| Chapter and Title |
Chapter Matches: Case Information |
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Chapter 1:
Enterprise: Creating a Framework for Success
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TERRA BITE LOUNGE: PAY WHAT YOU WANT CAFÉJune Cotte, Remi TrudelProduct Number: 9B09A013Publication Date: 6/26/2009Length: 4 pagesIn April 2009, the founder and owner of Terra Bite Lounge was considering opening another location. The Terra Bite Lounge was a Kirkland, Washington café with no prices and voluntary payment. The owner believed that Terra Bite was a demonstration of a high level of honesty and trust, between himself and the customer. There were several considerations to evaluate in deciding to open a new location. Where should the new location be? The current location was in an affluent suburb but the owner believed that several types of neighbourhoods would be receptive. What types of consumer characteristics would best be suited towards this model of trusting that payment would be made? Is there anything that could be added to the current model to make Terra Bite more successful? He was careful to consider those changes or additions that were consistent with the current social trust component of the original Terra Bite model.Teaching Note: 8B09A13 (4 pages)Industry: Accommodation & Food ServicesIssues: Marketing Management; Consumer Behaviour; Pricing; Market SegmentationDifficulty: 4 - Undergraduate/MBA
PANELPRODan T. DunnProduct Number: 9B09A003Publication Date: 3/9/2009Revision Date: 2/26/2010Length: 9 pagesPANELpro is a startup company and presently a subcontract assembler of control panels. Its president is a former high-tech executive with technological, management and sales experience who wants the company to grow rapidly based on such expertise. He is unsure of the business model to follow (design, assembly, parts distributor or consulting) and how to promote PANELpro. He has some information about potential customers and competition but wants more before proceeding. Two marketing research approaches have been suggested but he ponders whether he should spend his limited funds on research or act based on what he already knows from his corporate experience. If he spends on research, what should be its objective, method and possible payoff?Teaching Note: 8B09A03 (13 pages)Industry: ManufacturingIssues: Value of Perfect Information; Marketing Research; Industrial Marketing; NortheasternDifficulty: 4 - Undergraduate/MBA
MILLENNIUM WHOLESALE DISTRIBUTORS (A)David T.A. Wesley, Paul Croke, Henry W. LaneProduct Number: 9B02M018Publication Date: 8/28/2002Revision Date: 1/30/2006Length: 15 pagesA successful executive at a U.S. wholesaler has resigned his position to pursue an MBA. Shortly after beginning the program, he is contacted by a former business associate, the owner of a family-owned wholesale distribution company who asks for help in turning around the company where sales have fallen dramatically and which is close to insolvency. Although the former executive is interested in the challenge, he needs to consider the feasibility of salvaging the company. If it is possible and he accepts the assignment, he must decide how to define his role in the company, his relationship to the family. On a personal level, he needs to decide whether to interrupt his studies to advise at a family-owned business. The supplement, Millennium Wholesale Distributors (B), product number 9B02M019, explores strategies, actions and successes in leading change at the failing company.Teaching Note: 8B02M18 (8 pages)Industry: Wholesale TradeIssues: Bankruptcy; Wholesaling; Leadership; Career Development; NortheasternDifficulty: 5 - MBA/Postgraduate
CARIBBEAN INTERNET CAFEMurray J. Bryant, Michelle TheobaldsProduct Number: 9A98B002Publication Date: 3/19/1998Revision Date: 9/9/2009Length: 5 pagesAn entrepreneur is hoping to open Caribbean Internet Cafe in Kingston, Jamaica. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL). JTL has provided equity and a long-term loan at favourable interest rates. He is now faced with the task of analyzing fixed, variable and start-up costs, contribution margin, and the concept of break-even to guide his decision.Teaching Note: 8A98B02 (7 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Costs; Contribution Analysis; Break-Even AnalysisDifficulty: 4 - Undergraduate/MBA
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Chapter 2:
Enterprisers
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DELL INC. IN 2009Stewart Thornhill, Ken MarkProduct Number: 9B08M093Publication Date: 1/20/2009Revision Date: 5/3/2017Length: 18 pagesThe Dell story is well-known in the business world: a young Michael Dell, while attending the University of Texas in Austin, founds a computer sales company that eventually revolutionizes the industry. The case puts students in the position of a senior executive at Dell who is preparing for an investor relations meeting. As the senior executive reviews information on his company, he wonders how best to convey to skeptical investors that Dell's strategy will return the company to growth. In examining the Dell story, students learn about how Dell built up a set of competitive advantages that seemed unassailable until the early 2000s. The second part of the case illustrates the impermanence of competitive advantages - it describes how Dell is attempting to remake itself after falling behind its competitors.Teaching Note: 8B08M93 (5 pages)Industry: ManufacturingIssues: Strategy Development; Strategic Change; Globalization; Strategic BalanceDifficulty: 4 - Undergraduate/MBA
