To: Paul and Sam Livoria
From: Dev Das, CMA
Subject: Business Case Analysis on Livoria Sandwiches
Date: September 30, 2013
Introduction
Livoria Sandwiches Inc. provides exceptional quality sandwiches at a great price. Livoria has been able to maintain profitability since inception and has continued to grow its business and revenues. Recent unforeseen external events have caused significant cash flow issues and shook the family business. Livoria is hoping to see annual net income of $1.1 million by 2015. This report will provide alternatives and the pros and cons of initiating these alternatives. A recommendation of one of the alternatives as well as an implementation plan will be provided to assist in obtaining the goal,
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Reason is, the current demand forecast could be different with price increase. The risk is too high and doesn’t create growth.
Recommendation
The best option for Livoria at this time is to expand its menu into the vegetarian options. Not only is this the best way to prepare for the future but it will also meet all of the preferences of the stakeholders while aligning with the corporate objectives, mission and vision of the company. The $1.1 million goal will also be met by the end of 2013. No constraints will be broken.
Implementation
In order for Livoria to be successful in implementing the menu expansion, it must first contact its suppliers and ensure they can meet the change and increase in veggie demand. Next training and logistics must be arranged in house to adapt to the change in menu options. Quality must be maintained and no short cuts can be made. With the financial analysis provided in Exhibit 4
Do the lunch ladies really cherish the lives of the youth. This question is brought up everyday at my lunch table. The reason why I ask this is because the food which is served is disgusting, or healthy not only is the food that is prepared gross, but even the fruit the lunch ladies give us is gross. The lunch ladies go around the lunch room and ask each table “are you guys going to eat your fruit” we say no and they grab them. They're not grabbing them to throw away they're grabbing them to recycle and give to other kids, which is disgusting. They also serve pink meat, mystery meat, cold food, and I never get full from the bull you give us. For children who get free lunch they're fine with this issue, but for the ones who pay for lunch (which
Portillo’s became the unsurpassed leader in the fast causal dining industry because my systems required maintaining unbelievably high standards. I never took short cuts or compromised quality to justify a heartier bottom line. I knew that if I ever lowered my standards our very devoted customers would simply leave to find something better. I see stagnating sales and believe that its starting - our faithful customer base is starting to go away and we have to fix it. We have to return to the place where our employees love their jobs. Their enthusiasm will translate to cleaner stores, better quality food, faster service and eventually healthier
Over the last three years, SLA has exceeded everyone’s expectation. There has been a noticeable improvement of food quality, variety, and value. Nearly a thousand more meals are served daily. LWCS received numerous compliments when the switch in companies was made from students, parents, and staff. Education scores are on the rise and the success is attributed by Rich Colombo as due in part to the increased consumption of meals and alternative
• Al Fresco Chicken Sausage is seen to be a part of a healthy lifestyle.
The foods do not contain fresh fruits, green vegetables, pulses or right amount of any nutrition filled foods so it is required to change the menu as differently as it can be so that proper nutrition can be given.
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
Appendix 4 - changing the sale mix in favor of the sandwiches that bring more profitability per limited resource, Livoria is going to be able not only to meet demand but it will meet owners preference of minimum 1.1M by 2015 and increased cash flow. Changing the sales mix there are some aspects that must be considered: contribution margin per limited resource and popularity of the products.
Luby's was founded in 1911 in Springfield, Missouri and currently (at the time Case 22 was published in 1999) has 223 locations in 11 states throughout the Midwestern, Southern and Southwestern US. Luby's is a publicly traded company on the New York Stock Exchange with no single organization owning more than 5.7 percent of its stock. Barry Parker, who is the company's president/CEO, is dealing with a falling stock price and profit margins that have been considerably shrinking over the past few years. The following S.W.O.T. analysis will try to pinpoint Luby's strategic issues or problems they are facing as well assist in providing alternative solutions and a final recommendation in handling these issues.
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We can analyse from exhibit 13,14 & 15 , that kit has huge potential of attracting customer
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