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Taco Bell Corp Case Solution

Solution Id Length Case Author Case Publisher
1931 579 Words (3 Pages) Roger Hallowell Harvard Business School : 692058
This solution includes: A Word File A Word File

Over the years, Taco Bell has earned a significant amount of success and reputation in the fast food business. However, Taco Bell Corporation understands that it won’t be easy to sustain the market position and status. Taco Bell has to, constantly, come up with innovative ideas and tactics to withstand its position in the market. Taco Bell needs to improve upon its sales and maximize the return by reducing its overall cost of goods sold to 25% of sales revenue. For this goal to achieve, Taco Bell needs to expand its points of distributions.

Following questions are answered in this case study solution

  1. Identify a number of factors that led to Taco Bell success in the early 1990s?

  2. Can Taco Bell major competitors copy the Taco Bell strategy?

  3. How should John Martin maintain the current momentum for Taco Bell going forward? What’s next?

Case Analysis for Taco Bell Corp Case Solution

1. Identify a number of factors that led to Taco Bell success in the early 1990s?

During 1983-1988 Taco Bell established direction for the fast food restaurant and introduced the concept of incremental redesign. During early 1990s, Taco Bell introduced various organizational changes such as K-minus, FACT, Value Pricing, Speed of Service (SOS) and Total Automation of Computer Operations (TACO). K-minus strategy included outsourcing most of the prep work, to save time and reduce cost. This helped managers and employees to concentrate more on the management side of the business, e.g. customer satisfaction. The purpose of FACT was to conduct surveys of customers’ likes and dislikes. This was helpful in understanding the consumer mind and identifying the exact requirements of the customers. Furthermore, through the value pricing strategy, Taco Bell implemented a high/low pricing strategy designed to attract customers with a particularly low-priced item and then tempt customers to switch to a higher priced selection. This led to overall positive results in all franchisees’ restaurants. The idea of Speed of Service (SOS) was to curtail waiting time for customers in restaurants. It was successful in achieving its purpose of getting the fast food back on the conventional fast track.

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