Strategy Implementation (must follow the steps outlined below) - The Cheesecake Factory

• Here you will discuss how the strategy should be implemented as follows state EACH ONE as a subtitle, highlight it and discuss EACH ONE separately

a. Program ( actions/ activities/ tasks for implementing the adopted strategy)

b. Budget (projected costs of the program of activities, which you can estimate conservatively)

• Please note that the program is basically the activities/ tasks that will be performed by the staff in order to implement the Recommended Directional Corporate Strategy.
• The budget is the projected costs of these activities not from data provided by the firm, but based on your own research from "credible" outside sources including the Internet. You must justify your projections

9. Recommended Directional Corporate Strategy: A. Current Strategy The Cheesecake Factory's current generic strategy is one of differentiation. A differentiation strategy offers rms the ability to charge a premium for their goods or services due to a value or rare option they are offering. Some of the reasons that this has been identied as the film's strategy are because of the wide variety of options they offer the consumer, their pricing strategy is to the middle/ higher end of the family chain restaurant market, and because of the rm's overall quality. The wide variety The Cheesecake Factory offers on their menu has been a draw to many consumers, but also leaves the rm having to prep and create many items all of which are made from scratch. On one hand this strategy has worked for The Cheesecake Factory because it has allowed them to charge more than some of their competitors and increase their revenue. The downside of this is that even though their revenue has increased, their margin has suffered. With this strategy in addition to their sustainability and sourcing commitments, as well as commitment to making their food from scratch each day, it seems the rm might be spread a bit thin and it is affecting their bottom line. If the rm wants to maintain their quality commitments they may need to narrow their focus. . Recommended Strategy While the Cheesecake Factory is known for their extensive 21-page, over 250 item menu, some wonder why taquitos coexist with edamame. The option to choose to have your chicken dipped in sweet and sour orange sauce or served with gravy and biscuits. One can see that this menu dees categorization and skirts any pretense of gastronomic uniformity. Some also wonder why they do have such options available as well. In the words of Overton, they "blew the menu out." They included Mexican food. They inserted spaghetti and parmesan. They were willing to accept practically any order that might be made. And that was all because they wanted to keep any rival restaurants at bay, period. To make sure they had whatever Americans were hankering for at the moment, they transformed into a true dream restaurant. However, Overton, from a 2018 interview was quoted saying \"I decided, we're done. The menu will stay capped at 250 items. We will certainly continue adding new dishes to the menu, but we're going to start taking things off, too. The menu is big enough as it is." (Fulton, 2018). While this is what the Cheesecake Factory is known for, it does have a massive implication on their prots. Their kitchens are equipped to make all options of the 25 0-item menu, however, more than half of the 250 is rarely ordered, creating food wastage, as well as potential opportunities for better quality control. We believe the Cheesecake Factory needs to simplify and streamline their menu offerings. During the beginning of the COVIDl9 pandemic, many companies decided to axe menu items which were producing a high turnover rate. And this strategy started to become more mainstream as the years went on, realizing there was a lot of wastage of prot. According to Maeve Webster, president of the consulting company Menu Matters, "The rst step to rationalizing and optimizing a menu is to take a look at share of sales and share of prots.Any goods low on either should be removed right away. The time and attention that could be spent on the goods that do are being diverted by those that aren't protable and don't drive sales\" (McCain, 2020). Should The Cheesecake Factory implement this method, the potential opportunities for prots would be as followed: 0 Reduction of food waste: The Cheesecake Factory may simplify its menu and use fewer ingredients to prepare dishes, which will simplify inventory management and cut down on food waste. This can reduce the cost of buying, keeping, and throwing away unneeded food products. a Streamlined kitchen operations: The Cheesecake Factory can improve kitchen efciency by lowering the quantity of distinctive ingredients and recipes that need to be created with a streamlined menu. This may result in shorter periods spent preparing food, increased effectiveness, and lower labor expenses. 0 Improved quality control: Cheesecake Factory may increase quality control by concentrating on a fewer number of dishes and making sure they are regularly made to a high standard with a streamlined menu. By lowering complaints and returns from customers, this can increase patron happiness and loyalty. 3 Reduction of menu development and maintenance costs: The expenditures involved with creating and maintaining a complicated menu can be decreased by Cheesecake Factory with a reduced menu. This can include the price of printing, designing the menu, and testing the recipes. At the Cheesecake Factory, streamlining the menu could be a calculated strategy to increase revenue. The Cheesecake Factory can cut costs and offer consumers a more effective and consistent eating experience by minimizing food waste, streamlining kitchen operations, enhancing quality control, and decreasing menu development and maintenance costs. This will ultimately benet the restaurant's bottom line by increasing customer satisfaction, loyalty, and revenue. C. Alternative Strategies The Cheesecake Factory can gain from cost focus and cost leadership measures that will help it lower expenses and boost protability. Cost leadership is becoming the lowest-cost manufacturer in the sector, whereas cost focus entails focusing on a particular customer base with a lower cost product or service. Both tactics have the potential to lower costs and boost competition. The Cheesecake Factory can target particular clients who are costconscious by using a cost-focus strategy. To draw clients searching for a more economical eating experience, the business could, for instance, present a cheaper lunch menu or early bird discounts. The business can modify its offers to match their demands by focusing on a particular customer segment, all the while attracting more consumers and improving market share. The Cheesecake Factory can alternatively gain from a cost leadership approach by assisting it in becoming the sector's lowest-cost producer. The business may reduce expenses and sell its products for less than its rivals by streamlining its supply chain and production procedures. This could give the business a competitive edge and draw in price-conscious clients