CASE-pizza war - CASE BSB INC PIZZA WARS COME TO CAMPUS A...

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CASE: BSB, INC.: PIZZA WARS COME TO CAMPUS * A. SYNOPSIS BSB, INC. PRESENTS THE SITUATION WHERE LAUNCHING A PIZZA SERVICE AT A FOOD SERVICE OPERATION ON A COLLEGE CAMPUS TURNS OUT TO BE VERY SUCCESSFUL. AS THE MANAGER OF THE FOOD SERVICE OPERATION IS CONTEMPLATING AN EXPANSION OF THE SERVICE, AN ANNOUNCEMENT BY THE UNIVERSITY THAT A NEW FOOD COURT WILL SOON BE OPENING IN THE NEW STUDENT UNION CAUSES SOME CONCERN. THE NEW FOOD COURT WILL CONTAIN, FOR THE FIRST TIME ON CAMPUS, OTHER FOOD SERVICE COMPANIES, INCLUDING A NEW PIZZA HUT KIOSK. THIS CAUSES THE MANAGER OF BSB, INC. TO REEVALUATE THE COMPETITIVE ENVIRONMENT AND HER OWN COMPETITIVE PRIORITIES. B. PURPOSE BSB, INC. PROVIDES THE STUDENTS AN OPPORTUNITY TO DISCUSS A NUMBER OF STRATEGICALLY FOCUSED ISSUES TO INCLUDE THE FOLLOWING: 1. MISSION STATEMENTS: MISSION STATEMENTS DESCRIBE THE FUNDAMENTAL PURPOSE FOR WHICH THE ORGANIZATION EXISTS. THE UNIVERSITY DECIDED THAT A FOCUS ON FOOD SERVICE OPERATIONS WAS NOT PART OF ITS PRIMARY MISSION, SO IT CONTRACTED THE SERVICE OUT TO BSB, INC. STUDENTS SHOULD BE ABLE TO DESCRIBE A MISSION STATEMENT FOR BSB, INC. THIS STATEMENT WILL HELP IN DISCUSSING THE SECOND MAJOR FOCUS OF THIS CASE. 2. COMPARISON OF COMPETITIVE PRIORITIES: WHEN THE PIZZA SERVICE WAS LAUNCHED A YEAR AGO, THE COMPETITIVE PRIORITIES WERE TO EXPAND THE PRODUCT LINE TO OFFER PIZZA THAT COULD BE DELIVERED QUICKLY AT A REASONABLE PRICE. COSTS WERE KEPT LOW, AND TURNAROUND TIME WAS SHORT DUE TO THE LIMITED COMBINATION OF TOPPINGS AVAILABLE. WITH THE ADDITION OF THE FOOD COURT AND PIZZA HUT ON CAMPUS, COMPETITIVE PRIORITIES MAY CHANGE. DELIVERY MAY STILL BE A DIFFERENTIATING COMPETITIVE PRIORITY, BUT PRODUCT FLEXIBILITY (VARIETY) AND VOLUME FLEXIBILITY (LARGE ORDER SIZES) MAY BECOME MORE IMPORTANT. BSB, INC. MAY NOT BE ABLE TO COMPETE ON LOW COST WHEN COMPARED TO PIZZA HUT’S OPERATIONS.
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