Applied Innovation: A Detailed Solution for Cheesecake Shop's Problem

This applied innovation project addresses business problems at The Cheesecake Shop, starting with a company profile and the identification of a key issue. Research methodologies, including feedback and sales reports, are employed to diagnose problems such as decreasing sales and customer dissatisfaction with extra charges. The project then outlines SMART goals to improve the business, discusses types of innovation like disruptive innovation, and proposes strategic steps such as offering vouchers and reducing writing costs. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats, leading to risk mitigation strategies like loyalty rewards and new product introductions. The aim is to enhance customer satisfaction, increase sales, and ensure the long-term success of the franchise. Desklib provides access to similar solved assignments and study tools for students.

Running Head: Applied Innovation 0
Applied Innovation
Proposal
Student name

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Company Profile
Rozelle started the Cheesecake Shop in 1991 in the inner-west Sydney, Australia. It has
now grown in international market with over 220 cake bakeries. It has 1400 employees in all
those bakeries across Australia, United Kingdom, and New Zealand. There shops are
independently owned. It is operated through skilled franchisees. It is famous in the market
because of their quality, which improves customer’s preference and awareness. It was awarded
‘Franchise system Of the Year’ in 1997 in Australia.
In 2009, they were having modernization of the signage and brand together. They were
upgrading the fronts of retails shops. They were modernized their back-of-house operations that
is maintain consistency, efficiency and product quality. The Cheesecake Shop’s managing
director is Ken Rosebery, which is having experiance in professional management. They also
established ingredients supply operations. In present time, the brand is famous and popular
because of handcrafted delicious cakes (Cheesecake, 2019).
Methodology
Feedback and survey are best approach for finding problem or issues in business
processes. Behalf of the feedback of customers on the products and services of company are not
good. In addition, after the Christmas companies sales become decreases. Therefore, owner
decided to sell his franchise. There are different issues that are related to the sales of the
company. Revenue is generated through the sales of the products and sale is increase through
orders of customers. Therefore, company should take feedback of all the customers at the time of
order delivery. It is a way to found out issues or problems of decreeing sales.
Diagnosis the problem
First problem is decreasing sales of our shop and second one is writing wish charge is $5
dollars. Therefore customers are not prefers our shop for cakes. Last problem of our shop is
related to the baker. We do not have an experience baker in our shop. All these problems are
diagnosis through feedbacks of customers as well as sales reports of last months. Company
should remove those issues and problems as soon as possible for increasing growth and sales. It

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is a serious issue for the company that the y is facing those problems. Customers are pay for
better products and services. Therefore, company should provide their best products in lowest
cost to take competitive advantage. The Cheesecake Shop is famous in the city as well as
national level. Therefore, they should provide better quality of cakes and other products to their
customer for making them permanent customer.
SMART goal features
SMART goals are necessary for achieving the target as soon as possible. Company
should have specific goals for getting successes. In case of The Cheesecake Shop, they should
focus on their bakery products, such as handmade cakes, which are famous at national level.
Specific goals are making company more focus on the products and services for customers
(Anderson, Narus, & Narayandas, 2009).
Company’s business processes should be measurable as how many orders are delivers in
last month and currents month. Therefore, managers can found the legging of different
operations for getting success. All things cannot measurable but sales and profit can be
measured. However, these measurable things are helpful for changing the business processes.
Company should create achievable goals for different shops and provide them some achievable
goals for making their interest in profit. Every shop should have a monthly achievable target. It is
a way to achieve target of that month. Therefore, employees will more dedicate for their work to
achieve the target.
Source: (OHIOHEALTH, 2018)

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Company should have realistic goals for fulfill their vision through completing different
goals. These goals are for overall life plans. The Cheesecake Shop is famous at national and
international level. They are approaching different countries for providing their products
(Chesbrough, 2010).
All goals should have a time for fulfill the target. Based on Daily, weekly monthly and
yearly targets, company can achieve their mission and vision. Deadline is providing strength for
completing that target in given time. Company should set different target for daily, monthly, and
weekly basis.
Type of innovation and prototype
Innovations are base of a business and it provides growth of an organization through
different changes in business processes. Organizations are changes their business plans based on
the innovations in the market (Brooks, 2013). Innovations are categorized in four types based on
the market and technology. Innovations are required for reducing cost and increasing benefits of
the organizations (Asheim, 2007).
Architectural innovations are based on the use of existing technology in new market, such
as many innovations can be used for new market, such as airlines is used for travelling and
transportation (Markides, 2006). Incremental innovations are those innovation that are changes
in existing technology in existing market, such as new versions of operating systems
(Christensen, Raynor, & McDonald, 2015).
Source: ( Lopez, 2015)

