If the Sandwich Blitz, Inc. were to expand on a large scale, strengths include the current consistency in the quality of food that is found among the current eight freestanding shops and the historic performance of these shops. The 30% return on investment for 2011 shows that the company has been successful and is in a good place financially for expansion. Another strength is that the sandwich and beverage shops do not require a large lease in order to be successful. Being able to lease land that is unsuitable for most commercial purposes gives the company a competitive advantage when negotiating leases and would continue to be a strength in the large-scale expansion.
A weakness in the large-scale expansion of the Sandwich Blitz shops is the…show more content… Because of a recent economic downturn, there may be an opportunity to negotiate new lease opportunities at even better rates. Also,franchising the Sandwich Blitz shops seems like a great opportunity for expansion beyond Dalman and Lei’s current large metropolitan area. This would require training upfront on Dalman’s part to insure the same quality and consistency in the food preparation. However, once the franchisees’ shops were established, there would be less time Dalman and Lei for any specific issues, as the franchisee would be responsible.Dalman and Lei can participate in the profitability of these franchises without the same level of management that is currently required. This opportunity would also potentially be less risk for the company as a large amount of capital would not be required in the expansion.
One threat for the Sandwich Blitz, Inc. is the economic downturn that has negatively affected the occupancy in the office parks where half of the shops currently exist. The lower traffic in these areas may affect the profitability going forward and affect the cash flow in the midst of the large-scale expansion. Also, the two new franchise operations that offer similar food and beverages and may enter the area soon are threats to the potential success of a large-scale