KRAVE'S CANDY CO. - CLODHOPPERS (A)Stewart Thornhill, Chris SturbyProduct Number: 9B04M028Publication Date: 9/20/2004Revision Date: 10/14/2009Length: 5 pagesTwo entrepreneurs of a successful competitive candy business are gearing up for the busy season and are looking at options to finance their company's growth over the short term. Supplements Krave's Candy Co. - Clodhoppers (B) and (C), products 9B04M029 and 9B04C030, look at prioritizing key issues and their long-term growth strategy. A 20-minute video, product 7B04M028, is also available.Teaching Note: 8B04M28 (6 pages)Industry: ManufacturingIssues: Growth; Cash Flow; Growth StrategyDifficulty: 4 - Undergraduate/MBA
TAKAHIKO NARAKI, THE THREE MILLION YEN ENTREPRENEUREric Morse, Jason InchProduct Number: 9B04M054Publication Date: 10/13/2004Revision Date: 10/15/2009Length: 10 pagesTakahiko 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 ServicesIssues: Entrepreneurial Business Growth; Work-life Balance; Networks; Internet MarketingDifficulty: 4 - Undergraduate/MBA
GIGANET, INC.Paul Croke, David T.A. WesleyProduct Number: 9B04M039Publication Date: 8/10/2004Revision Date: 10/14/2009Length: 16 pagesGigaNet, 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: ManufacturingIssues: Mergers & Acquisitions; Leadership; Internet Hardware; Venture Capital; NortheasternDifficulty: 4 - Undergraduate/MBA
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Chapter 3:
Enterprising Fundamentals
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PAN BORICUA: DEVELOPING A MARKET STRATEGY FOR THE HISPANIC MARKET IN THE UNITED STATESVictor Quiñones, Julia Sagebien, Marisol Perez-Savelli, Eva Perez, Jennifer CatinchiProduct Number: 9B09A020Publication Date: 8/27/2009Length: 10 pagesTwo inexperienced, but strongly committed, entrepreneurs face the hassles of a new venture: exporting dough from Puerto Rico to cities in the United States with large numbers of Puerto Rican immigrants who are longing nostalgically for their beloved pan sobao (bread made with vegetable shortening). With thousands of Puerto Ricans living in and/or moving to the United States and after several incidents of fraud by partners of the entrepreneurs, they are thinking about how to take advantage of what seems to be an opportunity for doing business outside their Caribbean home. These entrepreneurs are confronting several challenges: 1) Preparing to detect opportunities and to get personally involved in a demanding export business 2) Differentiating and positioning the brand in a crowded market. Is a nostalgic feeling enough of a motivator to engage customers with the brand? 3) Deciding whether institution is a substitute for market data and feasibility determination.Teaching Note: 8B09A20 (7 pages)Industry: Wholesale TradeIssues: Hispanic; Minority; Market Adaptation; New MarketsDifficulty: 4 - Undergraduate/MBA
GENPACT INC. - BUSINESS PROCESS OUTSOURCING TO INDIAShih-Fen Chen, Ramasastry ChandrasekharProduct Number: 9B09M078Publication Date: 10/21/2009Length: 25 pagesIn September 2004, the chief executive officer (CEO) of General Electric Capital International Services (Gecis) was examining the company's options. Based near New Delhi, India, Gecis was a business process outsourcing (BPO) company. Gecis was set up in 1997 as an off-shore unit of General Electric Company (GE) and was a wholly-owned subsidiary. Earlier in July of 2004, GE divested itself of 60 per cent of its stake in Gecis with the result that Gecis was no longer a subsidiary of GE and was thus free to seek non-GE business. As part of several changes underway, there was a name change to Genpact Inc. (Genpact). The change in identity required the creation of management bandwidth, particularly in new client acquisition and business development. Also called for was a re-examination of the BPO business as a product line to be delivered to unaffiliated clients. The CEO recognized the need to begin negotiations with potential global clients. Each deal would involve many complexities in terms of geographies, languages and services. The CEO also was aware that all clients had areas of concern including loss of control, operations stability, savings targets and cultural compatibility. The CEO wondered how to develop a client acquisition strategy for Genpact as it moved from being a captive to an independent service provider.Teaching Note: 8B09M78 (11 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: Globalization; Service Outsourcing; Strategic Management; Customer AcquisitionDifficulty: 4 - Undergraduate/MBA
BEN & JERRY'S - JAPANJames M. HagenProduct Number: 9A99A037Publication Date: 4/13/2000Revision Date: 5/23/2017Length: 17 pagesThe CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.Teaching Note: 8A99A37 (6 pages)Industry: ManufacturingIssues: Strategic Alliances; Market Entry; International Marketing; Corporate StrategyDifficulty: 4 - Undergraduate/MBA
SAMSUNG AND THE THEME PARK INDUSTRY IN KOREAPaul W. Beamish, Charles Dhanaraj, Young Soo KimProduct Number: 9A96M006Publication Date: 11/1/1996Revision Date: 11/22/2002Length: 20 pagesThe management of the Samsung Group has to decide whether to enter the Korean theme park industry. The case focuses on three main issues in the context of the entry decision:- The underlying forces that shape industry structure, competitive interaction, and profits.
- The impact of globalization on industry structure.
- The relationship between a firm’s resources and its strategy.
Porter’s Five Forces model is used to analyze the impact of the competitive forces on profitability. A 15-minute video, product # 7A96M006, can be purchased for this case.Teaching Note: 8A96M06 (19 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Strategy and Resources; Industry Globalization; Industry Analysis; DiversificationDifficulty: 4 - Undergraduate/MBA
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Chapter 4:
What is an Enterprise?