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Radial innovations are those innovations, which are having new technology for new
markets (Nelson, 2013). Disruptive innovations are those innovations, which are having new
technology for existing market, such as smart mobile phone (Drucker, 2014).
The Cheesecake Shop should introduce new disruptive innovations for increasing their
profit (Lundvall, 2010). They should hire new experience bakers for something innovative for
their existing customers. It will increase thier profit from existing market ( Lopez, 2015).
Strategic steps
There are many things to do for getting more profit in the business. First solution for the
issues of company that is customers are not satisfied with extra charges of writing on cakes.
Company should provide vouchers for next purchases of worth $5. It will attract them for next
visit of shop for different products (Saunders & Lewis, 2012). Promo codes and offers are
making them interested for next time visit. Second solution of that issue is that they can reduce
writing cost. It will make them more interested for shopping from shops. Third thing is that, we
should trained from our owner for baking cakes and other products, as our new owner is having
good experience of baking cakes from Australia (Dwyer, 2009).
SWOT analysis of The Cheesecake Shop
SWOT analysis is providing different things of the organization, such as strength,
weaknesses, opportunities, and threats of the business of an organization. The Cheesecake Shop
is also having these things (Helms & Nixon, 2010).
Strengths Weaknesses
 Strong presence across different regions
of Australia and New Zealand
 Quality products with fresh ingredients
and comfortable setting
 Assorted menu
 Over 200 franchisees offer a wide variety
of products (Cheesecake, 2019)
 Low international presence
 High calorific value
 Less offers on products
 Discount vouchers for shopping

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Opportunities Threats
 Target Asia and Middle-East for
expansion in international market
 Innovation of low calories desserts
 Increase clients penetration through focus
on marketing and advertising
 New entrants and competitors in market
 Health conscious people
 Economic turbulence
SWOT analysis is providing different facts about the company, such as strength,
weaknesses, opportunities, and threats of the company. Based on those things, company can
implement a business model with business strategies to overcome the weaknesses and threats of
the company and get the opportunities of the company with their strengths. They should go for
environmental friendly products as well as low calories products for securing their customers
health. It will also increase sales of the company. People are so health conscious in present time.
Therefore, it is necessary to make health products.
Risk and mitigation
The Cheesecake Shop is very famous in Australia and New Zealand for their cakes and
other products. Because of writing cost, many customers are not interested in shopping from our
shops. They require discounts in the writing cost and other things. Customers are also wants
some new products. It is good that our products and services are better but it is also a reason for
having competitive disadvantage. There are many new entrants in the market, which are
providing same products in low cost. Therefore, distortive innovations are required for increasing
the sales of company (Teece, 2010).
Discount and vouchers are attracting customers for shopping. Company should provide
combo packs with discount that increases sales of company. Company should make a list of
customers for provide loyalty rewards. Therefore, more customers are interested for long-term
relationship from the cheesecake shop (Meskendahl, 2010).
Every business is having different risk but they can remove through different innovations
and business strategies. Therefore, The Cheesecake Shop should implement new business

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strategies to overcome risks of the business of company. Disruptive innovations can make it
possible for the Cheesecake Shop.
New franchises are facing different problem because of taste of the products and services.
We can manage these things through disruptive innovation. New products are attracting
customers for shopping. There are few occasions for purchasing the cakes, such as birthday,
anniversary, and many others. Therefore, they can introduce new products in low cost with some
offers as well as provide vouchers for next shopping. It will increase their visit, which is direct
affect sales of shop. For risks mitigation, company should hire best bakers as well as implement
market business strategies for increasing sales, such as vouchers, promo codes, and many others.
It will increase shops sales on daily basis.

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References
Lopez, J. (2015). Types of Innovation. Retrieved January 3, 2019, from
https://techblog.constantcontact.com/software-development/types-of-innovation/
Anderson, J. C., Narus, J. A., & Narayandas, D. (2009). Business market management:
Understanding, creating, and delivering value. (1 ed.). London: Pearson Prentice Hall.
Asheim, B. (2007). Differentiated knowledge bases and varieties of regional innovation systems.
Innovation, 20(3), 223-241.
Brooks, C. (2013). Entrepreneurs Answer the Question: 'Why Is Innovation Important'.
Retrieved December 10, 2018, from Business News Daily:
https://www.businessnewsdaily.com/5167-innovation.html
Cheesecake. (2019, February 22). About Us. Retrieved from https://www.cheesecake.com.au/:
https://www.cheesecake.com.au/about-cake-bakery
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-365. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0024630109000569
Christensen, C., Raynor, M., & McDonald, R. (2015). What is disruptive innovation. Harvard
Business Review, 93(12), 44-53.
Drucker, P. (2014). Innovation and entrepreneurship (1 ed.). London: Routledge.
Dwyer, J. (2009). Communicating in business: Strategies and skills (6th ed.). FrenchForest,
NSW: Pearson Education Australia.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. . Journal of strategy and management, 3(3), 215-
251.
Lundvall, B. A. (2010). National systems of innovation: Toward a theory of innovation and
interactive learning (Vol. 2). London: Anthem press.

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Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of product
innovation management, 23(1), 19-25.
Meskendahl, S. (2010). The influence of business strategy on project portfolio management and
its success—A conceptual framework. International Journal of Project Management,
28(8), 807-817. doi:https://doi.org/10.1016/j.ijproman.2010.06.007
Nelson, R. R. (2013). National Innovation Systems: It is. In Regional Innovation And Global,
1(1), 19-34.
OHIOHEALTH. (2018, March 28). Set SMART Goals to Succeed. Retrieved from
blog.ohiohealth.com: https://blog.ohiohealth.com/set-smart-goals-succeed/
Saunders, M., & Lewis, P. (2012). Doing research in business & management: An essential
guide to planning your project. (1 ed.). London: Pearson.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning,
42(2-3), 172-194. doi:https://doi.org/10.1016/j.lrp.2009.07.003