R e a d t h e s c e n a r i o b e l o w a n d a n s w e r t h e f o l l o w i n g :( 3 ) S h o r t - t e r m o b j e c t i v e s ( 3 ) L o n g - t e r m o b j e c t i v e s( 5 ) A r e a s o f c o n s i d e r a t i o nS o l u t i o n 1 ( 3 ) A d v a n t a g e s( 3 ) D i s a d v a n t a g e s Decisions, DecisionsAmber Liu is an entrepreneur who started an online company selling luxury headphones. She loves exploringdifferent musical genres, which sparked an interest in doing headphone research. She discovered that the worldof headphones was obtuse, with numerous brands advertising different incomprehensible jargon, numeroustypes with different features and drawbacks, and was complicated by the fact that the audio source and powersupply made a significant difference to sound fidelity in her experience. She decided to do something about itand make a business selling high-end headphones that simplified the experience for customers. Her nascentwebsite featured a questionnaire that determined the usage of the headphones and educated customers aboutwhat they should be looking for.One feature of the website was an “ask me anything" feature which would connect her customers to her directlyso they could ask questions about headphones. Amber's knowledge and sales skills meant that she couldconvert the conversations into a sale 10% of the time, as opposed to the average visitor who made a purchaseless than 2% of the time. As the popularity of the website grew, Amber had to enlist her brotherCraig (a music connoisseur in his own right) to help out. Sales crept up and reviews about their website werepositive. However, Amber and Craig could no longer keep up. They needed help and they hired a young audioengineering student and his friend to answer questions on an alternating-shift basis. Between Amber, Craig, andthe 2 students, the website had someone monitoring customer chat 24/7.This wasn't enough. At peak times there would be a deluge of customer inquiries and Amber needed more skilledpeople. Further, she no longer had the physical space in her parent's basement suite to accommodate thebusiness. It was time for the business to move.Amber did a little research and came up with a few alternatives. She's sure that more alternatives are available,but she has had little time to think since her business has been taking off.First, she could rent office space out in the suburbs. The office she found was far away from her home and wouldcreate a significant commute for her, her brother, and the employees. However, the space was cheap, parkingwas plentiful, and there was a lot of space for growth because it could comfortably fit 30 people. Second, shefound a chic downtown office. It was nearby her home and would surely impress visitors, including potentialinvestors who she is considering soliciting for money to expand the business. However, it is expensive and canonly accommodate 15 people, leaving little room for growth. Third, she could have all her employees work fromhome and provide an allowance for equipment. This would be the cheapest by far as she would not need to rentany additional space. She would also be able to hire people from outside her city because it's not necessary thatthey are physically on-site. However, she is concerned about not being able to monitor employees' jobperformance or develop a collaborative culture at her business. After thinking about all this, Amber is strugglingto come to a decision. "What should I do? This will certainly affect my business for years to come."

Amber Liu, a entrepreneur who started an online store selling high end headphones, has been debating…

Answered: R e a d t h e s c e n a r i o b e…

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE