Ivey Publishing

Entrepreneurship: A Process Perspective

Baron, R.A., Shane, S.A.,1/e (United States, Cengage Learning, 2005)
Prepared By Taiyuan Wang, Ph.D. Student (General Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Entrepreneurship: A Field – And An Activity

KOLAPORE, INC.
Paul W. Beamish

Product Number: 9A88M004
Publication Date: 1/1/1988
Revision Date: 10/30/2002
Length: 24 pages

The president and sole employee of a firm in Guelph, Ontario, which specializes in the importation, processing and sale of high quality souvenir spoons, is becoming increasingly frustrated with the pace at which his business is developing. The owner must decide whether he should operate the business full time, part time or at all. This case can be used in a strategy formulation course to illustrate the power of a well-defined strategy.

Teaching Note: 8A88M04 (9 pages)
Industry: Manufacturing
Issues: Career Planning; International Business; Imports
Difficulty: 4 - Undergraduate/MBA



COLLEGE HOME SAFETY INC.
James A. Erskine, Morley Ivers

Product Number: 9B01D009
Publication Date: 4/23/2001
Revision Date: 12/17/2009
Length: 13 pages

Two entrepreneurial students want to launch their new business called College Home Safety Inc. College Home Safety consists of high school and university students selling carbon dioxide detectors door-to-door. The two entrepreneurs felt strongly about this new business as it would provide jobs for students and address a safety concern that had been increasing in the past few years. The advice they received from a professional accountant was not what they expected. Told they would lose their shirts and to reconsider their concept and start-up plan, they only had a few months left before the launch date to decide whether or not to proceed with the venture.

Teaching Note: 8B01D09 (8 pages)
Industry: Retail Trade
Issues: Venture Capital; Planning; New Enterprises
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Uncovering Opportunities: Understanding Entrepreneurial Opportunities and Industry Analysis

NOTE ON THE CUBAN CIGAR INDUSTRY
Paul W. Beamish, Akash Kapoor

Product Number: 9B03M001
Publication Date: 2/27/2003
Revision Date: 10/21/2009
Length: 20 pages

The cigar industry in Cuba has a mythical aura and renown that give it unparalleled recognition worldwide. The relationship between Cuba and the United States makes the situation in this industry particularly intriguing. Cuban cigars cannot currently be sold in the United States, even though it is the largest premium cigar market in the world. This note provides an opportunity for a structured analysis using Porter's five forces model and to consider several scenarios including the possible lifting of the U.S. embargo and the relaxation of Cuba's land ownership laws.

Teaching Note: 8B03M01 (19 pages)
Industry: Manufacturing
Issues: Government and Business; Internationalization; International Business; Industry Analysis
Difficulty: 4 - Undergraduate/MBA



SEGWAY HUMAN TRANSPORTER: MORE THAN A COOL INVENTION?
Charlene L. Nicholls-Nixon, Daniel Day

Product Number: 9B05M045
Publication Date: 6/22/2005
Revision Date: 1/16/2017
Length: 10 pages

The inventor and founder of DEKA research was deciding whether to commercialize his latest invention, the Segway Human Transporter, a self-balancing, battery-operated scooter. The transporter was envisioned as an alternative mode of personal transportation in traffic-clogged urban environments. It also had potential application in developing countries with limited transportation infrastructure. With the versatility to carry riders on sidewalks, rough ground, icy surfaces and inside buildings, the market potential seemed unlimited. Yet, the Segway Human Transporter represented an unconventional transportation choice for potential users. Would there be a market for it, or would it be seen as nothing more than a cool invention? Should the inventor proceed with commercialization, and if so, how?

Teaching Note: 8B05M45 (11 pages)
Industry: Manufacturing
Issues: Technology; New Products
Difficulty: 4 - Undergraduate/MBA



CHINESE FIREWORKS INDUSTRY
Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M031
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 12 pages

The Chinese fireworks industry thrived after China adopted the open door policy in the late 1970s, and grew to make up 90 per cent of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor's point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.

Teaching Note: 8A99M31 (15 pages)
Industry: Manufacturing
Issues: Exports; Market Analysis; International Marketing; Industry Analysis
Difficulty: 4 - Undergraduate/MBA



ASIASPORTS: HOCKEY NIGHT IN HONG KONG
Andrew Karl Delios

Product Number: 9A99M014
Publication Date: 7/20/1999
Revision Date: 1/18/2010
Length: 16 pages

Tom Barnes, executive director of Asiasports Ltd., was evaluating several options for growth for the sports management company. Asiasports principal sports properties were the South China Ice Hockey League and the World Ice Hockey 5's tournament, both based in Hong Kong. Among the alternatives available: Barnes could develop hockey in other countries in Southeast Asia; he could acquire new sports properties; or he could expand into in-line hockey promotion in Hong Kong.

Teaching Note: 8A99M14 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic Planning; Sports; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

LEVERAGING WAL-MART, EBAY AND USPS
Eric Morse, Ken Mark

Product Number: 9B04M027
Publication Date: 8/10/2004
Revision Date: 10/14/2009
Length: 4 pages

An entrepreneur comes up with a great idea for a new business that would service what he calls the time-starved segment. Using Wal-Mart as the warehouse, eBay as his storefront and the U.S. Postal Service as the distributor, he would pick-up and deliver products to businesses, conserving staff resources. He must think of as many opportunities as possible and determine any barriers that may occur. The purpose of the case is to get students to generate ideas. Students will be quick to criticize and analyze the ideas presented, but few will focus on presenting new ideas.

Teaching Note: 8B04M27 (3 pages)
Issues: Opportunity Development; Opportunity Recognition; Effectual Thinking
Difficulty: 4 - Undergraduate/MBA



SIAM CANADIAN FOODS CO. LTD.
John R. Kennedy, Tony S. Frost, Tom Gleave

Product Number: 9A97G003
Publication Date: 1/29/1997
Revision Date: 2/4/2010
Length: 12 pages

The managing director and founder of Bangkok-based Siam Canadian Foods Co., Ltd., was considering the emerging business opportunities in neighboring Burma (also known as Myanmar). Although relatively undeveloped compared to the rest of Southeast Asia, Burma had been experiencing increasing levels of foreign investment activity in recent years. Siam, who had considered entering Burma in the past but declined, needed to determine if the time was now appropriate for the company to enter the market.

Teaching Note: 8A97G03 (15 pages)
Industry: Manufacturing
Issues: Ethical Issues
Difficulty: 4 - Undergraduate/MBA



DIGITAL ECONOMY - THE NEED FOR CHANGE
Mary M. Crossan, Shaherose Charania

Product Number: 9B04M063
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 16 pages

Digital Economy was founded in 1994 as a private think tank focused on researching the effects of emerging technologies on competitive strategies and high performance organizations. By the late 1990s, clients demanded consulting services to compliment previously purchased research services. The company's business model and offerings flourished in the technology boom. In the first quarter of 2001, the technology boom began to deflate. Digital Economy's decision makers were confident that the changes in the environment would be short lived and that the company's business model and offerings were infallible. Unfortunately, this assessment and subsequent decisions lead to substantial losses in the next two years. The parent firm pressured Digital Economy to realize a profit by the following fiscal year or be completely shut down or consolidated. Digital Economy was in a state of crisis yet the management team did not see the need for change. This case illustrates how biased environmental analysis and personal beliefs can affect decision making and lead to and sustain organizational crisis.

Teaching Note: 8B04M63 (15 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Management Decisions; Crisis and Change; Environmental Change
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Acquiring Essential Information: Why “Look Before You Leap” Is Truly Good Advice for Entrepreneurs?

PLASTICS R US LTD.
Terry H. Deutscher, Ying-Ru Chen

Product Number: 9B02A016
Publication Date: 8/28/2002
Revision Date: 10/28/2009
Length: 16 pages

A Taiwanese plastic manufacturer exports one of its products, bathtub covers, solely to Japanese distributors. The company's president has been approached to form a partnership in a new production facility in China with its second largest customer, a Japanese distributor that also produces bathtub covers. The president must assess the company's options: turn down the proposal and expand on its own in Taiwan, form a partnership and produce bathtub covers exclusively for the other company in China or turn down the proposal and invest in its own factory in China. The president considers the company's long-term strategies, the political future of a Taiwanese company in China, status of its intellectual property under a partnership and the potential loss of its second largest customer. He also needs to address plans for the company's other products and decide whether the company should be more actively pursuing a sales strategy to expand its market share.

Teaching Note: 8B02A16 (10 pages)
Industry: Manufacturing
Issues: Relationship Management; Strategic Planning; Marketing Channels; Partnership
Difficulty: 5 - MBA/Postgraduate



JEWELLWORLD.COM - ONLINE JEWELRY SHOPPING IN CHINA
Shige Makino, Anthony Fong

Product Number: 9B05A009
Publication Date: 9/23/2005
Revision Date: 9/24/2009
Length: 19 pages

The marketing manager of Jewellworld.com was faced with the problem of a saturated Hong Kong market, and has to consider ways in which to expand the business. In a meeting with the marketing director, who was responsible for the development of the Hong Kong and Chinese Jewelry markets, one of the main topics was the expansion of the online shopping strategy into the B2C area in China; however, the staff of the marketing department held different views. The immediate question was whether Jewellworld.com should move into the B2C area at full speed or wait and see how other competitors fared in the China online market. The other issue was the segmentation that Jewellworld should employ if they decide to enter the B2C market in China. A competitor had established retail stores across China. The question was whether Jewellworld should aim to cover all market segments and product lines, or target young people who tend to use the Internet more frequently.

