Question

Annie's Homemade is deciding whether to retain or drop a 700-square feet satellite shop location. The decision involves:

a) Financial analysis.
b) Market research.
c) Operational considerations.
d) All of the above.

Answer 1

Annie's Homemade must consider financial analysis, market research, and operational considerations to make an informed decision about whether to retain or drop a satellite shop location, with tools like the Huff Model providing valuable market insights.

Step-by-step explanation:

Considering whether Annie's Homemade should retain or drop a 700-square foot satellite shop location involves financial analysis, market research, and operational considerations, so the correct answer is d) All of the above. Financial analysis will assess the profitability and cost implications of keeping the shop open. Market research will provide insights into consumer behavior and preferences, which can be informed by tools like the Huff Model, that predicts customer shopping likelihood based on store attractiveness and distance.

Operational considerations would involve evaluating how the shop fits within the broader operational strategy of Annie's Homemade, including how it impacts staffing, logistics, and overall brand presence. Decisions in business often require a comprehensive view, taking into account various factors that contribute to the overall success or failure of a venture. Addressing all three aspects is crucial for making an informed decision.

Answer 2

The decision to keep or drop Annie's Homemade satellite shop should include financial analysis, market research, and operational considerations such as the Huff Model for predicting customer behaviors near the store.

Step-by-step explanation:

When Annie's Homemade is considering whether to retain or drop a 700-square feet satellite shop location, the decision process should encompass financial analysis, market research, and operational considerations.

Financial analysis involves assessing the profitability and cost implications of keeping the satellite shop operational. Market research is crucial for understanding customer behavior, competition, and the demand for the products being sold.

Operational considerations involve evaluating the logistics, management, and performance of the satellite location. Factors such as the Huff Model may be used to predict customer shopping behaviors in proximity to the store, thereby aiding in the decision-making process.

Additionally, small businesses like 'Mom and Pop' stores usually continue to operate even without earning economic profits due to their non-monetary benefits, commitment to the community, or as a livelihood for the owners.