Case Study - Emma's Parlor

CASE ANALYSIS: EMMA’S PARLOR

A. Problem Statement

a. Facts of the Case

 Emma Lathbury left nursing in the early 1990s due to gruelling hours, emotionally draining work and lack of both respect and autonomy resulting to a bad case of burnout.
 Emma opened a cozy Victorian tearoom in the small Illinois farming community near where she’d grown up.
 Emma’s parlor was a success due in part to her unintentionally perfect timing of setting up her business when specialty teas had taken off. It can also be attributed to Emma’s hard work and the 60- and 70-hour weeks she’d put in.
 She personally chosen the colors for the cottage’s exterior, hung the lace curtains, selected the fresh flowers that grace the small circular tables, hired the staff, and tracked down and tested recipes for the finger sandwiches, scones, jams and Battenburg cake.
 Emma’s parlor earned glowing reviews in numerous guidebooks and a national reputation.
 Upon realizing that special events were key to attracting customers, she organized and publicized fanciful gatherings.
 The tearoom was nearly always completely booked.
 Emma developed a real expertise when it came to teas. She started by conducting evening workshops on the efficacy of organic teas in treating everything from a simple upset stomach to menopausal distress.
 She began blending her own Emma’s Parlor Organic Teas and selling them to retail stores, restaurants and individuals over the Web.
 The Web-based business flourished, generating slightly less revenue than she was realizing from the tearoom. Also, the profit margins were higher.
 The business is becoming too big for Emma to handle.
 Drop the tearoom and focus on the Internet or vice versa
 Try to master the fine art of delegation and turn Emma’s Parlor over to an experienced restaurant manager
 Take herself out of the picture by selling the tearoom outright
 Close the restaurant or the Internet business

b. Key Problem

 Emma’s Parlor is