1) Read the Case Study

2) As the Management Team for Haifa, your assignment is:

Create the SWOT analysis based on Haifas observations in Part 1 (worth 5%)

Establish the Planning (Goals), Organizing (Organization Chart), Leading (Human Resources) and Controlling (Metrics for Performance) for her organization as you think it should be (worth 5%)

Evaluate the new options from Reaz and list the Pros and Cons of each one for Haifa (worth 5%)

Make your final recommendation on what Haifa should do and why (worth 5%)

Haifas Pizza A Case Study

Part 1

Haifa sat back and reflected on her business. Things have gone pretty well in the last 24 months. She opened 3 new stores and diversified his operations. Her business has grown from simple Arabian Pizza to now a unique niche in Winnipegs culinary community. Each store became more lavish in both size and offerings. Her latest one would rival any Boston Pizza establishment in both size and menu.

Haifa was the sole proprietor of the restaurants and had a management team consisting of 3 people, who she trusted and consulted with all decision making. Although they were not partners, the management team received a bonus based on revenue (not profit) only.

Despite her success, she still felt there was something was wrong. Haifa took a deep breath and began to write down all the points she knew, that may impact her business

1) Her original store which serves Arabian Pizza was losing sales slowly. The space was small and the location (at the Forks Market) was expensive. In recent years, bad weather had resulted in less and less visitors to The Forks Market. Her other two locations were on University Crescent and Pembina Highway.

2) She found that she was constantly having to hire more people; most serving personal and cooks only stayed for an average period of 2 months before they left. She was not sure if it was wages or simply a bad working environment. She also wondered if she was hiring the correct people at all?

3) New technology was coming out in Pizza cooking; traditional Pizza cooking uses a wood-burning stove (which takes time to heat) but creates a Smokey flavour on a thin crust. Traditional Pizza ovens cannot recreate the original wood oven taste, however, a new technology called Micro Wood Oven guarantees great flavour in half the cooking time and takes up half the space. It is 3 times the cost of a regular pizza oven. An investment in this would mean Haifa would have to close at least one of her restaurants.

4) Reazs Pizza recently came to town and has been very aggressive with pricing and menu options. Haifas Arabian Pizza was very unique, but shortly after Reaz created the Real Canadian Pizza, which is almost identical and cheaper than Haifas. Reaz has some big financial backers and they are on radio, TV, the internet, newspapers and always seem to have some kind of promotion going on to attract customers. Haifa felt very threatened by this competitor.

Haifa decided to task her management team to study these issues by performing a SWOT analysis on her restaurants to help her with establishing Planning (Goals), Organizing (Organization Chart), Leading (Human Resources) and Controlling (Metrics for Performance).

Haifas Pizza A Case Study

Part 2

It had been a week since Haifa first asked her Management Team to look into the issues she had observed related to her business. She was worried, but had faith that her team would be able to provide her with some guidance.

To complicate matters, she received the following email related to his business:

Hello Haifa!

Let me formally introduce myself to you. My name is Reaz and you probably already know that I am the owner of Reazs Pizza.

Before we start, please understand I have tremendous respect for your Pizza restaurant and have admired how much you have grown over the last few years. I think your food is FANTASTIC and love that Arabian Pizza. Im sure you know my own Real Canadian Pizza was inspired by yours.

I know we have been competing for some time now and that is stressful for both our organizations, so I have a proposal for your consideration. I would like you to think about one of the options below and if you agree with any of them (or not) please respond in a weeks time and we can discuss further.

Option 1

You and I become General Partners in your organization (Haifas Pizza)

Option 2

You become a Limited Partner in my organization (Reazs Pizza)

Option 3

We merge both companies and form a new restaurant which we will incorporate, with myself acting as CEO (Chief Executive Officer) and you acting as COO (Chief Operations Officer) reporting directly to myself. We will establish a board of directors made up half our management teams only (we each have 3 management team members and can only have 4 on our board of directors, so we will each have to loose on of our current management team members).

I look forward to your response! Regards,

Reaz

Now Haifa had even more to consider. Not only what was going on in her own business, but if she should even consider these options. She decided to ask her Management Team to analyze these options in addition to their SWOT analysis.