Based on the analysis of Emma's situation and business, I would recommend the following option: Delegate to a manager The pros of this option are that it allows Emma to: - Expand her business and take advantage of opportunities for growth - Employ more people and provide job opportunities - Free up her time while still being involved as the owner While delegation does introduce some risks, Emma has built a successful business with strong foundations that could be managed well by an experienced professional. Hiring the right manager and establishing clear processes and oversight can mitigate the cons. Overall, delegation allows Emma to reduce her stress and workload while continuing to grow the business synergies between the tearoom and online operations.

1. EMMA’S
PARLOR
CASE FOR CRITICAL ANALYSIS
Mari-Ann B. Bringas, MD

2. Emma’s Parlor
• Emma Lathbury’s shoulders sagged
as she flipped the cardboard sign
hanging in the window of her
tearoom’s front door from “open”
to “closed”.
• The normally infatigable 52-year
old owner was bone-tired. Any
doubts she’d harbored about the
wisdom of seriously considering
some major changes in her
business were fast disappearing.

3. • She hadn’t felt this weary since
she’d left nursing in the early
1990s. After years of working as
an intensive care nurse – with
its grueling hours, emotionally
draining work, and lack of both
respect and autonomy – she’d
developed a bad case of
burnout.
Emma’s Parlor

4. • At the time, she was convinced she
could walk away from a secure, if
difficult, profession and figure out
a way to making a living that
suited her high energy, outgoing
personality.
Emma’s Parlor

5. • Then one day, she noticed an
1870’s vintage Gothic Revival
cottage for sale in the small
Illinois farming community near
where she’d grown up, and the
answer to her dilemma came to
her with a startling clarity.
• She’d get the financing, buy the
house, and open up a cozy
Victorian tearoom.
• Emma was certain she could
make it work.
Emma’s Parlor

6. • Her success was due in part to
her unintentionally perfect
timing. Specialty teas had taken
off, with no end in sight to the
current double-digit annual
growth rate.
• The solid performance of
Emma’s Parlor owed a good deal
to its owner’s hard work, which
was more fun when she worked
for herself.
Emma’s Parlor

7. • She personally decorated the place, graced the small
circular tables, hired staff, and tracked down recipes
for the finger foods, jams and Battenburg cake that
earned her growing reviews in numerous guidebooks
and national reputation.
Emma’s Parlor

8. • Quickly realizing that special
events were key to attracting
customers, she organized and
publicized fanciful gatherings
that drew everyone from
children toting their favorite
animals to an Alice in
wonderland affair to women
dressed in their best outfits...
• The tearoom which employed
about 20 people was nearly
always completely booked.
Emma’s Parlor

9. • Most of all, the former nurse developed a real
expertise when it came to teas, becoming
particularly fascinated by the medicinal benefits of
herbal teas.
• She started by conducting workshops on efficacy of
organic teas. Eventually, began blending her own
Emma’s Parlor Organic Teas.
Emma’s Parlor

10. • Her own Emma’s Parlor
Organic Teas started to sell in
retail stores, restaurants, and
to individuals over the Web.
• Her Web-based business
flourished, generating slightly
less revenue than she was
realizing from the tearoom.
The profit margins were
higher.
Emma’s Parlor

11. DILEMMA/ PROBLEM
• Despite the fulfilment she
found running her own
business, it was getting too
big for her to handle.
• Emma was beginning to
experience the all-too-
familiar symptoms of
burnout.
Emma’s Parlor

12. DILEMMA/ PROBLEM
• What might be the
best option for Emma
at her current
business stage?
• How can Emma
manage her business
at its current stage?
Emma’s Parlor

13. Emma’s Options
Drop the tearoom and
focus on the Internet
business, or vice versa
Master the fine art of
delegation and turn
Emma’s Parlor over to
an experienced
restaurant manager
Sell the tearoom
outright
Close the restaurant or
the Internet business

14. Key Objectives
• To determine the best option for Emma in
running the current stage of her business.
Organizational
objective:
• To unload
Emma of the
pressure in
running the
business thru
POLC.
Business
objective:
• To maximize the
potentials,
opportunities
and resources
at the current
stage of
business.

