Strategic Management Report: Papa John's International Inc. Analysis

This report provides a comprehensive analysis of the strategic management practices of Papa John's International, Inc. It begins with an introduction to strategic management and places the research project within this context. The report then applies various assessment tools, including Porter's Five Forces, PESTLE analysis, and stakeholder analysis, to evaluate the competitive environment of Papa John's. It explores the company's mission, values, objectives, and strategies at business, functional, and operational levels, examining its strategic design and process. The internal capabilities of Papa John's are assessed to determine its competitive advantage. The report also examines the strategic implementation, including the design and approaches used. Finally, the report identifies key challenges faced by Papa John's and evaluates the implications of the research findings on stakeholders, providing a conclusion and references.

Strategic Management
Module

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Place the research project within the strategic management................................................1
1.2 Apply assessment tools for analysing the competitive environment of business case.........3
TASK 2............................................................................................................................................6
2.1 Mission, values, objectives and strategy for business with reference to the business,
functional and operational strategies...........................................................................................6
2.2 Establish the strategic design of any large business based on planned and emergent
strategic actions...........................................................................................................................7
2.3 Establishment of the strategic process of a large firm..........................................................8
TASK 3............................................................................................................................................9
3.1 Assessment tools to assess the internal capabilities of Papa John's International, Inc. for
promoting a competitive advantage............................................................................................9
3.2 Strategic process including the implementation design and approaches............................11
TASK 4..........................................................................................................................................12
4.1 Strategic management approach adopted by Papa John's...................................................12
4.2 Key challenges from the review of case within research project........................................13
4.3 Evaluate the implications of research findings on stakeholders........................................14
CONCLUSION..............................................................................................................................14

REFRENCES...................................................................................................................................1

INTRODUCTION
Strategic management is a procedure of continuous planning, controlling, monitoring,
analysing the overall necessities of a business company that would aid in attaining basic goals
and objectives in specific time frame (Hill, Jones and Schilling, 2014). The present report is
based upon Papa John’s International Inc. which is the third largest pizza chain in the world. This
owes largely to the strategy adopted by company to ensure its sustainability in marketplace for a
long duration of time. Over the years, this organisation has largely focussed upon its quality
quotient, marketing campaigns, excellent customer service and accessible ordering system,
franchising and training and development of workforce to gain a high stake in market.
This report is going to include the strategic management literature by outlining the
concept of strategy and strategic perspective from business, functional and operational levels.
Also, it gains an insight into the strategic process adopted by company along with the
establishment of strategic design. Besides this, three assessment models, Stakeholder analysis,
value-chain, PESTLE and SWOT analysis have been included to study various aspects related to
company and business environment. Lastly, the key challenges faced by enterprise while
launching the strategy have been included.
TASK 1
1.1 Place the research project within the strategic management
Strategy refers to an art of formulating, applying and analysing the cross-functional
decision which help a company to achieve its pre-specifies goals and objectives. It includes
some set of tactics that support in providing a pathway to achieve the long term goals (Hill, Jones
and Schilling, 2014). Therefore, strategic management is very essential for each organisation in
order to survive in marketplace and deal with prevailing competition. Strategic management
refers to the process of identification and explanation of different strategies that manager can
follow to improve performance and achieve a competitive advantage for organisation. This
basically includes a range of factors like developing objectives, analysing business environment
(competition), examining the internal resources and policies, evaluation of existing strategies. In
addition to this strategical management also focuses or ensure that strategies must role across
the different functional department of company.

Papa John's main goal is to provide its customers with pizza that consists of freshest
ingredients possible. The strategy used by company revolve around five major components these
are high-quality menu offerings, employees training & development, effective marketing
program, efficient operating system and strong franchise system. Company focuses more over
maintaining its competitive position with the market place by focusing over these five major
components as a part of their strategical management. Following is the strategic management
process used by Papa John's:
Environment Scanning:- It refers to the process of gathering, scrutinizing and providing
information to company through internal as well as external environmental analysis in order to
formulate effective strategy (Wheelen and et. al., 2017). Papa John's performed environmental
analysis on regular bases to determine the demand of customers and increasing competition in
market. For this analysis it has been determined that customers are becoming more health
conscious which is a major risk in front of Papa John's.
Strategy formulation:- It refers to the set of actions that a company must take in order
achieve desired goals and objectives. Once the environmental scanning has been performed the
next step is to formulate corporate, business and functional strategies. After analysing about the
threat present in external environment, Papa John's has formulated strategies on the bases of
following factors:-
 Corporate strategy:- For maintaining its customer bases as well as market position Papa
John's has formulated a corporate strategy i.e. it has decided to add more nutrition value
in their products by using healthy as well as fresh ingredients for making their pizza and
try to make its customers aware about it (Li, Chen, and et. al., 2015).
 Business strategy:- Under this Papa John's has decided to hire more supplier which can
provide fresh ingredients to company and also decided to inform its customers about
nutritional value which their product provide over their websites.
 Functional strategy:- In order to bring the strategy formulated at corporate as well as
business level into action, Papa John's required to hire nutrition experts so that they can
guide cooks while making pizza(Davis, and et. al., 2016). On the other hand marketing
departments is required to formulate more promotional strategies like placing
advertisement over different social media sites, billboards, poster etc. to make customers

