2. Introduction
• The case is about the traditional sweet shop
owner’s dilemma to go for purchase of
franchise in GFA for western pizza products
because of consumer’s preference pattern
3. CASE Analysis
Following the success of Pizza corner in North western regions of region,
retail outlet was started in chennai and it was also a great success
But the launch of new outlets like Newyork
deli,coffee world and cream were not successful
Consumption of pizza kept increasing in India
and were not that successful outside India
Amar’s traditional sweetshop’s profit was dipping in Jaipur
because of the presence of Mcdonald’s pizza outlet
GFA holding company of pizza corner and
coffee world were looking food franchising
This inclined Amar to go for the franchise with
GFA for the pizza retail outlet in Jaipur
4. Problem Statement and Characters
involved
• Problem Statement:
The increase in consumption of western food like
pizza resulted in dip in profit of Mr.Amar’s
sweetshop.Which inclined him to go for the
franchise of GFA’S pizza corner and coffee
world.He is in dilemma whether he will be
successful or not in this new venture
• Characters Involved:
Mr. Amar
GFA
Mc Donalds
5. VRIO ANALYSIS
Forces for change Forces against change
VALUE RARITY
Drop in profits of Losing Traditional
sweet shop business
Increase in pizza IMMITABILITY
consumption Business risk involved
From sweet shop to in investment
Franchise for Pizza
ORGANIZATION corner and
Coffee world Existance of Mc Donald
GFA providing all
necessary assistance
Failure in new venture
Not confident of would end in loss in
owning new both the business
westernized food retail
6. ALTERNATIVE SUGGESTIONS AND
SOLUTIONS
What should Amar do?
He can invest in franchising either in Pizza corner
(Rs 45,00,000 to 75,00,000) or coffee world (Rs
34,00,000 to 44,00,000) along with the sweet
shop which would reduce business risk instead of
investing an total of Rs 1,19,00,000
Can use western outlet to help improve his profit
in sweet shop by giving discounts to sweets-value
addition to the customer
Based on his sales volume and profit he can
expand his business in future
7. Conclusion
• Amar should not completely go for western
outlet instead he could use this outlet for
increasing his profit in sweetshop.
• He could use this problem as the opportunity
to increase the sales of sweetshop by
primarily introducing the complement system
as advertisement to widespread his traditional
business