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VICTORIA HEAVY EQUIPMENT LIMITEDTom A. Poynter, Paul W. BeamishProduct Number: 9B08M037Publication Date: 4/15/2008Revision Date: 5/18/2017Length: 12 pagesVictoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.Teaching Note: 8B08M37 (7 pages)Industry: ManufacturingIssues: Growth Strategy; Organizational Structure; Leadership; DecentralizationDifficulty: 4 - Undergraduate/MBA
ACME MEDICAL IMAGINGDonald A. PillittereProduct Number: 9B08D004Publication Date: 5/6/2008Length: 6 pagesAfter negotiations with a key supplier for lower prices and quicker turnaround go nowhere, two employees of Acme Medical Imaging realize there's no more low-hanging fruit to pick to keep their project on time and on budget -- no more concessions from external parties, no more superficial, short-term fixes. They have to convince their chief executive officer and the project team to take a hard look at internal processes. From the perspective of Operations, this case examines the challenges that can arise - and some steps that can be taken - when the greatest obstacles to a project are the people and procedures responsible for its success.Teaching Note: 8B08D04 (8 pages)Industry: Health Care ServicesIssues: Commercialization Process; Project Objective; New Product Development; CommunicationsDifficulty: 4 - Undergraduate/MBA
MALAWI BUSINESS ACTION AGAINST CORRUPTIONOonagh Fitzgerald, James Ng'ombeProduct Number: 9B07M037Publication Date: 10/4/2007Length: 18 pagesThe founding executive director of the African Institute for Corporate Citizenship (AICC), felt very tense as he typed the last revisions to the speech he would be giving to a Llongwe merchants' association later in the week. He really enjoyed proudly describing his initiative, "Business Action Against Corruption", and the Business Code of Conduct for Combating Corruption in Malawi, to potential new partners. However, the founding executive director was beginning to feel concerned about its slow pace of adoption. He was particularly worried about how to manage the delicate relationship with the government.Teaching Note: 8B07M37 (6 pages)Issues: Negotiation; Ethical Issues; Corporate Responsibility; Globalization; Political Environment; ProcurementDifficulty: 4 - Undergraduate/MBA
POLICEPREPStewart Thornhill, Deland JessopProduct Number: 9B05M016Publication Date: 12/20/2004Revision Date: 9/30/2009Length: 14 pagesThree 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 ServicesIssues: Partnership; Contribution Analysis; Growth StrategyDifficulty: 4 - Undergraduate/MBA
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Chapter 5:
The Legal and Regulatory Environment of Business
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FARMING PHARMACEUTICALS: VENTRIA BIOSCIENCE AND THE CONTROVERSY OVER PLANT-MADE MEDICINESAnne T. LawrenceProduct Number: 9B09M011Publication Date: 2/19/2009Length: 11 pagesHow can a biotechnology start-up navigate a complex regulatory and stakeholder terrain to bring to market an innovative product with potentially significant public health benefits? This case focuses on the challenges facing Ventria Bioscience, a small biotechnology firm based in California. The company had developed an innovative technology for growing medical proteins useful in the treatment of childhood diarrhea in genetically modified rice. The company's efforts to obtain regulatory approval in California to commercialize its invention met with a firestorm of opposition from a wide range of stakeholders, including environmentalists, food safety activists, consumer advocates and rice farmers. The case presents the hurdles faced by Ventria as it has attempted to commercialize its invention in the context of the broader debate over the ethics of plant-based medicines. This case is suitable for an upper-division undergraduate or graduate course in entrepreneurship, small business, the management of technology or biotechnology. In such a course, it is best positioned in a discussion of the regulatory environment and stakeholder relations. Alternatively, the case may be used in a segment on technology or stakeholder relationships in a course in business and society.Teaching Note: 8B09M11 (10 pages)Issues: Genetically Modified Crops; Stakeholders; Biotechnology; Government RegulationDifficulty: 4 - Undergraduate/MBA
LICENSING OF APOEP1.B PEPTIDE TECHNOLOGYJames E. Hatch, Susanne AcklinProduct Number: 9B05N016Publication Date: 9/1/2005Revision Date: 6/16/2010Length: 15 pagesRepresentatives of the technology transfer office are preparing a commercialization strategy of a new peptide. The function of the technology transfer office at the University of Western Ontario is to prospect for suitable technologies for commercialization, to manage the patent protection for such inventions, and to identify ways to develop such inventions. Two licensing opportunities are being considered, both of which entail creation of a startup company. The representatives must evaluate options to determine which offers the best potential for the commercialization of the invention for everyone involved.Teaching Note: 8B05N16 (14 pages)Industry: ManufacturingIssues: Entrepreneurial Finance; Licensing; Technology; PatentsDifficulty: 4 - Undergraduate/MBA
TIME WARNER INC. AND THE ORC PATENTSPaul W. Beamish, John AdamsonProduct Number: 9B01M059Publication Date: 1/29/2002Revision Date: 8/28/2009Length: 16 pagesOptical 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: ManufacturingIssues: Business Law; Intellectual Capital; Licensing; PatentsDifficulty: 4 - Undergraduate/MBA