Teaching Note: 8B05A09 (6 pages)
Industry: Retail Trade
Issues: International Marketing; Internet; Retail Marketing; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Assembling the Team: Acquiring and Utilizing Essential Human Resources

POLICEPREP
Stewart Thornhill, Deland Jessop

Product Number: 9B05M016
Publication Date: 12/20/2004
Revision Date: 9/30/2009
Length: 14 pages

Three friends start a business together upon graduation from an MBA program. Two start full-time jobs while the third, Deland Jessop, works on the business. One year later, Jessop must decide whether to continue trying to develop the business or take a salaried position. The outstanding issue of equity among the partners also needs resolution. Students have the opportunity to evaluate the business opportunity, while also evaluating the pros and cons of going into business with friends.

Industry: Educational Services
Issues: Partnership; Contribution Analysis; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



BLINDS TO GO - WANTED: PEOPLE TO LEAD EXPLOSIVE GROWTH (A)
Fernando Olivera, Lyn Purdy, Ken Mark

Product Number: 9B01C002
Publication Date: 5/17/2001
Revision Date: 11/19/2002
Length: 17 pages

The president of Blinds To Go, a small retail fabricator of custom-made blinds, announces his plans of expanding the business across North America one region at a time. With substantial backing from an investment firm, the business has quintupled its revenues in less than two years and is looking to expand aggressively across the United States. However, the company has experienced significant turnover in its senior management positions. The company struggles with the issue of how to get and keep the senior management talent needed to achieve the growth the company wants.

Teaching Note: 8B01C02 (7 pages)
Industry: Manufacturing
Issues: Corporate Culture; Action Planning and Implementation; Employee Retention; Human Resources Management
Difficulty: 4 - Undergraduate/MBA



BLINDS TO GO - WANTED: PEOPLE TO LEAD EXPLOSIVE GROWTH (B)
Fernando Olivera, Lyn Purdy, Ken Mark

Product Number: 9B01C003
Publication Date: 5/17/2001
Revision Date: 12/15/2009
Length: 4 pages

Blinds To Go, a small retail fabricator of custom-made blinds, is looking to for the best talent it could to help them achieve their aggressive expansion goals. Emphasis was put on establishing internal programs that would groom candidates for senior management positions. Despite the temptation to bring in a vice-president from outside the company, the company believed it was in their best interest to develop and promote talent from within. This is a supplement to the Blinds To Go - Wanted: People To Lead Explosive Growth (A) case, (product number 9B01C002).

Teaching Note: 8B01C02 (7 pages)
Industry: Manufacturing
Issues: Corporate Culture; Action Planning and Implementation; Employee Retention; Human Resources Management
Difficulty: 4 - Undergraduate/MBA



TAKAHIKO NARAKI, THE THREE MILLION YEN ENTREPRENEUR
Eric Morse, Jason Inch

Product Number: 9B04M054
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 10 pages

Takahiko Naraki is a young entrepreneur in Japan who is trying to make his Internet-based business model work in the challenging Tokyo business world, and must make a key decision: whether and how to expand his business. In addition to discussing the work-life balance of entrepreneurs in general, and this one Japanese entrepreneur in particular, the case also introduces aspects of the Japanese entrepreneurial environment including the importance of networking, the business laws regulating entrepreneurial activity, social perceptions of entrepreneurship, and the capital market for small companies in Japan.

Teaching Note: 8B04M54 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Entrepreneurial Business Growth; Work-life Balance; Networks; Internet Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Financing New Ventures

AUDIBLE.COM
Charlene Zietsma, Ken Mark, Jordan Mitchell

Product Number: 9B04M025
Publication Date: 3/4/2004
Revision Date: 10/14/2009
Length: 17 pages

Audible Inc. is one of the largest providers of audio content, such as books, magazines and newspapers. The company has a large library of hours of content, strong alliances with partners including Microsoft, Amazon and Random House, and a growing customer base, but the company has lost money since it began. The chief executive officer and chief financial officer must decide how to raise funds to keep the company going, while maintaining its partner and customer relationships.

