Question: RangoliCafe is evaluating three strategic options to improve performance in the upcoming year. The market environment is unpredictable post - pandemic, with changing consumer behavior,

RangoliCafe is evaluating three strategic options to improve performance in the upcoming year. The market environment is unpredictable post-pandemic, with changing consumer behavior, inflation concerns, and rising competition. - Decision Alternatives (Strategies): - Aggressive Expansion (Strategy A): - Open 30 new outlets across Tier 1 and Tier 2 cities - Investment: 6 crores - Fixed cost per outlet: 15 lakhs - Break-even sales per outlet: 20 lakhs - Expected revenue per outlet depends on market demand - Digital-First Campaign (Strategy B): - Invest in a subscription-based online delivery model and influencer marketing - Investment: 2 crores - Variable cost per order: 110- Average selling price: 250- Projected volume depends on market condition - Wait-and-Watch (Strategy C): - No major investment - Focus on cost control and current operations - Marginal increase in existing revenue if demand improves (Assume current profits 4 Cr.)- States of Nature (Market Demand Conditions): - Booming Demand (S1): - Each new outlet in Strategy A does 51 lakhs in annual revenue - Strategy B sees 2.5 lakh online orders - Strategy C increases current profits by \(10\%\)- Stable Demand (S2): - Each new outlet does 20 lakhs - Strategy B sees 1 lakh orders - Strategy C has \(5\%\) increase in profit - Low Demand (S3): - Each new outlet does 10 lakhs - Strategy B sees 50,000 orders - Strategy C sees no change in revenue Suggest a strategy for the RangoliCafe team.

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