Papa John’s International Corporate Strategy

Current Strategy

At the back of today’s competitive business environments, firms ought to deisgn, develop, and implement sound strategies that align with their long-term objectives. It is impossible for an organization to grow without a clear roadmap to steer it towards the desired growth level. The path to success contained in its business strategy that outlines the steps for achieving long-term goals (Clegg, Kornberger, & Pitsis, 2015). Papa John’s current strategy is based on menu offerings that are of the highest quality, a coherent operating system, provision of training to their employees, an elaborate marketing strategy, constructive use of technology, and an elaborate franchise system. The company’s business strategy is achievable because of its components that are mentioned above. According to Clegg et al., (2015), a practicable corporate plan must be founded on the principals of customer satisfaction, growing the organization’s market share, innovation, and efficient utilization of physical resources. Papa John’s current strategy incorporates these principals; therefore, it can be attained. However, the leadership of the organization and its decision-making process determines whether the company achieves its strategy or not. It is, therefore, imperative that the company puts necessary measures in place to ensure that the key drivers of their strategy, as outlined in their strategic elements, are put to practice for to achieve its strategy.

Long-Term Objectives

The company has a long-term objective of building a global brand loyalty that will be the strongest in the pizza industry. The enduring success of any organization is anchored on its ability to set achievable longstanding strategic objectives that guide its operations and growth (Hill, Jones, & Schilling, 2014). The company’s long-term objectives are achievable because they are based on delivering value to the customer. It is outlined in the company’s objectives that it aims to build a strong brand by putting into practice the major building blocks of their business strategy. This underpinning shows that the company knows its long-term goals and has a clear plan to achieve them. Lasting objectives are also meant to improve an organization’s position in a competitive environment. The position can only be improved if the objective is studied properly to ensure that it is all-encompassing, measurable, and viable. The objective of improving the brand will be determined by the number of increased sales the company manages in the near future.

Organization Chart Structure

The business strategy and long-term objective cannot be achieved without a competent team to facilitate its operations. The company has a functional organizational structure with divisional leaders that are responsible for various departments. The nature of the chart determines the success of the company because it puts in place human resources that will ensure timely and effective execution of its business strategy (Goetsch and Davis, 2014). A good organizational structure promotes specialization, ensures an efficient control of resources, facilitates easy communication, and improves the performance of employees (Goetsch and Davis, 2014). It enables it to perform these functions efficiently and timely. The company’s organizational structure has divisional heads whose functions are aligned with the elements of their business strategy. For example, the senior vice president for marketing has functions that are aligned with the strategic component of elaborate promotion of the company’s products. This kind of chart that aligns the functions of its leaders to the business strategy ensures that the company always stays on track to accomplish its goals and objectives.

Summary of the Top Current Risks

Every organization faces certain business risks that need to be overcome for them to be successful. Papa John’s Pizza comes across various threats since it operates in an environment that does exercise full control. Currently, the firm’s major risks include a dip in profits as a result of increased competition. The pizza industry is mature and experiences fast growth. Many players continue to enter the industry, and the established companies are also expanding their franchises (Navarro-García, Arenas-Gaitán, & Rondán-Cataluña, 2014). This scenario presents a major risk that can lead to plummeting prices thereby decreasing the firm’s profit margins.

Another risk for the company is the changing customer taste. Consumer needs are always dynamic, and their preferences can change as a result of a new ingredient introduced a competitor or new technology introduced into the industry. There could also be concerns about the quality of foods and other health risks such break out of communicable diseases. One of Papa John’s Pizza’s main strategies is the use of franchises and food outlets to conduct its businesses (Hoover’s, 2014). It does not have close control over the franchises and outlets and, thus, the hygiene conditions in them can potentially affect the reputation of the company’s brand and result in reduced sales.

Alteration in the laws concerning privacy is also another main threat to the business. The company relies on direct communication strategies such as emails, texts, and mailings to market its food services. The laws regulating these communication platforms are subject to federal, state, local, and international legislation (He, Wang, & Zha, 2014; Hoover’s, 2014; Zikmund, Babin, Carr, & Griffin, 2013). Any changes can adversely affect the company’s marketing plans.

Besides, the company uses different ingredients drawn from different markets to make its pizzas. Increases in the prices of ingredients and other items would increase the production costs and lower the company’s profit margins.