Teaching Note: 8B04M25 (18 pages)
Industry: Manufacturing
Issues: E-Business; New Economy; Strategic Planning; High Technology Products
Difficulty: 4 - Undergraduate/MBA



STRATEGIC DIRECTION AT QUACK.COM (A)
Kenneth G. Hardy, Amy J. Hillman, Benji Shomair

Product Number: 9B02A003
Publication Date: 3/12/2002
Revision Date: 10/28/2009
Length: 14 pages

Quack.com was in dire straits. An early entrant in the voice portal market, Quack was quickly running out of money. The company's management team had just returned from a road show for a second round of venture financing, but they had been unsuccessful. To exacerbate this issue, Quack's two major competitors had each received substantial funding. At the current burn rate, Quack could survive on its bridge financing for only three more months. Moreover, after the first few months of running the voice portal, Quack's business-to-consumer model for voice portals was already showing signs of weakness. Quack's management believed the failure of its road show could be related to its B2C focus. The company was facing many major decisions that would reshape and dictate the future of the firm. The (A) case deals with the possible options for new strategic direction. The supplement, Strategic Direction At Quack.com (B), product 9B02A004 provides a brief summary of what actually happened.

Teaching Note: 8B02A03 (9 pages)
Industry: Information, Media & Telecommunications
Issues: Market Segmentation; Growth Strategy; Value Chain; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



STRATEGIC DIRECTION AT QUACK.COM (B)
Kenneth G. Hardy, Amy J. Hillman, Benji Shomair

Product Number: 9B02A004
Publication Date: 3/12/2002
Revision Date: 10/28/2009
Length: 2 pages

This supplement to Strategic Direction At Quack.com (A), product 9B02A003 provides a summary of what happened to this company facing many major decisions relating to its voice portal technology and business, and the state of its finances.

Teaching Note: 8B02A03 (9 pages)
Industry: Information, Media & Telecommunications
Issues: Value Chain; Strategic Alliances; Market Segmentation; Growth Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Writing an Effective Business Plan: Crafting a Road Map to Success

THREE FISH SOLUTIONS (A) - FISHING FOR FUNDS
Allen Morrison, Tom Gleave, John Beck

Product Number: 9B01M012
Publication Date: 3/2/2001
Revision Date: 12/21/2009
Length: 18 pages

The founding partners of Three Fish Solutions, a Hong Kong-based Internet start-up company, developed what they thought was a powerful business plan in preparation for a meeting with a deep-pocketed, potential equity partner. The meeting was critical because the partners were short of cash and because it would provide them with their first opportunity to discuss their business plan with a highly respected investor. Students have the opportunity to analyze a business plan of an e-commerce-based start-up company; identify critical success factors that are generic to start-up companies and areas of risk that need to be mitigated; and better understand the motivations of venture capital firms and the considerations they make when evaluating business plans. The Three Fish Solutions (B) case, product 9B01M013, discusses the meeting with the investor and the options facing the company.

Teaching Note: 8B01M12 (13 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Internet; Information Technology; Startups; Partnership; Nanyang
Difficulty: 5 - MBA/Postgraduate



THREE FISH SOLUTIONS (B) - FISHING FOR FUNDS
Allen Morrison, Tom Gleave, John Beck

Product Number: 9B01M013
Publication Date: 3/5/2001
Revision Date: 12/21/2002
Length: 5 pages

The partners of Three Fish Solutions, a Hong Kong-based Internet start-up company, had a meeting with a potential equity investor in their company. The partners learned that, despite a solid business plan, the investor was concerned that it was too early to make an equity investment. Short of cash, the partners were left to wonder whether they should terminate the start-up, drop the investor and search for a friendlier one, or try to accommodate some of the investor's concerns. This case is a supplement to Three Fish Solutions (A) - Fishing for Funds, product 9B01M012, in which the partners prepared for this meeting by evaluating their business plan and identifying the critical success factors that are generic to Internet start-up companies.

Teaching Note: 8B01M13 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Internet; Information Technology; Startups; Partnership; Nanyang
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
The Legal Form of New Ventures – And the Legal Environment in Which They Operate

FAST EDDIE'S
James E. Hatch, Maria Gudelis, Dirk Schrader

Product Number: 9A94B008
Publication Date: 6/21/1994
Revision Date: 2/19/2010
Length: 24 pages

Over seven years, the owner of a highly successful drive-through, take-out hamburger chain has built his business and knew that there was a tremendous potential for the idea. He was unsure whether to expand by opening additional company-operated stores (using retained earnings), or by establishing a franchise system. Two Excel spreadsheets are available; one for the student, product 7A94B008 and one for the instructor, product 5A94B08.

