Premium Essay

Livoria Sandwiches

In: Business and Management

Submitted By Yohan20
Words 1355
Pages 6
To: Paul Livoria & Sam Livoria, Livoria Sandwiches Inc.
From: Dev Das, CMA
Subject: Strategic Evaluations and Recommendation – Livoria Sandwiches Inc.
Date: December 30, 2011

Introduction
The purpose of this report is to evaluate Livoria Sandwiches’ (henceforth, Livoria) current strategic and financial situation and select a best alternative for Livoria sandwiches to attain $1.1 million in Net Income by 2014. This report includes a current situational analysis (Appendix 2 – Present Menu and Appendix 3 – Pro Forma Income Statement), analysis of strategic alternatives, a recommendation and a conclusion.

Situational Analysis (see Appendix 1 for supporting SWOT Analysis)
Since commencing operations in January 2001, Livoria Sandwiches has been offering an assortment of quality custom-made sandwiches in Dawkins. With a family-oriented atmosphere and a customer focused mission/vision statement the company distinguishes itself in making quality sandwiches by focusing on high-quality ingredients, freshness and quick sandwich-making process. In 2011, Livoria achieved 53% contribution margin and a 5.4% sales growth surpassing the industry average. By 2014, Livoria plans to reach $1.1 million in Net Income. However, due to space limitations and labour constraints (Appendix 5), the company has to make a decision based on two strategic alternatives to reach this goal: • Franchising Livoria Sandwiches • Enhancing the menu by adding a line of vegetarian sandwiches and dropping the lowest contributing menu items
Key Success Factors (KFS) • Excellent location • High quality Sandwiches • Pricing • Customer loyalty • Reputation
Competitors: (Benchmark Analysis – Appendix 2) • Lower market share (2.26%) compared to Souvlaki

Similar Documents

Premium Essay

Livoria Sandwiches

...Date : October 11, 2013 To : Brothers Sam and Paul Livoria From : Dev Das Subject : Strategic Review and Recommendations INTRODUCTION This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences:    * Go franchising (Paul)   * Enhance vegetarian menu (Sam)   * Preserve quality and control (Sam)   * Realize $1.1M net income by 2015 (both Paul and Sam)   *Avoid using line of credit (both Paul and Sam) Constraints:   * Cash   * One supplier of all store requirements/ingredients   * Bank requires $20,000 minimum cash balance at any given time   * Number of hours work   * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment   - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark   - 52.93% highest Contribution margin than industry average   - High...

Words: 1059 - Pages: 5

Premium Essay

Livoria Sandwiches Review

...M1A3 The vision and mission statement of Livoria Sandwiches is for them to maintain their strong reputation amongst their current loyal customers for quality while maintaining a unique product. In providing a supply of a different product, Livoria is competing to some degree using a differentiation strategy which will allow Livoria to charge a premium on their products, and allow them to be competitive based upon the perceived difference they have from the rest of the market segment. The key stakeholders preferences include exploring possible franchising, enhancing their vegetarian menu with an ultimate quantitative goal being to have a $1.1M net income by 2015. Within these key stakeholder preferences, both Paul and Sam would like to maintain a focus on preserving their high quality and continue to avoid using their line of credit. The weaknesses and constraints of Livoria Sandwiches operations at this point in time are a limited supply of capital, specifically cash, which is negatively effected by both the back taxes and the requirement to have $20,000 as a minimum cash balance at all times. The lack of cash is even more so negatively effected due to the $500,000 liability that must be paid by 2015. Another operational constraint for the business is that they rely completely on one supplier for all of their store ingredients. The heavy reliance on one supplier and the consequences of this is displayed by the fire at Food Terminal, and the difficulty in securing a supplier...

Words: 586 - Pages: 3

Premium Essay

Livoria Sandwich Inc.

...Subject: Review of Strategies for Livoria Sandwich Inc. Fiscal Year 2013 – 2015 To: Paul and Same From: Des Cas, CMA Date: Dec 31st, 2012 Introduction This report gives recommendations to Paul and Sam, founders of Livoria Sandwiches (LS) Inc for fiscal 2013 to 2015. LS own two stores selling custom-made Italian sandwich in Dawkins. Vision statement is “Livoria will be the first choice of Dawkins residents who are seeking a variety of high- quality fresh sandwiches at reasonable prices.” Mission statement is “We are the highest-quality sandwich shop in Dawkins because of our legendary sandwich-making processes and our commitment to using the highest-quality ingredients.” Situational Analysis The following are facts important to LS analysis. * Paul and Sam aims for 1.1 Million Net Income in 2015. * LS maximum 6 employees. * LS must maintain $20,000 at the bank. * Must pass city quarterly health audit. * Paul purpose franchising alternative and highlighted eggplant sandwiches strong forecasted growth. * Sam purpose vegetarian menu expansion and highlighted strong vegetarian sandwich demand due to health concerns and customer’s concern over limited sandwich selection. * Key success factors are highlighted in LS vision and mission, which is making high-quality fresh sandwiches with highest-quality ingredients. * Tax at 20% payable on March 31 of the following year. Tax audit found $22,500 in payables due 2013. * Refer to Appendix 1...