15. How did Emma Start?
Reasons for Starting a Business
Lay off
41% Joined Family business
36% To control my future
27% To be my own boss
25% To fulfill a dream
5%
Source of New Business Ideas
Brainstorming
Copying someone else
Hobby
37% In-Depth Understanding of
Industry or Profession
36% Market Niche Spotted
7%
4%
4%
11%
Other

16. Emma’s Parlor
• At the time, she was convinced she
could walk away from a secure, if
difficult, profession and figure out
a way to making a living that
suited her high energy, outgoing
personality.
36% To control my future
27% To be my own boss

17. Emma’s Parlor
• Then one day, she noticed an
1870’s vintage Gothic Revival
cottage for sale in the small
Illinois farming community near
where she’d grown up, and the
answer to her dilemma came to
her with a startling clarity.
• She’d get the financing, buy the
house, and open up a cozy
Victorian tearoom.
• Emma was certain she could
make it work.
36% Market Niche Spotted

18. • Her success was due in part to
her unintentionally perfect
timing. Specialty teas had taken
off, with no end in sight to the
current double-digit annual
growth rate.
• The solid performance of
Emma’s Parlor owed a good deal
to its owner’s hard work, which
was more fun when she worked
for herself.
Emma’s Parlor
36% Market Niche Spotted

19. 5 TYPES OF SMALL BUSINESS
OWNERS
IDEALISTS
24%
JUGGLERS
20%
HARD
WORKERS
20%
OPTIMIZERS
21%
SUSTAINERS
15%
Rewarded by
chance to work
on something
new and creative
Get personal
satisfaction
from being a
business owner
Thrive on challenge
of building a larger,
more profitable
business
High energy
Enjoys
handling every
detail of the
business
Enjoys chance to
balance work and
personal life
Source: Yankelovich Partners for Pitney Bowes in Mark Henricks “Type-Cast”
Entrepreneur ( March 2000); 14-16

20. At what business stage is
Emma’s Parlor?
5 Stages of Growth for an Entrepreneurial Company

21. STAGES OF GROWTH
Start-
up
Survival
Success
Take-off
Resource Maturity
Main Problems are producing the
product or Service and obtaining
customers.
Workable Business entity. It produces
product & service and has sufficient
customers. Concerns include finances.
Solidly based & profitable.
Systems & procedures are in place.
The owner could stay involved or turn the
managing tasks to professional managers.
Key problem is how to grow rapidly & finance
the growth. The owner must learn to delegate
and the company must have sufficient capital
to sustain the growth.
The company’s substantial financial gains may
come at the cost of losing Its advantages of
small size, including flexibility and the
entrepreneurial spirit.

22. At what business stage is
Emma’s Parlor?
• Success Stage:
– Solidly based and profitable.
– Systems and procedures are in place to allow
the owner to slow down if desired.
– Owner can stay involved
– Turn over the business to a professional
manager

23. At what stage is her Web-based
organic tea business?
• Success Stage:
– Solidly based and profitable.
– Systems and procedures are in place to allow
the owner to slow down if desired.
– Owner can stay involved
– Turn over the business to a professional
manager

24. What synergies exist between the two businesses?
How critical do you think those synergies are to the success
of each business?
• Synergy- the whole is greater than the sum of its parts
The tearoom
came first
before the
Internet
business
Tearoom is
isolated, less
accessible,
limited in
capacity
Internet
business is a
good venue to
market the
products from
the tearoom.

25. • Online/Internet business
Business expansion can
take a simple idea and
turn it into a lucrative
business
Owner should be
persistent in marketing,
savvy with technology
and skilful at building
online relationships
Wider market,
technology-driven
workplace can keep in
touch with customers
online
The Web Based Tea
Business, does not only
market the Tea itself,
but also the venue
where these products
are served.
Encourage more clients
to visit Emma’s Parlor
where customers
experience, freshly
made tea or be a venue
for other activities.
Customer feedback
possible
What synergies exist between the two businesses?
How critical do you think those synergies are to the success
of each business?

26. How does Emma Lathbury fit the profile of the typical
entrepreneur?

27. Entrepreneurial
personality
Internal
locus of
control
High
Energy
Level
Need to
achieve
Awareness
of passing
time
Self-
confidence
Tolerance
for
Ambiguity
How does Emma Lathbury fit the profile of the typical
entrepreneur? Which of those traits are likely to continue
to serve her well, and which might be counterproductive
at this stage of her business?

