Abstract
The case describes decisions faced by Rob Loomis and Jon Pruden, the cofounders of a coffeehouse, and how they resolved them. First, their coffeehouse franchise experienced disappointing results—they decided to close it and reopen as an independent coffeehouse. Shortly thereafter, they had to respond to an existential challenge to their business—the entry of Starbucks across the street. The case describes Rob's decision to persist despite Starbucks’ entry, and his strategic, operational, and tactical moves to ensure growth. A key dilemma that Rob faced was whether his initial success against Starbucks was sustainable. An underlying theme of the case is that entrepreneurial success requires persistent improvisation to adapt to dynamic and uncertain environments.
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