Teaching Note: 8A94B08 (8 pages)
Industry: Accommodation & Food Services
Issues: Entrepreneurial Finance; Franchising
Difficulty: 4 - Undergraduate/MBA



PATHWAY COMMUNICATIONS INC.
David C. Shaw, Niels Billou

Product Number: 9B00M030
Publication Date: 8/10/2000
Revision Date: 1/11/2010
Length: 21 pages

The president of Pathway Communications Inc. (Pathway), a regional Internet service provider (ISP), had to decide the best course of action to transform Pathway into a national information technology firm that offered end-to-end technology support for a variety of consumer and business needs. At the same time, a regional telecommunications firm wanted to buy Pathway. He wondered if he should pursue this offer or one of the following options: franchise his concept and replicate the Pathway business model; execute a national roll-up by buying several smaller ISPs and then completing an initial public offering; or, combine his business with a larger ISP or other telecommunications firm. This comprehensive strategy case provides students with the opportunity to explore the issues of growth in a young, high-technology firm and to discuss the significant financial implications of the different alternatives.

Teaching Note: 8B00M30 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Entrepreneurial Finance; Growth Strategy; Franchising
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Marketing in a New Firm

KIDS MARKET CONSULTING
Paul W. Beamish, Stephanie Taylor, Oleksiy Vynogradov

Product Number: 9B04M065
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 8 pages

The founder of Kids Market Consulting, a market research firm dedicated to the kids, tweens and teens segment, was faced with increasing competition and slowing revenue, and was exploring a variety of possibilities for the future strategic direction of the business. In particular, she had to formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, there was the existing relationship with her business partner, and Kids Market Consulting was part of his group of marketing firms. Any changes the founder chose had to respect this relationship and she was therefore restricted to a limited number of options. The over-arching corporate objective for the company was to defend the market from larger businesses who were trying to increase their share of the market research industry.

Teaching Note: 8B04M65 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Change; Strategy Development; Strategic Planning; Market Analysis
Difficulty: 4 - Undergraduate/MBA



STRATEGIC INTELLIGENCE PTE. LIMITED (A)
Paul W. Beamish, Tom Gleave

Product Number: 9B01M032
Publication Date: 6/20/2001
Revision Date: 12/21/2009
Length: 16 pages

Strategic Intelligence Pte. Limited is a research and new-media company that provides Asian-based economic and political information. The managing editor is facing several challenges in building a new online business intelligence service that focuses on Asia's new economy. As the person responsible for the company's first Internet related initiative, he is expected to design, manage and help market the new initiative that will be independent from, yet complementary to, the company's existing events-oriented and research services. Although he is satisfied with the content that has been developed, he still needs to resolve several issues regarding target audience, pricing policy, revenue diversification options and service awareness. A sense of urgency pervades the situation, since he is expected to ensure that the new service will contribute 25 per cent of total company revenues within the next year.

Teaching Note: 8B01M32 (14 pages)
Industry: Information, Media & Telecommunications
Issues: Growth; Pricing Strategy; Sales Strategy; Consumer Research; Nanyang
Difficulty: 4 - Undergraduate/MBA



SPEEDTEST: WIRED FOR THE 21ST CENTURY
Carl F. Fey, Andrew Karl Delios

Product Number: 9B05M028
Publication Date: 8/2/2005
Revision Date: 10/1/2009
Length: 14 pages

SpeedTest is a Finland-based entrepreneurial high-tech start-up company that competes in the clinical research segment of the world-wide pharmaceutical industry. More specifically, the company has developed a mobile device to record drug testing information from patients, which has the potential to radically speed up the drug testing process. The newly hired chief executive officer has a mandate to identify the customers for its product, come up with a pricing model and construct a business model to develop a position of advantage for the nascent company.

Teaching Note: 8B05M28 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Competitive Advantage; Growth Strategy; Generating Profit from New Technology
Difficulty: 4 - Undergraduate/MBA



PRINCE EDWARD ISLAND PRESERVE CO.
Paul W. Beamish

Product Number: 9A91G005
Publication Date: 1/1/1991
Revision Date: 5/26/2003
Length: 21 pages

Prince Edward Island Preserve Co. is a producer and marketer of specialty food products. The company president is contemplating future expansion. Two cities were of particular interest: Toronto and Tokyo. At issue was whether consumers in both markets should be pursued, and if so, how. The choices available for achieving further growth included mail order, distributors, and company controlled stores. The case helps students watch existing resources and capabilities with potential growth opportunities.