TROJAN TECHNOLOGIES INC: THE CHINA OPPORTUNITYPratima Bansal, Paul W. Beamish, Ruihua JiangProduct Number: 9A99M028Publication Date: 10/28/1999Revision Date: 1/18/2010Length: 14 pagesThe senior market associate of Trojan Technologies reflected on the water shortages anticipated in developing countries created by their explosive economic growth. Trojan sold water disinfecting equipment, and the senior market associate's job was to find new areas for growth. China was particularly intriguing because it had as much water as Canada, but 40 times the population, and its economic boom would further stress current water resources. Trojan had set growth hurdles of 30 per cent per year, and it needed new markets to reach that objective. The task in new market development was to determine if Trojan should enter China, and if so, when, where and how. The associate knew little of China: how decisions were made for water disinfecting equipment, whether Trojan's patents would be protected, and what level of resources would be required. The vice-president of new business development wanted to see recommendations within the month. AWARD WINNING CASE - This case was second place winner of the MDC of Hong Kong Case Writer of the Year Award in 2000.Teaching Note: 8A99M28 (10 pages)Industry: UtilitiesIssues: China; Environment; Strategic Planning; International BusinessDifficulty: 4 - Undergraduate/MBA
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Chapter 6:
Discovering Opportunities
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RSSWORKS INC. - AN EARLY STAGE INVESTMENTStewart Thornhill, Tevya RosenbergProduct Number: 9B09M010Publication Date: 1/20/2009Length: 7 pagesRSSWorks Inc. represents a very early stage funding opportunity - the business model has not been decided. The case provides an introduction to the thinking behind seeking first external funding for an early stage founder-funded company. Students will gain an overview of how a very early stage company gets going and begins to operate by exploring the funding options open to a company at this early stage, considering the needs and wants of the founders and the potential funders, and assessing a company at this early stage. The case also introduces the notion of an ecosystem for technology companies and its role in the success or failure of early stage companies, and the idea of launching on the cheap.Teaching Note: 8B09M10 (4 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: Deal Structuring; Fund Raising; Entrepreneurial Finance; Venture CapitalDifficulty: 4 - Undergraduate/MBA
DEPOSITA - WHETHER TO DOMINATE THE VALUE CHAIN OR NOTHelena BarnardProduct Number: 9B08M072Publication Date: 10/24/2008Length: 13 pagesPost-Apartheid South Africa has been characterized by high levels of crime, but also by sustained increases in the income levels of the previously disadvantaged black community. Cash is the preferred method of payment for new entrants into an economy, but it is also an attractive target for criminals. Deposita has seized the business opportunity presented by this tension, and developed an automated banking machine, basically an ATM in reverse. As soon as businesses feed their cash into the machine on their premises, information about the deposit is relayed via a cellphone network to the Deposita database. With the realization that Deposita offers a cash management system that not only eliminates the time, cost and inaccuracies of manual cash counting, but also gives businesses remote visibility into the movement of cash, interest in Deposita grew rapidly, both within South Africa and internationally. The case highlights the systemic nature of innovation, technology-enabled innovation at the base of the pyramid, hyper-mediation, and the tension between product and geographic expansion as the owners of Deposita redirect their strategic focus to the entire cash value chain in South Africa or to international markets or both.Teaching Note: 8B08M72 (5 pages)Issues: Innovation; Expansion; Home Country Advantages; Expansion Option; Hypermediation; Product versus Geographic Expansion; GIBSDifficulty: 5 - MBA/Postgraduate
NEOGENIUS CO., LTD.Eric Morse, Dominic LimProduct Number: 9B07M011Publication Date: 7/31/2007Length: 20 pagesNeoGenius Co., Ltd. (NeoGenius) is an early stage entrepreneurial venture based in South Korea. Founded in February 2000, NeoGenius provides a wide range of business to business (B2B) e-business software and related services. The company's chief executive officer must decide among several options including growth and exit. Students will analyze different growth options that entrepreneurs commonly face, as well as an entrepreneur's decision-making process.Teaching Note: 8B07M11 (8 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: New Venture Growth; New Venture Management; StartupsDifficulty: 5 - MBA/Postgraduate
LEVERAGING WAL-MART, EBAY AND USPSEric Morse, Ken MarkProduct Number: 9B04M027Publication Date: 8/10/2004Revision Date: 10/14/2009Length: 4 pagesAn 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 ThinkingDifficulty: 4 - Undergraduate/MBA
BARRIE CHARITY BINGOEric Morse, Joe BubelProduct Number: 9B04M049Publication Date: 9/20/2004Revision Date: 10/15/2009Length: 4 pagesThe owner of a large bingo facility recently bought out his only competitor, but this purchase is putting a financial drain on his company. An impending smoking by-law could reduce the number of customers, putting a strain on both businesses. As part of the purchasing agreement, one facility must close, leaving the owner with a large building on prime land, which was of little use to him. With the vacant building costing him hundred of dollars per day to maintain, he must decide whether to sell the building, rent it out, or use it as a self-storage facility.Teaching Note: 8B04M49 (8 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Business Development; Opportunity Recognition; GrowthDifficulty: 4 - Undergraduate/MBA
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Chapter 7:
Feasibility
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CINEPLEX ENTERTAINMENT: THE LOYALTY PROGRAMKenneth G. Hardy, Renee ZatzmanProduct Number: 9B08A008Publication Date: 4/1/2008Revision Date: 5/15/2009Length: 17 pagesIn 2007, the marketing director for Cineplex Entertainment is trying to decide whether or not to proceed with a loyalty program that would provide incentives for customers to see more movies and events, and spend more on concessions. An important by-product would be the collection of detailed customer buying data. She has crafted four possible combinations of rewards and received proposals from three suppliers with experience in managing customer data banks. She must decide the structure and richness of the program, the supplier, the likely response rate to determine financial feasibility, and whether to launch regionally or nationally.Teaching Note: 8B08A08 (10 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: New Product Launch; Customer Relationship Management; Loyalty ProgramsDifficulty: 4 - Undergraduate/MBA
