Reference no: EM131614331

CASE Study - Scarborough N.M. & Cornwall, J. (2015). Entrepreneurship and Effective Small Business Management (11 ed.) Pearson: Boson, MA Red Iguana

Questions

Sources: Based on Ian Mount, "Build a Second Restaurant in the First's Shadow?," New York Times, August 24, 2011, Ian Mount, "Why Red Iguana Built Red Iguana 2 Right Next Door," New York Times, August 30, 2011, [no longer online] Ian Mount, "You're the Boss; Second Restaurant: Following Up," New York Times, August 30, 2012, [no longer online]; Larry Olmstead, "Mexican Food in Utah? Red Iguana Is the Real Deal," USA Today, March 28, 2013,

1. C4-1. What management succession issues do you detect in this case? What steps could Rámon Cardenas have taken to avoid them?

2. C4-2. Lucy and Bill eventually were able to purchase Red Iguana from her father for $560,000. Describe at least three methods that the family could use to establish the value of the business. What factors make placing a value on a business difficult?

3. C4-3. Should Lucy and Bill open a second location of Red Iguana? If so, what factors should they consider when selecting a location?

4. C4-4 Where should they locate the second restaurant? Explain.

5. C4-5 What steps should Lucy and Coker take when they make their loan request to officers at Zions Bank?

Attachment:- CASE.rar