1.

Discuss the resources and capabilities of Wil’s Grill and identify its core competencies in the street food market
segment using VRIN framework.
VRIN Analysis of Wil’s Grill
Resources and capabilities of Wils Grill:
Clean Food @ good Price:
John understood the consumers interest and preference towards the Clean food . Most of the dishes in Wil s
grill were prepared instantly and the raw materials were sourced from Local farms and this encourages the students as
well as the people at the Community events to spend more at Wil s Grill. Through Survey also he confirmed that
consumers are willing to spend more money if it is a Clean Food. But in Wil s Grill John through the Local
Connections and Not focusing on his Profit in the Beginning He achieved the Clean Food with a reasonable price.
Brand Name :
Wil's Grill since they've begun has picked up a decent picture for their image. Amazing reviews from their local
websites, explicitly Facebook, are watched and individuals from their zone more often than not prescribes the place. The
explanation for this is their genuineness, straightforwardness, consistency, and quality.
Relationship with Employees:
John always makes it to a point that all employees that he hires whether permanent or temporary is treated fairly. He
firmly believes that in doing so these people would be willing to work for him again. This in turn acts the employees to
serve the customer well and faster without Compromising quality.
Location:
Born and brought up in Arizona makes john knowing where to locate his business is one of the strengths of the
company. He is also able to locate the local events and able to capitalize the moment by doing small food events with his
Clean food movement. He is also able to scrutinize the best places to procure the materials.
Technological Advantage:
Generally the Street Food vendors not very keen on developing the website and mobile app for this restaurant. Wil s
Grill has a competitive advantage in having a dedicated website telling the best local farms where the procurement is
done. It also has mobile app, the strong penetration of smart phone technology will gives them a competitive advantage
if they started using more effectively.
 SWOT Analysis on Wil’s Grill

Opportunities:
Various surveys conducted in the US indicated a growing interest in ‘clean food’ influencing customers’ food and
beverage purchase decisions. John, as the owner of Wil’s Grill believed that demographics and psychographics of people
in Northern Arizona aligned well with the national clean food movement.
According to the survey conducted by the NAU marketing research students, people of Northern Arizona were more eager
to pay a premium price for clean food and prefer local caterers who sourced local foods. Survey statistics revealed the
following:
- 78% of the respondents are willing to pay an additional of $1 to $6/ person for clean food.
- 63% of people indicated that locally sourced food would motivate them to purchase from that caterer.
Catered events could have margins of up to 40%. Catering opportunities were available year-round in the Northern
Arizona market
THREATS:
• Increasing food trucks and presence of new entrants that builds competition in fare
• Large competitors (like Big Foot BBQ, Satchmo’s etc) in the catering industry
• Well-established competitors (in business for ~20 years) in the catering business
• Fast changing trends in the market and preference of the customers
4
• Increasing food trucks and
presence of new entrants that builds
competition in fare
• Large competitors (like Big Foot
BBQ, Satchmo’s etc) in the catering
industry
• Well-established competitors (in
business for ~20 years) in the
catering business
• Fast changing trends in the market
and preference of the customers
You have identified the resources, capabilities and core competencies of Wil’s Grill developed in the street food market
segment while answering question
1. Now, discuss the transferability of those resources, capabilities and core competencies to the catering market
segment in terms of the following:
a) Which of those resources, capabilities and core competencies are transferable to the catering segment?
The following resources, capabilities and core competencies can be transferred to the catering segment:

Clean Food: Wil’s Grill had a strong focus on clean food at reasonable prices.
Suppliers: Relationships that John had established with the local supply chain gave them an
competitive advantage in the external sector. Hence, the suppliers Wil’s Grill have can be
transferred to use in the Catering segment effectively.
Brand Equity: Catering business needs more familiarity of the brand name which needs to be
worked upon as most of the respondents of the survey had never heard of Wil’s Grill.
Pricing strategy: Since, the catering segment is not as price sensitive as street food consumers,
hence the pricing strategy of street food business can be transferred to catering industry by
slightly increasing the prices to increase profit margins.
b) What gaps exist in terms of resources, capabilities and core competencies if Wil’s Grill enters the
catering segment?

Employee Involvement
In the current scenario, employees in street food business typically worked for normal hours, while during events
occasionally they are even flexible to work for ~18 hours, but while expanding to catering business which requires
routine high working hours, the same employees might find it difficult to work. This gap exists when Wil’s Grills enters
the catering segment.

Customer Preferences
In the street food business, Wil’s Grills understands the customer preferences through the “clean food” movement. It
also knows the serving mass i.e mostly students and public events. But the same can’t be predicted for a catering
business since it is of a large scale and mostly premium foods are favoured in parties and functions than “clean foods”.

c) How will Wil’s Grill acquire and or/develop the missing resources, capabilities and core competencies if it decides
to enter the catering segment?

Employee Involvement
To develop the missing core competencies with respect to employee involvement,
1) Hire hotel management students/trainees who have prior knowledge and experience with catering industry.
2) Hire more labours and manpower, and schedule optimized work hours equally so that the employees have utmost job
satisfaction.

Customer Preferences
To develop the missing core competencies with respect to customer preferences,
1) Understand the customer demand and ask more details pertaining to the event and crowd’s eating preferences.
2) Suggest new variety foods to attract the guests so that they will refer to future events.
3) There is always be a scope of improvement, to capitalize this, obtain feedback from customers after the event and try
to work on the suggestions provided.

4. Based on the analyses done for the previous questions, advise Wil’s Grill whether it should expand its operations
either by entering the catering market segment or by doing something else.

Computing the future cash flows considering both the businesses, we find that the NPV of Catering Business is higher
than expanding on street food, hence wil’s gril must enter the catering segment.