Internal Analysis Analysis Essay Example

emphasizes the use of top-quality ingredients like high-grade beef and imported crab meat from Venezuela to ensure deliciousness. Consistency is achieved by incorporating Philadelphia cream cheese in their empanadas. In addition to two sizes - large and mini - Mr. Empanada also serves Cuban sandwiches and sides such as salads, soups, and french fries.
Their unique focus on empanadas sets them apart as the only chain specializing in this cuisine in the Southeast region while employing a pre-produced fast-casual business model. The niche market of specialty food, particularly empanadas, offers growth opportunities due to factors like low cost, ease of preparation, delicious taste options available.
Mr. Empanada attaches great importance to customer feedback as it helps them improve and gain insights into customers' perceptions of their offeringsThis feedback is helpful for recognizing growth opportunities and has been acknowledged by the USDA through an award for Mr. Empanada's meat products ("Mr.empanada,"2008). According to Audrey Perez, "Our customers are anyone and everyone." Mr. Empanada caters to two types of customers: franchise customers and regular customers. Franchise customers are individuals who either want to purchase or have already purchased a Mr. Empanada franchise. Before finalizing the franchise agreement, potential franchisees are advised by Audrey Perez to carefully consider factors that contribute to a thriving business venture. Simply buying a franchise is not enough; it is important for the franchisee to create a well-planned strategy, take advantage of favorable economic and market conditions, hire competent employees, and prioritize customer satisfaction in order to achieve success in this field ("Thinking of buying"). Demonstrating commitment and making informed decisions are crucial qualities for someone interested in becoming a Mr. Empanada franchisee. Potential franchisees

should not only rely on positive customer experiences but also evaluate the opportunities, threats, strengths, and weaknesses associated with the franchise opportunity before deciding. To maintain the brand's reputation effectively, owners of Mr. Empanada franchises must be diligent and uphold ethical business practices ("Thinking of buying").Individuals considering owning a Mr. Empanada should consult experts and gather relevant information to assess feasibility. Regular customers value the variety of food options offered by Mr. Empanada, which goes beyond typical fast food restaurants. The company caters to a diverse range of customers, including children, adults, seniors, schools, hospitals, country clubs, and events in the area.

Despite economic downturns posing challenges for the fast food industry, fast-casual restaurants like Mr. Empanada thrive due to their excellent service and high-quality food that has built them a loyal customer base. Customers particularly appreciate the freshness, quality of food, and overall service provided by Mr. Empanada (Brandau 2011).

Restaurants like Mr. Empanada have great potential for business growth as they effectively meet customer needs (Brandau 2011). To increase customer visits further, it is recommended that Mr. Empanada focuses on improving their ability to cater specifically to the needs of their target markets through research and development efforts aimed at implementing an effective marketing strategy.

Currently operating seven establishments – five in Tampa including one at Tampa Bay Times Forum; one in Lutz; and a newly opened one in St.Petersburg – Mr. Empanada plans to expand beyond Florida's borders soonDespite Florida's projected sales revenue of $31.5 billion and expected growth rate of 3.9% in its restaurant industry alone, Mr. Empanada has an opportunity to increase brand awareness and expand through franchising, leading to higher profitability. The

organization's mission statement reflects its essence by emphasizing the importance of a comprehensive mission statement that includes purpose, strategy, values, and behavioral standards. It highlights key components such as target customers, products and services offered, target markets, technology used, economic objectives for survival and growth, firm philosophy, desired public perception, and treatment of employees. However, Mr. Empanada's current mission statement lacks these elements and requires improvement as it is too broad and lacking specific details. Without a strong mission statement like this one, both customers and potential franchisees find it difficult to understand the company. Alongside the mission statement lies a vision statement that presents the ideal future of the company while expressing its desired impact on society. The vision should align with the mission for consistency purposes.Mr. Empanada aims to exceed customer expectations and contribute to the communities in which they operate, with a goal of making empanadas as popular as pizza and hamburgers in our culture. The vision statement effectively encompasses all necessary components for an effective vision statement. However, the mission statement of Mr. Empanada is incomplete, making it difficult to analyze the relationship between their mission and vision. To improve this, it is necessary to create a cohesive mission and vision that includes all the proper components. This will help customers understand what they can expect from the company.

A company's culture is often implied and develops over time. It can be observed through various aspects such as employee dress, turnover rate, customer service, customer satisfaction, and other operational areas. To gain a better understanding of Mr. Empanada's culture, we will analyze these areas.

Employee dress holds particular importance as it usually provides

customers with their first impression of the company. If employees are not dressed appropriately, it can have a negative impact on how both the employee and the company are perceived (Source: "Corporate culture").Mr. Empanada has implemented a dress code policy that mandates employees to wear a green shirt with the company's logo, a black hat featuring the logo, and khaki pants. This uniformity promotes cohesion and teamwork among employees while fostering an atmosphere of equality where no one person is dressed superior to others. Furthermore, having a standardized dress code across all locations enhances unity as customers can expect employees at any Mr. Empanada location to be dressed in identical attire.