Teaching Note: 8A91G05 (9 pages)
Industry: Manufacturing
Issues: Tourism; Internationalization; Market Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Strategy: Planning for Competitive Advantage

NEW CENTURY BREWING: MOONSHOT CAFFEINATED BEER
Christopher J. Robertson, David T.A. Wesley

Product Number: 9B05A014
Publication Date: 8/12/2005
Revision Date: 9/24/2009
Length: 9 pages

New Century Brewing: Moonshot Caffeinated Beer discusses the introduction of a completely new beverage to the U.S. market. New Century Brewing, which is owned by one of the founders of Boston Beer Company, is a small brewer that outsources production to third party brewers. It has two products, a light craft beer sold in upscale shops and restaurants, and a caffeinated beer, which is oriented towards younger drinkers mainly between 21 and 25 years of age. Moonshot, created by the legendary masterbrewer, known as the father of light beer, became the first caffeinated beer in the world. The company follows a differentiation strategy that attempts to appeal to a small niche of customers traditionally ignored by large brewers. Shortly after the introduction of each of its products, large competitors introduced similar products. Nevertheless, Moonshot has a first-to-market advantage that could potentially be leveraged.

Teaching Note: 8B05A14 (7 pages)
Industry: Manufacturing
Issues: Women in Management; Entrepreneurial Marketing; Competitive Advantage; Northeastern
Difficulty: 4 - Undergraduate/MBA



NON STOP YACHT, S.L.
Charlene L. Nicholls-Nixon, Ken Mark, Jordan Mitchell

Product Number: 9B03M035
Publication Date: 9/25/2003
Revision Date: 10/22/2009
Length: 18 pages

Non Stop Yacht S.L. is a Web site that provides e-commerce service to the mega-yacht industry. Originally, the founder had planned to run Non Stop Yacht as an internet business. However, success with this business model is proving elusive and investors are growing restless as performance continues to fall short of the business plan. Substantial pressure to improve the company's performance had the founder considering a variety of alternative business models that would enable him to more effectively capture value from the concept of non stop parts procurement for high-end yachts. These options involve key decisions about the strategic positioning of the company and the relative advantages and disadvantages of pursuing strategic alliances with players at different points in the industry value chain.

Teaching Note: 8B03M35 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic positioning; value chain; e-Business models; luxury goods
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Intellectual Property: Protecting Your Ideas

TIME WARNER INC. AND THE ORC PATENTS
Paul W. Beamish, John Adamson

Product Number: 9B01M059
Publication Date: 1/29/2002
Revision Date: 8/28/2009
Length: 16 pages

Optical Recording Corporation (ORC) secured the rights to a technology known as digital optical audio recording. During the time it took to negotiate the final transfer of the technology ownership, it was rumored that some major electronics manufacturers were developing compact disc (CD) players that recorded digital optical audio signals. A patent lawyer advised ORC that the compact disc players and compact discs recently released by these companies might be infringing the claims of ORC's newly acquired patents. Based on this information, the company proceeded to successfully negotiate licensing agreements with the two largest CD manufacturers, Sony of Japan, and Philips of the Netherlands The third largest manufacturer, WEA Manufacturing, a subsidiary of Time Warner Inc., maintained a position of non-infringement and invalid patents. With the U.S. patent expiry date looming, ORC decided to sue Time Warner for patent infringement. When the defense counsel presented testimony that questioned the integrity of the licensing agreement, ORC's president realized that the entire licensing program was in jeopardy and must decide whether he should accept a settlement or proceed with the lawsuit.

Teaching Note: 8B01M59 (11 pages)
Industry: Manufacturing
Issues: Business Law; Intellectual Capital; Licensing; Patents
Difficulty: 4 - Undergraduate/MBA



BEIJING MIRROR CORP.
Paul W. Beamish, Xiao Yue Chen, Xin Zhao

Product Number: 9A98M033
Publication Date: 11/25/1998
Revision Date: 2/1/2010
Length: 23 pages

Beijing Mirror Corporation owned the patent for a newly invented rearview mirror which eliminated the usual blind spot. At issue for the company was how to introduce the product to both the domestic and international markets. More specifically, should the company try to commercialize the technology independently, or via joint venture? Should they do so with a local or foreign company? What pricing, promotional and distribution approaches made sense? What is their resource position relative to these decisions?

Teaching Note: 8A98M33 (9 pages)
Industry: Manufacturing
Issues: China; Patents; International Marketing; Joint Ventures; Intellectual Properties
Difficulty: 4 - Undergraduate/MBA



NOTE ON INTERNATIONAL LICENSING
Paul W. Beamish

Product Number: 9B06M005
Publication Date: 11/28/2005
Revision Date: 9/17/2009
Length: 18 pages

Licensing is a strategy for technology transfer; and an approach to internationalization that requires less time or depth of involvement in foreign markets, compared to exports, joint ventures, and foreign direct investment. This note examines when licensing is employed, risks associated with it, intellectual property rights, costs of licensing, unattractive markets for licensing, and the major elements of the license agreement.

