Unit 3 Sandwich Blitz Large Scale Expansion

Unit 3 Sandwich Blitz, Inc. Large Scale Expansion

Dalman and Lei, the upper management of the Sandwich Blitz, Inc., are considering to expand their business on a larger scale. Lei has found out that two new franchises will soon be opening up and will be a direct competitor for them. If they expand on a larger scale they would probably open up in other cities. Also, the economic downturn has dropped the occupancy rate of larger office buildings, which have been great locations for them in the past. The strengths, weaknesses, opportunities, and threats (SWOT) of expanding large scale will be discussed.

There are several different strengths for Sandwich Blitz, Inc. Dalman has previous experience in middle management within the food industry. He also has been a health food advocate which gives him insight on what healthy foods to sell. Lei has previous experience as a CPA, which should help the company with all their financial and accounting needs. Also, the experience of operating the existing shops and a positive cash flow are now strengths for them to go large scale. Even though they have the resources for two new shops, the positive cash flow should allow them to borrow money to expand large scale.

There are weaknesses in this organization. Neither Dalman nor Lei have had previous experience as upper management. They are spending a lot of time doing middle management duties. Therefore, it does not give them the time they need to prepare for expansion. They are using the strengths they brought to the table, but they are spending too much time doing it. If they expand large scale, there will definitely be a need for middle management. Since occupancy rates have dropped in large office buildings, Dalman and Lei need to take time to find other locations that might be more suitable for them. Another weakness for going large scale would be that they only have the resources for just two more locations.

There are opportunities and threats for...