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Business Case Study Analysis –Frank’s All-American BarBeQueOverviewRobert Rainsford is a twenty-eight-year-old facing a major turning point in his life. Hehas found himself unemployed for the first time since he was fifteen years old.Robert holds a BS degree in marketing from the University of Rhode Island. Aftergraduation, a firm that specialized in developing web presences for other companieshired him. He worked for that firm for the last seven years in New York City. Robertrose rapidly through the company’s ranks, eventually becoming one of the firm’s vicepresidents. Unfortunately, during the last recession, the firm suffered significantlosses and engaged in extensive downsizing, so Robert lost his job. He spent monthslooking for a comparable position, yet even with an excellent résumé, nothingseemed to be on the horizon. Not wanting to exhaust his savings and finding itimpossible to maintain a low-cost residence in New York City, he returned to hishometown in Fairfield, Connecticut, a suburban community not too far from the NewYork state border.He found a small apartment near his parents. As a stopgap measure, he went back towork with his father, who is the owner of a restaurant—Frank’s All-AmericanBarBeQue. His father, Frank, started the restaurant in 1972. It is a midsizerestaurant—with about eighty seats— that Frank has built up into a relativelysuccessful and locally well-known enterprise. The restaurant has been at its presentlocation since the early 1980s. It shares a parking lot with several other stores in thesmall mall where it is located. The restaurant places an emphasis on featuring thefood and had a highly simplified décor, where tables are covered with butcher paperrather than linen tablecloths. Robert’s father has won many awards at regional andnational barbecue cook-offs, which is unusual for a business in New England. He haswon for both his barbecue food and his sauces. The restaurant has been repeatedlywritten up in the local and New York papers for the quality of its food and the fourspecial Frank’s All- American BarBeQue sauces. The four sauces correspond toAmerica’s four styles of barbecue—Texan, Memphis, Kansas City, and Carolina. In thelast few years, Frank had sold small lots of these sauces in the local supermarket.As a teenager, Robert, along with his older sister Susan, worked in his father’srestaurant. During summer vacations while attending college, he continued to workin the restaurant. Robert had never anticipated working full-time in the familybusiness, even though he knew his father had hoped that he would do so. By thetime he returned to his hometown, his father had accepted that neither Robert norSusan would be interested in taking over the family business. In fact, Frank hadstarted to think about selling the business and retiring. However, Robert concludedthat his situation called for what he saw as desperate measures.Initially, Robert thought his employment at his father’s business was a temporarymeasure while he continued his job search. Interestingly, within the first few weekshe returned to the business, he felt that he could bring his expertise in marketing—particularly his web marketing focus—to his father’s business. Robert became veryenthusiastic about the possibility of fully participating in the family business. Hethought about either expanding the size of the restaurant, adding a takeout option,or creating other locations outside his hometown. Robert looked at the possibility ofsecuring a much larger site within his hometown to expand the restaurant’soperations. He began to scout surrounding communities for possible locations. Healso began to map out a program to effectively use the web to market Frank’s AllAmerican BarBeQue sauce and, in fact, to build it up to a whole new level ofoperational sophistication in marketing.Robert recognized that the restaurant was as much of a child to his father as he andhis sister were. He knew that if he were to approach his father with his ideasconcerning expanding Frank’s All-American BarBeQue, he would have to think verycarefully about the options and proposals he would present to his father. Frank’s AllAmerican BarBeQue was one of many restaurants in Fairfield, but it is the only onethat specializes in barbecue. Given the turnover in restaurants, it was amazing thatFrank had been able to not only survive but also prosper. Robert recognized that hisfather was obviously doing something right. As a teenager, he would always hear hisfather saying the restaurant’s success was based on “giving people great simple foodat a reasonable price in a place where they feel comfortable.” He wanted to makesure that the proposals he would present to his father would not destroy Frank’srecipe for success.Case Study Short Answer QuestionsStudents should answer each question individually. Each question will be submittedseparately via Canvas on completion of the relevant Module. Each question shouldbe a minimum of 1 page in length. Please note some of the questions are notcompulsory. These do not have to be submitted however it is highly recommendedyou look at the question and reflect on it and for those of you wanting to gain themost out of the course, write a response for your own study and understandingpurposes).QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OFMODULE 1Question 1: Discuss how Robert should explicitly consider the customer valuecurrently offered by Frank’s All-American BarBeQue. In your discussion, comment onNewman and Gross’s five types of value and the perceived costs.Question 2 (Not Compulsory): Robert has several possible options for expanding hisfather’s business—find a larger location in Fairfield, add a takeout option, open morerestaurants in surrounding communities, incorporate web marketing concepts, andexpand the sales of sauces. Review each in terms of types of value (refer to Q1).QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OFMODULE 2Question 3 (Not Compulsory): In Chapter 2 “Your Business Idea: The Quest forValue”, Robert Rainsford was introduced in the FRANK’S ALL-AMERICAN BARBEQUEcase. He has returned to the family business and is very enthusiastic about expandingthe business. He has identified four options: (a) expanding the restaurant either at itscurrent site or elsewhere in Fairfield; (b) opening several similar-sized restaurants innearby towns; (c) using the Internet to expand sales; and (d) expanding the sales ofFrank’s sauces from a local store to a regional supermarket chain. Any one of theseideas would represent a change from his father’s business model. Given that he hadnot expressed any interest in the management of the business, how should he goabout approaching his father with these ideas? If the company expands, shouldRobert approach