Case #33 California Pizza Kitchen Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt‚ CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company‚ the case provides
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Cheese pizza is a consumer product that is bought to satisfy individual’s personal wants. It is a shopping product that requires comparison shopping because it is usually more expensive and found in fewer stores. It is not as popular as pizza box and pizza hut‚ but it is an relatively new product in the market and offers an alternative for customers with different wants. Cheese pizza is now at the growth stage. It is experiencing increasing rate of sales‚ entrance of competitors‚ market consolidation
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Domino’s Pizza Introduction: This report is going to be based upon Domino’s Pizza‚ a franchised organisation derived in Michigan‚ USA. This report will firstly give a brief overview of the history of Domino’s; it will then establish and explain the micro and macro factors that affect Domino’s and their effects on the business. It will also contain a strategy which would allow Domino’s to adapt and thrive in its ever changing environment; the report will give details explaining which external
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Supermarket Psychology: Supermarket Layout watch this video http://www.youtube.com/watch?v=g3IwOgA3Ngw This video is about trolleyology. In simple words means make us easy in spending our money with use of psychology. The case is one customer had given a simple task in 3 minutes to shop 3 basic goods in the supermarket that never shopped before. It looks simple but actually it really hard where you will face with many disruptive things. Customers tend to shop at anti clock direction
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BA 481 Professor Johnston 2/6/12 Pizza & How It Has Evolved As of late‚ pizza throughout the United States is consumed on a daily basis. Each year‚ the pizza market is a $30 billion industry. However‚ during the early years of our country pizza could only be found in high Italian populated neighborhoods located in big cities like Chicago‚ New York City‚ and Philadelphia. Due to the increase in popularity and marketing strategies to compliment it‚ pizza went from peasant food in the 1700s
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example‚ they found out that their marketing mix elements has to vary depending on what country they were in. Another example of a marketing mix element that needed some change was when they were opening their franchise in Japan. Granted all the pizzas look the same but some of the toppings are not accepted in other cultures. In Japan‚ they did not know what pepperoni was. They thought it was a type of pepper‚ and when they found out it was a type of meat; they were a little discouraged because
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California Pizza Kitchen Chris Schroeder FI 602: Financial Strategy and Valuation Fang Chen September 21‚ 2012 Introduction In July of 2007‚ California Pizza Kitchen (CPK)‚ a casual dining pizzeria started in California by co-owners Rick Rosenfield and Larry Flax‚ was faced with the decision to invest in a stock repurchase program. Led by Chief Financial Officer Susan Collyns‚ the financial team of CPK was reviewing the preliminary results for the second quarter to determine if the stock
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information‚ sold information and delivery information. Management information system Input: data from TPS Processes: use the data to summarize into report. Output: the report present the employee performance‚ the time to make pizza and delivery to customers. Besides‚ report present the profit and loss. Decision support system Input: data from TPS and external data Processes: managers analyze data. Output: analyze customer’s favor and sales feature. Managers
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Assignment week 3 Chapter 9 1. The seven layout strategies presented in this chapter are office layout‚ retail layout‚ warehouse layout‚ fixed position layout‚ process oriented layout‚ work cell layout‚ and last product oriented layout. Each layout has its own objective for example office layout positions workers‚ their equipment and space. The next layout is retail layout it allocates shelf space and responds to customer behavior. warehouse layout objective is to balance low cost storage with
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Preparatory Questions for California Pizza Kitchen 1. In what ways can Susan Collins facilitate the cusses of CPK? 2. Using the scenarios in case Exhibit 9‚ what roles does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? a. Leverage increases Beta for the firm since debt to equity ratio increases from unlevered beta. We use 10 year Treasury bond as our risk free rate and for market risk premium we use current prime lending rate for June 2007
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