A Mature Café (Scenario)

question 144

Multiple Choice

A Mature Café (Scenario)
Sarah has been operating and growing her café in an upscale neighbourhood for almost five years. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers.
The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it.
Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future.
-More than five years ago,Sarah was careful to think about what she would do if things did not go according plan-in other words,if business took a serious downturn.Business is fine right now,but she can see the writing on the wall,and although selling is an option,she would rather stick with it and try to take the business to a new level.When she first planned the business,she also developed a Plan B,also known as a ________,and in reading it has uncovered some great ideas that she had forgotten about.

• A)golden parachute
• B)venture backup
• C)contingency plan
• D)scalable plan

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Definitions:

Extreme Decisions

Decisions made under conditions of high uncertainty, risk, or stress, often with significant consequences.

Entrapment

A situation where individuals or groups feel unable to escape a threatening or harmful scenario, often exacerbating their commitment to a certain course of action.

Group Project

A team-based assignment or task designed to be completed by multiple individuals collaborating together.

Symptom of Groupthink

A sign indicating the presence of groupthink, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.