Sheets is a family-owned business that has positioned Itself In the marketplace as a convenience store that also sells gas. Sheets has achieved success by being the market leader within the convenience store business through Its family members hard work ethic, improved logistics, and keeping control over Its operations. This family business was established to last for generations to come by Incorporating succession planning as part of their business model.
In Dalton, the family-owned equines Is able to maintain control over Its operations by having family members control 90% of Its stock and the remainder Is employee owned. 2. The STOW Analysis for Sheets Is going to evaluate the Internal and external environment of family-owed business. This analysis will also provide a better understanding of the resources and capabilities that Sheets has in order to gain competitive advantage within the market place. Strengths Good Customer Reputation Strong Brand Loyalty Control over placement and merchandising 90% of stock is family owned
Distribution center & commercial Kitchen/Bakery Weaknesses Mainly family owned and not enough outside employee diversity Strong brand name presence within the gas-station business Lack of fast-food industry knowledge Poor reputation within the restaurant industry Opportunities Customer demand for made-to-order sandwiches Establish a well known food brand Become fast-food leader within the convenience-store and gas-station Industry More flexible regulations since Sheets started Its business Threats Shift In consumer demand, unwilling to buy food at gas-stations Adding fast-food loud Impact brand reputation negatively Decrease In Brand Loyalty Fast food Industry leaders such as McDonald’s could push Sheets out of business 3. The Issue being faced here Is, how Sheets can expand Its business Into the restaurant Industry, and how It should position Itself volt the market place, while still maintaining positive brand reputation.
Sheets is trying to attract new customers is competing amongst powerful industry restaurant leaders such as McDonald’s and Chick-fill-A. 4. This issue can by addressed by following three actions: Establish stand-alone Sheets restaurants without gas station pumps- This option would allow for customers to experience the Sheets food brand without being surrounded by the gas station atmosphere. This stand-alone restaurant option could provide a higher perceived value to customers since its not attached to a gas station, which is perceived by most customers as a lower quality dining option. By separating the restaurant from the gas station it allows the customer to connect to the food brand separate from the gas station business.
However, this separation could also cause confusion among existing loyal customers and it could lead them to purchase gas from other industry competitors instead of Sheets. Offer restaurant food at Sheets gas stations but place pumps in the back of the lot- This option would already create some demand for Sheets since customers would be stopping by the gas station to refill their gas or purchase a snack from the connivance store. By having the restaurant as part of the gas station this allows customers to experience the food offering that Sheets has available as well. This loud allow Sheets to build a good food brand reputation among its already existing customers and potentially attract new ones.
However, adding a restaurant to the gas station could impact profitability and current brand reputation negatively as well, since customer could link the food offerings at gas stations to poor quality.
Position the Sheets restaurant within a food court of a shopping center- If Sheets was to position its restaurant within a shopping center like a mall, it would attract a diverse customer base and it would allow for separation from its gas station equines. The restaurant would be located within a food court of the shopping center and many other restaurant dining options would surround it. Nevertheless, this option could also pose a threat from the many restaurants that are already within the food court, which have a strong food brand reputation amongst shoppers and this could impact Sheet’s profitability negatively. . The alternative that I would choose would be to add the restaurant to its already existing convenience store and gas station business.
I believe that this would be the est. option since the gas station already attracts customers and the added food options would cater to existing customer base, but it could also attract new customers. The existing customers are already brand loyal, which means that they trust Sheets and its products that are offered. This extension of the business would allow Sheets to position itself as an industry leader within the convenience store and gas station business, which offers also delicious food to its customers. Hat they focus on promotion and assuring that customers are aware of the Sheet’s DOD brand.
As part of their promotional plan they should provide customers with free food samples and implement daily food specials as part of their menu offering. In addition, it is important that Sheets prices its food menu comparable to the industry competitors such as McDonald’s and Chick-fill-A. They should also focus on the food quality and offer food choices that are not available at their competitor’s locations, such as their well-known sunfish, schismatic, and the Ashamed, which provided them with the 2012 Golden Chain Award from Nation’s Restaurant News.