Bob's Supermarket Case Study

In the case regarding Bob’s Supermarket, several key facts and critical issues were observed. Bob’s Supermarket was co-owned by Bob and Sam Thompson. Also, they had a third silent party that provided capital for the stores. Eventually, Bob and Sam brought out the third party and they became the sole owners. The brothers in 1998 formed a subchapter-S corporation to purchase an existing supermarket into Hanover, Indiana. Five years later, they decided to expand by purchasing a store in Westport, Indiana. However, due to low profits, the store closed two years later. The next year expansion occurred again in Hope, Indiana by acquiring an existing store.

Strategically, Bob’s Supermarket returned modest profits. Conversely, the introduction of