Employee turnover is an important aspect that cannot be ignored in any organization as it can impact workplace relationships and overall company culture. At Mr. Empanada, the manufacturing department experiences lower turnover rates compared to the frontline, suggesting a relatively neutral turnover rate. However, there are areas that may require improvement in terms of workplace relationships. Therefore, it is crucial to understand and monitor the turnover rate to effectively maintain the organization's culture.

Establishing a customer service-oriented culture can be challenging but also highly rewarding at Mr. Empanada. Employees are expected to prioritize excellent customer service and make responsible decisions in their roles (Morrow, 2000). They receive guidance on appropriate behavior when interacting with customers and coworkers. The company aims to treat everyone with respect and ensure every visitor has a positive experience because good customer service contributes to increased customer satisfaction.
Customer satisfaction is impacted by various factors such as product/service offerings, quality, price, and speed. Mr. Empanada focuses on creating a culture that prioritizes consistent,

quality products and good customer service in order to achieve high customer satisfaction ratings. Yelp reviews are available to assess customer perception. One review gives it four stars and compliments the variety of empanadas offered, while another expresses concern about the price of a single empanada. After reviewing the menu, I found the price to be acceptable but still too expensive.

On a different note, I absolutely love these empanadas! They have become my favorite place to eat in Tampa during the summer. Unfortunately, I haven't been able to find anything similar in the Midwest, which is disappointing. The cravings have become so intense that I even considered opening a franchise or having them ship me frozen ones. I am eagerly waiting for an opportunity to return to Tampa so that I can dine at Mr. Empanadas again.

I highly recommend trying their beef and cheese or crab meat empanadas as they are both outstanding! However, my experience with the beef and cheese empanada was average - nothing extraordinary, much like a Hot Pocket.The service during my visit was also quite cold although it is said that Guava and Cream Cheese empanadas are something special.In summary, these reviews express varying opinions but many customers mention pricing. Mr. Empanada should pay attention to this matter for the sake of wisdom. Generally, the reviews imply that Mr. Empanda's products consistently maintain good quality. This feedback can contribute to positive word of mouth and increased brand awareness.

Mr. Empanada currently lacks an established marketing strategy, which makes it difficult for them to find industry benchmarks for accurate comparison. The range of products they offer allows for different marketing approaches and targeting

strategies. However, their current approach of considering "anyone and everyone" as their customer may be due to the convenience and nature of the product itself.

To identify a specific target market, comprehensive marketing research should be conducted after identifying consumers and defining their preferences. This assessment will involve a SWOT analysis (strengths, weaknesses, opportunities, and threats) as well as an evaluation of their 4+1 P's (Product, Price, Promotion, Placement, and People).

The company possesses several strengths that distinguish them in the restaurant industry. They have a unique focus on empanadas and offer unconventional flavors that could attract a wider market. Their innovative premade process enables better inventory and supply chain management compared to other empanada restaurantsMr. Empanada distinguishes itself in the competitive restaurant industry by offering exceptional storage potential for their packaged product when frozen, with a shelf life of up to 9 months. Their employees are cross-trained, requiring minimal training and allowing for easy switching between positions. The company maintains high standards of cleanliness and ingredient quality.

Despite weaknesses such as a lack of focus on target market and competitive advantage research, Mr. Empanada stands out by emphasizing empanadas as their main offering, giving them a competitive edge. The convenience and manageability of pre-prepared and storable food products also contribute to their success.

With flexibility in empanada fillings, they can adapt to current consumer taste trends. Preparation time is about 4 minutes, making empanadas a less messy alternative that can be enjoyed at any mealtime compared to burgers or tacos.

Similar to Starbucks, Taco Bell, and Pinkberry, Mr. Empanada has found a promising niche market. Improvements are needed in terms of implementing an effective marketing strategy based on identified

target markets through comprehensive market research, overall profitability enhancement efforts, website design improvement, advertising efforts boost,and expansion of restaurant locations to enhance brand awareness.Mr. Empanada delivers empanadas to franchisees and maintains a 1-2 week inventory at the Armenia facility. By utilizing pre-produced empanadas, they are able to mass produce them, resulting in lower costs compared to on-site cooking. The average unit cost for large empanadas is 0.60%u20B5 (0.05%u20B5 overhead, 0.03%u20B5 dough, and 0.52%u20B5 other costs), while small emapanadas cost 0.25%u20B5 (0.%u200305 overhead ,and %U20020105 other costs). These emapandas are sold for approximately $1-$3 each.

Currently, Mr. Empanada is determining pricing plans for complete meals without conducting research on consumer preferences or assessing the potential impact of pricing differences on profitability. However, preliminary online research suggests that consumers find the empanadas to be expensive.

In terms of promotion, Mr. Empanada does not have a formal strategic marketing plan but instead relies on word-of-mouth advertising and community outreach efforts.They also utilize independent promotion through their franchise structure.An unsuccessful attempt was made to target the Hispanic market with coupons.The website of Mr. Empanada is poorly designed and fails to accurately represent the company's values or quality.Despite these challenges, preliminary research indicates that there are no other fast-casual chains specializing in empanadas, indicating that Mr. Empanada has successfully carved its own niche in the marketDespite the competition from fast-casual restaurants like Chipotle, The Taco Bus, Taco Bell, Panera Bread, and Pita Pit, one thing they don't offer is empanadas. This creates an opportunity for Mr. Empanada to appeal to a broad international market and expand into suitable locations with a wide range of flavors. To ensure successful expansion, thorough research on

consumer preferences and pricing strategies should be conducted by Mr. Empanada while also identifying profitable areas for additional stores.