GLOBAL SOURCE HEALTHCARE: TO START OR NOT TO STARTDonald W. Barclay, Eric Morse, Shamail SiddiqiProduct Number: 9B05M055Publication Date: 9/1/2005Revision Date: 10/1/2009Length: 17 pagesAn entrepreneur was contemplating leaving his job at Goldman Sachs to start Global Source Healthcare, a healthcare outsourcing company focused on international nurse recruitment. He had researched the healthcare staffing market extensively, written a business plan and raised some funding. While this appeared to be an excellent opportunity, there were some very real risks that had to be considered. His greatest concern was the limited amount of funding at his disposal. Since international recruitment required a considerable amount of working capital, the lack of funding brought the long-term feasibility of the business into question. Students will learn about screening the business venture in terms of the entrepreneur, the resources and the opportunity; determining the strategic direction of the company and balancing the long-term vision with short-term cash flow needs; assessing different business models to determine which is the best fit for the company; and the importance of executing the business plan and selected strategy.Teaching Note: 8B05M55 (12 pages)Industry: Health Care ServicesIssues: Strategy Development; Startups; HealthDifficulty: 4 - Undergraduate/MBA
STORAGEONEKenneth G. Hardy, Joe BubelProduct Number: 9B04A027Publication Date: 10/13/2004Revision Date: 10/7/2009Length: 18 pagesTwo partners have converted an abandoned bingo hall into a 40,000 square foot self-storage unit. It appears to be filling up quickly. The father wants to build four or five similar self-storage units each year in the surrounding cities and towns, by converting former factories and supermarkets into self-storage units. The partners want to build one unit each year in order to retain a larger ownership stake and a smaller debt component. In either situation, there are pricing and feasibility issues that must be considered.Teaching Note: 8B04A27 (4 pages)Industry: Other ServicesIssues: Market Strategy; Pricing; Market Segmentation; Real EstateDifficulty: 4 - Undergraduate/MBA
SHOULD MCNUTT RELOCATE DIVISION 1? AN ENTREPRENEUR'S CRITICAL DECISIONGayle W. Rosenthal, George C. YatesProduct Number: 9B01M067Publication Date: 5/23/2002Revision Date: 12/22/2009Length: 12 pagesMcNutt Service Group, a heating, ventilating and air conditioning business, has grown to the stage where the president is considering moving the service division to a new location, to provide increased space, a greater degree of autonomy and more efficient access to the division's customer base. He must analyse the financial feasibility and evaluate the team dynamics, motivation and the morale advantages and disadvantages of a physical move.Teaching Note: 8B01M67 (4 pages)Industry: ConstructionIssues: Cost/Benefit Analysis; Location Strategy; Growth Strategy; Feasibility AnalysisDifficulty: 3 - Undergraduate
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Chapter 8:
Business Plans and Planning
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YOUR HOME IS A GOOD PLACE, INC.Kevin Coulson, Zane SwansonProduct Number: 9B09A025Publication Date: 10/9/2009Length: 8 pagesYour Home is a Good Place, Inc. was a unique business. It brought together homeowners, contractors and other service suppliers in a one-stop shopping environment that emphasized convenience as a marketing strategy. Your Home is a Good Place, Inc. (YHGP) needed to know more about the demand in the area and to decide how to attract both suppliers of services and customers as well as promote the business and build a brand identity. The owner has decided to hire a consultant to: 1) identify target market demographics in Michiana developed from the census data provided 2) provide a general description of potential competitors for YHGP 3) develop a marketing plan focused on bringing in clients as well as contractors and facilitators as partners. Discussion of building a brand identity for a new business will be a consideration here. This case will fit with upper-level marketing strategy or entrepreneurship courses, a management capstone course or within an MBA-level marketing course. The objectives for this case are for the students to learn SWOT analysis, to apply the data to complete a marketing plan, and to advise a difficult client. It is best suited for team applications although individuals can complete the exercises. Additionally, students should consider the implications of, and how to deal with, a client who is in need of advice but is reluctant to accept ideas that are not his own.Teaching Note: 8B09A25 (7 pages)Industry: Construction, Manufacturing, Other ServicesIssues: Market Strategy; Human Resources Management; Strategy and Resources; Strategic Alliances; Management Science and Info. Systems; Distribution Channels; Segmentation; Brand Positioning; New Product Development; Target SegmentDifficulty: 4 - Undergraduate/MBA
4PRINT: PLANNING FOR A PROSPEROUS FUTUREJohn S. Haywood-Farmer, Brianna RamsayProduct Number: 9B04M042Publication Date: 11/23/2004Revision Date: 10/14/2009Length: 14 pages4Print Company is a small printing firm with three locations in the greater Toronto area. An employee is preparing for lease negotiation meetings with the property management company. He knew his boss would lead the discussion but wanted to have all the necessary material since negotiating favourable lease terms would help to ensure that 4Print would continue to grow in the competitive printing industry.Teaching Note: 8B04M42 (8 pages)Industry: ManufacturingIssues: Corporate Culture; Negotiation; Management SuccessionDifficulty: 4 - Undergraduate/MBA
THREE FISH SOLUTIONS (A) - FISHING FOR FUNDSAllen Morrison, Tom Gleave, John BeckProduct Number: 9B01M012Publication Date: 3/2/2001Revision Date: 12/21/2009Length: 18 pagesThe 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 ServicesIssues: Internet; Information Technology; Startups; Partnership; NanyangDifficulty: 5 - MBA/Postgraduate
