Strategic Analysis of Porcini Pronto: A Case Study

This case study examines Porcini Pronto, an Italian restaurant facing challenges such as low growth and market saturation, particularly in its international expansion plans. The analysis employs various business models, including the Ansoff Matrix, Greiner's Growth Model, Porter's Five Forces, and McKinsey 7S model to evaluate its strategic positioning, marketing strategies, and human resource management. The study highlights the importance of market penetration, product development, and the application of core competencies. It also addresses the competitive landscape, the bargaining power of buyers and suppliers, and the threat of substitutes and new entrants. The case study proposes solutions and recommendations to improve Porcini Pronto's performance, emphasizing the importance of adapting to market dynamics, leveraging technology, and focusing on customer needs to achieve sustainable growth. The study concludes with a discussion of the company's background, SWOT analysis, PESTLE analysis, and the application of Curry's pyramid and Belbin team roles.

Case Study (PORCINI PRONTO)

Table of Contents
CHAPTER 4: ANALYSIS AND FINDINGS.................................................................................1
4.1 Introduction............................................................................................................................1
International business..................................................................................................................1
Marketing model..........................................................................................................................3
HRM model.................................................................................................................................5
Strategic management model.......................................................................................................5
CHAPTER 5: PROPOSED SOLUTION TO PROBLEM..............................................................8
5.1 Integrated assessment of analysis..........................................................................................8
5.2 Recommendations..................................................................................................................9
5.3 Proposed plan of action.......................................................................................................10
5.4 Limitations of the study.......................................................................................................12
CHAPTER 6: APPLICATION OF LEARNING..........................................................................13
Background of the company......................................................................................................13
SWOT........................................................................................................................................14
PESTLE analysis.......................................................................................................................15
Curry’s pyramid.........................................................................................................................17
Belbin team role.........................................................................................................................19
REFERENCES..............................................................................................................................21

CHAPTER 4: ANALYSIS AND FINDINGS
4.1 Introduction
The present study being conducted is based on restaurant named porcini Inc where
company offers different type of Italian food to the target market. Further, at present
management is dealing with the issue of low growth rate along with market saturation. At present
business is planning to expand its shares in the market for which different models have been
applied in order to know how overall operations can be carried out in effective manner (Baker,
2007). The main issue being faced by firm while operating at international level is limited access
to capital. Moreover, another issue bin faced by business is brand recognition as compared with
other restaurants in the market and due to this reason its brand presence in the entire market is
low. In order to deal with the major challenges organization has undertaken new concept named
Porcini pronto.
International business
Ansoff matrix
This matrix takes into consideration large number of growth strategies which business
can easily undertake for its overall growth and development. Ranges of strategies are market
penetration, product development, market development and diversification. For expansion at
international level it is required for porcini ltd to select appropriate strategy through which it is
possible to operate efficiently at global level.
 Market penetration: In order to operate efficiently at global level the new restaurant
named Porcini pronto has adopted the strategy of market penetration (Hansen, 2011).
Further, all the range of services will be offered to customers at low price and this will
support in attracting large number of competitors. Apart from this, competition level is
quite high due to which offering services at low cost will be beneficial for business in
every possible manner.
 Market development: At present company is planning to expand its operations in the new
market as domestic market for full service chain restaurant is reaching at saturation stage
at both in city and shopping mall locations. Therefore, due to this reason firm has planned
to enter into new market at global level where new concept of pronto has been
introduced. So, the concept of market development can be fruitful for business and can
assist to accomplish long term goals along with objectives.
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 Product development: Procini Ltd has not undertaken the strategy of product
development. In the new market at international level almost same type of products will
be offered to customers as in Boston. Further, prices along with other type of attributes in
product range will be modified and this will support business to operate in the market for
longer period of time (Jarzabkowski, 2008).
 Diversification: This strategy is associated with diversifying overall operations of the
firm. Procini Ltd has not employed this strategy where company will operate in the same
sector in the new market also at international level also.
Greiner growth model
This model supports in knowing the series of stages which business enterprise go through
at the time when they grow and develop.
Phase 1 (Growth through creativity): It is the first stage where organization applies effort in
developing products. Further, it is the starting stage where employees are not present and
information communication works well. Moreover, as production expands need for formal
communication arises. This phase ends with leadership crisis (Huan and et.al., 2008). Procini Ltd
does not lies in this stage as compared is already well established and is creative enough in
carrying out overall operations in the market.
Phase 2 (Growth through direction): it is the second stage where products along with services
of business become numerous and it is not possible for business to manage all. So, business
focuses on marketing and production activities. Procini Ltd has designed effective marketing
strategies and overall production is carried out need and expectations of target market. This
phase ends with autonomy crisis where new structure on the basis of delegation is being
developed.
