Cafe Latte

Topics: Personality psychology, Personality type, Type A and Type B personality theory Pages: 12 (3460 words) Published: April 25, 2012
Mba 555 - Case Study
Table of Contents
Summary 3
Introduction 4
Facts 4
Café Latte 4
Cynthia Chan 5
Stuart Chan 7
Rob Chan 8
Jeff Burns 8
The Chan Family 9
Inferences 9
Cynthia Chan 9
Stuart Chan 10
Rob Chan 10
Jeff Burns 11
The Chan Family 11
Problems 12
Decision –Additional Options 14
Behavior Assessment 15
Cynthia Chan 16
Stuart Chan 16
Rob Chan 17
Decision Assessment 17
Lessons Learned 19
Case Study: Café Latte, LLC
Café Latte, a new espresso bar, is about to open in Pocatello, Idaho. The business was formed as a limited partnership between three siblings and a friend, Cynthia, Stuart, and Rob Chan, along with Jeff Burns, respectively. The Chans are somewhat knowledgeable about running a business since their parents have operated a restaurant for years, and Stuart Chan continues to manage the restaurant. The three siblings are the principals in the business, while Jeff Burns is primarily a partner for financial purposes only. Cynthia, having the most free time, has spent the most time working on the business opening. Stuart has procured the equipment for the bar, with Rob’s help. Stuart has become angry at Cynthia for not spending enough time in preparations, and feels that she and Rob are not doing their fair share of work. Stuart wants to buy out Cynthia’s share, but later just apologizes for his outburst. In order to avoid further conflicts, a work schedule was devised that permits Cynthia and Stuart to work schedules that do not overlap, and Rob will manage the operation. Introduction

This case study is following the decision case model. Case studies are and important part of the study of organizational behavior. We can dissect the various components of attitudes, behaviors, consequences, etc., using a fictional setting and cast of characters. We can subsequently collaborate to develop objective assessments of the situation presented, and model possible decisions that we might make as managers. In the case of the Café Latte case study, we are provided with one decision possibility but we are also free to propose alternative decisions, along with the rationale. Facts

The following is the list of relevant facts about the case, where some of the facts may be offered from different observer perspectives. Café Latte
• The business was a new espresso bar with 4 partners that was on the verge of opening (scheduled for February 1998) in Pocatello, Idaho. • The company was formed as a limited liability partnership between three siblings from the Chan family: Cynthia, Stuart, and Rob, plus a friend, Jeff Burns. • Each Café Latte partner holds a 25% stake in the company. • An espresso bar business was chosen due to low entry costs, while having quick profitability possibilities, and because the business could be operated with minimal supervision. • Among the Chan family partners, Cynthia is the youngest sibling, while Stuart is the oldest. • The landlord (who was a family friend of the Chan family) offered Café Latte a 6-month lease at a reasonable rate, with discounts for tenant improvements. • The new retail space had to be extensively renovated.

Cynthia Chan
• Cynthia was the youngest of seven children, and was born in 1969. • She was considered to be independent and “old beyond her years”, and she possessed an adventurous spirit. • Experiences during her childhood, including a car accident at age 14, triggered Cynthia to change in several ways, including: o Not wasting precious time on petty arguments

o Maturing quickly
o Becoming self-reliant
o Appreciation of the fun in life that arises from challenges • Cynthia spent one year in Seattle, Washington, followed by seven years in San Francisco, California as a bank officer. • Tiring of the big city and corporate life, she returned to Idaho to try her hand at entrepreneurship. • Among the partners, Cynthia had the most time available to devote to the business opening. • Cynthia provided direction to the contractor on the interior...
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