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    Written Analysis and Communication - Soumya

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    Soumya Ranjan
    This document provides a situational analysis and recommendation for John Christ, owner of Wil's Grill portable street food business. It analyzes Wil's financial performance from 2014-2016, noting initial losses but profit in 2016 from increased special events. It evaluates two options: continuing the street food business or adding catering. Based on calculations showing higher returns, it recommends adding catering to target Northern Arizona areas, while continuing the street food business with increased promotional marketing. A contingency plan suggests merging with a larger business if catering is not competitive.

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    Written Analysis and Communication - Soumya

    Uploaded by

    Soumya Ranjan
    181 views8 pages
    This document provides a situational analysis and recommendation for John Christ, owner of Wil's Grill portable street food business. It analyzes Wil's financial performance from 2014-2016, noting initial losses but profit in 2016 from increased special events. It evaluates two options: continuing the street food business or adding catering. Based on calculations showing higher returns, it recommends adding catering to target Northern Arizona areas, while continuing the street food business with increased promotional marketing. A contingency plan suggests merging with a larger business if catering is not competitive.

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    Written Analysis and Communication_soumya

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    This document provides a situational analysis and recommendation for John Christ, owner of Wil's Grill portable street food business. It analyzes Wil's financial performance from 2014-2016, noting initial losses but profit in 2016 from increased special events. It evaluates two options: continuing the street food business or adding catering. Based on calculations showing higher returns, it recommends adding catering to target Northern Arizona areas, while continuing the street food business with increased promotional marketing. A contingency plan suggests merging with a larger business if catering is not competitive.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    181 views8 pages

    Written Analysis and Communication - Soumya

    Uploaded by

    Soumya Ranjan
    This document provides a situational analysis and recommendation for John Christ, owner of Wil's Grill portable street food business. It analyzes Wil's financial performance from 2014-2016, noting initial losses but profit in 2016 from increased special events. It evaluates two options: continuing the street food business or adding catering. Based on calculations showing higher returns, it recommends adding catering to target Northern Arizona areas, while continuing the street food business with increased promotional marketing. A contingency plan suggests merging with a larger business if catering is not competitive.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8
    At a glance
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    The key takeaways are that Wil's Grill struggled initially but found success serving local food at community events. However, John now needs to decide how to grow the business.

    The problem statement is that John needs to make a strategic decision on how to move forward with Wil's Grill and his livelihood.

    The options John considers are continuing the street food business with expansion or adding a catering business with some modifications to the marketing strategy.

    Written Analysis and Communication

    Assignment: - WIL’S GRILL

    Report No. 1

    Submitted by: Soumya Ranjan Mohanty

    1
    Table of Contents

    Situational Analysis..................................................................................................3
    Problem Statement ...................................................................................................4
    Options ......................................................................................................................4
    Criteria for Evaluation ............................................................................................4
    Evaluation of options ...............................................................................................5
    Recommendation......................................................................................................6
    Contingency Plan .....................................................................................................6
    Reference...................................................................................................................6
    Exhibit......................................................................................................................6

    2
    Situational Analysis

    John Christ- owner of portable street food business named as Wil’s Grill in Flagstaff,
    who love to make his customer happy by serving them healthy local street food.
    After influenced by “clean food” movement at NAU School of Hotel and Restaurant
    Management, John started Wil’s Grill business with his friend Karl on January 2014.
    The main target markets of Wil’s Grill was NAU students who were tired of chain
    based fast food and community events where organizers and customers wanted
    reasonably priced, clean high quality street food.
    Financial Analysis (2014-2016):
    Taking Net Operating Income data reference from (Hostetter, Padden, Exhibit 2,
    Page.7) Wil’s Grill was going under loss for first two years. On the year 2016, it got
    a privilege to serve 40 special public events which lead the company to increase its
    net operating income.
    The Profit and Loss statement of Wil’s Grill is shown in Exibit-2 of Source: John
    Christ – Owner, Wil’s Grill (2017)
    Market Analysis (2014-2016):
    Wil’s Grill Market segment: (Northern Arizona) (Fig-1)

    3
    It served Flagstaff, along with Prescott, Sedona, Verde, Phoenix, Williams which
    collectively held almost 50 events that featured street food. Wil’s Grill had received
    excellent reviews from local writers, food critics, customers and was featured in July
    2015 issue of Flagstaff Business News. Though there were many large players
    already present with an experience of over 20 years, Wil’s Grill focused on clean
    food and John received referrals from caterers for specialties Wil’s Grill was known
    for- smoked meats and barbeque.
    Taking consideration for healthy choices had reportedly increased from 61% in 2012
    to 71% in 2014 and in 2015 67% of respondents had given thought to environmental
    sustainability, 72% had given consideration to how food was proceed and 26%
    regularly purchased locally (Hostetter, Padden, Page.4). There was a growing
    interest on clean food in United States.

    Problem Statement

    John had to take a strategic decision on how he should move forward with
    Wil’s Grill and his livelihood.

    Options

     To continue with the street food business and expansion of current


    business.(1)
     To add catering business with help of some modifications in marketing
    strategy. (2)

    Criteria for Evaluation

    Here the criteria for evaluation is growth of Wil’s Business. Initially business was
    not profitable but John Crist’s hard work and passion to serve clean food out
    weighted any discouragement. Within the four months both John and Karl paid the
    loan amount. Further they did not take any loan even after Karl left the business.

    4
    John as a young entrepreneur, his needs could be satisfied by living a simple life
    without much financial obligations. So If required, borrowing capital for expansion
    of business will not going to be a burden at this stage.

    Evaluation of options

    Calculation of ROR in Option 1 (Rate of Return)


    It is the Ratio of PBT to total capital investment of year 2017 equals to 36.3%

    Calculation of ROR in Option 2 (Rate of Return)


    It is the Ratio of PBT to total capital investment of year 2017 equals to 51.1%

    Calculation of ROR in Option 1 (Rate of Return)


    It is the Ratio of PBT to total capital investment of year 2018 equals to 29%

    Calculation of ROR in Option 2 (Rate of Return)


    It is the Ratio of PBT to total capital investment of year 2018 equals to 68%

    From the above calculations we can easily inferred that


     ROR gradually decreases from 2017 to 2018 in option-1.
     ROR gradually increases from 2017 to 2018 in option-2.

    Various surveys and studies conducted in US indicates a growing interest in “Clean


    food” movement and it will perform crucial role for Wil’s Grill business to influence
    some customer’s food and beverage purchase decision. We can inferred this from
    analysis of critical factors of Wil’s Grill (Exibit-1).

    5
    Recommendation

    It is recommended that John should enter in to catering business along with his
    established street food business. Venturing in to catering business will give him
    higher returns in terms of investment, considering his assumptions (Hostetter,
    Padden, Exhibit 3, Page.8). He should target most of Northern Arizona metropolitan
    areas as his potential market for street food business (Fig-1). It is recommended to
    spend more on promotional marketing budget to attract customers. (Exibit-1)

    Contingency Plan

    In case Wil’s Grill is not able to compete with the already established businesses in
    catering, John might consider merger with a larger business and continue his passion
    for clean food.

    Reference

    1. Figure: https://geology.com/cities-map/arizona.shtml

    6
    EXIBIT-1

    WIL'S GRILL SURVEY


    Know Doesn't know

    28%

    72%

    MARKET DEMAND
    Clean Food Normal Food

    24%

    76%

    7
    CRITICAL FACTORS OF WIL'S GRILL
    Local source food Review Service Reputation Food Selection Price

    9%
    4%
    3%

    9%

    11% 64%

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