BUSY CORNER: LAUNCHING NEW BUSINESS IN UNCERTAIN TIMES
CASE STUDY SOLUTION
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SYNOPSIS
Phumlaphi Rita Zwane, known as MaZwane, is an entrepreneur and the founder of Busy Corner, a
successful Shisanyama (traditional African barbeque) business in Thembisa, South Africa. During the
COVID-19 pandemic, MaZwane opened a company-owned restaurant in the Mall of Thembisa, based on
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her desire for business growth, and to identify and explore new opportunities. However, at the time, several
critical factors were overlooked during the original decision-making process. As of February 18, 2023,
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these oversights resulted in a current debt of $825,971.00,2 thus threatening the business’s survival.
MaZwane is now at a crossroads: should she close, sell, or franchise the business?
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OBJECTIVES
• Evaluate factors that lead to a limited risk assessment.
• Identify risks associated with the launch of company-owned stores during uncertainty and the resilience
factors to manage the risks.
• Apply a strengths, weaknesses, opportunities, and threats (SWOT) analysis to determine business
continuity or closure.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
1. What factors influenced MaZwane’s limited assessments of risks associated with expanding into the
Mall of Thembisa during an uncertain time?
2. What were the risks MaZwane faced when expanding the business during the pandemic?
3. What recommendation would you make to MaZwane regarding the continuation or closure of her
business? Explain your rationale using a SWOT analysis.
The Case Solution Starts From page 5
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ANALYSIS
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1. What factors influenced MaZwane’s limited assessments of risks associated with expanding
into the Mall of Thembisa during an uncertain time?
In the local business culture of Thembisa and South Africa, personal relationships play a vital role.
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Entrepreneurs often rely on personal connections for business collaborations and support. This local
business culture can contribute to a sense of optimism and confidence, sometimes leading to overconfidence
tio
or biases in assessing risks. MaZwane’s limited risk assessment could be influenced by her familiarity with
the local community and her optimism in the face of challenges.
lu
The Keh, Foo, and Lim reading (see Relevant Readings) provides a framework that explores the nuanced
and intricate cognitive dimensions of opportunity evaluation, acknowledging the inherent risks and
So
uncertainties in entrepreneurial decision making. The authors contribute valuable insights into how
entrepreneurs navigate complex and ambiguous conditions. Their framework has four factors that influence
risk perception when evaluating opportunities. According to their framework, MaZwane’s limited risk
The Case Solution Starts From page 5
, EXHIBIT -1: SWOT ANALYSIS
Strengths
Brand Recognition: Busy Corner has established Local Presence: A strong presence in the local
brand recognition. Thembisa market.
Weaknesses
Opportunities
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pl
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Threats
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tio
lu
So
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
Phumlaphi Rita Zwane, known as MaZwane, is an entrepreneur and the founder of Busy Corner, a
successful Shisanyama (traditional African barbeque) business in Thembisa, South Africa. During the
COVID-19 pandemic, MaZwane opened a company-owned restaurant in the Mall of Thembisa, based on
n
her desire for business growth, and to identify and explore new opportunities. However, at the time, several
critical factors were overlooked during the original decision-making process. As of February 18, 2023,
tio
these oversights resulted in a current debt of $825,971.00,2 thus threatening the business’s survival.
MaZwane is now at a crossroads: should she close, sell, or franchise the business?
lu
So
OBJECTIVES
• Evaluate factors that lead to a limited risk assessment.
• Identify risks associated with the launch of company-owned stores during uncertainty and the resilience
factors to manage the risks.
• Apply a strengths, weaknesses, opportunities, and threats (SWOT) analysis to determine business
continuity or closure.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What factors influenced MaZwane’s limited assessments of risks associated with expanding into the
Mall of Thembisa during an uncertain time?
2. What were the risks MaZwane faced when expanding the business during the pandemic?
3. What recommendation would you make to MaZwane regarding the continuation or closure of her
business? Explain your rationale using a SWOT analysis.
The Case Solution Starts From page 5
, e
ANALYSIS
pl
m
Sa
1. What factors influenced MaZwane’s limited assessments of risks associated with expanding
into the Mall of Thembisa during an uncertain time?
In the local business culture of Thembisa and South Africa, personal relationships play a vital role.
n
Entrepreneurs often rely on personal connections for business collaborations and support. This local
business culture can contribute to a sense of optimism and confidence, sometimes leading to overconfidence
tio
or biases in assessing risks. MaZwane’s limited risk assessment could be influenced by her familiarity with
the local community and her optimism in the face of challenges.
lu
The Keh, Foo, and Lim reading (see Relevant Readings) provides a framework that explores the nuanced
and intricate cognitive dimensions of opportunity evaluation, acknowledging the inherent risks and
So
uncertainties in entrepreneurial decision making. The authors contribute valuable insights into how
entrepreneurs navigate complex and ambiguous conditions. Their framework has four factors that influence
risk perception when evaluating opportunities. According to their framework, MaZwane’s limited risk
The Case Solution Starts From page 5
, EXHIBIT -1: SWOT ANALYSIS
Strengths
Brand Recognition: Busy Corner has established Local Presence: A strong presence in the local
brand recognition. Thembisa market.
Weaknesses
Opportunities
e
pl
m
Threats
Sa
n
tio
lu
So
The Case Solution Starts From page 5