A possible occurrence of natural calamities can negatively affect its operations. For instance, catastrophes such as hurricanes could occur and affect the company’s operations. Such disasters can destroy their outlets or interfere with the transport system thereby hindering delivery services. These risks present various threat levels to the operations of the organization (Barrows, Vieira Jr, & DiPietro, 2016). However, most of them are manageable risks that can be averted or managed if the company puts necessary measures in place to deal with them.

Top 3 Competitors in each of the Domestic and International Markets

Domestically, Papa John’s Pizza’s main competitors include Pizza Hut, Domino’s Pizza, and Little Caesars Pizza. Pizza Hut is a well-established company with food chain outlets in more than 95 countries over the world (Morris, 2016; Syed, 2016). This company is a major threat to Papa John’s Pizza because of its better financial resources, global reach, and a number of sales that it commands domestically (Weinzimmer & Nystrom, 2015). Domino’s Pizza is another strong competitor. The strengths of the company stem from its use of technology to offer services to the customers. It recently launched a zero-click order system where customers can order pizza without clicking. Its GPS system that allows it to track customers so that their orders are not put into the oven until they are close to the stores also gives it a competitive edge (Morris, 2016; Annual 10-K, 2016). Caesars Pizza also presents a major threat to Papa John’s International Inc. mainly because of its low prices.

Internationally, the company operates in Asia, Europe, Latin America, Caribbean, North Africa, and the Middle East (Papa John’s International Inc., 2017). Some of its domestic competitors also double as its international competitors. In Asia, for example, its biggest opponent is Pizza Hut, which has over 1500 pizza outlets in China alone (Morris, 2016). Other Asian competitors include Domino’s pizza and California Pizza Kitchen. The biggest European rivals include Domino’s Pizza, Pizza Express, and Pizza Hut. Other players in Latin America and the Caribbean include Pizza Hut, Domino’s, and Little Caesars Pizza (Papa John’s, 2016). In North Africa and the Middle East, the main rivals are Pizza Hut, Sbarro Pizza, and Domino’s Pizza.

It is clear from the above analysis that the biggest global competitors to Papa John’s International Inc. are Pizza Hut and the Domino’s Pizza. These companies were founded earlier than Papa John’s and their strength in the market is manifested in the number of outlets they have in the world (Annual 10-K, 2016; Köseoglu, Ross, & Okumus, 2016). They also have financial resources that are superior to Papa John’s. In its long-term objectives, the firm aspires to build the strongest pizza brand in the world. If that is to be achieved, it must put into practice strong competitive strategies to ensure that it matches and surpasses the competitiveness of its rivals. Its exemplary customer service strategies and unique ingredients used in its pizzas are a good start. It must also implement extensive and unique global marketing campaigns to outstrip those of the competitors.

References

Annual 10-K. (2016). Papa John’s 2016 annual report. Web.

Barrows, C., Vieira Jr, E., & DiPietro, R. (2016). Increasing the effectiveness of benchmarking in the restaurant industry. International Journal of Process Management and Benchmarking, 6(1), 79-111.

Clegg, S. R., Kornberger, M., & Pitsis, T. (2015). Managing and organizations: An introduction to theory and practice. New York, NY: Sage.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.

He, W., Wang, F., & Zha, S. (2014). Enhancing social media competitiveness of small businesses: Insights from small pizzerias. New Review of Hypermedia and Multimedia, 20(3), 225-250.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management theory: An integrated approach. Boston, Massachusetts: Cengage Learning.

Hoover’s. (2014). Papa John’s International, Inc. Web.

Köseoglu, M., Ross, G., & Okumus, F. (2016). Competitive intelligence practices in hotels. International Journal of Hospitality Management, 53(1), 161-172.

Morris, C. (2016). American pizza chains slicing up a $45 billion pie. Web.

Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluña, F. J. (2014). External environment and the moderating role of export market orientation. Journal of Business Research, 67(5), 740-745.

Papa John’s. (2016). Papa John’s announces third quarter 2016 results. Web.

Papa John’s International Inc. (2017). Papa John’s Pizza. Web.

Syed, I. (2016). SWOT analysis and operation management decisions of Domino’s pizza. Web.

Weinzimmer, L. G., & Nystrom, P. C. (2015). The search for opportunities by small business owners. Journal of Small Business Strategy, 7(3), 1-14.

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Boston, MA: Cengage Learning.