Phase 3 (Growth through delegation): As company begins to expand top management tries to
deal with the major issues. In company like Procini Ltd responsibilities along with duties are
shared with each other so that each and every individual can perform better (Leonidou and et.al.,
2010). This phase ends with control crisis where main stress is on controlling each and every
business activity.
Phase 4 (growth through coordination and monitoring): in this phase all the key activities are
coordinated and monitored so that Procini Ltd can perform better. Further, it ends with red tape
crisis where there is need to introduce new structure along with culture.
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Phase 5 (growth through collaboration): In this phase formal control of phases 2 and 4 are
replaced by professional good sense as employees tries to regroup flexibly in teams with the
motive to deliver project in matrix structure. This phase ends with internal growth and is
regarded as most important for Procini Ltd.
Phase 6 (growth through extra organizational solutions): This phase highlights that growth
can continuously take place with the help of merger, other solution, networking etc (Li and et.al.,
2013). Procini Ltd is expanding its operations in the international market due to which
development with the help of different methods is taking place such as franchising etc.
Marketing model
Porter five forces
Bargaining power of buyer (high): Procini Ltd carries out its operations in the market where
competition level is quite high due to which buyers possess the power to dominate the market
and in turn large numbers of options are present with them due to which customers can purchase
products of any restaurant.
Bargaining power of supplier (Low): it is low in case of Procini Ltd as large numbers of
suppliers are present in the market due to which it is possible for company to purchase raw
materials required in any producing food items from any supplier in the market (Reid, 2008).
Threat of substitute (high): For Procini Ltd it is high as substitute of food items are easily
present and many other restaurants are present in the market who are offering Italian food item.
Therefore, Procini Ltd strongly focuses on quality of its food item and it is kept high so that large
number of customers can be easily attracted and this in turn acts as development tool for the
business.
Competitive rivalry (high): Market where Procini Ltd operates is full of competition and many
other restaurants are present in the markets who are offering same type of food. Therefore, it is
necessarily required for business to focus on its key strategies for its overall growth and
development (Ariss and et. al., 2012).
Threat of new entrants (high): Restaurant market has no legal restrictions and due to this
reason any company can carry out operations in this sector. For Procini Ltd threat of new entrant
is high where new business can easily establish restaurant.
Marketing mix
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Product: The range of products offered by Procini Ltd are antipasti, soup, salad, pizza, hs entrée,
pasta entrée, seafood, meat and chicken, side dishes, desserts, wines and coffees. All these
products offered by procini Ltd are of high quality and through this it has become possible for
firm to sustain in the market for longer period of time.
Price: Generally the price set by Procini Ltd for range of its product is high and this directly
represents the high level quality of the commodity (Hjort and et. al. 2013). Further, for the new
venture named pronto company will set low prices comparatively so as to deal with the issue of
competition in the market.
Place: The place of distribution for business is its own physical restaurant with the help of which
entire range of products are offered to the target market. This allows restaurant to operate
efficiently and has positive impact on overall performance of the business.
Promotion: For enhancing sales of the product range company has undertaken promotional tool
where its services are promoted with the help of social media, advertisements and other type of
tools. Further, it supports in sharing information regarding product of the company.
Mckinsey 7s model
This model highlights the seven interdependent factors which are divided into hard and
soft elements. Hard elements are strategy, system and structure of firm whereas soft one involves
shared values, skills, style and staff members. The strategy designed by Procini Ltd to operate
efficiently in the market is effective through which it is possible for firm to operate efficiently in
the market and it assist in accomplishment of desired goals and objectives. The structure of firm
is flexible where major changes in the operations is possible any time and this in turn allows staff
members to take initiative for the welfare and growth of business (Fojt, 2000). Further, the
system of organization is well managed through which Italian food is offered to target market
keeping in view their taste along with requirement. Shared value of company takes into
consideration culture of the firm which is appropriate as it is full of motivation. Leadership style
adopted by company is democratic one where contribution of each and every individual is
important. Employees play most crucial role within the workplace and they are delivered training
so that they can offer high quality food to the target market. Further, last element is skill where
every employee uses own skill and knowledge so as to contribute in growth and development of
firm.
