Giovanni Dilorenzo, The Owner Of Giovanni 's Pizzeria Essay

Giovanni Dilorenzo, The Owner Of Giovanni 's Pizzeria Essay

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Many pizza businesses have issues on how to produce their goods efficiently and unfortunately for Giovanni DiLorenzo, the owner of “Giovanni’s Pizzeria” is very perplexed and has to determine how many employees to hire in the main kitchen. Giovanni’s Pizzeria started to skyrocket so Giovanni decided to hire more people. For example, he hired three new employees (3 to 6) to work in the kitchen when business picked up. As business continued to increase, he hired 3 more workers. He soon began to realize that he still was not producing enough pizza 's. By hiring more people he has been trying to keep up with the demand needed for his pizza. Also, to make sure he finds the right way on how to be efficient and be able to supply all the pizza demanded by his customers he hired a consultant to do his job and find out how to productively run his pizzeria. As a result, he is in the short run right now, and I believe that the best way to produce goods will be to move from the short run to the long run.
First, you have the right idea of hiring more people but as your consultant I have to inform you what you are doing wrong and things that can help you improve your work environment. Right now, Giovanni you are in the short run which is any period during which the usable amount of at least one input is fixed while the usable amount of at least one other input can change. For example, you have changed the labor of production but, if you are only changing that one factor your business space will keep becoming more crowded and you will produce less because there is not enough room to be efficient.
Now that showing the non beneficial part about of your business it is time to turn that around and make Giovanni 's Pizzeria a great restaura...


... middle of paper ...


...it changes its scale of production. Then, the return to scale is the measure of how much the change in input impacts the change in output (production). Giovanni 's since you have to work in the long run you have a greater input than output because the work you put into it has to be greater and worth the risk. As a result, with the addition of workers at five, the land with extra resturants to make the expansion of your business, capital into which more supplies and utilities are created, and entrepreneurship into understanding the risk and be able to meet the demand for his pizzas. Each of these will all be the root to your success as a skyrocketing pizzeria owner. In conclusion, Giovanni by operating in the long run your business will keep booming, become more productive, keep your customers satisfied, and will be getting the best productive out of your workers.

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