Great Italian Food

Topics: Management, Strategic management, Board of directors Pages: 6 (1224 words) Published: September 20, 2014

The Future of the Great Italian Food Company

The Future of the Great Italian Food Company
Problem Statement
Six members of the of the Great Italian Food Company’s Board of Directors have ideas for the future growth of the company. Each of the members proposed idea has its merits, but their ideas are mutually exclusive and only one strategy can be chosen. This could be a potential issue and delay the company’s future growth if the board members cannot come to an agreement. Without a unified strategy, corporate or business, to guide the company over the next decade the Great Italian Food Company will make costly mistakes and jeopardize the company’s current position and future growth. Hard decisions must be made and appropriate planning will have to be conducted. Analysis and Evaluation

Joe Marconi, the founder and current Board Chairman of the Great Italian Food Company, established the first Papa Joe’s restaurant in 1960. Since that time the company has expanded to include three additional Papa Joe’s restaurants in the Greater St. Louis area and established a Board of Directors. The members of the board include Joe’s wife along with their four children; Little Joe, Johnny, Tony, and Maria. Additionally, three of Joe’s longtime personal friends are also members of the board of directors. The restaurants themselves are family establishments with a unique Italian atmosphere and a basic Italian menu. Over the years the company has been fairly successful under the management of Joe’s oldest son, Little Joe, with the expansion to three additional Papa Joe’s restaurants. However Joe’s children now believe that the current business model will not remain profitable enough to maintain their current lifestyles, which they have grown accustomed to and want to grow the company even further. Each of Joe’s children and Jimmy (one of the other board members), including Joe himself, have ideas about the future growth of the company. However, they all seem to want to move in a different direction. Joe wants to open an upscale restaurant and partner with a well-known personality allowing the restaurant to charge more for its meals. Little Joe wants to maintain the current model and continue to expand in the Greater St. Louis area. Tony wants to break into the frozen food industry. Johnny wants to broaden the company and open additional ethnic type restaurants. Maria believes that the best direction is to continue expanding the business throughout the mid-west focusing on major cities. And Jimmy likes the McDonald’s business model and wants to develop a Papa Joe’s fast food franchise chain across the country. The company has a limited access to capital and can only afford to pursue one strategy. So which is the best future for the Great Italian Food Company? Up to this point the Great Italian Food Company seemed to be fairly successful; they have expanded the company by opening three more restaurants in the Greater St. Louis area and have established an organizational structure that provides management positions for each of the family members. With all growing businesses, the way ahead is always the question. The motivating factor for any businesses that desires continued growth and that wants capitalize on their current success is to continue to increase profits. Recourses, competition, and management are just some of the factors that must be taken into consideration when a business wants to increase growth and of course there is always risk, how much is a business willing to take. The main issue the Great Italian Food Company is facing is that they have not established a strategic plan that supports their mission, vision, or goals (Bateman & Snell, 2013, p. 139). There are six members of the board with six completely different ideas who want to move the company in six different directions. However, none of the required strategic planning has been done to evaluate which of the ideas, if any, is the best...

References: Bateman, T.S., & Snell, S.A. (2013). Management: Leading and collaborating in a competitive world. (11th ed.). New York, New York: McGraw-Hill Education.
Mintzberg, H., & Waters, J. A. (1985). Of Strategies, Deliberate and Emergent. Strategic Management Journal, 6(3), 257-272.
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