Potbelly Sandwiched in a Crowded Market In 1977, Peter Hastings and his wife owned a Chicago antique shop. They began using the shop's potbelly stove to toast and sell sandwiches to customers, and the store soon became popular for its gourmet fare. Today, Potbelly Sandwich Shop has more than 400 locations in the United States, Canada, the United Kingdom, and the Middle East. However, the successful chain is struggling with overexpansion and differentiating itself among a crowded sandwich market. Alan Johnson took over as CEO to reinvigorate the company. Johnson renamed sandwiches to make them stand out and reduced the number of menu items to exert greater control over quality. During the overhaul of Potbelly's management team, Johnson hired former executive sous chef Ryan LaRoche to help direct the creation and improvement of menu items. The company also directed employees to offer customers additional items to purchase along with their sandwiches. Johnson hoped these measures, as well as initiatives like a more extensive customer loyalty program, would draw more customers and differentiate Potbelly sandwiches from those of competitors. Though sales increased for a time, the COVID-19 pandemic severely impacted U.S. restaurants in 2020. Potbelly chose to permanently close multiple underperforming shops to improve profitability.d Critical Thinking Questions 1. Describe how Potbelly, under Johnson's leadership, is engaging in the four management functions. 2. Do you think Johnson's plans are more operational, tactical, strategic, or a combination? Explain your reasoning. 3. As Johnson works to increase sales and revamp the company, do you think an autocratic, democratic, or free-rein leadership style would be most effective? Explain your reasoning.
Potbelly Sandwiched in a Crowded Market In 1977, Peter Hastings and his wife owned a Chicago antique shop. They began using the shop's potbelly stove to toast and sell sandwiches to customers, and the store soon became popular for its gourmet fare. Today, Potbelly Sandwich Shop has more than 400 locations in the United States, Canada, the United Kingdom, and the Middle East. However, the successful chain is struggling with overexpansion and differentiating itself among a crowded sandwich market. Alan Johnson took over as CEO to reinvigorate the company. Johnson renamed sandwiches to make them stand out and reduced the number of menu items to exert greater control over quality. During the overhaul of Potbelly's management team, Johnson hired former executive sous chef Ryan LaRoche to help direct the creation and improvement of menu items. The company also directed employees to offer customers additional items to purchase along with their sandwiches. Johnson hoped these measures, as well as initiatives like a more extensive customer loyalty program, would draw more customers and differentiate Potbelly sandwiches from those of competitors. Though sales increased for a time, the COVID-19 pandemic severely impacted U.S. restaurants in 2020. Potbelly chose to permanently close multiple underperforming shops to improve profitability.d Critical Thinking Questions 1. Describe how Potbelly, under Johnson's leadership, is engaging in the four management functions. 2. Do you think Johnson's plans are more operational, tactical, strategic, or a combination? Explain your reasoning. 3. As Johnson works to increase sales and revamp the company, do you think an autocratic, democratic, or free-rein leadership style would be most effective? Explain your reasoning.
Chapter14: Marketing Channels And Supply Chain Management
Section14.2: Procter & Gamble Tunes Up Channels And Transportation
Problem 1C
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Transcribed Image Text:Responding to Business Challenges
Potbelly Sandwiched in a Crowded Market
In 1977, Peter Hastings and his wife owned a Chicago antique shop. They began using the shop's potbelly stove to toast and sell sandwiches
to customers, and the store soon became popular for its gourmet fare. Today, Potbelly Sandwich Shop has more than 400 locations in the
United States, Canada, the United Kingdom, and the Middle East. However, the successful chain is struggling with overexpansion and
differentiating itself among a crowded sandwich market. Alan Johnson took over as CEO to reinvigorate the company.
Johnson renamed sandwiches to make them stand out and reduced the number of menu items to exert greater control over quality. During
the overhaul of Potbelly's management team, Johnson hired former executive sous chef Ryan LaRoche to help direct the creation and
improvement of menu items. The company also directed employees to offer customers additional items to purchase along with their
sandwiches.
Johnson hoped these measures, as well as initiatives like a more extensive customer loyalty program, would draw more customers and
differentiate Potbelly sandwiches from those of competitors. Though sales increased for a time, the COVID-19 pandemic severely impacted
U.S. restaurants in 2020. Potbelly chose to permanently close multiple underperforming shops to improve profitability.
Critical Thinking Questions
1. Describe how Potbelly, under Johnson's leadership, is engaging in the four management functions.
2. Do you think Johnson's plans are more operational, tactical, strategic, or a combination? Explain your reasoning.
3. As Johnson works to increase sales and revamp the company, do you think an autocratic, democratic, or free-rein leadership style would
be most effective? Explain your reasoning.
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