1.
Discuss the resources and capabilities of Wil’s Grill and identify its core competencies in the street
food market segment using VRIN framework.
VRIN Analysis of Wil’s Grill
Resources and capabilities of Wil s Grill:
Clean Food @ good Price:
John understood the consumer’s interest and preference towards the “Clean food”. Most of the dishes
in Wil’s grill were prepared instantly and the raw materials were sourced from Local farms and this
encourages the students as well as the people at the Community events to spend more at Wil’s Grill. Through
Survey also he confirmed that consumer’s are willing to spend more money if it is a Clean Food. But in Wil’s
Grill John through the Local Connections and Not focusing on his Profit in the Beginning He achieved the
Clean Food with a reasonable price.
Brand Name :
Wil's Grill since they've begun has picked up a decent picture for their image. Amazing reviews from
their local websites, explicitly Facebook, are watched and individuals from their zone more often than not
prescribes the place. The explanation for this is their genuineness, straightforwardness, consistency, and
quality.
Relationship with Employees:
John always makes it to a point that all employees that he hires whether permanent or temporary is
treated fairly. He firmly believes that in doing so these people would be willing to work for him again. This in
turn acts the employees to serve the customer well and faster without Compromising quality.
Location:
Born and brought up in Arizona makes john knowing where to locate his business is one of the
strengths of the company. He is also able to locate the local events and able to capitalize the moment by doing
small food events with his “Clean food” movement. He is also able to scrutinize the best places to procure the
materials.
Technological Advantage:
Generally the Street Food vendors not very keen on developing the website and mobile app for this
restaurant. Wil’s Grill has a competitive advantage in having a dedicated website telling the best local farms
where the procurement is done. It also has mobile app, the strong penetration of smart phone technology will
gives them a competitive advantage if they started using more effectively.
Non-
Resource/capability Valuable Rare Inimitable Implication
Substitutable
Clean Food Yes Yes No Yes Temporary Advantage
Clean Food with Good
Yes Yes Yes Yes Competitive advantage
Price
Versatile ( Catering Two
Yes Yes No Yes Temporary advantage
segments)
Employee Involvement Yes Yes Yes Yes Competitive advantage
Portability Yes Yes No Yes Temporary advantage
Understanding of Local
Yes Yes Yes Yes Competitive advantage
Supply chain
Mobile App & Social Media
yes Yes Yes Yes Competitive Advantage
Presence
Customer Service & loyalty Yes No No Yes temporary advantage
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2. What are the strengths, weaknesses, opportunities and threats for Wil’s Grill? Identify
various strategic options for Wil’s Grill by creating a SWOT matrix.
SWOT Analysis Matrix – Wil’s Grills
▪ Strength, Weakness, Opportunities, Threats
▪ Strategic Options
Oppurtunities Threats
Wil's Grills
- Clean Food - New entrants
SWOT Analysis
- Motivated Customers - Presence of large, well
with established competitors
- High margin
Strategic Options - Changes in customer trends & preferences
- Consistent business
Strengths
- Continue clean food with good Quality
- Focussed vision aligned with market trend - Maintain price & Quality irrespective
- Match product to customer preferences
- Use of Technology of competitors.
- Match customer demand
- Publicity through events - Use technology for latest trends
- Venture into new market
- Quality > Presentation & Quantity - Use reviews as marketing strategy
- Extensive promotions & marketing
- Excellent reviews & Awards - Update products with changing
- Coupons & Discounts customer trends
- Variety of foods
- Forecast customer prices for high profits
- Zero debt
Weakness
- No permanent office - Fix a permanent office - Improve business strategies to
- No standardized prices - Hire more labour & manpower match competitors
- No permanent employees - Year-round oppurtunities to increase sales - Hire focussed marketing managers to attract
- Limited budget for new kitchen equipment - Use high margin incomes to boost profits more potential customers
- Not well-established in the local catering
market
Opportunities:
• Various surveys conducted in the US indicated a growing interest in ‘clean food’
influencing customers’ food and beverage purchase decisions. John, as the owner of Wil’s
Grill believed that demographics and psychographics of people in Northern Arizona aligned
well with the national clean food movement.
• According to the survey conducted by the NAU marketing research students, people of Northern
Arizona were more eager to pay a premium price for clean food and prefer local caterers who
sourced local foods. Survey statistics revealed the following:
- 78% of the respondents are willing to pay an additional of $1 to $6/ person for clean food.
- 63% of people indicated that locally sourced food would motivate them to purchase from
that caterer.
• Catered events could have margins of up to 40%. Catering opportunities were available year-round
in the Northern Arizona market.
Threats :
• Increasing food trucks and presence of new entrants that builds competition in fare
• Large competitors (like Big Foot BBQ, Satchmo’s etc) in the catering industry
• Well-established competitors (in business for ~20 years) in the catering business
• Fast changing trends in the market and preference of the customers
STRATEGIC OPTIONS:
Strengths Strength & Opportunities Strength & Threats
▪ Since the trend ▪ Continue to serve ▪ Wil’s Grill should
nowadays is living ‘clean food’ while maintain its price or
towards a healthy maintaining the lower it if possible but
lifestyle, Wil’s Grill quality of the food should not adjust the
focused on selling ▪ Continue to match quality of the foods
‘clean food’ to attract their product they serve to match
customers according to the prices with other
▪ They have a website preference of their competitors
exhibiting their ‘clean customers ▪ Wil’s Grill could
food’ menu, a mobile ▪ Wil’s Grill should be maximize the use of
app and a social flexible in order to their website, mobile
media presence meet the demand and app and social media
through Facebook preference of their account to get updates
▪ Wil’s Grill increased target market about latest trends and
its exposure to ▪ Wil’s Grill could conduct brief online
customers by slowly introduce their survey to know the
participating in a lot food to a new market latest preference,
of street food events in order to increase opinions and
nearby Northern popularity and suggestions of
Arizona. customers consumers to improve
▪ Prioritizing the quality ▪ They could use the their product and
of the foods served, excellent reviews for service
more than the their advertisements ▪ They could use the
presentation and and promotional ads excellent reviews that
quantity in the catering market they received and
▪ Wil’s Grill received ▪ They could add more their participation on
excellent reviews food choices for their street food events as
from local writers, catering services leverage on the new
food critics and ▪ Use their website, entrants. They could
customers and was mobile app and create a good
featured in July 2015 Facebook page to marketing strategy out
issue of Flagstaff advertise their of it
Business News catering services and ▪ Due to fast changing
▪ They received promote new food trends, Wil’s Grill
referrals from caterers offerings could replace some of
for special foods that ▪ Wil’s Grill could take the foods that they are
Wil’s Grill was advantage of their offering with choices
known for – smoked website, mobile app that customers prefer
meats and barbeque and social media to more. This they could
▪ The Management, as give coupons and find out by conducting
much as possible, discounts to attract surveys or suggestions
tried to maintain their new customers and from customers.