Words: 1402 - Pages: 6

Free Essay

Week 1 Homework

...17. Give an example of a recent purchase you made where the purchase of an ongoing relationship with the seller. Discuss what the seller has (or could do better) to strengthen the relationship and increase the odds of you being a loyal customer in the future. I’m a loyal customer of Jimmy Johns restaurant they make gourmet sub sandwiches. I eat a sub almost every week. The restaurant is in a prim location that sits right of the main street that I take to get home from work. Jimmy John’s subs are large and cheap and are made very fast. The restaurant also has a drive through which makes the ordering and purchase of the subs even that much faster. If I’m home and feeling a little lazy I can even order a sub and have it delivered to my house. Jimmy John’s has covered all bases, that’s why I will continue to be a loyal customer. 18. In your own words explain several reasons why a marketing manager should consider international markets when evaluating possible opportunities. International trade is growing around the world and the obstacles of trade are going away. Also with progress in e-commerce, transportation, and communication it has become more affordable and less difficult to reach international customers. Internet exercise page 10 About 20 different manufacturers products are shown on the home page of target.com. I don’t think consumers would be better off if each manufacture sold directly from its own website. Its easier to go to websites like target...

Words: 375 - Pages: 2

Free Essay

Quiznos Gets Toasted

...Quiznos Gets Toasted: Exploring the Decline of Quiznos Corporation Executive Summary goes here History In 1981, Quiznos Corporation opened their first sub sandwich shop in Denver, Colorado. The Quiznos concept and menu was created by restauranteur Todd Disner and chef Jimmy Lambatos. Their toasted subs, specialty recipes, and quality ingredients made them immensely popular. Two years after opening, the company began franchising, and in 1991 Quiznos had 18 locations. Also in 1991, the company was sold to franchisees, father and son duo, Rick and Richard Schaden. The Schadens were motivated to grow the company; and by 2007, Quiznos had more than 5,000 locations and was one of the fastest growing restaurant franchises. The speedy growth can be attributed to marketing initiatives, reduced franchise start up costs and hiring Area Directors. Area Directors were hired to oversee specific markets, and they were allocated a certain amount of new franchises to develop in a predetermined amount of time. As quickly as Quiznos rose they seemed to fall just as fast. “Things came to a head in 2006, when about 10,000 of the chain’s franchisees filed a class action accusing the company of overselling its markets and making its franchisees “captive customers.”” (Strauss, 2015) The unsatisfied franchise owners combined with the highly competitive market was a recipe for disaster. In 2012, a group of creditors insisted a restructuring...

Words: 1146 - Pages: 5

Free Essay

Miss

...Type of Business Subway® The main activities of Subway® are that they sell mainly sandwiches to their customer to fulfil the customers need for food. The Subway® franchise began in the USA in 1965 and now has 32,774 outlets in 91 countries, also in most years 70% of new Subway® franchises are sold to existing Subway® owners. Subway® is owned in a private sector, as the business started as a partnership between Fred DeLuca & Dr. Peter Buck and they opened three stores before the Subway® outlet began franchising. Subway® what to make a profit, as when the business first opened it was so that Fred DeLuca could pay for his university tuition, and the partnership turn the business to a franchises so that others could succeed in their own business venture. The industry sector that Subway® is tertiary as they sell mainly sandwiches to people that use the business. Products Subway® has a low fat menu which is popular with customers all around the world, and Subway® allows their customers to add the ingredients that they what into their sub, also other product includes drinks & snacks. The subs, snacks & drinks can be combined together into one deal to give their customers a cheaper offer on their products. Purpose The reason that Subway® exist is that Fred DeLuca was looking for a way to make enough money to pay for his university tuition and the solution came at a BBQ during a conversation with a family friend, Dr. Peter Buck, who suggested to Fred that he open a...

