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CRITICAL ISSUES

1. How to increase the profitability of the company
• Cause: Eat2Eat.com has more expenses than revenues in the past five years
• Consequence: Eat2Eat.com will incur losses year after year and eventually shut down
• Important and urgent: It is losing money under the current business model
2. How to raise additional capital
• Cause: Eat2Eat.com has incurred losses more than the initial investment and need capital to keep the business running
• Consequence: Eat2Eat.com may have to be shut down soon if there is no additional capital
• Important and very urgent: It needs money as soon as possible to keep the business running
3. How to better manage time
• Cause: lack of employees to manage day-to-day operations
• Consequence: no time to make decision on strategic development and promotional activities to make Eat2Eat more efficient and stop the business from expanding.
• Important and urgent: The company structure will strongly affect the profitability of the company
4. How to promote the website
• Cause: Aggarwal cannot decide which alternative marketing events to focus in
• Consequence: Eat2Eat.com will waste money on ineffective marketing actions, which cannot help increasing revenue
• Important and less urgent: It is an opportunity to increase sales


SITUATION ANALYSIS

As a online reservation website and program, Eat2Eat.com is currently facing stagnant growth after five years of operations in their target region. Although the company is operating at a net loss of $207,000 (Appendix F) throughout five years, Eat2Eat.com has created much positive publicity from well known communication channels. Presently, Eat2Eat.com’s main concern is figuring out a way to gain initial capital to continue with their operation and increase its database of suppliers and buyers within its target market. More...