Scenario 16.1 Use the Following to Answer the Questions

question 156

Multiple Choice

Scenario 16.1
Use the following to answer the questions.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise.
-Refer to Scenario 16.1. The lush tropical plants, aquarium, and stuffed animals represent the ____ of the Rain Forest Cafe.

• A)product lines
• B)retail positioning
• C)scrambled merchandising
• D)atmospherics
• E)interior location

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Definitions:

Financial Planning

The process of framing objectives, policies, procedures, budgets, and financial forecasts for a specific time frame.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits while maintaining a consistent return on equity and without raising additional equity financing.

External Financing

Funds raised from outside the business, e.g., through borrowing or issuing equity.

Debt-equity Ratio

The ratio reflecting on the strategic use of shareholders' equity and debt for the purpose of financing assets.