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Clarence Otis, chairman and chief executive of Darden Restaurants Inc., sees better days ahead for an industry that took a beating during the Great Recession of the recent past…
Darden also reduced the pace at which it opened new restaurants. The biggest lesson that was reinforced for him during the downturn, Otis said, was to spend conservatively and to keep debt low even when times are good.
1. What managerial roles is Clarence Otis emphasizing in the case just presented?
2. What challenges would restaurant managers face in implementing Otis’s approach to keeping the restaurants performing well during a slow period in the economy?
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3. If you have visited a Darden restaurant lately, what suggestions can you offer toplevel management for attracting even more customers?
4. Based on media reports, how successful do you think Clarence Otis has been in helping the Darden chain become a continuing success?
5. What financial management practices of the Darden chain might be useful to you in managing your personal finances?
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