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2004 Esther Yoder realized a personal dream by purchasing the Coffee Company. The Coffee Company is a small coffee shop in a strip mall located at the intersection of two busy roads and a major, limited access highway. The shop was founded in 1983 by two burned-out corporate executives—a husband and wife team, in their effort to find a more fulfilling day-to-day life. It began as a predominantly retail store featuring coffees, teas, and coffee accessories. Breakfast and lunch were served until 2 p.m. daily. The menu included sandwiches and salads with a healthy twist. In 1987 the Coffee Company was sold to another couple that eventually sold the shop to Esther. The second owners expanded the seating, spiced up the drink menu, and added more retail items. Lynn and Esther Yoder became the owners in 2004. Prior to this Esther had managed a small Aunt Annies Café in a nearby community. Lynn and Esther added a larger grill and significantly improved the appearance of the cafe. The menu was expanded to include more homemade items, and the grill now remained open through the dinner hour. The Coffee Company continues to offer various tea and coffee drinks, soups, sandwiches, and desserts. The business also sells bulk gourmet coffees and teas and a few teapots and small coffee makers. The cafe now seats about 50 at tables and another six at a counter. Over the years the previous owners had begun to offer music on Friday and Saturday nights. This was usually accomplished through local singer-songwriters who would sing for tips. As a result of the music, these nights were busier than others. Esther expanded this to include music on Thursdays. It is now hard to find a day when the cafe isn’t packed for breakfast, lunch, and dinner, and Esther has explored possible expansion into the space next door, currently occupied by a candy shop.

1.What factors in the microenvironment of the Coffee Company might need attention as Esther considers expansion of the business?2.As Esther considers expansion of her business, what factors in the macroenvironment of the Coffee Company might need attention?3.What types of competition might the Coffee Company face?

Marketing Environment -Small Business Case: Michael’s Motor Cars

Michael Rowan owns Michael’s Motor Cars in Lancaster, Pennsylvania. Michael’s motor car business is rather unique. The company is involved in selling used cars, but in a very original and new way. Over the years Michael has developed a new type of customer service. No longer must buyers go from car lot to car lot searching for their “dream car.” Michael’s Motor Cars serves as your personal car shopper. His clientele is limited to very upscale buyers, and he sells only the finest quality automobiles. Through the Internet, Michael’s customers come to him from all over the United States. However, the majority of his customers reside in the northeast region, and this allows for easier delivery and communication with his customers. Whether it’s a 2005 BMW or a 1960 Alfa Romeo, Michael has been able to deliver with little or no complications or rejections. And, typically, the clients will receive their car for less than the Kelly Blue Book value. They are nothing less thanhigh-quality automobiles that Michael has hand-chosen and made flawless through the restoration and detailing performed on each vehicle prior to delivery. With only limitedinventory and relatively low overhead, Michael is able to keep his operating costs quite low. One essential part of the automotive retail business is maintaining a strong customer referral base. Michael closely guards his very high reputation, and this allows him to maintain a network of referral clients.

1.What elements of the macroenvironment do you suggest have helped to shape the business of Michael’s Motor Cars?2.What threats might Michael’s Motor Cars face as a result of generational shifts?3.What opportunities might there be for growth with Michael’s Motor Cars?