Carla Ramos always wanted to manage her own business. As a little girl she admired her mother and father who worked together at their family-owned shoe store in downtown Atlanta, GA. Carla loved shoes, so when she graduated from Shorter University she was excited that her parents asked her to take control of the business. Carlas parents decided to retire within 1-year after Carla began managing the shoe store. It was without hesitation that Carla said yes to her parents request. She immediately began thinking about the knowledge she gained as a student earning her Bachelor of Business Administration (BBA) degree. Now, it was time for Carla to demonstrate to her parents that she had what it takes to manage a successful business.

Ramos Shoe Company was founded in 2003 by Carlos and Maria Ramos. Carlos worked hard establishing relationships with leather manufacturers, podiatry doctors, and footwear marketing consultants. It was hard work, but Carlos enjoyed the expression he saw on his customers faces as they admired the look, fit, and feel of a new pair of shoes that felt tailor-made, just for them.

Maria Ramos spent most of her adult life raising Carla and her younger brother, Juan. Once her children were in school, Marie decided to help her husband at the shoe store. She learned how to help the customers feel comfortable by talking with them, and listening to what their needs were. Maria enjoyed that part of the job. When repeat customers would come to the shoe store, they would often ask for Maria because they knew that she would give them her full attention.

When Carla assumed control of the shoe store, her first task was to determine if the business was profitable. Carla immediately hired an accounting firm and a market analysis firm to look at the companys records and customer base. What she discovered concerned her, but also intrigued her. Carlas father did not tell her that the company was struggling to make a profit over the past 2 years. In fact, for the past 6 months, the shoe store actually experienced a net loss. Carla had noticed that her parents were more irritable and that they argued frequently; however, she did not know that it was because of what was happening at the shoe store. Carla wondered; can a business really affect a persons social life and relationship?

Carlas initial investigation into the facts and figures of the business really paid off. The accounting firm determined that Ramos Shoe Store was losing sales to a competitor shoe store (Payless) that opened 2 years ago. Carlas father never mentioned this to Carla or her mother. Its doubtful that Carlos Ramos knew about his competitor, yet Ramos Shoe Store customers were obviously shopping at Payless shoe store. Why, Carla wondered? Was it because of the lower prices, better inventory, or selection of shoe styles? Carla needed more data and information.

The marketing analysis firm reported that Ramos Shoe Store had a great reputation within the community. People talked favorably about the store and its employees. It had an old-fashioned service level, where the store owners really went out of their way to help you purchase the shoe that was the best fit for you. The customers were loyal, but they were beginning to age. Fewer and fewer young buyers were coming into the store, yet the community was filled with teenagers. The middle-aged customers came in, but they were asking when the store would put up a website to allow them to order shoes on-line. Ramos Shoe Store did not have a website. Most of the information about the customers was memorized by Carlos Ramos. Some customers liked that about Carlos, but now that he was not at the store, they didnt like the idea of Carla asking them questions that Carlos already knew the answers to. Some would leave in frustration.

The accounting firm helped Carla restructure the company. They told her that her father still had the company listed as a sole-proprietorship. They encouraged Carla to restructure the company as a Limited Liability Corporation (LLC). This would enable Carla to secure additional funding from investors to expand the business, develop an on-line presence, and not have to put her familys personal assets at risk as her father had done. Carla found out that her father had taken out a 2^nd mortgage on the familys home to purchase more inventory of a popular brand of athletic shoes.

The marketing analysis firm also identified that Ramos Shoe Store held a patent with the U.S. Patent Office in Washington, D.C. for a special designed pad called an Arch Supporter. Apparently, Carlas father designed the in-shoe pad for a customer who had foot surgery. The pad worked so well that Nike, Payless, Reebok, and Skechers shoe manufacturers all requested to buy the patent, but Carlos Ramos refused to sell it to them. Mr. Ramos feared that if he sold the patent, his customers would no longer buy the pads from him. The marketing analysis firm estimated the value of the special in-shoe pad at $35,000,000 ($35 Million dollars). The Nike offer was still active and Nike was willing to honor the offer at a purchase price of $32 Million.

Carla has asked for you, as a member of a crowdsourcing group, to come up with 3 Alternatives for her to consider to continue operating the shoe store. What would you recommend as the alternatives Carla should consider?

Carla has also asked that you rank your alternatives, and identify your strongest alternative. In other words, what do you think Carla should do about the business? Carla will take your recommendations seriously and will make a decision that involves changing the way she manages the Ramos Shoe Store.

Below is the financial accounting information for Ramos Shoe Store:

Revenues	$750,000
Cost of Goods Sold	-$125,000
Net Revenues	$625,000
Expenses	$500,000
Net Profit/Loss (Earnings Before Taxes)	$125,000
Tax Liability	$ 35,000
Owners Equity	$ 90,000