戴维 战略管理(第17版)全套英文教辅案例david_sm17_case_im_09

Case 9 - Cracker Barrel Old Country Store (CBRL) – 2018 –Teachers’ Note by Forest R. David
Case Abstract
Headquartered in Lebanon, Tennessee, Cracker Barrel is an American chain of combined restaurant and gift stores that offers a Southern country theme in both its food and décor. Most Cracker Barrel stores are positioned near Interstate highway exits in the Southeast and Midwest United States, but the company has expanded across the country. Each Cracker Barrel restaurant features a front porch lined with wooden rocking chairs, a stone fireplace, and decorative artifacts tailored to the local area such as college football attire for teams in the particular state. Cracker Barrel is known for its partnerships with country music performers.
All Cracker Barrel stores are owned and operated by the company as opposed to using a franchised licensee business model so common among restaurant chains. The firm has a menu based on traditional Deep South cooking, also known as country cooking that tends to be high in calories, fat, sugar, and salt but tastes great. Much of the food is made to order and the company has millions of satisfied customers that come to get a delicious breakfast, lunch, or dinner like Momma would cook. Famous servings include fried chicken, chicken and dumplings, country-fried steak, hamburger steak, turkey with dressing, over 10 different vegetables, corn bread and biscuits, and breakfast foods available throughout the day – and desserts such as pecan pie and brownies.
Alcoholic beverages are not sold at Cracker Barrel but are sold at the firm’s relatively new Holler & Dash Biscuit House restaurants. Cracker Barrel is unique in having a merchandise store located in every restaurant; merchandise sales account for about 20 percent of company revenues. The company's gift shops offer various decorative items such as rocking chairs, holiday and seasonal gifts, toys, apparels, music CDs, cookware, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items. As of February 2, 2018, the company operated 649 Cracker Barrel Old Country stores in 45 states.
In fiscal 2017, the firm had sales of nearly $3 billion with a staggering profit margin of 70 percent. Cracker Barrel is listed in Forbes Magazine Top 100 most reputable companies and ranks number one in the American Customer Satisfaction Index as the best full-service restaurant in the United States.
Vision Statement Analysis
Effective vision statements exhibit five characteristics that can be used as guidelines for writing or evaluating vision statements. Any vision statement that scores a 5 out of 5 on these characteristics is exemplary. In Chapter 2, this vision statement assessment technique is referred to as “The 5 out of 5 Test.”
1.Clear: reveals type of industry and what firm strives to become
2.Futuristic: reveals what the firm strives to become or accomplish within 5 years
3.Concise: one sentence in length
4.Unique: reveals the firm’s competitive advantage
5.Inspiring: motivates readers to support the firm
As presented in the case, Cracker Barrel’s vision statement is “to create a high-performance organization by leveraging the uniqueness of every employee throughout the company (paraphrased).” This statement is not “clear” because it does not reveal typ e of industry, nor is the statement “futuristic.” The statement is “unique” and “inspiring.” An improved vision statement for Cracker Barrel could read as follows:
“To create a high-performance organization by leveraging the uniqueness of every employee to win in the casual dining industry today and for years to come.”
Mission Statement Analysis
The 10 desired characteristics of an effective mission statement are as follows:
1. Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives
2. Concise; fewer than one hundred words in length
3. Inspiring
4. Identifies the utility of a firm’s products
5. Reveals that the firm is socially responsible
6. Reveals that the firm is environmentally responsible
7. Includes nine components: customers, products or services, markets, technology, concern for
survival/growth/profits, philosophy, distinctive competence, concern for public image,
concern for employees
8. Reconciliatory; resolves divergent views among stakeholders
9. Enduring but never cast in stone
10. Attracts customers; is written from a customer perspective
The 9 desired components of an effective mission statement are as follows:
1. Customers—Who are the firm’s present and potential customers?
2. Products or services—What are the firm’s major products or services?
3. Markets—Geographically, where does the firm compete?
4. Technology—Is the firm technologically current?
5. Concern for survival, growth, and profitability—Is the firm committed to growth and financial
soundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Distinctive competence—What is the firm’s majo r competitive advantage?
8. Concern for public image—Is the firm responsive to social, community, and environmental
concerns?
