Question
The Snack Shop, a student-run convenience store was located in the academic building housing the Business Department of a small US College campus. The store
The Snack Shop, a student-run convenience store was located in the academic building housing the Business Department of a small US College campus. The store ran under the umbrella of a student organization The Business Student Club (BSC). The BSC was chartered and recognized on campus by the Student Association for more than 40 years, and received limited funding for its activities. The Snack Shop was a major continuous source of income for the BSC for over 30 years. The Snack Shop was managed by a set of five student interns per semester, under the advisement of faculty members from the Business Department. The internship titles were CEO, Inventory/Facilities, Finance, Human Resources, and Marketing. The store was staffed by student volunteers, most of whom were members of the BSC. In order to maintain its status as an internship site, the Shop had to be run as an independent business. The Shop was required to make a contribution each semester to the Business Department budget to simulate rent and overhead costs. Each semester the Snack Shop budget included a $750 allocation to the BSC to help offset the cost of its annual educational trip to New York City, with any remaining profit going toward improvements in the facilities. Any shortfall would come from accumulated net assets. In addition to dealing with the general challenges of running a business, the interns were expected to continuously improve and evolve the Shop so that it would be sustainable as a learning lab for the Business Department. The Snack Shop was located on the third floor of the building housing the Business Department and several other academic major departments. For at least 30 years, the Shops only competitors in the building were vending machines. These machines were located in lounge areas on the first and third floors until 1998. In 1998, the third floor lounge was converted into classroom space, leaving only the machines on the first floor. Over the years, the offerings from vending machines varied, including paper cup coffee and hot drinks, canned and bottled beverages, candy, snacks, and even ice cream treats. The machines took cash, until the mid-2000s, when the machines were retooled to also accept student debit cards called FoodFunds. The College offered this cash-free option that allowed students, faculty and staff to add funds to their College ID card. FoodFunds were also accepted in many restaurants and stores in the local community for student convenience. Local vendors hoped to realize an increase in sales when they formed an agreement with the College to accept FoodFunds. In spring 2011, the College signed an agreement with an internationally known coffee company and opened a store and coffee shop on the first floor of the academic building that housed the Snack Shop. This College-run and staffed store started selling the name brand coffee as well as other food, snacks and convenience items Monday through Friday 9:00 to 5:00. FoodFunds, cash, and credit card were accepted. The layout of the store included several tables and chairs and a large flat screen television for customers of this new location. The new store was fully operational and open for business at the start of the spring 2011 semester.
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