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HRM model
Core competency model
This model takes into consideration large number of factors and they are linked with
growth and development of the firm. Customer focus is one of the main core competencies of
Procini Ltd where company strongly focuses on need and requirement of its target market. By
complying with the need of customers firm is able to perform better in the market. Planning and
use of resource is also major competency where all the resources present with firm such as
financial, human, technological etc are utilized in appropriate manner so that business can easily
accomplish its long term goals along with objectives (Altman, 2009). Further, leadership is also
main core competency of business where leaders appointed by company are efficient enough to
manage workforce of the firm. Appropriate communicate is also main core competency of
business where all the individuals present within the workplace shares information in proper
manner and no such gap is present. Therefore, these are some of the main core competencies of
Procini Ltd which allows business to focus on actual need and requirement of its target market
and assisting to survive in the competitive market for long period of time.
Strategic management model
Henderson and venkatraman
This model focuses on the key areas of the business which are business strategy, IT
strategy, business infrastructure and IT infrastructure. Business strategy is associated with plan
developed by Procini ltd for carrying out overall operations in the market. Further, the strategy
undertaken allows business to understand about the actual requirement of the customer and in
turn they can be offered Italian food on the basis of same. IT strategy is linked with the new
technology being employed by business for conducting overall operations in the market.
Through introducing advanced technology it is possible for enterprise to carry out overall
operations in effective manner and large number of customers can be served easily (Huan and
et.al., 2008).
Business infrastructure is also one of the key elements of this model which takes into
consideration skills, processes and structure of the business. Overall structure of the company
along with skills of staff members allows business to operate efficiently and in turn it is
beneficial for organization especially at the time when operations are carried out at global level.
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This is directly supported by IT infrastructure where modern technology reduces efforts of
employees and they can easily operate efficiently.
Therefore, in this way model of Henderson and Venkatraman is effective in every
possible manner and all the elements present are effective which can be easily undertaken for the
growth of the business in the market (Reid, 2008). Apart from this, market is full of challenges
and to deal with the same overall skills of staff members along with the structure of business
needs to be considered so that business can easily operate in the market by accomplishing
desired goals along with objectives. On the other hand, through effective IT strategy it is possible
for firm to perform better and best services can be offered to target market which is above their
expectation level.
Findings
After applying different models it has been found that Procini Ltd has to consider large
number of factors so that its overall performance can be enhanced easily at international level.
Market entry strategy
This model has supported in knowing that strategy such as market penetration and
development are appropriate for Procini ltd which business has undertaken. Through all these
strategies it is possible for business to operate efficiently in the market. Further, it is suggested to
firm to undertake product development as a strategy also so that loyal customers can be retained
for longer period of time through this.
Greiner growth model
Applicability of this model has supported in knowing that phases such as growth through
delegation, monitoring, coordination etc are effective for business. Further, main stress of Procini
ltd is on enhancing quality of its food which is being served to target market. Therefore, growth
by undertaking monitoring along with coordination is beneficial for business as through this it is
possible for enterprise to focus on all the range of activities which are crucial for business (Ariss
and et. al., 2012).
Porter five forces model
Applicability of porter five forces model has supported in knowing that market where
Procini Ltd operates is full of challenges and company has to take corrective actions well in
advance. Buyers have power to dominate the market due to which business enterprise strongly
focuses on quality of its products so that overall satisfaction level of target market can be
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enhanced easily (Meyer, 2012). Further, competition as challenge is affecting overall business
performance for which effective strategies are required to be developed for the welfare of
company.
Marketing mix
All the elements present in the marketing mix of firm are necessarily considered by
business where all the Italian items are offered as per taste and requirement of target market.
Price strategy is appropriate and promotional tools are adopted so that customers can gain
information regarding the product range of enterprise (Meyer, 2012).
Mckinsey 7s model
By applying this model it has been found that the range of elements such as hard and soft
have to be considered by business while operate internationally. Structure, system, skills etc of
Procini ltd are appropriate through which it is possible for business to operate efficiently at
global level.
Core competency model
Through this model it has been found that main core competencies of Procini Ltd are
leadership, quality, customer focus, planning and use of resources are effective through which
overall performance of firm has been enhanced easily (Cole, 2000).
Henderson and venkatraman
Applicability of this model has supported in knowing that business along with IT strategy
is crucial for business. Further, Procini Ltd has developed effective strategy and new IT systems
have been adopted such as wireless order taking device and credit/ debit card payment system.
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CHAPTER 5: PROPOSED SOLUTION TO PROBLEM
5.1 Integrated assessment of analysis
For conducting study in appropriate manner various models were applied considering the
issues being faced by Procini Ltd. Company wants to expand its operations at international level
due to presence of challenges such as market saturation and low growth rate. Further, it is well
known fact that at global level business requires large amount of capital and business is dealing
with the issue of access to capital (Hansen, 2011). Applying different models in the present
scenario has supported to carry out overall study in effective manner. Further, models of
international business has been undertaken which are Ansoff matrix, market entry strategy etc. It
has supported in knowing what the range of strategies which are most appropriate for Procini
Ltd. Further, advanced tools will be employed by business for monitoring quality of its products.