aware about it and in addition to this adding nutrition label over its official website and in
store as well. Operating strategy:- Under this section, Papa John's define the process through which
all the strategies that are being formulated in above three stages can be implemented
effectively.
Strategy implementation:- This is the next and most essential step within strategical
process where planned strategies implied into actions which includes designing structure,
distributing and managing resources. After analysing the environment and formulating all the
strategies Papa John's has started informing their customers about the nutrition value of their
product by adding nutritional label in product description.
Strategical evaluation:- This is the final step of strategical process where action taken
by company is being evaluated in order to identify about the result or changes that area required
to improve it for ensuring that strategies formulated must meet with organisational objectives.
After implementing this strategy a detail analysis will be performed by Papa John's to determine
whether this strategy provide positive result or required some modification.
1.2 Apply assessment tools for analysing the competitive environment of business case
Papa John’s International, Inc., is an international brand which deal in offering high
quality pizza prepared from best ingredients by maintain a range of restaurant franchises
throughout the world. It runs as world's third largest pizza delivery restaurant chain which is
headquartered in United State. Papa John’s International, Inc., uses Porter's five force model in
order to achieve profitability at marketplace and it also support in formulating strategy for long
term growth (Mone and London, 2018). This model perform detail analysis over industry in
order to determine the position that a company have within its sectors and major factors that may
affect the growth as well as profitability of business. Porter's five force model is explained
below:
Threat of new entrants:- This factor focuses on determine the degree of threat regarding
the entry of new player within the industry. Threat to new entrant for Papa John’s International,
Inc. is moderate as now a days it is easier to start a pizza business because it is cheap and
legendary meal among people.
Bargaining power of suppliers:- This support in determining the bargaining power that
a supplier have, if power is high then it allow suppliers to sell product at higher price otherwise

at low price. The bargaining power f supplier is also very high as Papa John’s and its franchises
purchase all the raw material from Papa John’s Quality control centre for ensuring consistency
across several locations.
Bargaining power of buyers:- This factor describe that the buyers have power to ask for
the low price and high product quality from producers when they have higher bargaining power
otherwise it is lower when buyers have low bargaining power. Bargaining power of buyers is
relatively higher for Papa John’s International, Inc. as customers have more options to choose
from when it is about pizza.
Threats from substitute product:- This force analyse the degree of threat that a
company have to get a competition from substitute product within the industry (Meiling,
Backlund and Johnsson, 2012). Threat for substitute is relatively higher as customer can buy
frozen pizza from their local grocery stores at relatively lower prize as compare to Papa John’s
International, Inc.
Rivalry among existing competitors:- This factor analyse the environment in order to
determine the competition as well as profitability present within the industry. Threat from
existing competitors in Pizza industry is relatively higher. Papa John’s International, Inc. have to
compete against two major players such as Pizza Hut and Domino's along with some local pizza
restaurants as they offer it at low price.
PESTLE analysis for Papa John’s International, Inc.
 Political:- This factor consists of several rules and regulations that are being formulated
by government of country which a company must follow. Papa John’s International, Inc.
operates its business in several countries but majority of its franchises are in developed
countries where government is stable, hence the risk is relatively lower.
 Economical:- It consists of several factors such as fluctuation in tax rate, foreign
exchange rate, inflation and deflation etc. that may affect business operations. Papa
John’s International, Inc. have very limited number of supplier therefore it has to transfer
the ingredients to several franchises located in other nations (Nixon and Burns, 2012).
Therefore, company has to face several risk related to fluctuation in currency rate, higher
taxes etc.
 Social:- It includes the taste and preferences that a society have in which company
operates its business. People now a days prefers fast delivery services and take-outs

