Case Study: James Jewelers

Abstract

James Jewelers is a critical decision case involving Bob and Bonnie James, owners of James Jewelers in Spartanburg, South Carolina. This case accurately reflects dilemmas frequently faced by entrepreneurs in the highly competitive retail markets. The very survival of James Jewelers and the financial stability of Bob and Bonnie are dependent on a correct decision regarding the future of James Jewelers. Bob and Bonnie have been working in the jewelry business for 20 years and are in the midst of experiencing their second failure. With debt concerns, shrinking inventory, and a lost lease, Bob has to decide whether to throw in the towel and look for other forms of employment, or try to start over. Bob’s values and beliefs enter into the decision as he feels a strong obligation to repay his debt and continue to provide a quality product and service to devoted customers. Some suppliers and many customers have stuck with James Jewelers for a number of years, and Bob feels that quitting would be a disservice to those who had faith in him. However, the financial condition of his operation continues to deteriorate. Sometimes staying in business could change a condition from bad to worse and even more people could be negatively impacted by an unsuccessful operation. Then again, if he can turn the business around, there is a greater probability that Bob can make good on his obligations. Bob and Bonnie need to decide quickly if they want to try to save or discontinue the operation of James Jewelry.