The success of Mr. Empanada has been greatly influenced by their strong family ties and core values. When employees join the company, they are treated like family and receive wages above the minimum wage. They also enjoy benefits such as pay raises and a unique system that saves money spent on food for employee events. Cross-training is another advantage as it enhances skills and flexibility within different positions.

Analyzing financial performance is crucial for overall stability at Mr. Empanada. Valuable insights can be gained by comparing records from previous years and industry competitors' data to assess their position in the market. The chart below illustrates key ratios that will be used in this analysis, including net working capital which measures the company's ability to cover short-term liabilities.

Both Mr. Empanada Franchise Corp.and Mr. Empanada have shown positive net working capitals, indicating their strong performance in recent years.
The increase in net working capital from 2010 to 2011 suggests that both Mr. Empanada Franchise Corp. and Mr. Empanada have enough assets to cover short-term liabilities, as indicated by the current ratio. The current ratio reflects a company's ability to pay off current liabilities using its current assets. A higher current ratio is favorable, indicating a greater ability to meet obligations. If the ratio is below 1, it means the company cannot cover its current liabilities. According to the provided chart, both companies are capable of fulfilling obligations, but Mr. Empanada has a significantly higher ratio, suggesting a more advantageous financial position.

Furthermore, Mr. Empanada's current ratio approximately doubled from 2010 to 2011,

demonstrating positive financial stability and capacity to handle future liabilities. The gross profit margin measures the remaining revenue after deducting costs of goods sold. In both years mentioned (2010 and 2011), Mr. Empanada had only 27 cents and 26 cents respectively left for additional expenses after each sale.

On the other hand, the net profit margin represents the money left over after accounting for all potential expenses.Mrs.Pan hasa negative profit margin of -5..02%.The net profit margin for the company increased from 0.05 to 0.14 in 2011, indicating a need for closer attention to improve profitability. However, there is a positive aspect in Mr. Empanada's financial statements, as officer salary decreased by 80.1% from $72,600.00 to $14,450.00. This reduction in costs can significantly improve net profits if further expense cuts are found.

Research and development (R) play a crucial role in reducing costs and providing a competitive advantage for businesses. While industries like pharmaceuticals and technologies heavily rely on R for growth and cost reduction through innovation, Mr. Empanada's financial statement reflects limited budget allocation towards R&D in the fast-casual dining industry.

However, conducting research and development activities can still benefit Mr. Empanada by staying updated with technological advancements in manufacturing machinery, delivery systems, and inventory monitoring systems that effectively reduce costs without significant investments being requiredMr. Empanada currently produces their own empanadas using a unique dough made from scratch. These empanadas are frozen in batches of 5,000 to 6,000 using racks and blast freezers by employees. To streamline production time and strengthen the manufacturing division, management is considering investing in a tunnel blast freezer attached to the production machine, which would halve production time.

Currently, Mr. Empanada relies on

one truck for deliveries, resulting in high fuel expenses. To lower costs and increase net profit, the company should upgrade to hybrid trucks with advanced technology like hybrid power train.

While Walmart has developed an elaborate inventory monitoring system that alerts suppliers when items are running low and helps reduce costs, Mr. Empanada has a well-maintained tracking system that partially depends on manual work. However, this old-school approach can lead to inefficiencies. Therefore, integrating a digital tracking system is the next step for Mr. Empanada to eliminate manual labor and improve their strengths in research and development.

The company also faces weaknesses in their delivery system and production costs due to waiting for blast freezer usage.

Operations play a crucial role in any business and encompass subcategories such as customer relations, employee relations and training, and manufacturing procedures.Mr. Empanada focuses on efficient operations to provide quality service at wholesale prices for various clients, including schools, hospitals, country clubs, and bingo nights. They also maintain good customer relations by serving different schools or events at each store. New employees undergo cross-training procedures, while franchisees receive individual training in areas such as retail, manufacturing, and delivery. The majority of employees possess functional skills in retail, while others are capable of performing any job within the business. Albert Perez prioritizes cleanliness and filters frying oils daily to ensure a clean and healthy environment. Consistency is important to Albert as he strives to offer consistent products made with 86% lean meat from City Meets and a handmade dough with a production capacity of 2,000 to 10,000 empanadas per day. If there is any risk of cross contamination, the dough is discarded and

empanadas are placed in a blast freezer for storage while maintaining product quality.Once a week, deliveries are made using a truck that has the capacity to hold about 50 cases of empanadas, which is equivalent to approximately 3,000 to 5,000 pieces. In addition, every morning before operations start, all machines go through a cleaning process. In the retail department dedicated to individual store sales, frozen empanadas are prepared accordingly. When customers order an empanada, an employee deep-fries the frozen product for four minutes before selling it to them.