EASY BUSINESS COMPANY LIMITED: COST ANALYSIS ON A SMALL BUSINESS START-UP IN CHINA (A)Claude P. Lanfranconi, Peter YuanProduct Number: 9A99B033Publication Date: 4/4/2000Revision Date: 1/14/2010Length: 7 pagesA 23-year-old sales executive for a multinational office furniture and supply company was thinking of leaving the company over a dispute regarding her compensation. A friend had suggested setting up her own business: a recruiting agency. The sales executive had known some human resources managers and office managers throughout the years, however, she also realized that it was a very competitive business and she had no experience. She did some cost analysis and had to decide whether it was worth doing. This case could be used as an introduction to management accounting or entrepreneurial finance.Teaching Note: 8A99B33 (10 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: China; Cost Accounting; Entrepreneurial Finance; Management AccountingDifficulty: 4 - Undergraduate/MBA
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Chapter 9:
Pathways to Enterprise Creation
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THE ASCENDANCE OF AIRASIA: BUILDING A SUCCESSFUL BUDGET AIRLINE IN ASIAThomas Lawton, Jonathan DohProduct Number: 9B08M054Publication Date: 10/31/2008Revision Date: 7/21/2010Length: 16 pagesIn September 2001, Tony Fernandes left his job as vice president and head of Warner Music's Southeast Asian operations. He reportedly cashed in his stock options, took out a mortgage on his house, and lined up investors to take control of AirAsia, a struggling Malaysian airline. Three days later, terrorists destroyed the World Trade Center. Despite the negative aftermath of the 9-11 attacks, by 2003, AirAsia had demonstrated that the low-fare model epitomized by Southwest and JetBlue in the United States, and by Ryanair and easyJet in Europe, had great potential in the Asian marketplace. Now, Fernandes had to make plans to ensure that AirAsia maintained its momentum while considering the influx of new entrants into the low-fare segment of the airline industry in Asia.Teaching Note: 8B08M54 (8 pages)Industry: Transportation and WarehousingIssues: International Business; Competitive Strategy; Strategic Positioning; Entrepreneurial Business GrowthDifficulty: 4 - Undergraduate/MBA
INDUSTRIAL ACCESSORIES LTD.James E. Hatch, Ken MarkProduct Number: 9B08N024Publication Date: 11/4/2008Length: 11 pagesThe president of Industrial Accessories Ltd. (IAL) was preparing for a meeting to consider a management buyout of IAL. IAL was a privately owned maker of attachments for construction vehicles based in British Columbia, Canada. IAL was founded in 1970 by Gerald Stone, now chairman and CEO of IAL. Stone had decided to sell IAL because of health problems. Because he had no suitable heirs to take on leadership of the company, the president and three other senior managers were considering a buyout strategy. Students must size up the acquisition, a place value on the company and propose a financing plan for the acquisition.Teaching Note: 8B08N24 (11 pages)Industry: ManufacturingIssues: Business Valuation; Valuation; Financial Analysis; Strategic Size-up; Financing Plans; Cash Flow AnalysisDifficulty: 4 - Undergraduate/MBA
WIND TO ENERGY: W2EKenneth G. Hardy, Ken Mark, Jordan MitchellProduct Number: 9B05A004Publication Date: 1/31/2005Revision Date: 9/24/2009Length: 20 pagesAn engineer for Wind to Energy has led the creation of the North American division of a German start-up company that designs wind-energy electric power generation units - wind turbines. The engineer and his fellow engineers have licensed the technology to a small-share assembler of wind turbines and are about to receive their first payment from this firm. As they look ahead, they see opportunities for revenue in possibly supplying spare parts to wind farms, or even operating their own wind farm. The challenge is to focus this start-up company.Teaching Note: 8B05A04 (8 pages)Industry: UtilitiesIssues: Market Strategy; Market Entry; Vendor Selection; VisioningDifficulty: 4 - Undergraduate/MBA
SELKIRK GROUP IN ASIA (CONDENSED)Paul W. Beamish, Lambros KaravisProduct Number: 9B02M041Publication Date: 11/29/2002Revision Date: 12/3/2009Length: 10 pagesSelkirk Group is a family-owned brick manufacturer which has built an export business to Japan and other Asian markets from zero to 10% of its volume in seven years. The managing director of the company raises the question of whether it is time to change their regional export strategy and organizational structure in light of the Asian economic crisis and the reasons for their competitive success in both Australia and Asia.Teaching Note: 8A99M03 (9 pages)Industry: ManufacturingIssues: International Business; Exports; Organizational Structure; International MarketingDifficulty: 4 - Undergraduate/MBA
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Chapter 10:
Purchasing a Business
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CFM ATTACHMENTS LTD.Larry Wynant, Ken MarkProduct Number: 9B09N002Publication Date: 1/20/2009Revision Date: 2/9/2011Length: 14 pagesThe president of Vancouver-based CFM Attachments Ltd. (CFM) is putting together a management buyout of his company. The president, who has had experience creating and selling a company in a related industry, is trying to determine how to value a potential purchase of CFM from the company's founder. As CFM is a privately-owned company, the president is trying to place a value on the company based on historical financials, a group of comparative firms, and a profit and cash flow forecast by the management team.Teaching Note: 8B09N02 (11 pages)Industry: ManufacturingIssues: Mergers & Acquisitions; Financial Strategy; Financial AnalysisDifficulty: 4 - Undergraduate/MBA