despite of having food while sitting at restaurants. Papa John’s International, Inc. is a
quick-service pizza which offer its customer an option of home delivery.
 Technological:- People around the world become more technological advanced and
prefer to use online medium to purchase product and have it at their places. Papa John’s
International, Inc. also provide its services to customers where they can order pizza
online to have home delivery and have an option to get feedback over social media site
regarding the quality of services.
 Legal:- This factors describes about several laws and regulations that a company must
follow to operate its business effectively and survive in marketplace. Papa John’s
International, Inc. operates its business globally hence the legal risk is relatively higher.
Therefore it is very essential for company to abide with antitrust law which prohibits
agreements related to fix prices, limit production, divide markets and other interference
from marketplace (Marchington and et. al., 2016).
 Environmental:- This factor includes several activities as well as laws related to
environmental protection and safety. During the production process, Papa John’s
International, Inc. should ensure that the wastage of raw material is minimized as
company has limited suppliers and this action also minimize cost.
Stakeholder analysis of Papa John’s International, Inc.:-
It is a technique which generally used by a company to identify all the key stakeholders
who are interested in the issue to which the project is concerned. Stakeholder analysis is used to
formulate strategies for maintaining a healthier relation with the stakeholders who are interested
in project. Stakeholders are of two type i.e. primary and secondary where for Papa John’s
International, Inc., primary stakeholders are employees, customers, suppliers, shareholders,
franchisers (Kunc, 2012). On the other hand secondary stakeholders are the one who doesn't get
directly involved in the business but may affect the relationship between company and its
primary stakeholders which includes government, community, competitors and media. So, it is
very essential for Papa John’s to regularly evaluate about the interest of primary stakeholder for
keeping them happy and satisfied with their services. This support Papa John's in remain
competitive and maintain their position at marketplace

TASK 2
2.1 Mission, values, objectives and strategy for business with reference to the business,
functional and operational strategies
Papa John's International is one of the leading pizza chains of the world. They are the
third largest chain after Domino's and Pizza Hut. Their major objective is to develop such a
brand image and position in market and pizza industry that customers are intended to remain
loyal to enterprise for a long period of time.
MISSION: “To create superior brand loyalty by providing exceptional customer and
community service”
VISION: “To become a leader in Pizza industry by making high quality products
accessible to all”
OBJECTIVES: Company's main objective is to make its quality products reach a wide range of audience
such that it can gain a strategic advantage over its rivals. Another objective of Papa John's is to ensure exceptional customer service so as to
enhance the loyalty of consumers towards the brand.
 The last objective is to tap the advantage of its franchisee business model to gain high
share in market and increase its profitability.
STRATEGY: To stay aligned with vision and mission of company, Papa John's has made
a global strategy through which enterprise is planning to capture the attention of a large number
of people across the world. This strategy comprises of 5 key areas, namely, menu offerings of
exceptional quality, training and development of workforce, effective and optimum operating
systems, extensive marketing programs and a well established franchise system (Taylor and et.
al., 2015). All these aspects are explained in detail below:-
High Quality Menu: Papa John's is emphasizing upon improving the quality quotient of
menu so as to gain the trust of large number of people who visit the stores daily. They have
planned to execute this by offering a wide variety of pizzas along with complementary products
and beverages of exceptionally high quality so that people have many options to choose from.
The enterprise ensures that all its products are made in hygienic and fresh manner and prepared
using fresh dough. All the ingredients used within products are of high quality and no additives
are added.

Efficient Operating System: Papa John’s is focussing upon lowering the operating cost,
This is being done by improving the quality of products and promoting exceptional service for
customers by way of their operational and distribution systems. The layout of restaurant is
aligned with this strategy and delivery areas are separately made. The domestic outlets take
benefit of bulk purchase of materials and provide economy of scale for production of fresh
dough.
Training and Development of Staff: Papa John's recognise the importance of providing
training and ensuring development of employees. They conduct regular training sessions for
workforce and offer lucrative incentive schemes for employees to encourage them for working in
an effective manner (Oh, Yang and Lee, 2012). These sessions are conducted for corporate
employees and offered to franchisees at domestic and international training locations.
Marketing Programmes: This enterprise makes use of extensive marketing campaigns
and programmes to create awareness about the brand amongst people. They focus on domestic as
well as local marketing strategy. Its domestic marketing includes advertisement via television,
mail, website and print media. Programmes are arranged at outlets to gain attention of customers.
Also, activities are organised in schools, colleges, sports venues and other organisations. Flyers,
sponsoring events, sports competition etc. are some other ways.
Franchise System: Papa John’s is making use of franchising model to gain strategic
advantage in global market. This is being done by inviting experienced operators, providing
them assistance for business expansion and growth and reviewing their compliance with the
standards set by Papa John’s at regular intervals. For ensuring high quality and consistent food
offerings across all outlets, Papa John's makes every domestic franchise buy dough, tomato
sauce and other essential ingredients only from from their QC centres. This company provides all
the required resources to its franchisees to ensure that quality and consistency of products is not
sacrificed.
2.2 Establish the strategic design of any large business based on planned and emergent strategic
actions
Papa John's has decided to implement a global strategy in order to gain a competitive
edge in marketplace. To duly formulate this, company has decided to focus upon quality of food
products, training and welfare of staff, operating systems, marketing campaigns and its

