Explain the company that you have researched, and its business model.

Coal Fire Pizza:A United States based specialty food chain that primarily sell pizza to local consumers in the Maryland and Virginia only. Raw ingredients are used to produce desired food items ranging from $8.95 (9" Personal Pizza) to $22.95 (16" 3 Meat Pizza) before additional/added toppings with large quantity orders available for catering. Coal Fire Pizza offers a signature taste that comes from the product preparation and cooking techniques using heated anthracite coal mined domestically within region and made to order. Restaurant sites are owned by Coal Fire Group lead by CEO and founder Dennis Sharoky. I personally always have a pizza when I am back home visiting family and it is one the best I have had anywhere in the world to include Italy.

Describe how the company could achieve economies of scale in its business. Apply the concept specifically to your chosen company.

Expand Operating Sites:Adding additional restaurants into high demand areas that increase revenue, grow marketing strength within receiving communities and reach customers that are less likely to travel to existing locations.

Expand Production:Maximizing current facility (cooking and preparation areas, workflow) and existing workforce (specialization of skilled cookers and division of labor in supporting tasks that generate raw material to end product transformation and sales) of to increase the speed and quantity of Pizzas while maintaining an acceptable level for quality.

Reduce Explicit Costs:Seeking discounts in raw material procurement such as food ingredients and resultant expendable items. Repurpose exiting facility at desired location for reduced initial investment and faster revenue generating turnaround. Selling depreciated equipment to recoup invest cost and fund new purchases.

Reduce Implicit Costs: Diversifying new products, procedures or marketing techniques across different stores to limit opportunity costs effects. Avoiding diminishing returns by not expanding hours into low demand customer times to gain marginal revenue compared t operating cost (example: 24 hour delivery service).

What macroeconomic and microeconomic factors are related to the company's ability to achieve economies of scale? In other words, what factors would increase or decrease the company's ability to achieve economies of scale?

Macroeconomics:workforce hiring pool, anthracite coal availability/cost (among other ingredients), federal/local business taxes, FDA operating regulations, pizza industry competition

Microeconomics:organization's capital to invest, pizza preference, marketing strategy effectiveness, restaurant vs home meal, acceptable travel distance by customer

REFERENCES

Charred to perfection. (n.d.). Retrieved April 08, 2021, fromhttps://coalfireonline.com/

Greenlaw, S. and Shapiro, D. (2019). Principles of Economics, 2e. Houston, TX:OpenStax-

Rice University. Retrieved fromhttps://openstax.org/details/books/principles-economics-2e

Pizzeria business plan for a pizza shop or restaurant. (2021, March 20). Retrieved April 08, 2021,

fromhttps://www.morebusiness.com/pizza-restaurant-business-plan/

1. Think about the market signal achieving economies of scale can create, through decreased prices or other related results. Describe three (3) signals that this could create in the market.
2. How might competitors react to the company achieving economies of scale? What market signals might competitors create in response?
3. How would achieving economies of scale strengthen the firm's competitive advantage? What would the impact be?