Case of Critical Analysis Emma’s Parlor

Emma Lathbury’s shoulders sagged as she flipped the cardboard sign hanging in the window of her tearoom’s front door from “Open” to “Closed”. The normally indefatigable 52 years old owner of Emma’s Parlor was bone tired. Any doubts she’d harbored about the wisdom of seriously considering some major changes in her business were fast disappearing. She hadn’t felt this weary since she’d left nursing in the early 1990s. After years of working as an intensive care nurse – with its grueling hours, emotionally draining work, and lack of both respect and autonomy – she’d development a bad case of burnout.

At the time, she was convinced she could walk away from a secure, if difficult, profession and figure out a way to making a living that suited her high energy, outgoing personality. Then one day, she noticed an 1870’s vintage Gothic Revival cottage for sale in th small Illinois farming community near where she’d grown up, and the answer to her dilemma came to her with a startling clarity. She’d get the financing, buy the house, and open up a cozy Victorian tearoom. Emma was certain she could make it work.

Questions
1) At what business stage is Emma’s Parlor? At what stage is her Web-based organic tea business? What synergies exist between the two businesses? How critical do you think those synergies are to the success of each business? Emma’s Parlor is in the success stage of business growth. The company is profitable both on the web and in the Parlor. She now employs about 20 people. Emma is in the process of deciding whether to stay involved and focusing on just the web or the tearoom. She is also considering turning the business over to an experienced restaurant manager or selling the tearoom outright. In the leading part of management at the success stage, the manager has to either learn to motivate employees or hire managers that can.

In the controlling part of management at the success stage the manager needs to start implementing structured control systems. The web-based organic tea business is in the success stage as well. It has grown to this stage faster than the tearoom. It is solidly based and profitable. It produces less revenue than the tearoom but has a higher profit margin! And as I have stated she is looking into focusing on either the tearoom or the web based business and turning the other over to managers. E-business is so important that you have to plan and allocate resources for internet operations from the beginning and these plans grow as the company grows.

2) How does Emma Lathbury fit the profile of the typical entrepreneur? Which of those traits are likely to continue to serve her well, and which might be counterproductive at this stage of her business? Emma possesses many of the characteristics of an entrepreneur. She has a high level of energy and is a very outgoing person. She possesses internal locus of control. She believes she controls her destiny. She knew that she could walk away from her job as a nurse and figure out a way to make a living. She is very self-confident. As I just said she knew she could walk away from her job and figure out a way to make a living. Then when the thought of starting up a Victorian Tea room came she knew she could make it work. She had a need to achieve.

She put in 60-70 hours a week in the beginning. She chooses everything in the parlor to help it succeed. Once the business was finally growing she had the continued need to achieve and that’s when she started to blend her own Organic Teas. She continued to grow and improve and she took the business to the web. Those are some of the characteristics of an entrepreneur that Emma possesses.

3) After listing the pro and cons for each of Emma’ options and considering her personality, which course of action would you recommended? Emma should keep both the Internet business and the tearoom but she should learn the art of delegation. Emma should hire a restaurant manager to manage the tearoom. One of the advantages in expanding a business is the opportunity to add new, qualified people who may have more experience on how the business can be run more efficiently and effectively. A new restaurant manager for the tearoom may just be what they need to move the business in a different direction and bring them fresh ideas. Emma will still be consulted on any major decisions regarding the tearoom business.

She can also hold a monthly meeting with the manager and the staff to keep her updated with the current operations. Also, she can also train one or two of her staff (preferably someone who has been working for her a long time and whom she trusts) on how to blend the Emma’s Parlor Organic Teas. If the Website business takes off, then Emma can hire additional staff to handle the Entrepreneurshippotentially bulky orders. She can set up reporting stages and mentor employees that have been assigned to the tasks that she once handled personally so they can accomplish them successfully. With the reduction of the workload on Emma, she can concentrate on important and critical issues in her businesses.

Feedback/Opinion

Emma is an entrepreneur and she needs to continue to be one. She has the characteristics that I listed above and if she were to get out of the business she would have to find something to fill those voids. I think she needs to keep both the web based business and tearoom and hire managers to help. I think she needs to focus on the tearoom and find a manager to help her with the web based business. She is an outgoing person so she likes the interaction but the workload of both is just too much to handle. She really is great with the tea now and has kind of become an expert in the teas. She needs to stick with the tea and get the help necessary to continue the growth of the business without taking on too much of the workload. So that is what I think Emma should do. I think she should continue with both the web business and the tearoom and hire managers to help her effectively and efficiently manage the business.