UPer Crust Pies VICTORIA MENGOH WILMINGTON UNIVERSITY IST 7100: IT POLICY AND STRATEGY PROF. KEVIN BERRY APRIL 6, 2022 About the Company UPer Crust Pies is a Michigan based specialty meat and fruit pie café whose product mix consists of hot, ready-to-go pies and frozen takeout options, a variety of fresh salads as well as beverages. As part of its growth strategy, the company is committed to developing a business model that will not only facilitate its expansion into new locations but also provide a roadmap to franchising. The company is intending on opening its first store in downtown Yubetchatown which is likely to: Draw a wide variety of potential customers. Create a ready-made consumer base from the foot traffic. Provide an opportunity to experiment with different marketing techniques that may not be as expensive or taxing. Analysis of the Company’s Characteristics The brand’s product mix includes high-quality food options that will not only create a competitive advantage against its rivals but also increase the customer retention rate, attract potential consumers, and boost its revenue. The company has already sourced a skilled workforce that is flexible enough to assume different roles within the business. To successfully enter the food industry, the company is planning on raising the startup funds through loans and investors. However, it is recommended that it should conduct research on other funding options such as business lines of credit cards, low- rate SBA Microloans, and equipment financing. Analysis of the Company’s Characteristics To successfully launch the business and survive in an extremely competitive industry, UPer Crust Pies must create a scalable and flexible business plan that includes: An analysis of the already identified target market – working families who prefer healthy and convenient meal options. Growth strategy. SWOT analysis. How the company will leverage information technology to fortify its strengths, reduce weaknesses, take advantage of the opportunities, and mitigate threats. SWOT Analysis STRENGTHS The company’s first café will be located in a prime area that is likely to attract numerous customers. How to Leverage IT: UPer Crust Pies can utilize location- based services that are provided by companies such as ESRI, to obtain real-time insights on traffic. This way, it can plan to open the café when traffic is heavy and the chances of a potential customer wandering in are high. Example of a Company That Has Done Something Similar: One such company that has benefited from employing locationbased services is Starbucks. This renowned organization uses Esri to analyze consumer spending in its locations with the main aim of deciding where to install the state-of-the-art Clover Brewing System (a machine that brews a single cup of coffee at a specific temperature and enriched with flavor). STRENGTHS Secondly, the company has created a high-quality product mix that sets it apart from its rivals, particularly fast-food restaurants. How to Leverage IT: Here technology can be used to design a digital menu which details the nutrition summary , allergen information, as well as calorie information of each food item and can be found in the company’s website/mobile app. Example of a Company that has done something Similar: McDonald’s is a perfect example of a company that has successfully used technology to include healthier food options in its menu. Its easy to use and accessible website/mobile application contains a digital menu that highlights the ingredients used to make each food item as well as the nutrition summary and allergen information. STRENGTHS UPer Crust Pies has a reliable, versatile, and skilled workforce. How to Leverage IT: The company can implement a customer relationship management (CRM) software to convert every staff member into a customer expert. Such a software allows the staff to input and store pertinent customer data including order history. This way, the next time the customer visits the restaurant, the employee can suggest items based on their previous orders, thus enhancing customer intimacy and boosting customer retention rate. Example of a Company That Has Done Something Similar: A company that continues to leverage CRM to run a successful business is Dunkin’ Donuts. This company uses Salesforce – an established CRM software – to deliver a seamless and personalized experience to the customers. This software enables every employee to track customer behavior, access their history at anytime, and update orders as needed. WEAKNESSES Raising funds for a startup can be both taxing and time consuming. How to Leverage IT: Apart from borrowing money from lenders and finding investors, the café can identify a crowdfunding platform to kickstart its fundraising efforts. One such platform is Kickstarter which creates a space for communities to come together and fund a venture via its website. Example of Companies That Have Done Something Similar: An example of a company that has used Kickstarter to fund its ventures is Tyson Foods, which launched a campaign to promote its new ¡Yappah! Chicken Michelada flavor and to raise funds for a charity it supports. Further, small businesses like Sunny’s Bar have used various crowdfunding platforms to launch campaigns that aim to revive their businesses after being affected by a natural disaster or pandemic. WEAKNESSES How to Leverage IT to Reduce Weaknesses: To build a good reputation, the café can build a top- shelf website/mobile app that: (a) makes it easy for consumers to view and order items, (b) promotes the right content, and (c) leverages modern, sleek, and engaging design. The company can include chatbots to interact with customers and answer their frequently asked questions. This customized service makes the customers feel valued and improves their experience. The company can utilize CRM to boost customer intimacy, create loyalty, and ensure customer retention. Example of a Company That Has Done Something Similar: In December 2015, there was a norovirus outbreak that was linked to a Boston based Chipotle which damaged its reputation. Since then, the brand has tried to rebuild its reputation by reformulating its food safety protocols, revamping its website/mobile app to attract new customers, refreshing its advertising strategies, and leveraging technology to improve customer service and boost customer intimacy. OPPORTUNITIES Given that the café’s first location will be in a town that is growing by 8.5% annually and whose primary residents are working families with children, there is a need to create a scalable marketing strategy that ensures the right products reach the right people. How to Leverage IT: The company can use an artificial intelligence (AI) - driven marketing strategy to collect real-time data that can be used to predict customer behavior and adjust to suit. For instance, should the primary target prefer apple pies to sweet potato pies, the café can alter its product mix to meet those needs. It can also increase or reduce inventory based on the predicted consumer demand and rate of growth in the area. Example of a Company That Has Done Something Similar: Starbucks is a good example of a company that utilizes AI marketing to retain, regain, and attract new customers by delivering a more personal experience using the data collected. THREATS Unfortunately, the café faces competition from another establishment that sells similar pies and has a loyal customer base as well as a good relationship with other businesses that purchase from them. How to Leverage IT: Technology can be used here to provide consumers with a seamless experience whether it be in person, via the website/mobile app, or delivery. For example, the café can include a modern pointof-sale system (POS) that: (a) allows customers to pay through credit, cash, and Apple Pay, (b) can be used on-premises and online,(c) allows receipts to be sent via multiple channels including texts. The company can boost customer loyalty through live chat features such as chatbots to interact with buyers and efficiently assist them navigate the website, answer questions, or solve an issue. Additionally, it can offer discounts and coupons to its loyal customers through the mobile apps which encourages them to remain loyal to the brand. Example of a Company That Has Done Something Similar: An example of a brand that has successfully used a POS system to create competitive advantage is Domino’s. It uses the system to collect and control all its customers’ data so as to provide them with a seamless and customized experience. Further, it has previously used this data to curate the Domino’s Piece of the Pie Rewards loyalty program to reward its customers for patronizing the business. THREATS Lastly, the café faces the threat of providing poor service and/or product quality during its first days of operation due to an overwhelming number of diners. How to Leverage IT: To prevent this, the business can employ predictive analytics to determine patterns and trends based on historical data and use the information to meet customer demand. For example, if the data collected indicates that in the past week, at least one hundred customers have dined at the café every day, the company can use this information to predict how many people are likely to dine-in each day and ensure that they have enough staff and products to meet demand. Further, predictive analytics can be used to determine the most consumed product in a given week to ensure that the business: (a) stocks up on inventory,(b) tailors its menu to meet the changing demands, and (c) drastically reduces the amount of food wasted each week. Example of a Company That Has Done Something Similar: A good example of a company that has and continues to use predictive analytics is New York based Fig & Olive. 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