9. C oncern for employees—Are employees a valuable asset of the firm?
Cracker Barrel’s mission statement is “to leverage our diver sity to create and foster engagement in the workplace (7), win in the marketplace (%), and make a difference in our communities (8) (paraphrased).” Notice that only two of the nine desired components are included. It is noteworthy that the word diversity i s included in the company’s mission statement because for a decade the firm had problems with diversity, but has now recovered fully, partly
due to the words in the mission statement trying to establish a tone throughout the firm of inclusion, respect, promotion, encouragement, and rewarding diversity.
A proposed mission statement for Cracker Barrel that includes the nine components and meets the ten characteristics (in less than 100 words) is given below:
At Cracker Barrel, we offer a great alternative to the fast food pit-stop along America’s highways (7). We combine home-style food with a country store appeal (2, 3), offering more variety and healthier choices for individuals and families (1). We use the latest technology (4) to profitably grow (5), while operating with mutual respect and equal treatment to all employees, customers, and communities (6, 8). Stop, take a break, and meet our diverse, dedicated family of employees (9) (69 words)
External Factor Evaluation (EFE) Matrix
Competitive Profile Matrix
Financial Ratio Analysis
Internal Factor Evaluation (IFE) Matrix
Strength-Weakness-Opportunity-Threat (SWOT) Matrix
SO Strategies
1.Open 150 new stores west of the Mississippi River (S1, S2, S8, O2, O5).
2.Open 20 new stores in the 20 largest European cities (S1, S2, O1, O3).
3.Increase advertising by $100 million on various social medial platforms (S1, S7, O9).
4.Increase advertising by $200 million mainly targeted toward older customers (S1, S2, O5,
O6, O7).
WO Strategies
1.Open 150 new stores west of the Mississippi River (W1, W2, O2).
2.Build 200 new Holler & Dash stores across the USA (W1, W9, O2, O5, O9, O10).
3.Increase advertising by $100 million on TV (W1, W7, O5, O7).
4.Invest $200 million to develop a new line of healthier products, especially vegetables not
cooked in meat products (W3, W4, O1, O10).
ST Strategies
1.Increase profit sharing for managers and all employees who have worked over 1 year at a
Cracker Barrel store by 5% of current benefits offered (S5, T3, T4).
2.Open 30 Cracker Barrel stores in the 10 largest cities in the eastern USA getting partly
away from interstate focus (S8, T1).
3.Advertise heavily products that contain higher margins (S1, S2, S7, T2, T5, T10).
4.Build 200 new Holler & Dash stores across the USA (S1, S10, T1, T6).
WT Strategies
1.Invest $200 million to develop a new line of healthier products, especially vegetables not
cooked in meat products (W3, W4, T8, T10).
2.Develop a customer rewards program (W10, T1, T10).
3.Hire a nutritionist to r edevelop Cracker Barrel’s menu to make all products healthier (W3,
T1, T7, T8, T10).
4.Franchise out 100 restaurants (W6, T1, T2).
Strategic Position and Action Evaluation (SPACE) Analysis
Boston Consulting Group (BCG) Matrix Analysis
1.South
2.Northeast
3.West
4.Midwest
Internal-External (IE) Matrix Analysis
1.South
2.Northeast
3.West
4.Midwest
Grand Strategy Matrix Analysis
Quantitative Strategic Planning Matrix (QSPM) Analysis
Strategy 1: Open 150 new stores west of the Mississippi River for $150 million.
Strategy 2: Invest $200 million to develop a new line of healthier products, especially vegetables not cooked in meat products.
Recommendations with Associated Costs
1.Open 150 new stores west of the Mississippi River for $150 million.
2.Open 20 new Cracker Barrel stores in the 20 largest European cities for $20 million.
3.Increase advertising by $100 million on various social medial platforms.
4.Invest $200 million to develop a new line of healthier products, especially vegetables not
cooked in meat products.
5.Increase profit sharing for managers and all employees who have worked over 1 year at a
Cracker Barrel store by 5% of current benefits offered.
6.Hire a nutritionist to redevelop Cracker Barrel’s menu to make all products healthier for
$120,000.
Note: Total costs are rounded to $500 million.