Words: 344 - Pages: 2

Free Essay

Treats

...by a Cuban Family. Their main offering is handmade tasty sandwiches which are prepared in home cooked style with Cuban ingredients and recipes. The family sources the ingredients from Cuba and bakes the breads fresh, every morning to upkeep its taste. The other branches of the store are doing well. The first one was opened by the founder, Maria Porto in their native neighborhood after they migrated from Cuba 30 years ago. As other migrants flocked in from Cuba into the same neighborhood as well, Maria first started to make sandwiches for them on a regular basis, since that was the cheapest food they could buy. Gradually, the taste became so popular, that Maria’s sandwiches were an instant hit, and it flourished into a very successful business, in the Cuban dominated neighborhood of San Bernardino. The second branch was opened by Maria’s sister in Camarillo, a very sparsely populated part of California. Again, Cuban migrants form a significant part of the customer base and the business is doing well. Maria’s son Miguel came up with the idea of opening the third branch in the neighboring Burbank Mall in order to attract mainstream customers from the local population. His dream is to make the Cuban cuisine popular amongst Americans, like how Mexican cuisine is already popular. This is his first step in that direction. They have taken a small space at the food court in Burbank Mall with the capacity to produce 3 sandwiches at a time. Burbank Mall Food Court is particularly popular...

Words: 611 - Pages: 3

Premium Essay

Business Plan

...Prestige Worldwide Business Plan & Business Research Pg. 1 Prestige Worldwide Business Plan & Business Research Central Michigan University BUS100 F/S MWF 10:00 am 12/08/13 Prof Kelly Ryan Barlow Pg. 2 Pg. 3 Abstract In our report you will read over information on the following areas, a flyer of our companies products, executive structure, competition, retail location/ E-commerce, potential customers, marketing and advertising, annual operations costs, 12 month start-up launch/ action plan, and profitability. We specialize in sandwiches and soups. Our company consists of four owners each having different job titles. Our three main competitors in our market are firehouse subs, subway, and Jimmy Johns. Subway is the top competitor to Erbert & Gerbert Sandwich shops, having over 34,000 restaurants compared to our 47 locations across the country. Our franchise location is set in the middle of Central Michigan University. Our company plans to profit of the large majority of college students that are looking for something fast to eat. Through E- commerce we plan to bring more success to our company. We allow you to order online to make it more efficient to order food. Our potential customers will be the Central Michigan University college students as well as Mt. Pleasant townspeople. We decided to chose a franchise as a business investment because pf the free advertising owning a franchise business comes with. There are three specific...

Words: 1852 - Pages: 8

Free Essay

Cupon.Pdf

...$1.00 Off Any McCafé® Specialty Beverage* *Valid only on any Latte, Mocha, Cappuccino, single shot Espresso, Americano, Deluxe Hot Chocolate, Iced Frappé or Real Fruit Smoothie. PRODUCT AVAILABILITY VARIES BY RESTAURANT. PLEASE ADVISE CREW MEMBER OF COUPON PRIOR TO ORDERING. LIMIT ONE COUPON PER CUSTOMER, PER VISIT. NOT VALID WITH ANY OTHER OFFER. NO CASH VALUE. VALID ONLY AT PARTICIPATING MCDONALD’S® RESTAURANTS IN ALBERTA, NORTHWEST TERRITORIES AND LLOYDMINSTER, SK. FROM DECEMBER 30, 2013 TO FEBRUARY 2, 2014. ©2013 MCDONALD’S. PRINTED IN CANADA. $1.00 Off Any McCafé® Specialty Beverage* *Valid only on any Latte, Mocha, Cappuccino, single shot Espresso, Americano, Deluxe Hot Chocolate, Iced Frappé or Real Fruit Smoothie. PRODUCT AVAILABILITY VARIES BY RESTAURANT. PLEASE ADVISE CREW MEMBER OF COUPON PRIOR TO ORDERING. LIMIT ONE COUPON PER CUSTOMER, PER VISIT. NOT VALID WITH ANY OTHER OFFER. NO CASH VALUE. VALID ONLY AT PARTICIPATING MCDONALD’S® RESTAURANTS IN ALBERTA, NORTHWEST TERRITORIES AND LLOYDMINSTER, SK. FROM DECEMBER 30, 2013 TO FEBRUARY 2, 2014. ©2013 MCDONALD’S. PRINTED IN CANADA. Buy One, Get One FREE*! *Buy any McMuffin®, Bagel or McGriddles® breakfast sandwich and get a second same breakfast sandwich FREE! NOT VALID WITH ANY EXTRA VALUE MEAL OR VALUE PICKS® MENU OFFER. PRODUCT AVAILABILITY VARIES BY RESTAURANT. PLEASE ADVISE CREW MEMBER OF COUPON PRIOR TO ORDERING. LIMIT ONE COUPON PER CUSTOMER, PER VISIT. NOT VALID WITH ANY OTHER OFFER. NO CASH VALUE...

