KaBloom was founded in 1998 and had over 100 stores by 2005. However, the company was facing issues such as long work hours for employees of 13 hours per day, salaries exceeding budget by $40,000 per month, and poor quality flowers due to supply chain problems. To address these challenges, the company proposed solutions like decreasing work hours, hiring more part-time employees, improving domestic suppliers and distribution, and franchising the business model to expand nationwide.