his sister and her husband about taking a more active role in thebusiness? What should their roles be?Question 4: Frank Rainsford has been, in effect, the CEO of Frank’s All-AmericanBarBeQue since its inception. His major role has been that of restaurant manager,receiving support from his assistant manager Ed Tobor for the last fourteen years.Frank has two children, a son and daughter, who both worked in the restaurant asteenagers. His daughter has worked periodically at the restaurant since shegraduated from high school. Frank’s son, who recently lost his job, has returned towork for his father. The son produced several plans to expand the business, includingthe opening of a second restaurant and the extensive use of social media. Aftercareful consideration, Frank has decided to open a second restaurant, but this haspresented him with a major problem—how to assign responsibilities to personnel.His son wants to be designated the restaurant manager of the second restaurant andmade the vice president of marketing. Ed Tobor also wants to be the manager of thenew restaurant. His daughter has expressed an interest in being the manager ofeither restaurant. How should Frank resolve this problem? (Hint: How (what needsto be considered) should it be solved, not what are the roles they should beassigned).QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OFMODULE 4Question 5 (Not Compulsory): One night after the restaurant had closed, FrankRainsford sat down with his son, Robert. Frank had finished reading his son’sbusiness plan for a third time. Robert sensed that his father had some sort ofreservations. “What’s the matter, Dad? Didn’t you like the plan?” Frank paused andsaid, “Bobby, from a technical standpoint I think you have done a very, very crediblejob, but you are right. I do have some concerns.” Disappointed, Robert asked hisfather to lay out his concerns.Frank told him that opening another restaurant was a huge and expensiveundertaking. He knew that Robert understood the financial risks, but he was not surethat his son understood the problems associated with getting people to come to anew restaurant. Frank was straightforward and told his son, “I have been at this forthirty-plus years. It took me years to build up my client base. I really know mycustomers and what they like. Up until this year the only marketing I did was flyersand a few ads in the local paper and the church bulletin. How are we going tounderstand our customers at the new location? We are going to have to fill it upquickly if we are to pay the bills. I know I’ve had some good success with selling thesauces during the last few years, but remember that I’m selling them from Harry’sgrocery store. His customers already know me and my product. Your plans forramping up sauce sales are great, but again, how are we going to get people to knowwho we are and interested enough to by a six dollar bottle of barbecue sauce?”Frank went on to tell his son that he knew that Robert was extremely knowledgeableabout marketing and the use of the Internet. He reminded Robert that he had givenhim a greatly enlarged marketing budget in 2010.If you were Robert, how would you go about alleviating your father’s concerns? (Youmay want to consult Chapter 16 “Appendix: A Sample Business Plan” and reviewRobert’s business plan for a new restaurant.) Answer the question from a marketingperspective.Question 6: Frank’s All-American BarBeQue is planning to significantly expand itstakeout business. Currently, customers come into the restaurant and order from themenu. With the new Darien facility and website, customers will be able to orderonline or fax an order to the restaurant. Frank and Robert have been arguing overhow to structure the takeout portion of their operations. Frank wants to maintainthe approach where customers order items from the menu. Robert believes that intoday’s world, it would be more convenient for customers to order completeprepackaged meals. Father and son have argued about the nature of these meals.Frank has suggests a limited number of standard meals that could be preparedduring the day and sold in the evening when commuters are returning home.However, this might mean that excess inventory would be built up on unwanteditems. Robert wants to offer greater variety. These would include a main course, twoside dishes, and a dessert. Because there could be a large number of combinations,most would have to be made after the receipt of an order. The “rush” to make thesemeals would drive up costs. How would you go about pricing these two types ofmeals? (Hint: Pricing objective and pricing strategies need to be considered)Question 7: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), youwill find the business plan for Frank’s All-American BarBeQue. This plan examinedseveral possible locations for a second restaurant. Frank and Robert consideredseveral factors when evaluating alternative towns as possible locations. Some ofthese included population size, average income, travel times, and percentage ofpopulation. Based on the data, they selected Darien, Connecticut. Do you agree withthe decision? Why or why not? Do you think other factors should have beenconsidered? If yes, what would you recommend?QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OFMODULE 5Question 8 (Not Compulsory):: In the Appendix (Chapter 16 “Appendix: A SampleBusiness Plan”), you will find the income statements and balance sheets for Frank’sAll-American BarBeQue for the years 2008 to 2010. Compute some of the keyfinancial ratios for this business and discuss the meanings of any trends.Question 9 (Not Compulsory):: Locate the average values of these (from Q8) valuesfor the restaurant industry and comment on how well or poorly Frank’s All-AmericanBarBeQue appears to be doing with respect to the industry. This is a researchquestion. Just as would a small business operator should do, you were todemonstrate your ability to research, either using the many sources provided to youin the textbook or to use the internet which provides an abundance of informationthat needs to be carefully looked at before relying totally on it. Regardless theinformation is there.Question 10 (Not Compulsory): Frank’s business plan in the Appendix (Chapter 16“Appendix: A Sample Business Plan”) provides projected income statements andbalance sheets for a five-year forecast horizon. Compute the same ratios as inExercise 8 and comment on your results.MarkingEach question will be marked on the following scale:• 0 points – No response or response did not address question• 1 point – superficial or partial response• 3 points – adequately addresses all aspects of the question• 5 points – excellent response that draws on external evidence and other highquality sources

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