Small business Case Study

This small business case study explores the challenges and strategies for success in the restaurant industry. It discusses topics such as choosing the right location, selecting the right manager, expanding the menu, and assessing the value of the business.

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Small business Case Study
Small business Case Study
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Small business Case Study
Table of Contents
Answer for Q4..........................................................................................................................3
Answer for Q6..........................................................................................................................3
Answer for Q7..........................................................................................................................4
Answer for Q8..........................................................................................................................5
Answer for Q9..........................................................................................................................5
References.................................................................................................................................7

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Small business Case Study
Answer for Q4
Under the given circumstance, it is quite obvious that the person best suited for the job of the
new BarBeQue restaurant’s manager is Ed Tobor. Ed has been with the company for a long
time. Ed has worked with the restaurant for the last fourteen years. His experience and sense
of business are unmatched (Yahao and Yazdanifard, 2015). Hence, it is best that he should be
given the driver’s seat for the new venture. Ed has helped Frank a lot in his business from
nearly the beginning of it. Not only does he realize Frank’s vision, but is also adept enough to
translate it better. As far as Frank’s children are considered, they have been working at the
restaurant as per their convenience. They have been away a lot for various reasons, and have
worked at the restaurant here and there. Hence, Frank should take some time in considering
giving either of them this responsibility (Lavinsky, 2013). Robert, his son worked at some
other firm as he has a BS in marketing. However, he came back to the job only when he lost
his job. As far as Susan is considered, she has worked at the restaurant only as a teenager
during off at her college. Robert can take care of the marketing wing as well. his expectation
to be the vice president for marketing are quite justified as he is not only qualified for it but
has shown his mettle by creating a new plan for the second restaurant as well.
For now, it is best advised that Susan should actively work at the company and learn
(Branson, 2017). Susan should be given the responsibility of an assistant manager with Ed
and Frank so that she can learn from both of them. This way, she will not only understand the
nuances of the business but will also be able to assess her interest and strength to run an
entire restaurant by herself.
Answer for Q6
When we consider this from Robert’s perspective, it is a little difficult to provide so much
variety considering the added inventory, and finding people who can manage cooking all of
these things as well (Kelly, 2011). However, the task won’t be that difficult. What Robert has
to ensure that the payment for such orders is made before (pre-paid orders) and can be
cancelled only within ten minutes of placing the order. Once it is confirmed, then the team
can start the preparation. There can be degradable containers bought for these special
purposes to make the takeout easy. As far as the food is concerned, the menu for this multi-
variety take away should be designed in such a way that it is easy to maintain for the

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Small business Case Study
customers, easy to cook and store and does not perish easily so as to run some of the
ingredient or dish for a day or two; so as to avoid wastage but at the same time not serving
unhealthy or stale food! (Castaldi, 2018).
Hence the pricing break-up can consist of:
 Container cost
 Food cost
 Marketing cost
 Effort cost
Hence, in all, for a decent meal for a person consisting of at least three dishes in the
container, the ideal cost should be kept around $5 at the max and $3.4 at least (Depending on
the type of food).
Robert can create proper online portals for this purpose as well so that it becomes easy to
interact with the customers. Online interaction will help in connecting with the customers on
a regular basis, and will also help in moving the operations towards digitization. It is essential
to understand that customers want quick response and flexibility, especially when on
commute. This portal will do just that, and will also not require someone to be trained
exclusively for this because of its simple nature (Cadden and Leuder, 2013).
Answer for Q7
Darien is the ideal location for the choice of the new restaurant. After analyzing the graphs, it
is quite clear that the team made a right and quite informed decision about the same. While
all the demographic factors are well accounted for and have been explained and substantiated
quite clearly, there are several other reasons why Darien should be the ideal location for the
new restaurant (Sherman, 2019).
Any business becomes profitable only when they have the ability to save cost. When looked
at the graph carefully, it is observed that at Darien, the real estate taxes to be paid are only
0.8%. This is a big thing as compared to the rest of the places, putting up a restaurant here
would be more feasible in terms of the cost that will go into it. this is the first factor which
makes Darien a better choice than the rest. Second are the more obvious factors such as the
demographics, the people there and the estimates of the takeout. With these factors, it is quite
easy to understand that Darien will provide better returns to the company in any and every
aspect of it. add to it the increased chances of take away orders owing to the high population