28. Which of those traits are likely to continue to serve her well,
at this stage of her business?
High-energy level-
• driven and focused at
achieving goal.
• “...she could walk away
from a secure, if
difficult, profession and
figure out a way to
making a living that
suited her high energy,
outgoing personality. “
Need to achieve-
• motivated to excel and
pick situations in which
success is likely.
• “Emma was certain she
could make it work. “

29. Which of those traits are likely to continue to serve her well,
at this stage of her business?
Internal locus of control
• knew that their future
is within their control
and external forces
have little influence.
• “She’d get the financing, buy
the house, and open up a
cozy Victorian tearoom.
Emma was certain she could
make it work.”
Self-confidence
• act decisively;
• need confidence to master
day to day tasks for the
business;
• feel sure on their ability to win
customers, handle technical
skills and keep business
moving. Security that they
can deal with anything in the
future.
• “She personally decorated the
place, graced the small circular
tables, hired staff, and tracked
down recipes ...”

30. Which of those traits are might be counterproductive
at this stage of her business?
Awareness of passing time
• Impatient
• Feels urgency to do
something
• “Despite the fulfilment
she found running her
own business, it was
getting too big for her to
handle. “
Tolerance to ambiguity
• psychological
characteristic that allows
a person to be untroubled
by disorder and
uncertainty.
• “Emma was beginning to
experience the all-too-
familiar symptoms of
burnout”

31. Which of those traits are might be counterproductive
at this stage of her business?
• Female entrepreneur- Only 20% of women-owned
business have employees, an area of great growth
and opportunity. The want to do things by
themselves.
• To survive TURBULENT TIMES:
Realism Flexibility Passion

32. EMMA’S PARLOR MISSION
The Emma’s Parlor Tea room will provide
only the highest quality, healthy products
and services to leaf tea drinkers in an
environment that is safe, comfortable and
attractive and will encourage customers to
come back and make repeated visits.

33. EP VISION
We want to be the social coffee/tea shop
of the 21st century, the place where
everyone can meet and build relationships

34. EMMA’S PARLOR STRATEGY
 Quality tea and teaware products
 Best food products
 Most attractive decorations and ambience
 Best quality customer service

36. SWOT HELPFUL HARMFULINTERNAL
STRENGTH
Creativity/ own production
Culture/ Special personal
touch
Good reputation
Business synergy
Team of 20 more manageable
WEAKNESS
Growing business hard to
manage
Knowledge/Skills need to
be delegated
EXTERNAL
OPPORTUNITIES
Pop-up activities
Younger and older customers
Health issues/ benefits
Globally consumed product
THREATS
Tea industry
Emerging tea rooms
Online marketing
Direct competitors

37. Action Plan
Strength  Opportunities
Pursue Opportunities that are fit to Strengths
Use creative
planning to
organize activities
in the tearoom
that will promote
tea products.
Personal touch
and welcoming
culture can cater
to the tastes of
both young and
old customers.
Good reputation
of products can be
promoted to
target health
issues using the
Web-based
business and make
them globally
consumable.

38. Strength  Threats
Use Strengths to reduce vulnerability to external Threats
Action Plan
Business synergy can
employ more
manpower and
customers.
Multiple product lines-
create teams and
divisions
Creative products and
innovative marketing
strategies can promote
sales of tea with health
benefits on different
venues such as retail
stores, local
supermarkets and
online.

39. Weakness  Opportunities
Overcome weaknesses to pursue opportunities
Action Plan
Hire more
people to help
organize and
sustain the
growing needs
of the business.
Multiple
product lines-
create teams
Train more
people in
tea-making to
increase
productivity.
Provide
more job
opportunities

40. Weakness Threats
Establish defensive plan to prevent weaknesses
Action Plan
Delegate
responsibilities.
Strengthen manpower
and management staff
to be able to compete
with growing industry
Intrapreneurship-
recognizing the need
for innovation and
promoting it within the
organization.
Innovation and new
products can attract
consumers in online
business.

41. MANAGING A GROWING BUSINESS
START
Self-confidence
Internal locus of
control
Creativity
Owners love to
perfect every
detail
CONTINUED GROWTH
Shift in management style
Need to adjust
POLC

42. Planning is in the form of
the Business Plan.
One Planning concern is to
be Web Savvy.
Managers must learn to delegate and
decentralize authority. The organization must
hire competent managers who could handle the
fast growth rate of the organization.
The driving force in a
small business
start ups is the
leader’s vision.
The leader can signal
values of
Service, efficiency,
quality & Ethics. The
leader must learn
to motivate
employees.
Financial control is important in the firm’s
growth. Control is exercised by simple
accounting records and by personal
supervision. Operational budget are in
place and a structured system must be
implemented.

