MARTIN BLAIR Harvard Case Solution & Analysis

Introduction:

Martin Blair has joined the restaurant industry having it’s headquarter in the Charlotte area in 2006. Martin learned the different pros and cons of the restaurant industry. Martin Blair had learned a lot from his six years work experience and then Martin Blair started to work as an entrepreneur. Martin Blair decided to open his first pizza restaurant, and started the business in the restaurant industry, with the name Viva Italia and the other one as Pizzetta. Viva Italia is the different concept of the restaurant industry, having a broader menu and huge sales volume and high overhead cost. Meanwhile, Pizzetta is the quick service pizza and the Italian sandwich and is very simple to operate than the Viva Italia, which is less expensive and easy to operate. Although, Martin Blair does not have experience as entrepreneurs. He has very good experience of six years of working in the restaurant industry. Martin Bair to start the pizza restaurant chain globally to expand its business efficiently and effectively with its new ideas and innovations in the restaurant industry. Martin Blair is also looking forward to the natural growth and to open different franchises worldwide.

Martin Blair Case Study Solution

Martin Blair has also visited Italy on his thirtieth birthday; he was very impressed with the restaurant industry of the Italy. Martin Blair found the new technique and plan to run the restaurant in a new way. He also looks forward to expand his business in Italy. He got different ideas from his Italy trip and started to implement his learning on his business of the pizza restaurant. He started to expand the business of Pizzetta and Viva Italia, with different investment from parents and colleagues.

Analysis:

Martin Blair is looking to adopt the franchising strategy for the Pizzetta and Viva Italia, as the pizza food is nowadays one of the most selling food products in the world. Martin Blair looks forward for the franchise strategy of expansion of its business; he would have to understand the aspects, terms, condition and legislation to open the franchise, because Martin Blair can easily expand business through the franchises of business. Martin Blair should first start the franchise of the Viva Italia then he should go for the Pizzetta, because viva Italia is simpler in structure and easy to operate, as Martin Blair has no experience of the franchise. He should go for the Viva Italia; he learned the franchise system from simple operated business, then he should move towards the Pizzetta, which has a complicated structure as compared to the Viva Italia but Pizzetta would help the Martin Blair to understand the response of the customers globally, which would help him to sell more food item at the high growth chance.

A franchise can be successful Martin Blair should consider some of the key factor to be successful in the world, because both of the Martin Blair are new in the business and have low recognition in the market. Martin Blair should grow existing business than he should go for the franchise to gain the market potential. The legal requirement of the franchise should be lookup to remain away from the further legal issues to operate the franchise. Martin Blair place for the business should also play a vital role for its success in the industry. Martin Blair signed an effective license for its franchise that his business in a restaurant industry grows up effectively and efficiently, mode of payment for the license fees, obligation on the franchisee, quality and brand name among the customers. Martin Blair will also have to invest in the business slowly and gradually to mitigate the financial risk in this new investment. He will have to go for the investment in the Pizzetta as the business location of the Pizzetta is more preferably good enough to grow and Charlotte, the home town of the Pizzetta, is one of the largest cities in the United States. The growth for the Pizzetta is much more rapid than the Viva Italia as the location is good enough and the city has high population ratio among the United States cities. Pizzetta has more chances of success as compared to the Viva Italia, which require more investment and has higher risk.

Martin Blair Case Solution

Return on capital also shows that Martin Blair is yet, not in the position to expand in the short run as the Pizzetta and Italia are both suffering from the loss on their invested capital, as the return on capital on Pizzetta and Viva Italia is negative 4.46 percent. This shows that Martin Blair is not in position to invest further, meanwhile to generate the positive return on the investment; Martin Blair has to cut its short term expenses. Martin Blair cannot go for the further expansion because he has to return its loan amount taken from the parents and friends.  Further expansion will cause huge losses to be incurred by the company which may lead to the bankruptcy...............

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