Case Study $2-$ Decisions, Decisions

Amber Liu is an entrepreneur who started an online company selling luxury headphones. She loves exploring different musical genres, which sparked an interest in doing headphones research. She discovered that the world of headphones was obtuse, with numerous brands advertising different incomprehensible jargon, numerous types with different features and drawbacks, and was complicated by the fact that the audio source and power supply made a significant difference to sound fidelity in her experience. She decided to do something about it and make a business selling high$-$end headphones that simplified the experience for customers. Her nascent website featured a questionnaire that determined the usage for the headphones and educated customers about what they should be looking for.

One feature of the website was an $$ask me anything$$ feature which would connect her customers to her directly so they could ask questions about headphones. Amber$$s knowledge and sales skills meant that she could convert the conversations into a sale $10\%$ of the time, as opposed to the average visitor who made a purchase less than $2\%$ of the time. As the popularity of the website grew, Amber had to enlist her brother Craig $($a music connoisseur in his own right$)$ to help out.

Sales crept up and reviews about their website were positive. However, Amber and Craig could no longer keep up$.$ They needed help and they hired a young audio engineering student and his friend to answer questions on an alternating$-$shift basis. Between Amber, Craig, and the $2$ students, the website had someone monitoring customer chat $24/7.$

This wasn$$t enough. At peak times there would be a deluge of customer inquiries and Amber needed more skilled people. Further, she no longer had the physical space in her parent$$s basement suite to accommodate the business. It was time for the business to move.

Amber did a little research and came up with a few alternatives. She$$s sure that more alternatives are available, but she has had little time to think since her business has been taking off.

First, she could rent office space out in the suburbs. The office she found was far away from her home and would create a significant commute for her, her brother, and the employees. However, the space was cheap, parking plentiful, and there was a lot of space for growth because it could comfortably fit $30$ people.

Second, she found a chic downtown office. It was nearby her home and would surely impress visitors, including potential investors who she is considering soliciting for money to expand the business. However, it is expensive and can only accommodate $15$ people, leaving little room for growth.

Third, she could have all her employees working from home and provide an allowance for equipment. This would be cheapest by far as she would not need to rent any additional space. She would also be able to hire people from outside her city because it$$s not necessary that they are physically on site. However, she is concerned about not being able to monitor employees job performance or develop a collaborative culture at her business.

After thinking about all this, Amber is struggling to come to a decision. $$What should I do$?$ This will certainly affect my business for years to come.$$ a$.$What is happening in the case? What event or dilemma is taking place? b$)$ Who is involved in the case? Who are the people and what is their relation to the case? c$)$ Why is this situation occurring? Give two reasons why.