1. Why were banks initially reluctant to lend money to Anne? Why did this attitude change in time? 2. How can a central production plant improve efficiency once four locations are in operation? 3. Why were additional investors limited to the purchase of preferred shares? 4. Why would some investors purchase a franchise rather than start up their own business? 5. Why was Anne's business venture successful when so many small businesses fail? 6, What differences can Anne expect to find when working for a large international corporation? Do you think that she will be happy in her new position? Explain.
|Reproducible Sheets Case Study: Anne of Grain Bagels-The Growth Experience of a Small Business (continued) RS 6-3 Once several different locations were in opera- As the country's economy began to slow down, tion, a larger plant was needed to prepare all bat- Anne became more worried about declining sales ters, soups, and beverages that were required. Ten and increased competition. She was tired and had years after starting her business, Anne's corpora- not taken a real holiday in many years. When a large tion celebrated the hiring of its 50th full-time American food services corporation (interested in employee. Her bagel business was no longer a expanding its Canadian operations) offered to buy small enterprise. She found that being president out Anne, she decided to sell rather than face and chief officer of the successful and growing increased competition. The American corporation Grain Bagels Corporation was both challenging owned 450 outlets across the United States and and rewarding. However, as president, Anne was Canada. Her 20 locations were no match in a head- required to spend most of her time in the office, to-head confrontation. She negotiated a fair price doing paperwork, meeting with store managers, for Grain Bagels Corporation shares. Her lawyers dealing with lawyers about financial arrangements also negotiated an agreement with the American and contracts, consulting with accountants about corporation to protect the rights of all existing fran- long-term planning and improving efficiency, and chise owners. In addition, the corporation gave talking to realtors about new locations and avail- Anne a position in its product development divi- able buildings. Anne missed working in the bakery sion. More important, she was finally able to go on and serving customers. that long-postponed vacation. Questions 1. Why were banks initially reluctant to lend money to Anne? Why did this attitude change in time? 2. How can a central production plant improve efficiency once four locations are in operation? 3. Why were additional investors limited to the purchase of preferred shares? 4. Why would some investors purchase a franchise rather than start up their own business? 5. Why was Anne's business venture successful when so many small businesses fail? 6. What differences can Anne expect to find when working for a large international corporation? Do you think that she will be happy in her new position? Explain
