Case Study: The Pizza Puzzle
Topic: Deceptive Advertising
- George Hansen, General Manager of Augusta Marigold Inn, a Subsidiary of Hospitality Enterprises
- Sharon Coombs, Food Services Manager, Augusta Marigold Inn
George Hansen is General Manager for the Marigold Inn in Augusta, Georgia. Sharon Coombs is Restaurant and Food Services Manager for the Inn. She reports to George. Two years ago, Sharon noticed a decline in room service business, the highest margin portion of her operation. This decline coincided with an increase in the national sales of pizza delivery and carryout firms as well as an increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn. Her immediate response was to install a pizza oven in the kitchen and offer room service pizza to guests. The effort met with modest success, though it was well below her expectations. Questionnaires completed by departing guests revealed a problem of product quality.
Focusing on this problem, Sharon improved the Innâ€™s pizza until blind taste tests judged it at least equal in quality to the products of the two major pizza delivery competitors in Augusta. Sales did not improve, convincing Sharon that the problem was a perceived mismatch between the hotelâ€™s image and guestsâ€™ expectations of pizza makers. Guests simply did not seem to believe that the traditional steak and seafood restaurant at the Inn could make a high-quality, authentic pizza. Based on this conclusion, Sharon presented the following proposal to George:
Sales of room service pizza are stagnant due to guestsâ€™ misperception that our product is lower in quality than that of competitors. This misperception is based on the belief that until we disassociate our pizza from the Marigold Inn name. Therefore, to capture more room service pizza business, we should create a â€˜Napoli Pizzaâ€™ image for our guest room delivery service by:
- Preparing â€˜Napoli Pizzaâ€™ brochures for each guest room, complete with a phone number with a prefix different from that of Marigold Inn.
- The number will reach a special phone in room service, which will be answered, “Napoli Pizza, authentic Italian pizza from old, family recipes.â€
- Using special â€˜Napoli Pizzaâ€™ boxes for delivering room service pizza to guests.
- Issuing â€˜Napoli Pizzaâ€™ hats and jackets to room service personnel for use in pizza delivery. Room service waiters and waitresses will wear these garments to deliver pizza. They will change to their regular uniforms for other deliveries.
How should George respond to this proposal?
Written Assignment Requirements
Submit a written paper which is 2-3 pages in length exclusive of reference page and that is double-spaced. The paper should cite sources to support your ideas. Be sure to review the assessment criteria below before beginning your paper. Cite any reference(s) you use in the preparation of your essay using proper APA format.
Written Assignment Peer Assessment Rubric
For this assignment, your peers will be evaluating your work with the following criteria.
- Identifies all the relevant facts of the case.
- articulates overarching ethical issues including the extent of George’s responsibility to take action.
- Identifies the various stakeholders, and what is at stake for each one.
- poses possible alternatives and ethics of each alternative. Paper should explore the possible alternatives and ethics from the Utilitarian Perspective, the Rights Perspective,or the Justice Perspective.
- Identifies all practical constraints.
- Recommends a specific George should take, directly answers the question “how should George respond?
- Is of high quality, writing is clear and professional, paper is organized and flows in a logical way.
- Conforms to the structural requirements including APA style guidelines for references.