California Pizza Kitchen Summary
California Pizza Kitchen has established a unique competitive advantage in the market as characterized by its high performance in the industry despite the challenges facing other firms in the same industry. The company has been able to increase its profit margin even when the macro-economic changes occur, forcing other firms to reduce their operations.
The current issue affecting the company is reducing the company stock security. The company management is concerned about the economic changes that are taking place in the industry. Even though the company is not yet affected by the change, there are high chances of the impact falling on the company any soon. The company has shareholders and stocks in a different paradigm. It is, therefore, the role of the company to make a better decision on the stock security to guarantee the sustainability of the process.
Notably, the company management has two options, which sound more of a dilemma. Each decision has an impact on the company operations through the administration has to settle on one. The company CEO knows more about the company but little about the market of the industry. Unfortunately, it is the role of the CEO to make the final decision on stock security. There are high chances of making a wrong decision based on the current standings and reasoning of the company managers.
Despite the increase in the company profit margin, the stock prices have reduced by a stunning 10%, which is an indication of the company taking the path closing down. To make it worse, the company is unlevered despite having more than 70 credit lines, which exposes it to several risks in the market. However, the company needs to consider purchasing stocks share without borrowings to ensure its credit capacity remains high. This will make the company escape the impacts of the change in the economy
Notably, the company management has two options, which sound more of a dilemma. Each decision has an impact on the company operations through the administration has to settle on one. The company CEO knows more about the company but little about the market of the industry. Unfortunately, it is the role of the CEO to make the final decision on stock security. There are high chances of making a wrong decision based on the current standings and reasoning of the company managers.
Despite the increase in the company profit margin, the stock prices have reduced by a stunning 10%, which is an indication of the company taking the path closing down. To make it worse, the company is unlevered despite having more than 70 credit lines, which exposes it to several risks in the market. However, the company needs to consider purchasing stocks share without borrowings to ensure its credit capacity remains high. This will make the company escape the impacts of the change in the economy
Notably, the company management has two options, which sound more of a dilemma. Each decision has an impact on the company operations through the administration has to settle on one. The company CEO knows more about the company but little about the market of the industry. Unfortunately, it is the role of the CEO to make the final decision on stock security. There are high chances of making a wrong decision based on the current standings and reasoning of the company managers.
Despite the increase in the company profit margin, the stock prices have reduced by a stunning 10%, which is an indication of the company taking the path closing down. To make it worse, the company is unlevered despite having more than 70 credit lines, which exposes it to several risks in the market. However, the company needs to consider purchasing stocks share without borrowings to ensure its credit capacity remains high. This will make the company escape the impacts of the change in the economy