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Haji’s Café has been serving traditional Bahraini food in Manama Souq since the 1950s. It is famous with locals and tourists, but it has never expanded into other locations. The owners are happy running just one café, serving loyal customers in the community.

Question

Which factor do you think is most important in explaining why Haji’s Café has remained small — owner’s choice, market size, or lack of capital? Explain your choice.

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Apple began as a small computer company in the 1970s, founded by Steve Jobs and Steve Wozniak in a garage. At first, it had limited money and tough competition from larger technology companies. But over time, Apple became famous for its innovation, strong brand image, and good management. Today, Apple is one of the most valuable companies in the world, with millions of loyal customers.

Question

Which factor do you think was most important for Apple’s success — innovation, strong brand, or good management? Explain your choice.

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Toys “R” Us was once the largest toy store chain in the world, with branches in many countries. But the company made poor management decisions and did not invest in online shopping. As competition grew from companies like Walmart and Amazon, customers slowly left. Toys “R” Us could not pay its debts and eventually closed down.

Question

Which factor do you think was most important in causing Toys “R” Us to fail — poor management, strong competition, or changes in the economy? Explain your choice.