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Cpk - Term Paper Example

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The Los Angles based dinning chain; California Pizza Kitchen is a world class company specialized in chicken Pizza.
CPK has more than…
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By so doing, CPK will improve its margins since it will have streamlined the pizza menu alongside other critical issues. With the economy favoring the restaurant chains, CPK has options to weigh, which include selling itself. With such options at sight, the company’s directors have allowed the management to come up with strategic alternatives like changing the capital structure, merging, or acquiring other companies in the same industry. However, investors must be warned that such strategies are not a guarantee for good performance in future. Some few years ago, CPK suffered from low sales because most pizza consumers opted to cook at home. Having realized that, the company launched a call center where customers would call to make orders with free delivery. In addition, the company increased its wine varieties and the catering program. Since it owns most of the pizza restaurants in the US, CPK prefers to lease a huge proportion of its property in places where it is located. Such a strategy has assisted it avoid huge debts.
As a premium pizza company in the US and around the world, CPK has to categorically select its best positions. Strategies, as discussed above, are an indicator that the company acknowledges the existing competition, changes in customer preferences, global issues, and environmental changes. Through such attributes, the company has adopted some strategies to accommodate customer preferences for instance launching a call centre, which makes it possible for customers to make orders instead of cooking at home. Some strategies are purely meant to help the company maximize profits. Managing a series of CPK restaurants can be a hectic task. For this reason, the management made a unique decision by leasing out some of the restaurants under its name to reduce costs attached to management and thus maximize on profits. Strategies are helpful to any organization. They ... Read More
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