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The Little Red Roaster

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Center of discussion in this paper is the Little Red Roaster that had been in business since 1994. Owned by Kendra Gordon Green, the company offered a menu of coffees, teas, gourmet beverages, breakfasts, light lunches and snacks. The company had been approached by other companies to diversify its operations into wholesaling and catering. There was also the option of selling the company. The LRR operated in a highly competitive market. Therefore the company could not afford to sit still. The company could expand into wholesaling or catering. The management could also sell the company. Given the fierce competition for market share in retail, the company’s core business, the future strategic direction would involve implementing one of these options. Gordon-Green had to make a decision fast about which option to pursue. The communication theory is relevant in this business situation because of the distribution and logistics issues to be considered. The company would require a well-designed communication system in either wholesale or catering. The company’s goal is to maintain net profit at 4.56% of sales. In reaching this goal, the company had three action alternatives. Gordon-Green could sell the company. The LRR could diversify into wholesale. The company could expand the catering capacity. In implementing either option of wholesaling or catering, the company would incur additional costs. In implementing the wholesaling strategy, the LRR should outsource distribution and logistics to Damp.C. …
So Gordon-Green had to make a decision about which of these future options to pursue. Problems The LRR operated in a highly competitive market. Therefore Gordon-Green had to make a decision fast about the strategic direction of the company. The LRR had been approached by wholesale and catering customers to expand in both industries. However, given the wide spectrum of competitors in the industry, they would not wait long. The LRR had developed strong brand awareness in the retail market. However the company could not afford to sit still given the wide spectrum of competitors, as stated in the case, ranging from multinational corporations to family-run businesses. Given the fierce competition for market share, the LRR had to diversify into other markets. Therefore Gordon-Green had to consider the proposals made by both the student consultant team and the wholesale and catering customers. Given the high level of competitive rivalry in the market, the strategic direction of the company was at stake. However Gordon-Green had three options to consider. She could sell the company or expand in the wholesale business or expand in the catering business. These are the three future options one of which should be selected. Given the fast pace of change in the external environment, the wholesale and catering customers would not wait long before they approached other retail companies. Therefore Gordon-Green was anxious to make a fast decision. If Gordon-Green sold the company, then she would no longer be able to capitalize upon the strong brand awareness that the company had achieved so far. Gordon-Green enjoyed being an entrepreneur and wanted to be in business for herself. However she was also