Emma: A Case

1. Factual Backdrop

 Emma Lathbury, formerly working as an intensive care nurse, opened Emma’s

Parlor, a Victorian tea room, as a career change;

 Emma’s Parlor’s success was partly due to the growing popularity of specialty
teas during the 1990s;

 The tea room, which employed 20 people, was nearly always completely booked.
As her business continuously expanded, and despite the fulfillment she found in
running Emma’s Parlor, she experienced burnouts, prompting her to reconsider
her options: sell one of her businesses, delegate responsibilities, or close the
business entirely.

2. Statement of the Problem

 Should Emma Lathbury should sell one of her businesses, or explore options for
delegation?

3. Objectives

 To achieve a work-life balance whilst ensuring that Emma’s Parlor remains

profitable and consumer-oriented.

4. Diagnosis and Analysis of the Case

 The way Lathbury started Emma’s Parlor demonstrated that she has high internal
locus of control. She opted for financing, bought a gothic-style house, and
converted the same into a Victorian tea room. She also demonstrated self-
confidence in her ability to win customers and keep the business moving when
she “personally decorated the place, and tracked down the recipes…”.
 Emma also demonstrated her awareness of passing time when it was stated in
the facts that “quickly realizing that special events were key to attracting
customers, she organized and publicized fanciful gatherings”.

 Emma was driven by the desire for autonomy and cherish the freedom of making
their own decisions about their business. Emma is willing to give up valued
aspects of her lives, spending 60-70 hours per week for the tea room business.

 Emma currently deciding about what to do with her both her business. She
utilized the classica model when she listed and evaluated the alternative choices
to arrive at a rational and logical decision. She likewise employed the
administrative model of decision making, when she encountered a non-
programed decision (symptoms of burnout).

 Emma would be using intuition, if she made a quick decision of closing either
business because of her fear of her past experiences of burnout without
conscious thought. The political model of decision making will have been used, if
Emma decided to delegate and turn Emma's Parlor over to an experienced
restaurant manager. She would be making a coalition with restaurant manager in
operating the tea room.

 On her decision-making process, she recognized that she had to lighten up her
work load to avoid burn out. Emma’s decision maybe based on her risk
propensity, if she has the willingness to undertake the risk of closing one source
of income, with the opportunity of gaining piece of mind, and health.

 Emma maybe using directive style of decision making when operating the tea
room, since she makes every decision in the restaurant. Emma making use of
the analytic style of decision making when she uses rational data like sales
figure, when making choices in her restaurant and web business. If Emma based
her business decision on customer feedback, she is employing the conceptual
style of decision making. If Emma solicited the opinion and feeling of her
employees before making the decision, she is utilizing the behavioral style.
5. Recommendations and Conclusion:

 The approach that managers use to make decisions usually falls into one of
three types. The choice is said to depend on the manager’s personal
preference. In this case, the Emma should use the administrative model
because the decision must be made under conditions of uncertainty and
bounded rationality, where perfect information is lacking. Moreover, Emma is
in a situation where she has limited information on the long-term profitability
of her businesses.