Your classmates are a group of friends who have
decided to open a small retail shop. The team is torn
between two storefront ideas. The first idea is to open
a high-end antique store selling household items used
for decorations in upscale homes. Members of the
team have found a location in a heavily pedestrian
area near a local coffee shop. The store would have
many items authenticated by a team member’s uncle,
who is a certified appraiser.
In discussing the plan, however, two group members
suggest shifting to a drop-off store for online
auctions such as eBay. In this business model, customers
drop off items they want to sell, and the
retail store does all the logistics involved—listing
and selling the items on eBay, and then shipping
them to buyers—for a percentage of the sales price.
They suggest that a quick way to get started is to
become a franchisee for a group such as “I Sold It”
( www.877isoldit.com ).
1. What is the business strategy for each store
concept?
2. How would the organizational structure be different
for the concepts?
3. What would likely be the cultural differences in
the two store concepts?
4. How would the control-and-reward systems be
different?