STR 581 Lee’s Sandwiches Environmental Analysis

STR 581 Lee’s Sandwiches Lee’s Sandwiches Environmental Analysis STR 581 Professor: Kenneth Kobus Vincent Nguyen Lee’s Sandwiches

This work evaluates both the internal and external environment for Lee Sandwiches. It begins by highlighting the external factors that influence the operations of the entity. It also focuses on the key strengths, weaknesses, and resources of the company. The organization’s structure is also analyzed and on its impact on the performance of the company.

External Environment Factors

As a company that mainly operates in the South West of the country, the political status of the region is stable enough to be favorable for the company's operations. The United States has a very stable political atmosphere, and this stability is reflected across all locations where the company operates. Economically, the locations have been on an upward trend since the 2008 downturn, providing a conducive environment for growth (Cader, 2011). The company weathered the previous economic slump and appears positioned to sustain its growth, given current favorable conditions.

Sociological factors also play a significant role in shaping the external environment. The cultural landscape across the United States is highly receptive and adaptable to new dining options. Lee Sandwiches has benefited from this cultural openness, attracting new customers and expanding its market share. The company relies heavily on technology for marketing, which aligns well with industry standards and customer expectations. With no significant technological threats faced by the company, its digital marketing approach is considered robust (Jovanovich, 2001).

Key Strengths and Weaknesses

Among the company's primary strengths is its loyal Vietnamese American customer base, which has supported its growth and helped establish its brand reputation. Although the customer base is expanding beyond these initial groups, maintaining loyalty remains vital. Another strength is the company's specialization in unique cuisine offerings—Vietnamese and European sandwiches—that differentiate it from competitors offering more generic menus, thus providing a competitive edge. The company's organizational culture emphasizes customer orientation, high motivation, and learning from customer feedback, further strengthening its market position (Lee's Sandwiches, 2015).

However, weaknesses also exist. Being privately owned limits the company's financial capacity, restricting expansion and investment opportunities. Additionally, although diversification into European cuisines proved successful, the product range remains limited. This limits market penetration and makes the company more vulnerable to competitive threats. The relatively small market share signals the need for further expansion and product diversification to capitalize on broader customer segments (Lee's Sandwiches, 2015).

Resources

The company operates from 43 locations across seven southwestern states, with resources constrained compared to larger competitors. Its financial resources are limited due to its private ownership structure; nonetheless, customer base expansion offers opportunities for growth. Its assets include a strong brand identity within its niche and a dedicated customer following, but scalability remains a challenge due to resource constraints.

Competitive Position and Possibilities

The company's success has been driven by its ability to serve a niche market with authentic Vietnamese cuisine, which has limited direct competition. Yet, its growth rate is slow, partly due to its focus on a specialized segment. While this niche reduces competition, it also caps market expansion potential. To grow further, the company could diversify its menu offerings, introducing new culturally inspired cuisines to attract broader audiences. Another approach involves expanding geographically into new markets such as Seattle and Houston, where successful new outlets could replicate previous successes and increase overall market presence (Cader, 2011).

Opportunities for growth include menu diversification, market expansion through new outlets, and leveraging the changing demographic trends in the U.S., which favor Asian and multicultural cuisine consumption. The company can also strengthen its online presence and digital marketing strategies to reach a wider audience with reduced costs.

Organizational Structure

Lee Sandwiches is owned and operated primarily by the founding family, with management responsible for daily operations across its locations. Its organizational structure is basic and flat, favoring owner control. This structure supports swift decision-making and maintains the company's core values but limits scalability and resource acquisition. As a privately owned enterprise, it faces restrictions typical of small to medium-sized businesses, including limited access to capital markets and potentially limited managerial expertise for rapid expansion (Chow, 2011).

The management employs a straightforward hierarchy with managers overseeing individual outlets, which allows for close control and adherence to the company's customer service standards. However, this simplicity also constrains the company's ability to implement large-scale strategic initiatives swiftly, necessitating careful planning for expansion and diversification efforts.

Paper For Above instruction

Lee’s Sandwiches operates within a complex environment of external and internal factors that significantly influence its growth trajectory. Analyzing both environments reveals opportunities and vulnerabilities that the company must address to expand sustainably. The external environment is characterized by political stability, economic growth, and sociocultural receptivity, all favorable to the company's operations. However, internal limitations, mainly resource constraints owing to private ownership, hinder rapid expansion.

Externally, the political stability in the United States coupled with a resilient economy provides a fertile ground for business growth (Cader, 2011). Consumer preferences are shifting toward diverse and multicultural cuisine, particularly among younger demographics and immigrant communities, which benefits Lee Sandwiches’ ethnic offerings. Technological advancements serve as a strategic advantage, allowing the firm to engage customers effectively via online platforms (Jovanovich, 2001). Nevertheless, threats such as increasing competition and potential market saturation must be monitored.

The enterprise’s strengths include its authentic cuisine, loyal customer base, and a culture emphasizing customer service excellence. These strengths foster brand loyalty and enable it to command a niche market share despite limited resources compared to larger chains (Lee's Sandwiches, 2015). Nonetheless, weaknesses such as limited financial resources, narrow product range, and small market share necessitate strategic action to prevent vulnerability to larger competitors.

Resources are primarily centered on its 43 locations and a brand associated with quality and authenticity. While these contribute to a steady market presence, the company’s private ownership limits its ability to scale rapidly. To capitalize on growth opportunities, Lee Sandwiches could diversify its menu further, incorporating additional cuisines aligned with cultural trends and regional preferences (Bhavani, 2002). Geographic expansion into new markets such as Seattle, Houston, and other burgeoning multicultural hubs could diversify revenue streams and mitigate risks associated with operating in few locations.

Strategically, the company should leverage its core competencies—authentic cuisine, high customer service standards, and a loyal customer base—while addressing internal constraints through innovative financing and partnership models. Expanding its menu to include culturally relevant dishes, investing in marketing, and establishing new outlets in underserved areas can help realize this vision (Chow, 2011). Moreover, embracing digital marketing and delivery platforms will allow the company to reach a broader audience with minimal additional overhead.

Organizationally, Lee Sandwiches’ basic ownership and management structure support tight control but limit agility. As the company grows, it must consider developing its managerial team and operational processes, possibly adopting more sophisticated organizational structures that support expansion while maintaining its core values. This evolutionary change will require strategic planning and investment but is vital for future growth (Chow, 2011).

In conclusion, Lee Sandwiches’ external environment presents significant opportunities driven by socio-cultural trends and economic stability. Internal limitations, mainly financial and operational, are barriers that can be overcome through strategic diversification, expansion, and organizational development. A comprehensive environmental analysis provides the roadmap for sustainable growth while preserving the company’s unique identity and customer-oriented culture.

References

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  • Jovanovich, B. (2001). New Technology and the Small Firm. Small Business Economics, 16(1), 53–55.
  • Lee's Sandwiches. (2015). Retrieved from Lee's Sandwiches website: https://leesandwiches.com
  • Bhavani, T. A. (2002). Small-Scale Units in the Era of Globalization: Problems and Prospects. Economic and Political Weekly, 37(29), 3155–3163.
  • United States Census Bureau. (2020). Economic indicators and demographic trends. U.S. Department of Commerce.
  • Smith, J. R., & Lee, M. K. (2019). Multicultural Cuisine Trends in the US Market. Journal of Foodservice Business Research, 22(3), 235–250.
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  • Federal Trade Commission. (2022). Market Competition and Entry Barriers. FTC Reports.
  • U.S. Small Business Administration. (2023). Financing and Growth Strategies for Small and Medium Enterprises. SBA Publications.

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