Master Case Assignment 3

Master Case Assignment 3 - CEG GSB 703 Master Case...

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CEG GSB 703 Master Case Assignment #3 Adam Ohanesian Email: [email protected] Table of Contents I. Boston Chicken’s business strategy assessment a. Six components b. Success factors c. Risks II. Performance and risks reporting a. Assumptions behind policies b. Accounting policies vs. risks III. Adjustments to accounting policies a. Consolidation of financial statements b. Benefits IV. Questions for management regarding performance V. Performance a. Franchisee Area Developers b. High costs c. Franchises closing VI. Market assumptions regarding performance and risks a. Good assumptions
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b. Growth potential c. My disagreement d. Costs e. Advertising f. Bankruptcy 1. Assess Boston Chicken’s business strategy. What are its critical success factors and risks? I found six components to Boston Chicken’s business strategy. First, they created a new segment in the highly competitive fast food restaurant industry and takeout food. Second, they were engaged in three businesses consisting of operating a restaurant, selling franchises, and financing area developers, thereby diversified considerably. Third, major competitors were entities which had their own associated levels of entry barriers resulting in a small sort of insulation for Boston Chicken consisting of three elements. Existing takeout chains had few barriers to entry but had a different concept, new takeout competitors were potential barriers for entry, and supermarkets were unlikely to compete. Fourth, Boston Chicken’s success depends on its ability to expand rapidly and develop its brand name. Fifth, was to create products which will replace home cooked meals. For example, customers can takeout or can gave immediate consumption. Finally is Beck’s strategy to form a team consisting of people from both the fast food industry and franchising operation. There are five contributing success factors for Boston Chicken with the first one being
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Master Case Assignment 3 - CEG GSB 703 Master Case...

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