A NOTE ON VALUATION FOR VENTURE CAPITALTevya RosenbergProduct Number: 9B09N009Publication Date: 4/7/2009Length: 14 pagesThis note addresses the question of valuation in the venture capital setting. It discusses the methodologies most commonly in practice for arriving at valuation. Because valuation methodologies can yield widely varying results, this note looks at valuation from many different angles. The note addresses critical questions including: What value should the entrepreneur put on his/her company when first raising capital? What should the venture capitalist (VC) pay to invest in the company? What is the appropriate valuation for subsequent rounds of financing? What is the right value at which to exit the investment?Issues: Entrepreneurial Finance; Valuation; Venture Capital; Investment AnalysisDifficulty: 4 - Undergraduate/MBA
CHARTWELL TECHNOLOGIES: UPPING THE ANTE WITH INTERNET POKERMichael J. Rouse, David MaslachProduct Number: 9B08M055Publication Date: 12/9/2008Length: 12 pagesOn March 12, 2005, the founder and chief executive officer (CEO) of Chartwell Technologies (Chartwell), a company that specialized in Internet gaming development, noticed something interesting. The CNN headline news ticker on his television read: Online Poker Industry Expected to Grow by Billions within the Year. The CEO and his partner, the vice-president of business development, were about to decide whether to acquire MicroPower Inc. (MicroPower), an online poker company, for US$2.6 million in cash. The industry certainly had the potential for explosive growth. The CEO had to decide whether Chartwell should upgrade its current technology or purchase MicroPower to gain instant access to its C++ platform to take advantage of the growth on the online poker industry.Teaching Note: 8B08M55 (6 pages)Industry: Administrative, Support, Waste Management and Remediation Services, Arts, Entertainment, Sports and Recreation, ManufacturingIssues: Human Resources Management; Integration; Technological Growth; AcquisitionsDifficulty: 4 - Undergraduate/MBA
EXTREME CCTVStewart Thornhill, Ken MarkProduct Number: 9B02M015Publication Date: 10/29/2002Revision Date: 12/3/2009Length: 17 pagesExtreme CCTV, a start-up company that specializes in closed circuit television equipment, is looking at purchasing one of it distribution partners, Derwent Systems Ltd - a leading European manufacturer of infrared illuminators. The two companies have been successful in promoting the others products in their respective markets, now Derwent's founder wants to retire. Without Derwent's founder, Extreme CCTV will lose the ability to sell complementary Derwent products in North America and will have to look for another way to distribute its products in the European market. The president and founder of Extreme CCTV has to decide whether or not he should proceed with the purchase of Derwent Systems Ltd. and how he would manage both companies while preparing for an initial public offer.Teaching Note: 8B02M15 (5 pages)Industry: ManufacturingIssues: Growth; Mergers & Acquisitions; Corporate StrategyDifficulty: 4 - Undergraduate/MBA
REGARE CORPORATIONJames E. Hatch, Victoria YoungProduct Number: 9B00N012Publication Date: 8/16/2000Revision Date: 1/12/2010Length: 15 pagesRegare Corporation is a telecommunications company offering a comprehensive array of telecom products including local access, long distance, calling card and toll free services, internet access, and paging to residential and small- to medium-sized corporate customers. A core strength of the company was its advanced convergent billing system, that enabled Regare to provide a customized bundle of services on a single customer bill. The company has been in business for less than two years and is on an aggressive growth track via organic growth and strategic acquisitions. Currently, Regare is in negotiations to effect a reverse takeover of a publicly traded company on the Vancouver Stock Exchange as well as the acquisition of a large private long distance reseller. The CEO must decide on what terms the deals will be made as well as how to finance the acquisitions. Students will learn how to value both a private and public company, the nature and structure of a reverse takeover and, about consolidation as a growth strategy.Teaching Note: 8B00N12 (5 pages)Industry: Finance and InsuranceIssues: Entrepreneurial Finance; Valuation; Acquisitions; Take-over BidsDifficulty: 4 - Undergraduate/MBA
NOTE ON MERGERS AND ACQUISITIONS AND VALUATIONStephen R. Foerster, Dominique FortierProduct Number: 9A95B023Publication Date: 10/4/1995Revision Date: 2/11/2010Length: 11 pagesThe objective of this note is to define what is meant by mergers and acquisitions and to understand why they happen. The impact of these deals on shareholders of both the acquiring and acquired companies is investigated, and the reasons why some mergers succeed while others fail are examined. Finally, in order to determine the value of a firm, some valuation frameworks are provided.Issues: Valuation; Mergers & Acquisitions; AcquisitionsDifficulty: 4 - Undergraduate/MBA
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Chapter 11:
Franchising
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SAN FRANCISCO COFFEE HOUSE: AN AMERICAN STYLE FRANCHISE IN CROATIAIlan Alon, Mirela Alpeza, Aleksandar ErcegProduct Number: 9B08A013Publication Date: 8/14/2008Revision Date: 4/20/2010Length: 10 pagesOn their return to Croatia following a six-year visit to the United States, a couple has decided to open their own coffee house, one that is new to Croatia — a California-style coffee house that offers the quality, service, product assortment, ambiance, and efficiency found in sophisticated coffee shops in developed markets, and all for a locally affordable price. The major challenge faced by the couple is how to grow. Specifically, should they consider franchising over organic growth? If so, how should they go about franchising in a country where the market is developing and where franchising is under-regulated, underdeveloped, and misunderstood?Teaching Note: 8B08A13 (10 pages)Industry: Accommodation & Food ServicesIssues: Business Development; Retail Marketing; Corporate Governance; Human Resources Management; Franchising; BrandsDifficulty: 2 - Intro/Undergraduate
