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what are the disadvantages and advantages of option 1 and what are the disadvantages and advantages of option 2? 3. Exotice . . Exotice (ET)
what are the disadvantages and advantages of option 1 and what are the disadvantages and advantages of option 2?
3. Exotice . . Exotice (ET) is a private limited company producing and selling ice cream from a centrally located shop in a large capital city. Lena, the founder and chief executive officer (CEO), owns 80 % of the shares. Her two daughters, who travel the world to find new and exotic natural ingredients for new flavours, each own 10 % of the shares. The family value their freedom in the decision-making process and the collaborative and supportive nature of EP's culture. Er's unique selling point/proposition (USP) is based on: outstanding quality and a variety of exotic flavors made from fat-free natural ingredients excellent service provided by highly trained, committed, and efficient employees customer involvement - with the use of sophisticated technology and staff support, customers can experiment to create their own flavors of ice cream. A strong brand name and brand loyalty has led to rapid growth in El's market share. However, long queues (lines) are forming, and the number of customer complaints is increasing. Lena is worried about the negative impact on EI. Lena is considering two strategic growth options: Option 1: Opening eight new shops locally and nationally over the next four years. To finance this internal growth, EI will sell new shares. After the sale, Lena will own 51 % of the shares. Option 2: Franchising El nationally. A small focus group conducted by one of Lena's daughters and made up of local entrepreneurs revealed a strong interest in Er's USP. Ten franchises will open each year for the next five years throughout the countryStep by Step Solution
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