Identifying and Clarifying Opportunities Case Study

Identifying and Clarifying Opportunities - Case Study Example This approach to decision making may pose as one of the biggest challenges for future survival and growth of  MLR. MLR is positioned as a casual, full-service restaurant that caters to a relaxed and fun-loving crowd. The chain strives to attract people who enjoy socializing and hospitality. The management however does not want to project the restaurant as a pub, sports bar or other drinking establishment. The present positioning is based on the founding members own experiences and not on any marketing research. MLR competes in the marketplace on the plank of differentiation. The restaurant offers a signature dish which is consistent with consumer’s preferences for healthier diets. The founders did not use inputs from consumers before finalizing these important marketing decisions. Likewise, there has been no effort to segment the market on any quantitative or sophisticated market assessment tool. MLR is presently facing cash flow problems. The costs have risen, however the revenue has not increased proportionately. The restaurant has accumulated large amount of debt. Heavy interest payout is compounding the issue of large cash outflows. The annual sales of MLR have risen consistently from $1,472,000 in 2006 to $ 17,222,000 in 2009. The projected sales of $22,329,000 for the year 2010 represent a 30 percent growth over the previous year. On the face of it, these figures suggest that MLR is doing pretty well. However they mask some important aspects that need attention. First and foremost is the fact that rate of growth in sales has been falling every year as depicted in the table below. Despite this slowdown in the sales growth rate, revenue per store has continued to increase every year. During the fiscal year ended April 30, 2009, which included the worse part of the economic recession, the average revenue per store was $1,435, up from $1,372 during the comparative