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.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON