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Sandwich Shop Crisis

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Case Study: Sandwich Shop Crisis
Mitch Malinsky
Business Management
Mr. Rubinoff
December 4th, 2014

1.0 Identify the Problem

1.1 Primary problem
Since Alyssa took over management of the store sales have dropped substantially and business has not been running well. Tom Laronde needs to determine whether to keep Alyssa or fire her.

1.2 Secondary problem
Tom needs to increase performance and sales of the shop that Alyssa took over. He needs to gain back the customer base that she lost and he has to do it as soon as possible.

1.3 Immediate problem
Tom needs to take time off of work to spend with his wife and to start a family of his own. 90 hours a week was far too taxing both physically and mentally for him.

2.0 List
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This reimaging would involve new forms of advertising and developing a customer loyalty program which will give customers further incentive, aside from the food, to come back. The advertising campaign would involve multimedia presence and getting word out about the stores new unique sandwich of the day at a discounted price. By doing this, we hope to broaden the customer base and reel in customers that would have gone elsewhere to other sandwich shops which don’t offer the unique deals we do. 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 10 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, I believe that this potential 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
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