At Your Service Case Study

Good Essays
Register to read the introduction… Throughout the first year, you continued to make a little money, or lose a little every month, but the company has been steadily losing money in the second year and has had to use reserves in order to keep in business.
You think the problem is that the chefs do not know how to manage a business. As soon as the business seemed to be breaking even last year, you noticed that they changed menus, offering more elaborate dishes with more expensive ingredients without increasing prices. These dishes cost too much and take too much time to prepare, limiting their availability to take on more jobs.
The lack of profits forced you to take a more active role in the management of the company. Although you told the chefs to raise prices, they approved the new seasonal menus with the same elaborate dishes and the same low prices. You found out before the menus were printed and raised the prices by 10%. You have also put them on a strict ingredients
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How to handle the lease on the kitchen equipment, which as six months more to run?
What have you learned this week that would ensure that ech of the above outcomes would be a win/win situation?
There are a variety of options for distributing the remaining capital. You take the remaining capital giving the chefs nothing; you take $12,000 leaving $3,000 for the chefs; you take $10,000 and they take $5,000; you split the capital evenly; you take $5,000 and they take $10,000, you take $3,000 and they take $12,000; you leave all the remaining capital for them. You need to recoup as much as your investment possible to open an alternative venture. You recently began to look at the possibility of opening a flower shop, although you have not yet done extensive planning for it. To do so you need capital. You also do not think that the chefs deserve the capital because they caused the business to
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How to handle the lease on the kitchen space, which has 18 months more to run?
How to handle the lease on the van, which has 18 months more to run?
How to handle the lease on the kitchen equipment, which as six months more to run?
What have you learned this week that would ensure that ech of the above outcomes would be a win/win situation?

Pat, the owner
We strongly believe and insist on taking the remaining capital. Both Miller and L.L Martin are completely responsible for the failure of the business. We insist that the chefs get nothing and must be held fully accountable.

Martin, chef
I have been a chef for many years. I know how to create menus that are attractive and make customers keep coming. However, because you both invested in this business and are inpatient in developing and building a long lasting business, I put the burden of failure on both of you. Indeed, I think that both of you ought to get nothing and should never engage in a restaurant business.

Miller, chef Hi Martin, I completely agree with you that both Chris & Pat are incompetent businessmen, but we have to be fair. I propose that they transfer the business to us and in return we give them $5,000

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