Papa John's Case Analysis

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Case Analysis
Papa John’s
14. What are the current production and purchasing (functional) strategies? Papa John’s currently follows a low cost differentiation strategy for its production policy.”The low cost differentiation strategy concentrates on quality in operations when the cost of doing so is real low.” (Parnell, 2008). Papa John’s manufactures its own sauce and dough in their quality control centers to ensure quality. They also purchase all of their fresh ingredients from their quality control centers. By doing this they are saving on cost and ensuring their product will be of the best quality. The Company’s domestic QC centers consist of 9 full-service regional production and distribution centers and one distribution-only center, supply pizza dough, food products, paper products, small wares and cleaning supplies twice weekly to each restaurant throughout the contiguous United States. (reuters.com). These centers are highly automated which cuts down on labor costs however their production on a business level is fairly labor intensive since pizzas are made individual and to order and then delivered. The R & D department is constantly trying out new recipes and testing out new products. Papa John’s follows the differentiation strategy for purchasing. The differentiation strategy means purchasing high quality inputs, even if they cost more. Since Papa John’s only use fresh, high quality ingredients they are paying a higher price than some of their competition. This is all part of the their goal of having “better pizza, better ingredients” it provides a better quality pizza for its customers but comes at a higher price. At the business level the individual stores use a just in time method to order things from the commissaries or quality centers. The just in time method is an inventory system in which suppliers deliver parts just at the time they are needed by the buying organization to use in its production process. This is a way the company saves on storage and warehouse cost because they only have on hand the products they need at the time. 15. What are the current strategies in other functional areas, such as HR and information systems? Papa John’s have a very strong focus on the employee training program. They have regional training sites all over the United States, where manager go and receive training and go implement these standards at their business location. This training ensures that at each and every location are giving the customer the same quality service.

16. What strengths exist for the organization?
Strength 1: High Quality Ingredients:
Justification
Papa John’s only uses fresh ingredients in their production process. Customers can perceive the high quality fresh ingredients. Many of Papa John’s competitors allow individual stores to purchase outside of the company; therefore allowing little or no control over the quality of the product. Most of Papa John’s competitors use frozen dough and sauces made from concentrate, therefore using fresh ingredients it enables Strength 2: Strong Employee Training Program

Justification
Papa John’s competition relies on the stores management to train employees, by doing so this can result in different customer experiences across the company. Papa John’s offers regional training centers around the U.S allowing all team members to assist in learning skills needed to make better pizzas and run profitable stores. This provides consistency in the customers experience for every store. Strength 3: Strong Marketing Support

Justification
The marketing strategy used by Papa John’s allows them to reach out to the individual communities it serves. This allows them to act in the best interest of the customers. Strength 4: Efficient Restaurant lay-out

Justification
Papa John’s lay-out is very customer friendly. The lay-out provides employees a clear view of the front of the restaurant to better serve the customers’ needs. It also provides the ability...
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