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Case Study #2 Tom’s Coffee Cup

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Case Study #2 Tom’s Coffee Cup
Tom had always wanted to start his own business. He was talented in many areas and had great people skills. Tom has a BA in business and an MBA as well. He was having a hard time conforming to some of the norms in corporate America as he was an independent thinker. He made a good salary but worked long hours during the week and on weekends. He was married with two small children and a pet. He needed to support his family as his wife had decided to stay at home with the children.
Tom searched around for business opportunities and franchises. He was not afraid to make the jump into being his own boss as he had confidence. Tom’s organization was offering buy-outs so he decided to take one at the age of 40 and use the money to begin a business. Tom was given a severance package of $50,000 to leave the organization.
It did not take much time for Tom to find what he thought would be a great place to start a coffee house. Tom’s Coffee Cup was opened just down the street from the Ravens and Orioles stadiums in Baltimore, Maryland. Tom had a vision of offering a place for customers to come, relax and to make their daily routine more pleasant. Tom even posted his mission statement of “an atmosphere of quality for the quality people we serve.”
Tom was running on adrenalin doing local interviews and promoting his business. He spent most of the money he had from a home equity line of credit and from the severance payout on renovations and purchasing premium coffee and baked goods. He recently added generously-sized pita sandwiches and hearty salads to his menu for lunch and he decided to also serve smoothies and wheat grass for the health conscious crowd.
The business was quite successful and Tom found that he needed additional help. Tom’s wife was supportive but did not want any parts of the business as she had her hands full

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