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(1 bookmark) Case Study: The Pizza Puzzle Topic: Deceptive Advertising Involved Parties: 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 Inn’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 hotel’s image and guests’ 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 guests’ 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 ‘Napoli Pizza’ image for our guest room delivery service by: Preparing ‘Napoli Pizza’ 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.” Using special ‘Napoli Pizza’ boxes for delivering room service pizza to guests. Issuing ‘Napoli Pizza’ 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?

The ethical issue in the case was –
Deceiving customers of the restaurant who are not interested in pizza served by the restaurant due to the lower quality they perceive by comparing with the authentic Pizza cuisines by selling on a different brand name by taking orders from a phone number with a different prefix and using special boxes for delivering room service pizza to guests by service personnel wearing new uniform different from the one they wear to serve in the restaurant.
George need to respond for the proposal as below –
1. The idea of serving pizza under a different brand name and trade dress to attract consumers is good but completely hiding the fact that the brand is a part of the restaurant is unethical considering how it is impacting the purchase decision of customer by making them believe that the pizza is being served by an authentic pizza cuisine.
2. Instead, the firm can create its own small subsidiary aimed at pizza delivery and takeaway by employing italian cheffs and marketing it as its authentic pizza cuisine with wide varieties to choose from.
 
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  1. (1 bookmark) Case Study: The Pizza Puzzle Topic: Deceptive Advertising Involved Parties: 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 Inn’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 hotel’s image and guests’ 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 guests’ 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 ‘Napoli Pizza’ image for our guest room delivery service by: Preparing ‘Napoli Pizza’ 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.” Using special ‘Napoli Pizza’ boxes for delivering room service pizza to guests. Issuing ‘Napoli Pizza’ 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?
  2. Case Study: The Pizza Puzzle
  3. We look at leadership from the manager’s perspective and explore the differences looking at leadership from a leader’s perspective. Managers focus on process, procedure, and implementation of the organization’s purpose. A manager’s perspective is about getting the job done and keeping stability. In a recent virtual management meeting the Heads of the various marketing departments of Biotech met to discuss the recent decline in sales of food supplements since Nestle and General Mills entered the market. In a meeting to get direction on how to fix the drop in sales, the question came up about who should handle the matter – the marketing managers or the owners. One manager said, “A problem like this should have a solution from the top.” Another manager responded, “I do not agree. We have dips in sales all the time and we go out and fix them using our own ideas and talent.” “I agree, managers are leaders too” another voice said. Maximillian Barney sat back in the Yonkers conference room away from the camera noting that the Americans wanted to move on their own, the Europeans held back but signaled agreement with the Americans. The rest were quiet. Maximillian pondered, “How do I see my managers – are they leaders too?” How should Maximillian answer this question? use one external source, cited in APA format.
  4. We look at leadership from the manager’s perspective and explore the differences looking at leadership from a leader’s perspective. Managers focus on process, procedure, and implementation of the organization’s purpose. A manager’s perspective is about getting the job done and keeping stability. In a recent virtual management meeting the Heads of the various marketing departments of Biotech met to discuss the recent decline in sales of food supplements since Nestle and General Mills entered the market. In a meeting to get direction on how to fix the drop in sales, the question came up about who should handle the matter – the marketing managers or the owners. One manager said, “A problem like this should have a solution from the top.” Another manager responded, “I do not agree. We have dips in sales all the time and we go out and fix them using our own ideas and talent.” “I agree, managers are leaders too” another voice said. Maximillian Barney sat back in the Yonkers conference room away from the camera noting that the Americans wanted to move on their own, the Europeans held back but signaled agreement with the Americans. The rest were quiet. Maximillian pondered, “How do I see my managers – are they leaders too?” How should Maximillian answer this question? use one external source, cited in APA format.