Question: Please read this case and use the questions at the end as a basis for the discussion. Please note it is important to do this

Please read this case and use the questions at the end as a basis for the discussion. Please note it is important to do this first before reading the next case.

Two years ago, Shawna Phiri graduated from a large hospitality school with a diploma in restaurant management. Even before graduating Shawna had a long-term plan of eventually owning a string of sandwich shops. Her vision was pretty complete: high quality, fresh, nutritious fast food, with each meal controlled for calories, fat content, vitamins, minerals, proteins, fibre and with a minimum of additives.

For the past two years, Shawna has been working in different small fast-food restaurants, learning everything she can about the business while working on a business plan for her own start up. She feels that she will need a downtown location with a high-traffic site, close to lot of the traditional junk food take out places. Here, she will be able to offer a clear alternative, since everything she will sell will be healthy: not just one or two healthy options in a sea of fat and sugar.

Most recently, Shawna has been working in a small suburban cafe in a fairly large outdoor mall. Bud's Cafe has a health food store on one side of it and a fresh fruit and vegetable store on the other. The cafe has several healthy choices on the menu, but the most popular item it sells is "Bud's Famous Beef Pot Pie". Shawna has described this to her friends as "gravy and fat lumps, lard pie with a few peas and bits of carrot in it". But many of the customers love it and some travel a long distance just to get this treat. Most of Buds clientele consists of downscale blue and white-collar workers.

Bud, who is well past retirement age, knows of Shawna's aspirations to own a restaurant and he has come to her with an offer. He would be willing to sell the Cafe to her with an arrangement whereby she would be able to pay him over time from the profits of the business. He would require only a small down payment, which she could just afford. He reminded her that the deal would even include the recipe for "Bud's Famous Beef Pot Pie".

Shawna is both intrigued and appalled. She knows that it would be several years before she would have enough money to open her ideal sandwich shop. As the owner of Bud's Cafe, she would be able to introduce many of her own ideas, but...

1. What are the advantages to Shawna of taking Bud's offer?

2. What are the clear drawbacks?

3. What will likely happen if she attempts to move Bud's towards her own vision for a restaurant.

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