WILLIAMS COFFEE PUB: THE FRANCHISING OPPORTUNITYGregory S. Zaric, Hui ZhangProduct Number: 9B07E020Publication Date: 1/8/2008Revision Date: 3/10/2009Length: 3 pagesAn entrepreneur is looking for business opportunities since she immigrated to London, Ontario. She has come across a franchising opportunity with Williams Coffee Pub (WCP). The promotional material for WCP indicates that annual sales for a typical restaurant can be up to $1,700,000 with a profit margin of 17.5 per cent. This business opportunity seems very attractive, however, she must do some additional investigation. The purpose of this case is for students to build a spreadsheet-based cash flow model and to use the model to perform basic sensitivity or What if? analysis.Teaching Note: 8B07E20 (6 pages)Industry: Accommodation & Food ServicesIssues: Sensitivity Analysis; Franchising; Small Business; Spread Sheet ApplicationDifficulty: 4 - Undergraduate/MBA
UNDERGROUNDHIPHOP.COMMichael H. Zack, Ben Compaine, David T.A. WesleyProduct Number: 9B07M064Publication Date: 10/4/2007Revision Date: 2/26/2010Length: 20 pagesUndergroundhiphop.com (UGHH) was the leading source of independent hip-hop on the Internet. Although company revenues remained small compared to major online music retailers, the opening of a storefront in 2005 helped create new opportunities within the music industry, but also proved to be a drain on company resources. As the founder tried to expand the company, he faced a number of choices. However, his conservative financial strategy was limiting the company's potential. UGHH desperately needed to hire programmers, designers and managers to keep up with new technological developments and social trends, such as music downloads, blogs and online social networking. Yet the cost of running a bricks and mortar retail store left little to invest in other areas of the business. The case provides a classic example of entrepreneurship that can be used in introductory and intermediate level entrepreneurship classes. It can be used as a platform to illustrate an entrepreneur who fails to make the transition to a manager. The discussion will provide an opportunity to introduce or review the concept of franchising.Teaching Note: 8B07M64 (8 pages)Industry: Arts, Entertainment, Sports and RecreationIssues: Franchising; E-Business; Growth Strategy; NortheasternDifficulty: 4 - Undergraduate/MBA
CARTRIDGE WORLD: THE MASTER FRANCHISE OPPORTUNITYStewart Thornhill, Ken Mark, Jordan MitchellProduct Number: 9B05M071Publication Date: 4/28/2006Revision Date: 10/1/2009Length: 12 pagesAn entrepreneur has received additional information on the Cartridge World franchising concept - a store focused on the refilling of printer cartridges. The idea for Cartridge World began in Australia in 1988 and has grown to almost 200 locations in Australia, New Zealand and the United Kingdom. The entrepreneur must look at the market opportunity in Canada and decide whether he should apply for the country's master franchise, a single franchise, or abandon the concept altogether. Students will evaluate a franchise concept based on market opportunity and the franchise contract.Teaching Note: 8B05M71 (13 pages)Industry: Retail TradeIssues: Models; Franchising; Investment Analysis; Market AnalysisDifficulty: 4 - Undergraduate/MBA
FAST EDDIE'SJames E. Hatch, Maria Gudelis, Dirk SchraderProduct Number: 9A94B008Publication Date: 6/21/1994Revision Date: 2/19/2010Length: 24 pagesOver 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 ServicesIssues: Entrepreneurial Finance; FranchisingDifficulty: 4 - Undergraduate/MBA
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Chapter 12:
The Enterprising Mind
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THE CAREER CHOICE OF MS. LINLIN CHENFernando Olivera, Bin ZhaoProduct Number: 9B07C015Publication Date: 3/16/2007Length: 6 pagesLinlin Chen, a sales manager at Allnation Import and Export Co. Ltd. is in her office looking at the revenue reports for her sales in the past three months. Her numbers are very good, and she knows she is about to be rewarded with a promotion and the opportunity to become a shareholder in the company. Chen has been thinking about becoming an entrepreneur for some time. As she weighs in the risks and the opportunities, she realizes that she needs to make a decision within nine days when she will be asked to become a shareholder in the company.Teaching Note: 8B07C15 (5 pages)Industry: ManufacturingIssues: China; Entrepreneurship Opportunity; Career Anchor; Career ChoiceDifficulty: 4 - Undergraduate/MBA
WAVERIDER COMMUNICATIONS INC.: THE WIRELESS LAST MILEScott L. Schneberger, Ken MarkProduct Number: 9B01E008Publication Date: 3/6/2001Revision Date: 12/18/2009Length: 12 pagesWaveRider Communications, Inc. was a Toronto-based company with a mission to become the leader in global wireless technology by developing, selling and supporting products that enabled wireless Internet service providers. It recently launched market its Last Mile Solution, offering Internet service providers the opportunity to provide wireless Internet access at broadband speeds in the unlicensed 2.4 gigahertz spectrum. The wireless Internet access industry was relatively untapped and WaveRider's vice-president of marketing wondered whether the company, as it started its growth phase, should seek an alliance with a competing technology company. To determine the feasibility of this idea, he needed to classify the competition, review the customer barriers and evaluate which technology was the best fit.Teaching Note: 8B01E08 (12 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: Information Systems; Action Planning and Implementation; Innovation; Technological ChangeDifficulty: 4 - Undergraduate/MBA
HOMEGROCER.COMSid L. Huff, David BeckowProduct Number: 9A98E019Publication Date: 1/29/1999Revision Date: 5/18/2017Length: 14 pagesHomegrocer is a new Internet-based grocery store that is experiencing slow market penetration because the business concept entails fundamentally changing individual grocery shopping behavior. The owner is wondering what it takes to attract new customers and then convert them into repeat customers. Other issues include lack of management IT experience, anticipated hyper-growth, investment decisions needed in a quickly changing industry and funding in the future.Teaching Note: 8A98E19 (14 pages)Industry: Retail TradeIssues: Internet; E-Commerce; Virtual BusinessDifficulty: 4 - Undergraduate/MBA
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