43. PLANNING
• Start-up Stage
• Non-existent
• Primary goal is to remain alive
• Success stage
• Formal planning
• Define goals
• Decide on tasks
• Use of resources
1
3

44. ORGANIZING
• Start-up and Survival
• Informal
• Employees report to owner
• Success
• Hire functional managers to take charge of finance,
manufacturing and marketing
• Outsourcing
• Functional organization
• Managers learn to delegate and decentralize authority
• Multiple product lines- create teams
• Greater use of rules, procedures and written job
descriptions
1
3

45. LEADING
• Early Stage
• Driving force is leader’s vision
• Leader’s personality shapes corporate culture
• Success
• Owner must motivate employees or bring in
managers who can
• Take-off
• Employee cooperation
1
3
4

46. CONTROLLING
• Early Stage
• Simple accounting and personal supervision
• Success
• Operational budgets in place
• More structured control systems
• Take-off
• Sophisticated control techniques
1
3
4

47. EMMA’S OPTIONS
OPTION PROS CONS
Drop the tearoom
and focus on the
Internet business,
or vice versa.
•More time and close
monitoring of just 1
business entity.
•Productive time less stress.
•The delegated business might
not be managed well.
•Loss of synergy.
Sell the business •Retirement money
•Start a new business
•At her age, she might not be as
driven and high-energy in
starting up a new business.
•Loss of work may be
deteriorating
Delegate to a
manager
•More work can be done
•Expand business
•Opportunity to employ
others
•Loss of personal touch
•Hiring inefficient employees
•lose advantages of small size,
including flexibility and the
entrepreneurial spirit.
Close down the
restaurant and
Internet business
•Less stress.
•No worries.
•More time for self.
•Limited source of income
•No more productive years

48. Which course of action would you recommend?
OPTION PROS CONS
Drop the tearoom
and focus on the
Internet business,
or vice versa.
•More time and close
monitoring of just 1
business entity.
•Productive time less stress.
•The delegated business might
not be managed well.
•Lack of synergy.
Sell the business •Retirement money
•Start a new business
•At her age, she might not be as
driven and high-energy in
starting up a new business.
•Loss of work may be
deteriorating
Delegate to a
manager
•More work can be done
•Expand business
•Opportunity to employ
others
•Loss of personal touch
•Hiring inefficient employees
•lose advantages of small size,
including flexibility and the
entrepreneurial spirit.
Close down the
restaurant and
Internet business
•Less stress.
•No worries.
•More time for self.
•Limited source of income
•No more productive years

49. Delegate to a manager
• The food business is very competitive and
physically demanding .
• As business grows, there needs to be
additional manpower to cater for present and
future customers.
• A NEW MANAGER can share workload done
by Emma.
• Emma can still continue to oversee operations
of her business but on a supervisorial level.

50. What is DELEGATION ?
• Assignment of responsibility to another
person for the purpose of carrying out
specific job-related activities.
• A shift of decision-making authority form one
organizational level to another

51. GOAL FOR EMMA
• Appreciate the importance of delegating as a
way to offload work and get more work done
in her busy life
• Face the fear of delegation and learn to think
positively
• Adopt an appropriate strategy to delegate
– Right task, right people, right time, right way
• Use a systemic step-by step approach to brief
people on what she wants to delegate to them

52. BENEFITS OF DELEGATION
Manager/
Supervisor
Benefits
• Reduce stress
• Improved time
management
• Increase trust
Employee
Benefits
• Professional
knowledge and
skill
development
• Elevated self-
esteem and
confidence
• Sense of
achievement
Organizational
Benefits
• Increased
teamwork
• Increased
productivity
and efficiency

53. Delegate to a manager
• Less workload and stress
• Build divisions or teams for each business line
• Deal with suppliers and consumers properly
• Expansion of business is possible if job
delegation is implemented- employee
cooperation
• More structured control systems
• More profit can be channeled to expansion.
• Enter next stage TAKE OFF

54. “Instead of wondering where
your next vacation is,
maybe you should set up a life
you don’t need to escape from.”
____________
SETH GODIN
Thank you for your kind attention.