Caruso's Pizza Case Analysis

1. What are you going to do?
Caruso’s Pizza’s biggest problem is the conflict between the kitchen staff and the new express delivery staff. From a human resources point of view, choosing cooperative employees is important in creating a positive working environment which is much needed for Caruso’s Pizza. Currently the cost expenditures for employee meals, cost of food, and advertising costs exceed that of dominos, and of the 3, the former 2 must be shortened to become competitive. Cross department training between old and new employees is also another option for Caruso’s Pizza. But due to the high potential in their current market they should not give up their delivery service and try to increase their share of the pie.
2. Why isn't Caruso's express delivery operation profitable?
Due to the lack of coordination between the in-house dining and express delivery team, Caruso’s express delivery operation has higher cost than its’ main competitors. Caruso does have a very innovative delivery system but the critical factor in winning against strong competitors is the teamwork between employees. For Caruso’s express delivery operation to become profitable it must overcome the lack of cooperation between its employees.
3. What are the strengths and weaknesses of the two delivery systems?
Express delivery efficiently uses labor forces, provides better quality products, faster delivery time, and a variety of choices to customers. On the other hand it causes additional budget for devliering vehicles, extra staff order takers, dispatchers and divers, and extra advertising for the new service, hence the higher cost of Caruso. Domino’s hot shot method has a relative fast delivery time of 30 minutes and a simple system allowing efficient use of labor, however being only deliver pizza within 2 miles and a limited number of menus and side menus.
4. Is the express delivery concept feasible? What are the Key Success Factors?
The express delivery concept is feasible...