Case Name :      L’Atelier Art Lounge: Times of Uncertainty

Authors :           Randa Salamoun, Bettina Bastian

Source :             Ivey Publishing

Case ID :            W14647

Discipline :        General Management

Case Length :    11 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

On January 31, 2014, the founder and chief executive officer of L’Atelier Art Lounge, an art workshop with branches in Bahrain and Lebanon, faces numerous challenges: not only whether to grow the business but how to achieve a reasonable work-life balance. Political instability associated with the Arab Spring led her to close one of her shops in Bahrain, but she went ahead with opening a second in Beirut where there are few leisure activities available for children; her offering of educational entertainment has been welcomed by parents, schools and adults looking to revive a hobby or improve their skills. However, as a result of violence spilling over from Syria, many tourists are avoiding Lebanon and her store locations have experienced a dramatic decrease in customers. Now she has one day to decide whether to renew the lease of one of her outlets. This deadline represents an opportunity to consider her options for the future: should she focus on marketing her concept to increase the number of customers and consequently her bottom line, thus improving her cash flow; look for potential investors or apply for a bank loan; or close her least profitable location?