Words: 1633 - Pages: 7

Free Essay

About Arbys

...About Arby's® Arby's® is the place for people hungering for a unique, better tasting alternative to traditional fast food. It's the favorite place for people who crave something different and better. Serving one-of-a-kind menu items, Arby's is well known for slow-roasted and freshly sliced roast beef sandwiches and famous Market Fresh sandwiches, wraps and salads, made with wholesome ingredients and served with the convenience of a drive-thru. From day one, Arby's Roast Beef Restaurants offered an innovative menu, offering guests something other than hamburgers in the newly inspired quick service segment. When foodservice veterans Leroy and Forrest Raffel opened the first Arby's in Boardman, Ohio on July 23, 1964, customers enjoyed roast beef sandwiches, potato chips, and Texas-sized iced teas. To name their new venture, the brothers decided on Arby's, which stands for R.B., the initials of the Raffel Brothers - although many suspect the R.B. stands for roast beef. Leroy and Forrest never looked back. They fine tuned the operation and sold the first franchise to Sam Feldman the following year. Today, Arby's rich heritage is comprised of several multi-generation franchise owners. In fact, Jim Raffel, founder Leroy's son, owns and operates three locations in Maine. The enterprising spirit that originated with the Raffel Brothers has fueled the development of Arby's throughout its 41 year history. The company added an average of 50 restaurants a year in the 1970s while...

Words: 2217 - Pages: 9

Premium Essay

Livoria

...Date: Jan 4, 2013 To: Paul Livoria and Sam Livoria From: Dev Das Introduction Livoria Sandwiches needs to achieve growth in sales to reach $1.1 million in Net Income by 2015 while paying off its litigation payment of $500,000 by May 2015 and back taxes of $22,500 by Q1 2013. This report will analyze the two options available namely diversifying the menu or converting the business to a franchise and identify the alternative that will achieve growth targets and meet payment obligations. Financial Assessment Livoria Sandwiches has a good underlying business model and financial performance in 2012 except for the litigation charge (See Appendix 4). Contribution margin % was 53% compared to the industry’s 45%. This means Livoria’s costs of labour and materials as a percentage of sales are lower than the industry. As well, sales grew by 5% versus industry growth of 1% meaning that Livoria has taken market share from its competitors, an indication of the high quality of the sandwiches. Operating income % excluding the litigation charge is 24% compared to the industry’s 18%. This indicates that fixed operating and manufacturing costs as a percentage of sales are also lower than industry averages. Analysis of the issues and the related alternatives Alternative 1: Diversify menu in existing locations Pros: a) Maintains the tradition and quality of sandwiches b) Customers like the layout of the restaurant and its unique decor c) Takes advantage of the fact that Dawkins has the...

Words: 2221 - Pages: 9

Premium Essay

Livoria

...MODULE 1, ASSIGNMENT 3 August 2, 2011 Livoria Sandwiches Inc. It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2000, but began operations in January 2001. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2000, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2011 The Society of Management Accountants of Canada. All...

Words: 3365 - Pages: 14

Premium Essay

M1A3

...It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2001, but began operations in January 2002. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2001, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2013 The Society of Management Accountants of Canada. All rights reserved. ®/TM Registered Trade-Marks/Trade-Marks are owned...

Words: 2216 - Pages: 9

Premium Essay

M1A3 Livoria

...Date : October 11, 2013 To : Brothers Sam and Paul Livoria From : Dev Das Subject : Strategic Review and Recommendations INTRODUCTION This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences:   * Go franchising (Paul)   * Enhance vegetarian menu (Sam)   * Preserve quality and control (Sam)   * Realize $1.1M net income by 2015 (both Paul and Sam)   *Avoid using line of credit (both Paul and Sam) Constraints:   * Cash   * One supplier of all store requirements/ingredients   * Bank requires $20,000 minimum cash balance at any given time   * Number of hours work   * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment   - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark   - 52.93% highest Contribution margin than industry average ...

Words: 1059 - Pages: 5

Premium Essay

Module 1 Assignment 3

...MODULE 1, ASSIGNMENT 3 September 12, 2013 Topics: Performance Management, Financial Management and Financial Reporting Overview In this assignment, candidates get a chance to apply all the steps except for steps 6 and 9 in the Steps for Approaching Business and Corporate Strategy to a small business case. As mentioned previously, these steps provide candidates with a systematic approach for addressing a case involving business-level strategic issues. Applying this approach effectively is one of the important competencies that candidates will learn in the CMA Canada Professional Programs. The starting point for solving a business problem is to analyze the current situation and identify the problems that need to be addressed. A major component of the situational analysis is to take a close look at the environments within which an organization finds itself. One of the methods commonly used in such an environmental analysis is “SWOT” (an acronym for Strengths, Weaknesses, Opportunities and Threats), which considers the strengths and weaknesses in the internal environment as well as the opportunities and threats in the external environment. Candidates can refer to the required reading Situational Analysis Tools mentioned below for more information on how to go about doing a SWOT analysis. The next major step is to identify the issues and analyze various alternatives for addressing the major issues. In this case, a shortage of available cash is a major issue and needs to be addressed...

Words: 3918 - Pages: 16