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In order to avoid the high manpower turnover that comes with delivery jobs, TelePizza has provided opportunities to move up the ladder for entry level employees with incentives. In order to cope with a high employee replacement, TelePizza instead sought to upgrade both its entry-level employees and the responsibilities they handled. Together with performance measurement systems (couponing system), employees could be evaluated.
• After sales service forms a very important part of TelePizza’s management philosophy. As an example, employees at TelePizza thank every tenth customer who visited their store for their order and also provide special discounts and schemes to customers who have not ordered a pizza for the past 6 months. TelePizza came up with new methods to satisfy customers. Furthermore, employees got trained on acting in customers …show more content…
For making sure to keep the share price at its current level, it is important that TelePizza meet its forecasts though they have been able to achieve the same by setting more conservative forecasts and then outperforming them continuously leading to higher valuations. However, considering the above points, if the forecasts are not beaten or at least met, share price will decline heavily. As per analyst’s estimates, EPS for TelePizza is expected to rise rapidly at more than 100% from 1997 to 1999E. Neither the fast food companies nor the high growth Spanish companies are aiming for such a high growth, which makes the forecasts seem a bit more unrealistic. The exhibit shows that these companies have either come up with a conservative growth or are stagnating. Though TelePizza has been able to set itself apart from all its competitors by offering new services, it is important to note that share price is being driven by projection of all the future expectations. This implies that if the actual results fall short of the demanding forecasts, share price will fall. This could happen in the scenario that people could be fed up of eating pizzas, which may enable a switchover to other foods such as burgers at McDonalds, which makes the successful diversification of TelePizza into TeleGrill and TeleOriental (eventually) a critical
• After sales service forms a very important part of TelePizza’s management philosophy. As an example, employees at TelePizza thank every tenth customer who visited their store for their order and also provide special discounts and schemes to customers who have not ordered a pizza for the past 6 months. TelePizza came up with new methods to satisfy customers. Furthermore, employees got trained on acting in customers …show more content…
For making sure to keep the share price at its current level, it is important that TelePizza meet its forecasts though they have been able to achieve the same by setting more conservative forecasts and then outperforming them continuously leading to higher valuations. However, considering the above points, if the forecasts are not beaten or at least met, share price will decline heavily. As per analyst’s estimates, EPS for TelePizza is expected to rise rapidly at more than 100% from 1997 to 1999E. Neither the fast food companies nor the high growth Spanish companies are aiming for such a high growth, which makes the forecasts seem a bit more unrealistic. The exhibit shows that these companies have either come up with a conservative growth or are stagnating. Though TelePizza has been able to set itself apart from all its competitors by offering new services, it is important to note that share price is being driven by projection of all the future expectations. This implies that if the actual results fall short of the demanding forecasts, share price will fall. This could happen in the scenario that people could be fed up of eating pizzas, which may enable a switchover to other foods such as burgers at McDonalds, which makes the successful diversification of TelePizza into TeleGrill and TeleOriental (eventually) a critical