Mexican Restaurants Casa de Carlos and the seafood ventureowned by Mr. Galendez, are facing some major issues in their work after the death of Mr. Galendez, and her daughter Mariagets selected for the position of CEO.
The major problems faced by the business are
- Two major rivals of the restaurant casa de Carlos is taking a major share in the business.
- There another business seafood venture is also facing twist and turn in its functioning.
- Local banks have declined to raise their further credit limits.
- Consumer have changed their spending pattern due to the recent occurrence of therecession their outside eating habits have been changed their mental structure has changed as per the required scenario to adjust accordingly and save as much they can to avoid any kind of unwanted problem occurring due to lack of money.
- Rivals are interested in having the companies share as soon as possible because of the good reputation and image it has, considering the profit in mind every competitor is interested in getting the share of the organization in the time of chance.
- The death of MrGalindez creates trouble in handling of business accurately sudden changes in the family and business give complex time to run the business accordingly.
Three alternative solutions are:
- The owners still have 60 % of the company share to gather the amount to resolve the issue they can sell about 9 % of the company’s shares to gather the amount and can still be the owner of the firm as they will have 51 % of the shares.
- As consumers have changed their behavior of spending patterns new offers and discounted deals can be offered to attract consumers.
- Investing in the marketing plan and understanding the need, giving a solution in addressing the problem, and having profited by it.
- Stock offering and possibilities of bond could be considered as one of the options for solving the problem effectively as per the scenario as a bank have decided not to increase any more credit
Because I have read the entire scenario and come up with a solution based on actual data and facts which have given I a broad view to look at and that resulted in attaining the issue more accurately and logically.
Longenecker, J. G., Petty, J. W., Palich, L. E., & Hoy, F. (2013). Small business management. Cengage Learning.
Steinhoff, D. (1974). Small business management fundamentals. Tata McGraw-Hill Education.