Each pronto restaurant will be equipped with 10*14 inch flat screen monitor and will be
associated with central processing unit of the firm. Moreover, the monitor will display slideshow
of the sun drench Italian countryside along with its vineyards and farms.
Further, issues linked with human resource are also present which are adversely affecting
business performance. Absenteeism is one of the major issue in the entire restaurant industry due
to which it affects performance of business. Pronto has developed effective structure for its
workforce where job applicants of the firm have to pass several screen. Further, the range of
personal qualities required by firm in an individual involves good communication skills,
reliability, integrity and overall positive attitude towards performance. Apart from this
competition is one of the biggest challenge affecting performance of business in the market.
Different type of full service Italian restaurant chains are operating in the northeast region which
are Uno Chicago, Bertucci, Olive garden, Carraba etc. Firm has to face direct challenge from
Olive garden which was Porcini direct competitor in terms of food quality and ambiance.
Further, the decision linked with setting up of new restaurant named pronto is feasible
where the location decided for the business is close to highway, near gas station, economy level
lodging, large office building etc. Apart from preferences of customers involve dinner in the $9
to $17 range, Lunches in the $ 6 to $ 12 range and clean, spacious bathrooms. The concept of
pronto is totally unique and through this it became possible for company to deal with the issue of
rise in competition in the market (Leonidou and et.al., 2010). Main stress is on industry,
competition and customer trend so that concept of pronto can be successful for the company and
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this can assist in enhancing profitability level. On the other hand different growth options are
present which business can easily consider for its survival in the market. Franchising is one of
the best option for Procini Ltd where it is a kind of business relationship where an individual pay
fees to the franchisor and in return has use of a trade name. At global level this type of option is
regarded to be most appropriate and company can easily open large number of branches at
international level with the aim to serve different customers. It was estimated that Porcini will
invest amount of $1 million in legal along with staff resources with the aim to develop
franchising agreement. Through this option it is beneficial for firm to enhance its presence at
global level and it will have positive impact on the brand image also.
5.2 Recommendations
On the basis of overall analysis there are some recommendations to Porcini Ltd so that
organization can easily operate at global level by dealing with the range o challenges present in
the market.
 In order to deal with the issue of rise in competition level firm must focus on quality and
must differentiate its Italian food from those of competitors in the market. Further, time
to time product range must be modified as per customer trend so that sale of restaurant
may not decline rapidly. This in turn can boost business performance in the competitive
market.
 At international level market research must be carried out on continuous basis so that
business can know the range of factors affecting its overall performance. Further, at
global level factors such as political, social, technological etc has direct impact on
operations of the company and effective strategies must be designed so as to deal with
them.
 Main stress must be on marketing strategies so that large number of customers can be
easily attracted through this. At global level firm must focus on promotional tools where
discount and other type of schemes can be introduced. This will enhance sales volume of
firm as compared with other companies who are also operating in the same sector.
 Time to time new technology must be introduced for conducting key operations in the
market. This will support employees to serve customers in appropriate manner and can
save time along with overall cost.
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 Prices of Italian food must be decided keeping in view the overall purchasing power of
the target market and price of every item must be kept moderate so that customers can be
easily attracted towards the range of food items.
 For effective management of human resource motivational tools must be undertaken
where firm must enhance motivation level of staff members by providing them monetary
benefits and through this they will prefer to meet with the overall expectations of the
target market.
 Company can take feedback from its customers on continuous basis and this will have
positive impact on brand image also.
 In order to deal with financial challenge business can consider different source which can
satisfy its financial needs. Further, obtaining loan from bank with the objective to expand
can be beneficial for business and in turn overall aims along with objectives of company
can be accomplished easily.
 Procini Ltd must analyze its competitor’s strategy on continuous basis and through this it
can be known what are the appropriate ways with the help of which presence at global
level can be enhanced easily and the main targets set can be accomplished easily.
 In order to manage staff members in effective manner leadership style such as democratic
one must be considered through which each and every individual within the workplace
can be considered in the key operations of the firm and in turn it will become easy for
business to retain them for longer period of time.
 New branches of restaurants can be opened in the areas where customers can easily
approach such as on highways etc. The concept of pronto is beneficial for the company
and by offering right kind of food in terms of quality it is possible for Procini ltd to
enhance its presence at global level.
5.3 Proposed plan of action
Activities Week
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Evaluating the entire
case provided for
knowing research
problem
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