Management Decision

Ch 18 Mgt Decision.

IS BIGGER ALWAYS BETTER

When you told your friends and family that you were starting your own business, they were thrilled. When you told them that it would be a food truck, well, they were less than thrilled. All they could imagine was a truck filled with cold sandwiches and watered-down coffee parked next to a construction site. But you used your culinary training to come up with fresh, delicious, and healthy dishes that appealed to almost everyone. And instead of construction sites, you parked your truck next to busy office buildings and downtown intersections. In almost no time at all, there were hundreds of people lined up at your truck, waiting for one of your latest creations.

Ever since you opened, the business has been pretty small—just one truck, you manning the kitchen in the back, and your best friend taking orders and working the cash register. But all of that could soon change. A few weeks ago, a camera crew and producers from Food Network came by your truck to do a profile on the hottest dining trends in the country. They called your truck “adventurous,” “cutting-edge,” and a definite “must-eat.” A little while after that, you were profiled on TV news and magazines, and you’ve lost track of the number of food bloggers who have stopped for a taste. And the attention hasn’t come just from the media. Investors are calling left and right with offers to help you expand your business. They want to help you buy more trucks, hire more people, and increase your productivity so that you can sell food in more cities across the country. Some have even called with you offers of opening up a chain of restaurants.

This seems like a dream come true, taking a small business and growing it into a nationwide chain. However, your best friend has a word of warning. He says that growing so fast isn’t always the best way to go. He tells you about Jim Picariello, who had a small business making all-natural ice pops. Picariello began making the...