Organizational Chart Analysis
Chapter 7 presents 15 guidelines for developing an effective organizational chart, as follows:
1.Instead of chairman of the board, make it chairperson of the board.
2.Make sure the board of directors reveals diversity in race, ethnicity, gender, and age.
3.Make sure the chair of the board is not also the CEO or president of the company.
4.Make sure the CEO of the firm does not also carry the title president.
5.Reserve the title president for the division heads of the firm.
6.Include a COO if divisions are large or geographically dispersed.
7.Make sure only presidents of divisions report to the COO.
8.Make sure functional executives such as CFO, CIO, CMO, CSO, R&D, CLO, CTO, and
HRM report to the CEO, not the COO.
9.Make sure every executive has one boss, so lines in the chart should be drawn accordingly,
assuring unity of command.
10.Make sure span of control is reasonable, probably no more than 10 persons reporting to any
other person.
11.Make sure diversity in race, ethnicity, gender, and age is well represented among corporate
executives.
12.Avoid a functional type structure for all but the smallest firms.
13.Decentralize, using some form of divisional structure, whenever possible.
e an SBU type structure for large firms with more than 10 divisions.
15.Make sure executive titles match product names as best possible in division-by-product and
SBU-designated firms.
Exhibit 1 - Cracker Barrel’s Top Executives and Organizational Structure
1.Sandra Cochran, President and CEO
2.Doug Couvillion, Senior VP Sourcing and Supply Chain
ura Daily, Senior VP, Retail
4.Nicholas Flanagan, Senior VP Restaurant and Retail Operations
5.Jill Golder, Senior VP and CFO
6.Don Hoffman, Senior VP, Marketing
7.Rich Wolfson, Senior VP, General Counsel and Corporate Secretary
1
2 3 4 5 6 7
Author Suggestions to Improve the Organizational Chart Presented in the Case
1.The CEO should not also be President, so delete the title President from #1.
2.Add four Presidents of regions, such as President Northeast USA, President Southeast
USA, President Western USA, President Outside USA, and all report to new-to-be-hired COO. Perhaps #3 and #4 should become one of the Presidents. There is need to monitor and maximize each store/restaurant’s operation as a separate profit center headed by a
manager. This whole structure should be a strategic business unit, (SBU) with the units being by-region, and numerous state regional managers reporting to their respective SBU President.
3.Hire a Chief Human Resource Management (HRM) Officer.
The new Cracker Barrel organizational chart should look something like the following, with the regional Presidents (#6 thru #9) reporting to the new COO (#2), with #3, #4, and #5 being the old #5, #6, and #7.
1
2 3 4 5
6 7 8 9
Perceptual Map Analysis
Corporate Valuation Analysis (in millions)
EPS/EBIT Analysis (in millions)
Projected Financial Statements (in millions)
1.Obtain $100 million in fiscal year 1, $200 million in fiscal year 2, and $200 million in
fiscal year 3, all through debt.
2.Attribute $170 million to Property Plant & Equipment in fiscal year 2.
3.Raise dividends slightly each year.
Retained Earnings Table (in millions)
Projected Financial Ratio Analysis
Epilogue (earnings release coming 9-19-18)
It is Fall 2018 and Cracker Barrel's stock remains depressed, even as other casual dining shares soar. Slow foot traffic and slowing expansion are persistent problems even as the company's fundamentals remain solid due to its unusual capital allocation strategy. So why is foot traffic slow? Perhaps t he level of complexity in the company’s operations is likely o ne factor. Not only does Cracker Barrel open for three day-parts, but it also derives an increasing share of sales from to-go orders and catering. Also, Cracker Barrel retail operation generates 20 percent of sales; those sales declined 3.7 percent in 2017 among comparable stores. However, the business-within-a-business concept does work well for an increasing number of companies.
Cracker Barrel opened just six new stores in 2017 and plans to add a mere eight or nine units total during 2018. Compare this pace for example with Texas Roadhouse (TXRH) that added 30 units in 2017 and plans to open almost as many this year. In general, shareholders of any company expect 4 to 5 percent top line (revenue) and bottom line (net income) growth, and so far Cracker Barrel just has not delivered on that expectation.
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