Pronto pizza case study

Pronto pizza case study
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The entry of a national chain pizza business using the home delivery strategy to penetrate the market will increase competition. Thus, Pronto Pizza needs to craft strategies to maintain and improve its market share in the areas of operations in New York. Using the 29 minute guarantee to beat off competition from the supermarket is being considered as a viable option, but time lost after the lapse of twenty nine minutes of delivery will likely lead to revenue loss. Since the 25 minutes threshold is seen as the time through which to assess efficiency, this paper will highlight on the viability of using the delivery time guarantee.
Both the t and z testÑ– are applicable where the z test is as flows. Following the analysis of the data collected the mean of the total amount of time taken to deliver the pizza was 25.32 while the standard deviation was 3. 917. Consequently the Z value for the data is (29- 25.32 /3.9) which 0.94 and the corresponding value from the tables is 0.1736 equating to 17 %. Thus it is more likely that the delivery time will take more than 29 minutes.
In formulating hypothesis testing the one must factor in the purpose and nature of the test (Weiers., et al., 2010). Even though, the z testsis applicable in the case, the t test is the most applicable because there is need to find out whether there is sufficient evidence in the data to conclude that the average time of pizza delivery takes more than 25 minutes.
H0: total time of delivery ≥ 25
H1: total time of delivery >25
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