Running head: Savor Case Study 1
Savor Case Study
Running head: Savor Case Study 2
The company has admitted that a problem is expanding without sacrificing business going
forward. What can be seen as a advantage as well as a disadvantage a relatively new staff. The
company wants to acquire more of the market share in the catering business without hurting there
restaurant business. There first option would be to move there catering business to a second location
opening up more space for the restaurant location, they currently use the catering space at busy times if
it is available. Although a successful business the restaurant needs a larger
capacity and the dinner crowd could use fifty more in it's capacity so the move seems like a logical
thing. The major problem facing them is the have to move relatively close in not only distance but
demographics as well to maintain their customer base. So the major question facing Savors is how far
will people travel and if you increase prices to make this expansion plus will your customer buy into it.
The current space as it stands is not large enough to handle the current business needs so a
decision needs to made. The problem is multifaceted a business decision and a marketing plan that is
well though out so as not to cause confusion to your current customers and those you are hoping to
attract to a healthy expansion. Another major problem is that the catering business is relatively
unknown, and Anna the restaurant and catering manager points out the money derived from this venue
will be needed to fund the potential expansion. So in retrospect this part of the business can not be
considered as John the general manager likes to refer to it as. The biggest part of this problem is that
Savors has to develop a marketing strategy to increase this half of the business.
Running head: Savors case study 3
If we want to look to root cause it could be taken from the mouth of the general manager that
Savors would seem to be a success, this can sometimes lead to complacency. In reading the case study
it would seem to me that this action was long over do, and still a little stagnant. He also seemed to be a
little reluctant with the hiring of the new staff leaders to not discuss expansion until they settled in. The
most apparent root cause is that the catering business was relatively unknown to even the most devoted
patrons to the restaurant portion of the business, so now its like starting a new business from the ground
Running head: Savors case study 4
Restaurant business well established
Competitive pricing with businesses in their area in an upscale setting.
Lack of marketing plan for the catering business
Relatively new leadership team
Inadequate setting they could use fifty additional seats in the dinner crowd and moving the
catering to a new building would accomplish this.
Expansion of the catering business
Move the catering business to a new building, between the increased revenue in the catering
and restaurant business would fund the expansion.
References: Retrieved from, http://idcontent.bellevue.edu/content/ID/COB/MBA652/MBA652_021412/player.html
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