Pronto_Case_1

Pronto Case Analysis To helping the “Pronto” concept develop a sustainable competitive advantage there are several key value chain elements among which are 1. Recruiting and retaining in human resource management in supporting activities. 2. Use of wireless technology in technology development in supporting activities. 3. Quality assurance in operations in primary activities. First let us talk about the recruiting and retaining the right people. Porcini already has some successful policies in recruiting, pay and perks to keep the normally high turnover rate down to an evitable rate. These policies will ensure Pronto with a good start in human resource management. A “Path Finder” team idea is introduced in Pronto concept which is to find the first three to four standout Porcini employees to lead and train the rest. This will make sure that experience and the company’s quality culture will be inherited. A “bonus paid leave” program will be implemented in Pronto which will keep the absenteeism rate down. Secondly we should talk about the technology development in Pronto concept. Two wireless technology will be used to ensure order accuracy and prompt check out. One is to use wireless device in order taking process so that kitchen get order wirelessly. The other is to bring wireless credit/debit card terminal to the customer to save back and forth trip for waiters/waitresses. These will not only speed up the whole process which emphasize on “fast service” but also reduce potential mistakes. Third one is quality assurance in operations. Pronto concept emphasizes on “Quality as customer see it”. It will reward customers who participate in a quality survey at the end of their visit to Pronto. This approach will not only increase the customer’s participating rate but also will a have more accurate response from customers. Pronto concept may also develop and enforce its own metrics. As stated above these three value chain elements are the most important to helping the “Pronto” concept develop a sustainable competitive advantage. But these are not the only ones, for example internal promotion, on-the-job training will retain good people is another value chain elements that will help the “Pronto” concept to gain competitive advantage. As for the “company owned” approach for Pronto against the “Franchised” and “Syndicated” approach, there are several pros and cons. Pros: Company will have sole ownership, full control of operation, all the profit and first hand control of quality. These will help company to maintain its hard earned brand name, keep all the profit with full ownership. Cons: Slower growth rate. Because initial capital cost for each site is the highest among the three approaches, “Company-owned” approach will roll out fewer new sites each year, which transfers to slower growth for the company.