Issues: Technology Transfer; Licensing; Corporate Strategy; Internationalization
Difficulty: 4 - Undergraduate/MBA



INTELLIBYTE INC.'S EUROLOADER SOFTWARE
Niraj Dawar, Cameron Bramwell

Product Number: 9B00A023
Publication Date: 9/26/2000
Revision Date: 1/7/2010
Length: 10 pages

As cable operators across Europe go digital, they will require a means of remotely upgrading the applications software on subscribers' digital set-top boxes, using some kind of loader software to do so. Intellibyte Inc., a small Canadian software firm, has developed the only remote loader software that currently meets the specifications of the European Cable Communications Association. However, it must sell the software to manufacturers of set-top boxes before cable operators can use it. The competition is no more than two years behind. The president must decide among several pricing and positioning alternatives for intellectual property products in a complex industry.

Teaching Note: 8B00A23 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: New Products; Intellectual Properties; Market Strategy; Pricing
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Essential Skills for Entrepreneurs: Enhancing Social Competence, Creating Trust, Managing Conflict, Exerting Influence, and Dealing with Stress

DON ENGLAND: THE PHOTOCOPIER INCIDENT
James A. Erskine, Kevin Butler

Product Number: 9B05C014
Publication Date: 5/30/2005
Revision Date: 9/28/2009
Length: 9 pages

The supervisor at a popular bar and eatery is close to finishing off the shift and is reflecting on the events that took place in the past couple of hours. He had just finished escorting the service manager of the restaurant out after watching him snort a line of white powder. The supervisor knew he could not just ignore what had happened but was concerned about what to do next.

Teaching Note: 8B05C14 (6 pages)
Industry: Accommodation & Food Services
Issues: Drugs; Conflict Resolution; Ethical Issues; Crisis Management
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Building the New Venture’s Human Resources: Recruiting, Motivating, and Retaining High-Performing Employees

JINJIAN GARMENT FACTORY: MOTIVATING GO-SLOW WORKERS
Tieying Huang, Junping Liang, Paul W. Beamish

Product Number: 9B04M033
Publication Date: 5/14/2004
Revision Date: 10/14/2009
Length: 6 pages

Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively.

Teaching Note: 8B04M33 (11 pages)
Industry: Manufacturing
Issues: China; Productivity; Employee Attitude; Piece Work; Performance Measurement; Work-Force Management; Peking University
Difficulty: 4 - Undergraduate/MBA



TAPP TECHNOLOGIES INC. (A)
David C. Shaw, Lesley Menzies

Product Number: 9A97F002
Publication Date: 2/2/1998
Revision Date: 2/3/2010
Length: 3 pages

The decision maker is faced with rapid growth and is aware that he requires expertise that is beyond the capability of himself and of the internal organization. He must decide how to best solve the issues that are facing him. The opportunities that an outside director can provide in technical, financial and strategic expertise are contrasted with hiring consultants, carrying on with inside directors, and the potential problems of managing outside directors on a board. (Two supplemental cases under the same name, case 9A97F003 and 9A97F004, address in sequence the issues resulting from the decision taken.)

Teaching Note: 8A97F02 (2 pages)
Industry: Manufacturing
Issues: Board of Directors; Management Style
Difficulty: 4 - Undergraduate/MBA



TAPP TECHNOLOGIES INC. (B)
David C. Shaw, Lesley Menzies

Product Number: 9A97F003
Publication Date: 2/2/1998
Revision Date: 2/3/2010
Length: 4 pages

The president and CEO of a private rapid-growth business has made the decision to add outside directors to his board. He is also aware that the company requires additional financing and would like to acquire financing expertise with one of the outside directors. He must now define the role he would like the board to play, recruit candidates, and select the best combination of skills and personalities to form a cohesive board. The case addresses how the decision maker can communicate his vision of the company to directors and what qualities and skills are required for a successful board. (This is a supplement to Tapp Technologies Inc. (A), case 9A97F002.)

Teaching Note: 8A97F03 (3 pages)
Industry: Manufacturing
Issues: Management Style; Board of Directors
Difficulty: 4 - Undergraduate/MBA



TAPP TECHNOLOGIES INC. (C)
David C. Shaw, Lesley Menzies

Product Number: 9A97F004
Publication Date: 2/2/1998
Revision Date: 2/3/2010
Length: 5 pages

The decision maker must now decide on how to structure the board for maximum utilization of the various expertise of the members. The issues presented are: frequency of board meetings, board committees, attendance at board meetings, the appointment of the chairman, compensation for the directors, and how to manage this group to ensure that the board is helping management make the best decisions and move the company forward in the most effective way. (This is a supplement to Tapp Technologies (A), case 9A97F002, and Tapp Technologies (B), case 9A97F003.)

