1. 1
EC 4207
FIRM ORGANISATION AND
BEHAVIOUR CLASS PROJECT
DEGL’INNOCENTI NICOLÒ ID: 114107490
CONALL O’CALLAGHAN ID: 110331177
PROPOSAL FOR EXPANSION
For Cork’s Sandwich Enterprise – Cork – Ireland

2. 2
COMPANY OVERVIEW
‘Cork’s Sandwich Enterprise’ is a Cork based company that:
 OWNS AND OPERATES: Ten sandwich shops throughout Munster
 FRANCHISES: Twelve shops in Munster and Leinster
Total of 22 shops in two regions, the Company, due to the positive trend is in an expansion
period.
The Objective
 <Need #1: Provide a strong solution to support the expansion in Northern Ireland and
Scotland >
 <Need #2: Decide whether to expand with owner-operated outlets or franchising >
 <Need #3: Build a business plan that is able to maximize opportunities in a different country
(United Kingdom)>
The Opportunity
 <Goal #1: Export a successful business model and increase the return on investment for the
company>
 <Goal #2: Strong ‘Know-How’ in the production and selling of sandwiches and the
possibility to exploit economies of scale>
 <Goal #3: Focus on the specialty of Irish sandwiches (use local products and export them to
United Kingdom)>
The Solution
 <Recommendation #1: Focus on the law and fiscal environment of Scotland and Northern
Ireland>
 <Recommendation #2: Cultural matters (inter-cultural relationships among these countries)>
 <Recommendation #3: Mixed model of ownership, developing local relationships, starting
from the main cities >

3. 3
OUR PROPOSAL
Cork’s Sandwich Enterprise has a well-deserved reputation for the quality of its products thanks
for customers’ reviews.
Given the increase of net income over the last two years, the management of the company has
decided to expand its operations to Northern Ireland and Scotland. The management is aware
that it faces the challenge of an expansion in two countries that are geographically close but
poles apart from a legal and cultural perspective.
The main areas to develop in relation to this possible expansion include; the distribution system,
economies of scale, transportation and logistics.
Cork’s Sandwich Enterprise has seen revenues increase thanks to high quality products with a
unique taste and large-scale success within its consumer base in Ireland. This has been proven by
the increase in sales in the last number of years.
We have developed solutions to help businesses to expand and propose that Cork’s Sandwich
Enterprise implement a mixed model for its expansion, opening four new shops in the four main
cities of Northern Ireland and Scotland.
The chosen cities are: Belfast and Derry (Northern Ireland) and Edinburgh and Glasgow
(Scotland). We have chosen these cities due their high population, touristic nature and their
international environment.
Among the main strengths of Cork’s Sandwich Enterprise is the cooperation with local farmers
and the producers and suppliers of raw materials. Strong vertical relationships (resource
transferring) have developed throughout the years of operation by choosing a “buy” approach.
High commitment, trust and just in time production are among the main strategies of the
company.
For this reason we believe that the best model, at least at the beginning, is to own and run shops
in Northern Ireland (for geographical reasons) and to franchise the shops in Scotland (in order to
further develop relationships with Scottish producers).

4. 4
Execution Strategy
Our execution strategy incorporates proven methodologies, extremely qualified personnel, and a
highly responsive approach to managing the expansion.
Technical/Project Approach
The expansion strategy will be approached in two different levels (Northern Ireland and
Scotland)
1. Northern Ireland: Locate physical premises – transfer two Cork managers – hire
personnel – operate the shop using the exact method as in the Cork shops.
2. Scotland: Send two Cork Sandwich Enterprise experts to Scotland – publish an
announcement in local media informing about the franchising opportunity – train the
chosen persons – develop relationships with Scottish farmers without losing the “Irish
identity” of the sold products.
Resources
There will be two different kinds of investment.
Own-operated shops imply a greater investment in terms of money and the risk is carried entirely
by the company. But the geographical proximity to the headquarters will allow the exploitation
of economies of scale with regard to logistics and supply. By the way is clear that greater risk
also implies higher earning if successful.
As regards the franchising aspect, the company will develop a “business model” which will
illustrate a step-by-step preparation and opening process of the shops. It will provide the
franchisee with all the necessary shop furniture and technical equipment needed for operation of
the franchise and it will also provide the possibility for the franchisee to use the company IT
system in order to supply and sell. During the course of training the franchisee will share with
the company the costs of opening the shops and will then pay a monthly fee for the right to use
the business model with the possibility of making some small amendments, in accordance with
the contracts clauses. The contract will provide all the details about competition rules,
exclusivity, methods of supply, quality standards, pricing. There will be room for making

5. 5
changes to the model to make it more “tailor-made” for the Scottish market without losing the
identity of the sold product. All these amendment will be strictly monitored by the franchisor.
As regards advertising for the new shops, the company will use their own expenses to fund
campaigns on billboards and media channels.
Supplied Material
The following materials are to be supplied by Cork’s Sandwich Enterprise for this project.
Materials to be supplied by Cork’s Sandwich Enterprise
Shop furniture and technical equipment
Technical support for IT system
Advertising
EXPECTED RESULTS
We expect our proposed solution to Cork’s Sandwich Enterprise’s requirements to provide the
following results:
Financial Benefits
 <Result #1: Increase in the net income in the short period, low investments and shared risk>
 <Result #2: Possibility to increase economies of scale >
 <Result #3: More bargaining power with suppliers, due to the increase of orders and the
possibility of new suppliers in Scotland >
Other Benefits
The United Kingdom would be a huge opportunity for the company to further develop its market.
The British market is much larger than the Irish market, and the possibility to mix models (own

6. 6
operated in Northern Ireland and franchising in Scotland) is the best possible model in order to
minimize the risk
Although Northern Ireland is different by a political viewpoint (as being part of the United
Kingdom) is quite easy to forecast the success of the operation of expansion given the cultural
and geographical proximity with the Republic of Ireland. However the same cannot be said with
regard to the Scottish market, where cooperating with local entrepreneurs and suppliers is surely
the best solution.
CONCLUSION
We look forward to working with Cork’s Sandwich Enterprise and supporting your efforts to
improve your sales cycle with this expansion. We are confident that we can meet the challenges
ahead, and stand ready to partner you in delivering an effective strategy to increase the both the
number of shops owned by Cork’s Sandwich Enterprise and also the net income of Cork’s
Sandwich Enterprise.
Thank you for your consideration,
Yours sincerely,
Nicolò Degl’Innocenti
Conall O’Callaghan