Memorandum

To: Joe S. Anderson, Ph.D.- MGT 490C Professor

From: Ravi Bentotahewa, Senior
Date: 2/8/2021
Re: Burned N Turned Mini-Case Memo due Tuesday (2-16-021) in BBL by class time

What additional information should you gather to support or not support the decision to implement the Burned N Turned food trailer in Watford City, North
Dakota?
The decision to implement the Burned N Turned food trailer was solely based on the conditions which were observed and studied by partners while exploring Watford City.
According to the article, the partners did not intensely engage in active research in order to determine a proper strategy.
One of the main components that they lacked is a proper pricing strategy. Initially, they have to decide for themselves whether to enter the market with a broader cost leader
strategy or whether to engage in product differentiation. If they made up their minds to provide quality products for an affordable price ( slightly less than their competitors),
they would have to obtain information in regard to the pricing strategies of their competitors. Had they been thinking of product differentiation, then they would have obtained
an idea regarding the average income of their target market which is truckers and oil-rig workers.
Another factor that they would need to gather is whether there would be the seasonality trends. This would include information such as: the particular months of the year that the
truckers and oil rig workers would be the most active, the seasons of the year they would be working less and etc. Seasonality is a vital factor, since the article mentions that the
people were in WC for work and not interested in playing a composed role in the city’s community. Having such information would have helped Burned N Turned to gain better
forecasts, leading to the formulation and performance of more accurate budgets necessary for production. Furthermore, it is paramount to gather information on the gastronomic
preferences that the target market will likely be interested in. This includes whether the target market prefers healthy foods or fast food meals that will suffice their hunger.
Accordingly, the partners can get an idea whether to go for a binary option (healthy or fast-food) or a hybrid situation.

Imagine it is three years in the future from the end of the case. Consider the possible situation that the food trailer business Burned N Turned has not succeeded.
What might help explain the possible future failure of this business that the partners were so enthusiastic about as they began? Think about the reasons this business
failure might have happened and list them.
One of the reasons that they might have failed would be the diversification of their pricing strategy. Since their target market is truck drivers and oil-rig workers, Although the
article says that the prices suit the truck drivers’ and oil-rig workers’ “good pay”, the main focus of the blue collar workers would be to save money as much as possible.
Therefore, economy prices should be the go-to. If competitors issued their meal plans at a lower price (say $9.99), this would attract the target market much more. In addition to
price, when looking at Burned N Turned’s open hours, it is very likely to miss out on a significant proportion of their customers, since the majority of truck drivers and oil-rig
workers are mainly active during early mornings to late nights. Suppose an oil-rig worker needs to grab breakfast at 7.30 am -- right before the shift starts -- Burned N Turned
would miss that customer, because they are closed during that particular time. Also this applies for late night hours, typically from 11pm- 3am. Another possible reason would
be the lack of customer awareness. The advertising budget sounds pretty limited to establish a widespread customer awareness, since they are trying to enter a specific market.

Make a list of the resources and capabilities available to Burned N’ Turned. Also list the SWOT components you see for Burned N Turned as presented in the mini-

case.

Human resources: Considering their partner profile, Burned N Turned has an amazing HR portfolio -- equipped with experience in business and hospitality. Both Blair and

Renee have a good business background that would help the business’s finances and administration, in addition to their hospitality experience. Evan’s problem solving skills are

coming into play, when figuring out potential issues and resolving them. Sara’s BA in photography and creative thinking skills could help the business boost in marketing

through social media and product photography. As a small business owner, Pam has the knowhow on expanding the business at micro level. Sheila and Marcus come as a

package of crucial aspects of teamwork and loyalty, plus the expertise in catering. Since Matt was a former blue collar worker, who tallied with individuals of the target market,

his feedback and support for marketing would be immense.

Physical resources: Matt states that he was able to get a food trailer ideal for their business. This would help them to begin and refuel their business quickly.

Financial resources: The five partners were able to obtain capital with less or no interest from Evan’s sister, Pam for $75000. This enables them to have low interest capital

which could help in strategic flexibility.

Strengths: The article states that while oil production had doubled from 2007 to mid 2010, Burned N Turned’s customer-base increased up to a whopping 22%. This potential
customer-base may continue to grow with the extension of projects. Convenience is another pro, because customers will not face the difficulty of going through congested
streets. Faster serving time is another strength since the meals will be given to customers within three minutes compared to some competitors which would be 30-45 minutes of
waiting time. Since Burned N Turned holds less tangible assets compared to their competitors, it would help them to earn more profits.
Weaknesses: Pricing strategy may be higher than competitors which could increase customer churn. Opening hours are pretty limited, leading to missing out a good proportion
of customers. Limited diversification of the menu -- with economical price points.
Opportunities: With the increased abundance in jobs, they would be able to generate a higher sales revenue that would help them expand their business to a restaurant. They
could gastronomically diversify their menu and prices -- enhanced with the knowledge of an extensive market study. Providing promotion / loyalty coupons to the workers in
the oil-rigs and trucks.
Threats: Competitors would have lower prices and/or more variety. Harsh winter conditions could impact winter and early spring sales. Food and safety regulations could
impose tighter laws, since it is a food trailer. A higher coupon frequency and cheaper offers provided by cheap fast food chains like Burger King, Wendy’s attracts the workers
What is your decision for Burned N Turned? Go, or No-go?
I would give it a go.
What were the most important considerations in making your decision?
Changes to pricing and gastronomic strategy. Availability for extended periods of hours. Going for a highly specific target-market strategy.