Teaching Note: 8A97F04 (2 pages)
Industry: Manufacturing
Issues: Management Style; Board of Directors
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Exit Strategies for Entrepreneurs: When – And How – To Harvest the Rewards

GIGANET, INC.
Paul Croke, David T.A. Wesley

Product Number: 9B04M039
Publication Date: 8/10/2004
Revision Date: 10/14/2009
Length: 16 pages

GigaNet, Inc. describes the effort of a 20 year computer industry veteran to transform a small telecommunications engineering firm into a viable networking technology company. Faced with an uphill battle to convince venture capitalists to invest in the company after the founders decided to seek funding from third tier venture firms, he finally wins $30 million in new investment from a consortium of high quality investors. Before the deal is finalized however, he receives an offer to buy the company from a larger rival. He now must choose between accepting the $30 million and launching an IPO in 18 months and selling the company.

Teaching Note: 8B04M39 (8 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Leadership; Internet Hardware; Venture Capital; Northeastern
Difficulty: 4 - Undergraduate/MBA



CQUAY TECHNOLOGIES CORP.
Paul W. Beamish, Kevin K. Boeh

Product Number: 9B04M068
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 12 pages

CQUAY Technologies Corp was a privately-held Canadian software company with offices in Toronto, Calgary and Washington, D.C. CQUAY marketed a patented location intelligence engine called Common Ground. The company's technology was designed for an emerging, multi-billion dollar segment of the spatial information management market. A year earlier, the board had asked the chief executive officer to shape the company into an acquisition target over the next 18 to 24 months. A year later there were no imminent acquisition discussions, and recent customer traction and the sales pipeline seemed to merit raising growth capital instead of following the acquisition-focused plan. The CEO wanted to keep his stockholders and board happy by executing the plan they had given him, but did not want to jeopardize possible customer growth. If he refocused the plan, he feared it might change acquisition opportunities. Without further contracts, the existing cash would sustain the company for only another six to eight months. The CEO thought the most likely outcome was to sell the company, but he needed to make the company more attractive. He planned to present options and a recommendation to the board of directors later that month.

Teaching Note: 8B04M68 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Mergers & Acquisitions; Corporate Strategy; Venture Capital; Corporate Governance
Difficulty: 4 - Undergraduate/MBA



FLONETWORK INC.
James E. Hatch, Ryan Kovac

Product Number: 9B02N012
Publication Date: 8/28/2002
Revision Date: 12/5/2009
Length: 21 pages

Flonetwork Inc. is an Internet direct marketing and communications service and a leader in the permission-based e-mail marketing space. A director and venture capital representative reflects on the company's initial public offering that was aborted and the recent tender offer for its shares by DoubleClick. He must assess the risks and opportunities in the company, the company's value and the advantages and disadvantages of going public, staying private or a strategic sale in order to make a recommendation at an upcoming board meeting.

Teaching Note: 8B02N12 (13 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Exit Strategy; Venture Capital; Valuation
Difficulty: 4 - Undergraduate/MBA



SECURITY DATA SYSTEMS - EXIT STRATEGY
James E. Hatch, Ron Goldstein

Product Number: 9A94B009
Publication Date: 9/9/1994
Revision Date: 2/19/2010
Length: 12 pages

The owner of a medium-sized business is contemplating the sale of all or part of the business, driven by estate planning and diversification considerations. He must choose among a number of alternatives including outright sale, partial sale, or an initial public offering.

Industry: Information, Media & Telecommunications
Issues: Initial Public Offerings; Valuation; Personal Financial Planning
Difficulty: 4 - Undergraduate/MBA



INNOMEDIA LOGIC INC.
James E. Hatch, Warren Roll

Product Number: 9B02N005
Publication Date: 6/21/2002
Revision Date: 12/3/2009
Length: 17 pages

Innomedia Logic Inc. produces and distributes voice over Internet protocol hardware. An increasing demand for this technology and the entry of other companies into the sector have created a highly competitive market. Despite these challenges, Innomedia Logic has grown to a successful operation in just a few years and has projected substantial revenue increases for the next two years. The president, and major shareholder, has received an unsolicited offer for 100 per cent of the company's equity. He must consider how an exit strategy will affect the other seven shareholders and determine whether he would receive greater value if he sells now or if he should continue to grow the company and contemplate a sale in the future.

Teaching Note: 8B02N05 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Valuation; Exit Strategy; Managing Growth; Growth
Difficulty: 4 - Undergraduate/MBA