Management 10th Edition by Richard Daft

Exercise 2

Emma's Parlor
Emma Lathbury's shoulders sagged as she flipped the card-board sign hanging in the window of her tearoom's front door from "Open" to "Closed." The normally indefatigable 52-year- old owner. Emma's Parlor was bone-tired. Any doubts she'd harbored about the wisdom of seriously considering some major changes in her business were fast disappearing.
She hadn't felt this weary since she'd left nursing in the early 1990s. After years of working as an intensive care nurse-with its grueling hours, emotionally draining work, and Lack of both respect and autonomy-she'd developed a bad case of burnout. At the time, she was convinced she could walk away from a secure, if difficult, profession and figure out a way of making a living that suited her high-energy, outgoing personality. Then one day, she noticed an 1870s-vintage Gothic Revival cottage for sale in the small Illinois farming community near where she'd grown up, and the answer to her dilemma came to her with a startling clarity. She'd get the financing, buy the house, and open up a cozy Victorian tearoom. Emma was certain she could make it work.
And he had. Her success was due in part to her unintentionally perfect timing. Specialty teas had taken oft, with no end in sight to the current double-digit annual growth rate. But of course the solid performance of Emma's Parlor owed a good deal to us owners hard work and all those 60- and 70-hour weeks she'd put in, which was more fun when she worked for herself She'd personally chosen the precise shades of purple and plum for the cottage's exterior, hung the lace curtains, selected the fresh flowers that graced the small circular tables, hired the staff, and tracked down and tested recipes for the finger sandwiches, scones, jams, and Battenburg cake that earned her glowing reviews in numerous guidebooks and a national reputation. Quickly realizing that special events were key to attracting customers, she organized and publicized fanciful gatherings that drew everyone from children toting their favorite stuffed animals to an Alice-in-Wonderland affair to women dressed in their best outfits, complete with big floppy hats, to a Midwest version of royal garden party. The tearoom, which now employed about 20 people was nearly always completely booked.
Most of all, the former nurse developed a real expertise when it came to teas, becoming particularly fascinated by the medicinal benefits of herbal teas. She started by conducting evening workshops on the efficacy of organic teas in treating everything from a simple upset stomach to menopausal distress. Eventually, she began blending her own Emma's Parlor Organic Teas and selling them to retail stores, restaurants, and individuals over the Web. As more and more publicity pointed to the benefits of tea, her Web-based business flourished, generating slightly less revenue than she was realizing from the tearoom. The profit margins were higher.
Despite the fulfillment she found in running her own business, it was getting too big for her to handle. Emma was beginning to experience the all-too-familiar symptoms of burnout. After she locked the front door, she made herself a soothing cup of rosebud tea, lacked off her sensible shoes, and sat down to review her options. Maybe she could drop the tearoom and focus on the Internet business, or vice versa. She could try to master the fine art of delegation and turn Emma's Parlor over to an experienced restaurant manager, or she could take herself out of the picture by selling the tea-room outright. Then again, she could simply close the restaurant or the Internet business.
After listing the pros and cons for each of Emma's options and considering her personality, which course of action would you recommend?