing going to climatic changes and their subsidiary impacts.
2.4 Summarisation of Innovation Theory
2.4.1 Disruptive Innovation
Disruptive innovation can be defined as a form of innovation that is responsible for
the creation of New Market space as well as a new value Network and eventually helps in the
disruption of an existing market and value network displacing they established as well as
market leading forms alliances as well as products. The theory of disruptive innovation, but
on which was coined by Clayton Christensen, is used for reference to any process or product
or even service that is initially implemented through simple applications in the bottom of a
market and then gradually and finally moves up the market to displace established
competitors and gain innovative and exclusive place in the market (Jia et al. 2016).
2.4.2 Incremental Innovation
This form of innovation denotes a series of minute improvements or up gradations
related to the existing products, processes services or methods of an organisation. The
changes that are implemented as an outcome of incremental innovation at generally
emphasised on improvement of the existing product's productivity, competitive
differentiation as well as efficiency of development (Behara and Davis 2015).

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2.4.3 Breakthrough Innovation
Breakthrough innovation can be defined as a form of innovation that takes place in the
interior of the organisation by the result of pushing something to the next standard. It is a
form of innovation that helps the companies gaining exposure to new markets or new changes
in the way in which customers' interact with the industry as well as the market (Nakandala
and Turpin 2016).
2.4.4 Game Changing Innovation
Game changing innovations generally take place with the domain of product. Product
innovations in such cases almost always going to define a new category. There is always a
critical motive behind such innovations and that motive is generally led by the customer's
current status quo. Generally game changing innovations ride over one or two absolutely
clear technological changes that bring about new perception of Thinking regarding the
product or the process.
In the already establish Industries, Mirvis and Googins (2017), opines that game
changing players are those which were not established in the first place but gradually gains
ground when demand or expectation of the customers are majority of the client is gradually
changed.
3. Kinds of threat to the business from climate change
3.1 Disruptive Innovations for addressing threats
Several dynamic as well as preservative innovation strategies have been suggested in
the report that might help in addressing the climatic changes that can hinder the business
performance of Prezzo.

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Heating and cooling food repeatedly can increase the carbon output of a restaurant
highly. Hence instant life cooking pattern can be established for serving main courses as well
as packaged dishes to the customers (Burch et al. 2016). Alternating there giant traditional
kitchen the restaurant can open up life kitchen counters where they can offer the customers a
chance to customise the dishes with the choice of toppings and garnishing. The service will
then be innovative as well as saving a lot of carbon production as by means of instant
cooking they will be reducing a lot of fuel consumption that is involved heating and cooling
of food alone.
Another major impact of these innovative strategy is that without having two alternate
there would be an offence with electric Grills the restaurant would be able to achieve the
same impact is regulated by the government for restaurants that have 5 star rated facilities.
Another beneficial disruptive strategy that the restaurant can consider is supporting
the local forms as well as the vendors (Perey et al. 2018). When the restaurant buys raw
materials as well as food products like cereals from distant parts of the world, day count to
aggravating the carbon footprint going to the long distance delivery. The average distance
travel by raw food products for pressure from different parts of the world is 4000 to 5000
miles at minimum. There are several advantages of buying from local farms as well as local
vendors. Bearing from a single disadvantage that is a slightly competitive price, ensure that
they have a diversity in the supply line and can purchase products from them whenever they
need. Other than that the amount of greenhouse gas that is emitted in the way of transferring
the products from distant parts to the restaurant can also be reduced. Aligning with local
farmers I can also set up a strategy of making wholesale purchases from their farmland and as
such that might get the raw materials I need for their food at highly competitive prices also.
As suggested by King and Baatartogtokh (2015), making wholesale form based purchases
actually incurs lower prices buying from other economies.

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Another strategic decision that organisation might take it using their food items
carefully. There is a difference in level of carbon output in raising as well as producing meat
reach fruit compared to food with fruits and vegetables. According to study offering menu
that involves ample use of rooting vegetables and reducing the amount of meat as well as
dairy products involved in the production can be accountable to a reduction of carbon output
by large percentage.
The last strategy is using energy efficient appliances for the interior decoration of the
restaurant. Taken purchase electric ovens that has energy star rating to it, since these ovens
generally consume 70% less energy and as an outcome they generate less carbon output.
3.1.1 Early adopters of innovative products/services
All the star rated restaurants that have a large target market and high rate of visitors
can easily implement the strategy of setting up life kitchen counters. As suggested by
Hannibal and Knight (2018) in life kitchens and instant cooking based on individual order,
the pace at which work progress is much faster than that in traditional kitchen ware heating
and cooling method is used for cooking and in many cases foods are precooked which
gradually degrades their taste as well as freshness.
All branded restaurants in a single vicinity can consider making franchise based
purchases together from single local farms. As such the forms will also be indulged to sell
their products to a single entity at much lower rates, which will be in fact even lower than the
wholesale rate also. Nevertheless this will have a huge impact on the production cost also
which can easily Go Down by 20 to 25 person at least and as such the profit and the revenue
merging the long run for the company would also increase.

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Hence, Prezzo should insist that they should make purchases for all their outlets in
UK together from one single local farm or manufactures or setup contracts with other brands
for purchasing products from one single local farm.
3.1.2 Deployment of innovation from wider markets
Supported by the needs to develop an alternative supply line from the local markets
will involve b2c businesses as well as B2B business (Evans et al. 2017). End up developing
an integrated business network where by the local economic will be boosted as well as
empowered.
Other general benefits that can be obtained from this strategy is that if a large number
of restaurants agree to buy from the local farms, they can accumulatively reduce the amount
of carbon output by a large percentage. Other Business models that involve long range
deliveries can also consider setting up of local production units by themselves.
4. Conclusion
In the course of this report, dynamic as well as disruptive strategic solution to the
problem of climatic change and its impact on the business performance of the Prezzo Italian
restaurant outlet, located in UK has been considered. The organisation used to run traditional
kitchens as well as maintained for range supply lines in order to procure raw materials at a
cheaper cost. Highway 10 business activities along with few others suggested that the rate of
carbon output as an outcome this very much higher compared to the latest and Raja
innovative strategies suggested in the course of this report. The innovative suggestions
provided institute has been based on the four forms of the innovation theory. In the end as it
turns out that through this suggestive measures not only Prezzo will be benefited but also
other restaurant chains that follow the same quizzing or have a similar Clientele might also be
benefited.

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