franchising model. The next thing to be considered by Papa John's is implementation of the
strategy. The execution of strategy takes place in three different areas as described below:-
Corporate Level: This is largely concerned with selection of target market and target
audience. In this regards, Papa John's has analysed that the product in which company specialises
is Pizza which mostly captures the attention of kids and younger generation. This has been
strategically done to tap the advantage of influential behaviour of people belonging to this age
group (Ungson and Wong, 2014). Also, it is targetting global market as company has outlets
spread across many countries.
Business Level: This is basically related to the strategy adopted by company to gain a
competitive advantage in market. In this regards, Papa John's has opted to focus upon making its
franchising system strong enough to gain strategic edge in market. Also, enterprise has given
importance to quality quotient for this. This is done with an aim to increase sales volume and
overall profitability of organisation.
Functional Level: This is concerned with implementation of strategy adopted by
company across all the functions of organisation. For this, Papa John's is devoting its attention
towards use of efficient operating system and high quality ingredients and dough for making
pizza. The strategy is implemented within all functions like operations, finance, product
development, marketing and customer service.
2.3 Establishment of the strategic process of a large firm
Post the evaluation of areas of strategy formulation, the next biggest concern of Papa
John's is to develop a strategic process through which implementation can be done (Marler and
Fisher, 2013). While devising a strategy for gaining competitive advantage within global market
by making use of extensive marketing channels and franchising, managers of Papa John's are
following a strategic process. This process has three steps as explained below:-
Strategic Planning: This is concerned with the planning done by company in association
with strategy. In this context, Papa John's is making use of franchising model to establish a brand
image across global market. The strategy has been devised with an aim to become a leader in
Pizza industry. Also, the company is emphasizing upon imparting training to employees and
franchisee at regular intervals so that they remain aligned with the standards set by Papa John's.
This is being done to largely assist enterprise in gaining a high share in market and enhancing the
loyalty of customers by maintaining high quality at all outlets.

Scenario Planning: This is generally associated with the planning done related to the
current situation of market (Eden and Ackermann, 2013). As evaluated, Papa John's is planning
to tap the advantage of franchising model to enter and gain a high share in marketplace. This is
being done with the use of extensive marketing campaigns and advertisement through print
media, television, radio, flyers, sponsorship programmes etc. This will result in increased global
sales of company along with establishment of positive brand image in Pizza industry.
Strategy as planned emergence: This is basically an action plan that is made in order to
deal with the challenges faced by company. In present context, Papa John's is planning to enter
into various new markets by making use of franchising model. It can be observed that this
involves a lot of risks such as huge costs associated, excessive royalty fees and regulatory
procedures. Thus, it is required that company makes sure that all the laws and guidelines are
being followed while entering new markets. Also, company will keep a backup plan to deal with
any hurdles or challenges while establishing a strong franchisee system.
TASK 3
3.1 Assessment tools to assess the internal capabilities of Papa John's International, Inc. for
promoting a competitive advantage
In order to achieve competitive advantage it is very essential for a company to determine
its internal factors that can be used by them in order to strengthen the actions performed by them.
Internal capabilities support a company in dealing with several threats as well as risk that are
present in external environment that may influence the performance of company. By conducting
internal analysis Papa John's will be able to determine the skills, resources and strength that
company have and can use it to deal with external threats fro achieving competitive advantage
(Marra, Ho and Edwards, 2012). Apart from this it also help in identifying the weaknesses that
are need to be improve by Papa John's in order to remain competitive and maintain its customer
base. This analysis can be performed using SWOT and Value-chain analysis. These analytical
tools are explained below:
SWOT analysis:-
Strength Weakness
 The biggest strength of Papa John's is
that it provide high quality pizza with
 Papa John's have limited options in
menu.