Case Texan Chicken

Semenov Nikita 2301

Case Texan Chicken

 

1. SUMMARY

 

Texan Chicken has 40 outlets, using a franchising system. When Texan Chicken went public, the share price rose by 120% within a week. Unfortunately the companies’ share price has fallen recently by over 80%. And they have called in a team of management consultants to advise them on their future strategy.

 

2. PROBLEM

Demand on Texan Chicken food has fallen.

 

III. CAST OF CHARACTERES

People:

Eva Martinez, who founded Texan Chicken, she with Ramon own 40% of the shares.

Ramon Martinez, who founded Texan Chicken, he with Eva own 40% of the shares.

Martin Webb, who owns 12%, the other major shareholder is a South African businessman.

Institution:

Texan Chicken was founded by Eva and Ramon Martinez, it has 40 outlets, using a franchising system. And they offer chicken on special recipe with a sauce, which varied from mild to very hot, depending on the customer’s taste. The companies’ share price has fallen recently by over 80%.

 

IV. CHRONOLOGY

 

1. Eva and Ramon Martinez have called in a team of management consultants to advise them on their future strategy.

2. Some problems of the franchisees who don’t run their restaurants properly.

3. They couldn’t pay back some of their loans on time (the banks and investors don’t like it).

4. The companies’ share price has fallen recently by over 80%.

5. Demand on theirs food has fallen.

6. When Texan Chicken went public, the share price rose by 120% within a week.

7. Texan Chicken was opened in West London, and within five years had built up a chain of 40 outlets, using a franchising system.

 

V. ISSUES:

External issues

1. Very strong competition on the fast food market

Internal issues

1) They couldn’t pay back some of their loans on time (the banks and investors don’t like it).

2) Some of the franchisees don’t run their restaurants properly.

3) The décor is also dull and unexciting.

 

 

VI. OPTIONS

 

Adoption new strong rules for franchisees

 

+	-
Control  of franchisees	The loss of number of franchisees
Improvement the company’s reputation

 

Creation the new concept of restaurant

 

+	-
Attract new customers	Possible loss of loyal customers

 

 

Orientation of new policy on customers survey

 

+	-
strengthening of positions	effect of strong competition
consideration mistakes

 

 

VII. RECOMENDATION

I recommend to conduct policy oriented on customers survey.

 

VIII. PLAN OF ACTIONS

 

1. Conduct a survey among customers
2. Analyze results
3. Develop a plan of action
4. Choose some restaurant for introduction of innovation
5. Analyze the results
6. Based on the results of the remaining upgrade restaurants