STRATEGIC MANAGMENT CASE STUDIES

 SOLUTION OF CASE STUDY FROM THE BOOK STRATEGIC MANAGEMENT BY (FRED R DAVID)

 

COFFEE CABANA

Q1: WHAT SHOULD HE DO? EXPAND OR NOT?.

ANS:

·        ROHIT SHOULD NOT GO FOR THE EXPANSION AS HE IS ALREADY FACING PROBLEM IN HANDLING 4^TH OUTLET IN FACT HE NEEDS TO MAKE SURE THAT HE FIRST BE ABLE TO MANAGE THE EXISTING ONE BETTER AND THE THINK ABOUT GOING BEYOND BORDERS, ALSO THE HIGH PRICING IN EFFECTING HIM IN 4^TH VENTURE SO HE NEEDS TO FIGURE OUT THAT ISSUE FIRST AND THEN GOES FURTHER.

Q2:  WHAT MEANS WOULD BE BEST SUITED?

ANS:   

IF BY ANY MEANS ROHIT WANTS TO GO BEYOND THE LIMITS HE SHOULD GO FOR THE SAME PERSONS WHO HAVE HELPED HIM WHEN HE WAS INITIALLY STARTING UP HIS BUSINESS THE VENTURE CAPITALISTS AS THEY ALREADY HAVE RELATIONS AND TRUST ON EACH OTHER BECAUSE OF WORKING TOGETHER BEFORE.

Q3:SWOT ANALYSIS?

STRENGTHS:

·        CUSTOMIZATION
·        BETTER TASTE
·        FRESH
·        GOOD RELATION WITH SUPPLIERS
·        VERSATILE MENU

WEAKNESS:

·        HIGH PRICING

·        MANAGEMENT ISSUES

·        ENVIRONMENT ISSUES

·        LACK OF CAPITAL FOR EXPANSION

OPPORTUNITIES:

·        NEW OUTLETS

·        EDUCATIONAL CITIES

·        YOUNG CUSTOMERS

THREATS:

·        LOANS

·        LOW PRICING OF CUSTOMERS

·        HIGHER DEMANDS OF CUSTOMERS