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Small business Case Study
density. It can be inferred quite easily that these people would be working class and will
require their meals on the go to save time and effort both.
Here, the facility will come cheap and it will be easy for the company to focus on expanding
as well. Once this is done, there will be a lot of scopes to think about how cost can be saved
further. This is essential to roll out and thus, the best possible option for the new restaurant as
well (Fernandes, 2016)
Answer for Q8
In the information given, it is quite clear that the company has grown a lot with time. The
first clear example of this is the sales that are maintained. From 2008 to 2010, the increase
has been appreciative. It can be observed that even though the sales aren't too huge, they are
still marking significant growth.
For the year 2010, the current assets shown are $726,715 and the current liabilities are
$354,650. From this, it is quite easy to obtain and understand that the current ration or the
company's ability to pay off the liabilities and debt is 2.04. This is quite acceptable given its
current earnings in the market are projected to grow. This growth is positive in all senses, and
shows a projection which can give various insights on how the company will manage its
finances, specially the loans or liabilities since they make for an essential component of any
organization and its success.
Further, it is important to assess the asset turnover ratio measures a company's ability to
generate sales from assets. Here, the net sales are $1,793,268 and assets shown are $726,715.
Hence, the ratio for asset turnover is 2.41. Again, this is quite acceptable but can be improved
a lot. The asset here will also serve as collaterals for the organization in times of need, and
hence, to be safeguarded to ensure they can be used at the right time.
Keeping these figures in mind, it is quite easy to conclude that the growth has been decent
enough for Ed to think of expanding his restaurant chain. These projections are even though
predictive in all senses, they still give a clear picture of how the future would look like. This
is particularly helpful for the organization since it allows a lot of flexibility in decision
making which can be instrumental for making future plans as well.

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Small business Case Study
Answer for Q9
There are different values which can be used to measure the wellness of Frank’s All-
American BarBeQue restaurant with respect to the restaurant industry. Few of these
approaches are:
 Market Approach: this is the simplest of the approaches to understanding how well
the restaurant is working. According to this approach the market is assessed based on
various factors such as market economy, consumer behaviour, competitor pricing etc.
Later on, on basis of the analysis of these factors, the ideal selling price is determined
and the revenue and profits are segregated. This theory takes into consideration all the
potential employees who can be employeed by the business. Currently, the market is
quite thrilled with the BarBeQue restaurant, hence the potential is high (Matschke,
Brösel and Matschke, 2010).
 Asset Approach: this method helps in deciding the value of the business by simply
valuing the assets or by the method of asset valuation. All the machinery, vehicles,
patents etc. held by the restaurant here are its assets. Hence, evaluating their worth
will help in deciding how much the business is worth (or some part of it). this gives a
clear monitory view of the business to assess the value of the company
 Income Approach: this is the simplest of the approaches to understand the value and
the worth of the business. This approach takes into consideration the fact if the
company is able to reach its desired economic goals or not. Once this is achieved, it
becomes easy to understand the profitability and the economic viability of the
business and if it is right to continue with the business or not.
These ways of assessment are quite clear and well sorted. It is in the hands of Ed and Frank to
properly assess which of them is right for their business and implement in the right manner.

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Small business Case Study
References
Branson, R. (2017). Richard Branson: The importance of personal experience. [online]
Virgin. Available at: https://www.virgin.com/entrepreneur/richard-branson-importance-
personal-experience [Accessed 13 Jun. 2019].
Cadden, D. and Leuder, S. (2013). SMALL BUSINESS MANAGEMENT IN THE 21ST
CENTURY. Saylor Academy, pp.109-112 [Accessed 13 Jun. 2019].
Castaldi, C. and Giarratana, M. (2018). Diversification, Branding, and Performance of
Professional Service Firms. Journal of Service Research, 21(3), pp.353-364.
Fernandes, P. (2016). Importance of Location in Business Success | Right Location for
Business. [online] Innovativeprofessionaloffices.com. Available at:
https://innovativeprofessionaloffices.com/blog/does-the-physical-location-of-a-business-
matter [Accessed 13 Jun. 2019].
Kenny, G. (2011). Diversification: best practices of the leading companies. Journal of
Business Strategy, 33(1), pp.12-20.
Lavinsky, D. (2013). Are You a Visionary Business Leader?. [online] Forbes.com. Available
at: https://www.forbes.com/sites/davelavinsky/2013/04/26/are-you-a-visionary-business-
leader/#470b2bdc7bbf [Accessed 13 Jun. 2019].
Matschke, M., Brösel, G. and Matschke, X. (2010). Fundamentals of Functional Business
Valuation. Journal of Business Valuation and Economic Loss Analysis, 5(1).
Sherman, F. (2019). Why Is the Location of a Business Important?. [online]
Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/location-business-
important-43239.html [Accessed 13 Jun. 2019].

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Small business Case Study
Yazdanifard, D. and Hao, M. (2015). How Effective Leadership can Facilitate Change in
Organizations through Improvement and Innovation. Global Journal of Management and
Business Research: A Administration and Management, [online] 15(9). Available at:
https://globaljournals.org/GJMBR_Volume15/1-How-Effective-Leadership.pdf [Accessed 13
Jun. 2019].