Case Study: Sandwich Shop Crisis Essay

Although this alternative has the potential to greatly increase revenue and broadens our customer audience, it is a costly option. The sandwich shop will have to take on a new advertising business expense. Also, there is a potential loss of revenue with this option. The customer loyalty program would be a card that customers get stamped every time they buy a sandwich. When they get 1 0 stamps, the next sandwich is on the house. If the sandwich shop is giving sandwiches away for free, it is losing what could have been potential revenue.

Additionally, the sandwich of the day idea at a discounted price will encourage customers to purchase that sandwich as opposed to the normal priced house sandwiches, which will again lead to the store losing potential revenue. However, believe that this attention loss of revenue will be countered by the volume of customers this campaign will draw in, and once drawn in, keep them loyal. 3. 2. 2 The second alternative for the secondary problem would be to close down shop. Perhaps this third sandwich shop ordeal is too much for Tom to handle. It might be more costly than it is benefiting for him to keep it in business.

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Tom may be earning enough income off of the other two stores that he doesn’t need a third store to support his family. This option is fairly straightforward and as the price of property has been steadily rising he could ell the property and building for a pretty profit. By doing this, it also eliminates any need to solve problem one and allows Tom to spend more time with his family 3. 2. 3 As always, the final alternative is for Tom to do nothing and hope in vain that the problem is solved on its own. The only upside of this option is that it is as simple as breaking wind and takes no time for Tom to do.

On the other hand there are many downsides. Customers will continue to find other stores to go to. There will be an exponential decrease in revenue, and the business may get to a point where it is forced to close down due to it being such a uncial liability upon Tom. 3. 3 Immediate problem 3. 3. 1 The first alternative in regards to lowering Tom’s work hours is to keep Alyssa in the job or find a replacement for Alyssa. By doing so, it allows Tom to keep his work hours low and enables him to spend more time at home to start a family.

The negative aspect of this is that Alyssa is not as competent at the job as Tom is and that may begin to show in sales and performance of the restaurant (as it has). This solution depends on what is done to solve the primary problem. If Tom decides to keep Alyssa he has to make sure she gets he proper training and will have to set rules and guidelines for her to follow, which will take time off of Tom’s hands. If he decides to find a replacement for Alyssa, he is going to have to go through the time consuming hiring process.

Although the hiring process can take time, it is sure to save him time in the long run if he finds a well suited and trained individual to fill the job role. 3. 3. 2 The second option is for Tom to fire Alyssa and resume his role as store manager, essentially back to square one. This alternative has no positives in this situation. It simply does not fix the problem at hand which is why alternative one is the only suitable option. 3. 0 Recommendation 4. 1 Primary: to solve the primary problem I suggest that Tom chooses alternative number 1. In this instance Tom follows through and fires Alyssa.

The idea is for Tom to do what is best for the business, and in my opinion getting rid of the leech that is sucking the life out of the business is the only way to do so. Tom will have to sit Alyssa down and let her and her sisters go from their current positions. He is then going to have to find suitable candidates for filling their roles. However, he’s not going to want to hire the iris person that walks through the door and have another repeat of what happened with Alyssa. If Tom wants the best of this situation he is going to have to put lots of time and though into making this decision.

He will have to sit down each candidate and assess their skills individually. Once he determines the proper candidate for the job, he is then going to need to introduce them to their position and help them become comfortable with their surroundings. Once the new manager is settled down, Tom is going to have to put in place a system which will serve as a way of dealing with the cuisines through the new manager. Although this is a very tedious task at hand, it is the only practical solution to the other problems that the sandwich shop is facing.

The other alternatives may solve the primary problem, but they make it harder to solve the secondary and immediate problems. This alternative will greatly assist in the secondary problem and will in the long run completely solve the immediate problem. 4. 2 Secondary’ problem My recommendation regarding the secondary problem would be to implement alternative number one. A remaining and advertising campaign ill give the sandwich shop a new look and appeal. It will draw in customers that it otherwise wouldn’t have and once these customers are drawn in, the new loyalty program will be in place to keep them in.

At first this alternative is going to be quite costly to the business, I believe that in the long run the increased volume of sales will greatly make up for the initial expenses. If we’re giving sandwiches away for free or at a discounted price we are losing what could have been potential revenue. However again, believe that this potential loss of revenue will be countered by the number of customers this aiming will draw in, and once drawn in, keep them loyal. If this solution does not increase revenue within a year, advise Tom to move onto alternative number 2 and sell the shop.

The rising land and building prices will mean that he makes a profit and will allow him to spend more time with his family. 4. 3 Immediate problem In order to solve Tom’s problem of needing more time with his family the only suitable solution is option one. However, this option depends on what Tom chooses to do regarding the primary problem. Seeing as recommended that Tom fires Alyssa he is going to have to find a replacement for her. In order to do so he is going to have to get word out that the sandwich shop is hiring a new manager.

Once that is done and he has received applications, he is going to have to sit down with each candidate and personally assess their skills. Tom is going to have to use his own gut to determine who would be the best suitor. I recommend he hire someone that has previous experience in the management position and has ample training and knowledge of the job, unlike Alyssa. This is the best approach as the only other alternative says to do nothing. He would leave Alyssa in the job and she would continue to cause robbers for the business. These issues would lead to poor performance of the business and stress upon Tom.

He may have to step in at some point along the road to patch up the damage she has caused. It is best to fix the problem as soon as possible so that Tom has more time to spend with his family. This is why alternative number one is ideal for Tom. Once he finds a manager that he is confident in, he can take time off with his wife and start a 4. 0 Implementation 4. 1 Primary problem 4. 1. 1 Short term In regards to alternative number one Tom will initially have to sit down with Alyssa and her sisters and remove them from their positions. 4. 1. Medium term Tom will then have to get word out that the sandwich shop is hiring a new manager. He will then have to take in and asses each application. Once he has chosen the top four candidates on paper, he will want to bring each candidate in for a personal interview to get a sense of what they are like in person. When Tom finds the suitable person to fill the role, he will then have to go through the hiring process with them and fill out the necessary paper work. 4. 1. 3 Long term Once Tom has introduced the manager to the role, he Will want to do regular heck-ups on performance of the business and the new manager.

This will involve looking at the financial statements to see if the new manager is performing better than Alyssa. He will then want to sit down separately with each employee to discuss the impact that the new manager has had. Depending on what the employees have said Tom may have to introduce new rules and regulations, or he will leave the business as is. 4. 2 Secondary problem 4. 2. 1 Short term In order to implement alternative number one Tom is going to have to allocate funds for the initial business expenses.

Once said expenses are set side, Tom will have to contact an advertising firm and put in place a business plan. He will also have to introduce a new sandwich of the day at a discounted price to the menu. 4. 2. 2 Medium term Once the advertising campaign has been put in place he will have to get the employees of the sandwich shop up to date with the changes. Tom will also have to print off stamp cards for the loyalty program and introduce them to the store. 42. 3 Long term I recommend that after each month Tom will want to check the financial statements to check on the financial health of the business.

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