zero debt increase their loyal
▪ Wil’s Grill sells customers
variety of foods like
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barbeques, smoked ▪ They could also take
meats, marinated advantage of the
chicken, sandwiches, survey that was
veggies kabob, Mac & conducted to forecast
cheese etc the price customers
are willing to pay and
meet their demand.
Weakness Weakness & Opportunities Weakness & Threats
▪ The Management did ▪ Wil’s Grill should ▪ Wil’s Grill could
not establish a consider having a somehow mimic and
permanent office permanent office if improve the business
▪ Lack of they will pursue strategies of well-
standardization in the catering services to established catering
prices accommodate clients services in order to
▪ Lack permanent ▪ They should also hire match with its
employees more employees since competitors
▪ Limited budget for catering services ▪ Wil’s Grill should hire
new kitchen would require more people that will focus
equipment labor and manpower and help John on the
▪ Wil’s Grill is still not ▪ Since catering marketing aspects of
well-established in the opportunities are the business to
local catering market available year-round, establish
Wil’s Grill could use attractiveness to
this as a way to potential customers
improve their catering
services and later on,
could establish a name
on the catering
Industry
▪ Since catering could
have margins of 40%,
venturing in this
industry could help
Wil’s Grill to afford
new kitchen
equipment and other
things like logistics
and maintenance of
old equipment. This
could also increase the
business’ income in
the long run.
3. You have identified the resources, capabilities and core competencies of Wil’s Grill
developed in the street food market segment while answering question 1. Now, discuss the
transferability of those resources, capabilities and core competencies to the catering market
segment in terms of the following:
a) Which of those resources, capabilities and core competencies are transferable to the catering
segment?
The following resources, capabilities and core competencies can be transferred to the
catering segment:
Clean Food: Wil’s Grill had a strong focus on clean food at reasonable prices.
Suppliers: Relationships that John had established with the local supply chain gave them an
competitive advantage in the external sector. Hence, the suppliers Wil’s Grill have can be
transferred to use in the Catering segment effectively.
Brand Equity: Catering business needs more familiarity of the brand name which needs to
be worked upon as most of the respondents of the survey had never heard of Wil’s Grill.
Pricing strategy: Since, the catering segment is not as price sensitive as street food
consumers, hence the pricing strategy of street food business can be transferred to catering
industry by slightly increasing the prices to increase profit margins.
b) What gaps exist in terms of resources, capabilities and core competencies if Wil’s Grill
enters the catering segment?
Employee Involvement
In the current scenario, employees in street food business typically worked for normal hours,
while during events occasionally they are even flexible to work for ~18 hours, but while
expanding to catering business which requires routine high working hours, the same employees
might find it difficult to work. This gap exists when Wil’s Grills enters the catering segment.
Customer Preferences
In the street food business, Wil’s Grills understands the customer preferences through the
“clean food” movement. It also knows the serving mass i.e mostly students and public
events. But the same can’t be predicted for a catering business since it is of a large scale and
mostly premium foods are favoured in parties and functions than “clean foods”.
c) How will Wil’s Grill acquire and or/develop the missing resources, capabilities and
core competencies if it decides to enter the catering segment?
Employee Involvement
To develop the missing core competencies with respect to employee involvement,
1) Hire hotel management students/trainees who have prior knowledge and experience with
catering industry.
2) Hire more labours and manpower, and schedule optimized work hours equally so that the
employees have utmost job satisfaction.
Customer Preferences
To develop the missing core competencies with respect to customer preferences,
1) Understand the customer demand and ask more details pertaining to the event and crowd’s
eating preferences.
2) Suggest new variety foods to attract the guests so that they will refer to future events.
3) There is always be a scope of improvement, to capitalize this, obtain feedback from customers after
the event and try to work on the suggestions provided.
4. Based on the analyses done for the previous questions, advise Wil’s Grill whether it should
expand its operations either by entering the catering market segment or by doing something else.
Computing the future cash flows considering both the businesses, we find that the NPV of Catering Business is higher
than expanding street food, hence wil’s grill must enter the catering market segment
PROFITS- PROFITS- PROFITS-
BUSINESS DECISIONS INVESTMENT 2017 2018 2019 NPV
Expand street food -9000 33655 44550 58300 100106.1
Enter into catering -25000 40425 59675 84425 121583.3
It is mentioned in the case that entering both the segments revenue tends to grow in the future, thus it
appears as projects with growing perpetuity. But, when considering proportional costs (27.5% of
Revenue) in the respective years, Entering into catering segment even with proportional cost it looks
more attractive business to get into. But in reality the higher revenue yields more profit because of fixed
costs.
