Study the scenario and complete the questions that follow:

Annie$$s Kitchen

Sue Richards has managed Annie$$s Kitchen for ten years. The owner, Annie Harford, essentially gave Sue full control about seven years ago. Annie had established Annie$$s Kitchen almost $30$ years ago and has been in semi$-$retirement for about the last five years. Annie is considering selling the store and is giving Sue first choice. Sue is extremely excited about the prospect of owning her own business. However, Sue wants to expand the offerings and ultimately increase the number of locations.

Sue asked Annie if she could have one year to investigate how changes will be received by customers. Although excited, Sue is also very nervous about being an owner. It is one thing to manage a business owned by someone else and another to own it yourself. Annie reflected on how she felt when she started Annie$$s$.$ Annie wanted it to stay successful and would like it to grow as well. Sue was an excellent manager; therefore, Annie believed Sue would be an excellent owner. Consequently, Annie thought it was worth the time to let Sue make some changes and build her confidence.

Annie$$s Kitchen has a variety of customers. Although Sue has never officially put them in any specific categories, now that she may be the owner, she began thinking along those lines. Annie$$s opened at $11$ a$.$m$.$ and closed at $8$ p$.$m$.$ Much of the lunch crowd consists of young mothers with children in school, up to elderly people. Around $3$ p$.$m$.,$ the complexion of the crowd changes. It becomes dominated by teenagers. This made sense since school let out around $3$ p$.$m$.$ As $6$ p$.$m$.$ approached, Sue noticed that families were the predominant group.

Currently, the menu consisted of dessert$-$like food such as cakes, pies, tarts, muffins, doughnuts, and other pastries. The drinks were a variety of sodas that included diet and caffeine$-$free drinks. Annie$$s also served a variety of hot and cold teas, hot and cold coffees, as well as milk, hot chocolate, milk shakes, and frozen drinks.

Sue is concerned about the future. She believes that for her to eventually expand and add new stores she will need a new menu. Sue thinks that she will have to expand the menu to include things beyond sweet treats and drinks. She is thinking about adding sandwiches and possibly a single blue plate special for those who may want a $$full course$$ type meal$\mathrm{.}6\mathrm{.}1$ Sue is planning to take a huge step toward changing Annie's Kitchen business strategy. She needs to collect

the type of data she'll require to make an effective decision. She is also contemplating on a name change. If you

were in Sue's shoes what would be your plan?

$(10$ Marks$)$

$6\mathrm{.}2$ Assume Sue moves forward with her plan to change the menu. This could alter the current customer base.

Advise her on actions she should take to address customer problems explaining how the actions will benefit her and

potentially prevent customer problems.

$(10$ Marks$)$

$6\mathrm{.}3$ The scenario suggests that many of Annie's Kitchen customers are from the same community. Parents came

there as children and are now bringing their children there. Would you recommend that Sue uses social CRM$?$

$(5$ Marks$)$