For the past three years, Marci and Jeff have operated a small bake shop in their suburban neighborhood.
Through their hard work and positive word-of-mouth advertising, the business has grown. Now Marci and
Jeff are exploring ways to expand the business. They like their current location and have built a loyal
customer base there, so they do not want to relocate. Since it is not possible to enlarge their current bake
shop, they have considered opening a second location in another part of town. This would give their
business exposure to new customers, but it would require them to lease space, purchase ovens and other
equipment, and hire and train new employees. Also, one of them probably would have to move to the new
location to oversee operations. Another option is for Marci and Jeff to sell their baked goods to other
businesses in town, such as restaurants and small grocery stores, for resale to their customers. That option
would allow both Marci and Jeff to remain in their current location, but it would require them to upgrade
their current ovens and add additional employees to handle the increased production. They also would
need to hire a salesman to contact local companies and purchase a delivery vehicle and hire a driver to
deliver the baked goods to locations around town. Use the steps in the decision-making process to help
Marci and Jeff decide which option to pursue.
What is the problem Marci and Jeff are facing?
What are the choices that Marci and Jeff must consider?
What are the advantages and disadvantages of each choice?
Which choice do you think is best for Marci and Jeff and why?
What should Marci and Jeff do once they have decided how they will expand their business?