Question 1

Baker's Pantry (BP) is a small artisanal bakery and caf in Padstow, owned and run by two sisters Mary and Shelley. The business had been doing well, pre-pandemic, and has just about managed to survive by offering take-away, click and collect and delivery services. The owners now want to look to the future and need to decide which one of these services to maintain once trading gets back to normal again in the summer when their hands are full running the caf. Mary has put together the following payoff matrix which looks at the revenues from each service over the next four months under different summer weather forecasts.

Summer Weather Option Poor Reasonable Good Take Away 4,000 11 ,000 22,000 Click and Collect 8,000 14,000 18,000 Delivery 25,000 17,000 5,000