Aaron Mart
Aaron is a sole proprietor who owns a supermarket in North Carolina called Aaron Mart. The products in his supermarket are best known for their quality and customer service provided by the staff.
Aaron Mart has been appreciated by the locals on account of its community presence which has consistently been a significant part of local events and organizations which has provided the locals with various jobs.
However, Aaron has been criticized for having a more centralized decision-making system. The limited local input from individuals or departments closer to the specific issue results in decisions that may not fully satisfy internal and external needs which may lead to inadequate results. Though the profits are consistent, the rigidity and maladaptive issues resulting from Aaron’s strict hierarchy leaves Aaron Mart with the vulnerability to threats like market shifts or emergencies.
The competition in the industry has increased due to the government providing businesses with generous subsidies.
To tackle these challenges, Aaron sees two growth opportunities that he can consider.
Option 1: Take his friend as a partner to provide the business with complementary skills and proceed with better expertise eliminating any skill gaps.
Option 2: Expand the business with franchises across the state which can result in better inventory management and improved customer engagement.
Q1. Outline 2 features of a sole trader. 2 marks
Q2. Explain one advantage and one disadvantage of Aaron’s leadership style. 4 marks
Q3. Outline 2 key differences between sole traders and partnerships. 4 marks
Q4. Evaluate the 2 growth options mentioned in the case study and recommend the best option. 10 marks
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