Professional Documents
Culture Documents
OTD Project
OTD Project
Program: B.B.A
Final Project
Can long john’s get back On Both Feet?
1. Summary
This case is about Long john Silver’s Inc., they have 1,448 stores of seafood chain. Recently they
are experiencing hard times where there margins have decreases very much. First long John
started out as a cheap fast-food restaurant that sold only fish products but in 1990s, they decided
to widen their product line because they want more customers to come by in their restaurant.
Their strategy to increase price and be a mid-scale restaurant which mean nor it is cheap or nor it
is expensive and this is also known as mid-scale strategy.
Their new strategy was disaster because their customers were not the kind of people who wanted
higher prices and better service; they wanted meals that served fast and were value for money.
After this, the manager decided to expand its range of products so, in 1996 the company
announced that it was seeking alliances with other chains as if Arby’s and with regional taco
chains like Taco Time. This was there new strategy to attract more customers and all three
companies started to offer each other products in their stores. There new strategy also failed after
this they stick to their first strategy and offer seafood in cheap prices they also cut 150 middle
managers and exterminating two levels in the corporate hierarchy. Corner then centralized
support service to reduce it cost. Corner made simpler functional structure because this way they
can respond to customer more swiftly.
2. Management Dilemma
Absence of identification of systematic process to describe an organization's vision and mission,
evaluate strengths and opportunities, and develop strategies to achieve its goals.
Facts:
Decreasing in sales.
Implemented two strategies and failed.
Convert back to first strategy of low cost seafood.
Lack of awareness among their customers.
Poor marketing.
Despite they were specialist in seafood still they introduced more other products like taco and
beef sandwiches.
Lack of research
Did not pick a right strategy.
Confuse in fast food and restaurant.
No long-term goals.
3. Management Respond
They should use a divisional organizational structure