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 postpandemic, with changing consumer behavior, inflation concerns, and rising competition. Decision Alternatives Strategies: Aggressive Expansion Strategy A: Open new outlets across Tier and Tier cities Investment: crores Fixed cost per outlet: lakhs Breakeven sales per outlet: lakhs Expected revenue per outlet depends on market demand DigitalFirst Campaign Strategy B: Invest in a subscriptionbased online delivery model and influencer marketing Investment: crores Variable cost per order: Average selling price: Projected volume depends on market condition WaitandWatch Strategy C: No major investment Focus on cost control and current operations Marginal increase in existing revenue if demand improves Assume current profits Cr States of Nature Market Demand Conditions: Booming Demand S: Each new outlet in Strategy A does lakhs in annual revenue Strategy B sees lakh online orders Strategy C increases current profits by Stable Demand S: Each new outlet does lakhs Strategy B sees lakh orders Strategy C has increase in profit Low Demand S: Each new outlet does lakhs Strategy B sees orders Strategy C sees no change in revenue Suggest a strategy for the RangoliCafe team.
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