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59

Identifying needs

We’ve got to get more information. We need more information about…

Stating future actions

So, the next thing to do is

What we’ve got to do now is ….

Case study Texan Chicken: Work out a strategy to save a failing fast food company

Background

Texan Chicken was founded by Eva and Ramon Martinez. They have had no previous experience in the restaurant industry. They opened their first restaurant in West London, and within five years had built up a chain of 40 outlets, using a franchising system.

The reason for their success was the quality of their product. Their delicious fried chicken was based on a recipe that Ramon had discovered when traveling in Texas.

It was served with a sauce which varied from mild to very hot, depending on the customer’s taste. All the restaurants offered a take-out service, which was popular with customers.

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

There seemed to be no limit to Texan Chicken’s profits and expansion.

Present situation

Unfortunately the company’s share price has fallen recently by over 80 %. There has also been a strong pressure on Eva and Ramon Martinez to resign as co-chairmen of the business. At present, they own 40 % of the shares. The other major shareholder is a South African businessman, Martin Webb, who own 12 %. Eva and Ramon Martinez have called in a team of management consultants to advise them on their future strategy.

Listening

Listen to this interview on Business News, a daily radio program in which experts comment on topical business items. Note down four problems facing the business.

Texan Chicken recently did a survey to find out what its customers thought about its restaurants. Here are the results.

Consumer survey (summary)

 

Customers

 

 

Age

18 – 30

58 %

 

30 – 40

32 %

 

40+

10 %

Sex

Male

54 %

 

Female

46 %

Status

Single

 

65 %

 

Married, no children

23 %

 

Married, with children

12 %

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