Ivey Publishing

Creating the Enterprise

Gartner W.B., Bellamy, M.G.,1/e (United States, South-Western/Cengage Learning, 2009)
Prepared By Matthias A. Tietz, Ph.D. Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Enterprise: Creating a Framework for Success

June Cotte, Remi Trudel

Product Number: 9B09A013
Publication Date: 6/26/2009
Length: 4 pages

In 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 Services
Issues: Marketing Management; Consumer Behaviour; Pricing; Market Segmentation
Difficulty: 4 - Undergraduate/MBA

Dan T. Dunn

Product Number: 9B09A003
Publication Date: 3/9/2009
Revision Date: 2/26/2010
Length: 9 pages

PANELpro 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: Manufacturing
Issues: Value of Perfect Information; Marketing Research; Industrial Marketing; Northeastern
Difficulty: 4 - Undergraduate/MBA

David T.A. Wesley, Paul Croke, Henry W. Lane

Product Number: 9B02M018
Publication Date: 8/28/2002
Revision Date: 1/30/2006
Length: 15 pages

A 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 Trade
Issues: Bankruptcy; Wholesaling; Leadership; Career Development; Northeastern
Difficulty: 5 - MBA/Postgraduate

Murray J. Bryant, Michelle Theobalds

Product Number: 9A98B002
Publication Date: 3/19/1998
Revision Date: 9/9/2009
Length: 5 pages

An 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 Recreation
Issues: Costs; Contribution Analysis; Break-Even Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 2:

Stewart Thornhill, Ken Mark

Product Number: 9B08M093
Publication Date: 1/20/2009
Revision Date: 5/3/2017
Length: 18 pages

The 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: Manufacturing
Issues: Strategy Development; Strategic Change; Globalization; Strategic Balance
Difficulty: 4 - Undergraduate/MBA

Stewart Thornhill, Chris Sturby

Product Number: 9B04M028
Publication Date: 9/20/2004
Revision Date: 10/14/2009
Length: 5 pages

Two 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: Manufacturing
Issues: Growth; Cash Flow; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

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

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

Chapter 3:
Enterprising Fundamentals

Victor Quiñones, Julia Sagebien, Marisol Perez-Savelli, Eva Perez, Jennifer Catinchi

Product Number: 9B09A020
Publication Date: 8/27/2009
Length: 10 pages

Two 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 Trade
Issues: Hispanic; Minority; Market Adaptation; New Markets
Difficulty: 4 - Undergraduate/MBA

Shih-Fen Chen, Ramasastry Chandrasekhar

Product Number: 9B09M078
Publication Date: 10/21/2009
Length: 25 pages

In 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 Services
Issues: Globalization; Service Outsourcing; Strategic Management; Customer Acquisition
Difficulty: 4 - Undergraduate/MBA

James M. Hagen

Product Number: 9A99A037
Publication Date: 4/13/2000
Revision Date: 5/23/2017
Length: 17 pages

The 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: Manufacturing
Issues: Strategic Alliances; Market Entry; International Marketing; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Charles Dhanaraj, Young Soo Kim

Product Number: 9A96M006
Publication Date: 11/1/1996
Revision Date: 11/22/2002
Length: 20 pages

The 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 Recreation
Issues: Strategy and Resources; Industry Globalization; Industry Analysis; Diversification;Tourism
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
What is an Enterprise?

Tom A. Poynter, Paul W. Beamish

Product Number: 9B08M037
Publication Date: 4/15/2008
Revision Date: 5/18/2017
Length: 12 pages

Victoria 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: Manufacturing
Issues: Growth Strategy; Organizational Structure; Leadership; Decentralization
Difficulty: 4 - Undergraduate/MBA

Donald A. Pillittere

Product Number: 9B08D004
Publication Date: 5/6/2008
Length: 6 pages

After 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 Services
Issues: Commercialization Process; Project Objective; New Product Development; Communications
Difficulty: 4 - Undergraduate/MBA

Oonagh Fitzgerald, James Ng'ombe

Product Number: 9B07M037
Publication Date: 10/4/2007
Length: 18 pages

The 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; Procurement
Difficulty: 4 - Undergraduate/MBA

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

Chapter 5:
The Legal and Regulatory Environment of Business

Anne T. Lawrence

Product Number: 9B09M011
Publication Date: 2/19/2009
Length: 11 pages

How 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 Regulation
Difficulty: 4 - Undergraduate/MBA

James E. Hatch, Susanne Acklin

Product Number: 9B05N016
Publication Date: 9/1/2005
Revision Date: 6/16/2010
Length: 15 pages

Representatives 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: Manufacturing
Issues: Entrepreneurial Finance; Licensing; Technology; Patents
Difficulty: 4 - Undergraduate/MBA

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

Pratima Bansal, Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M028
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 14 pages

The 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: Utilities
Issues: China; Environment; Strategic Planning; International Business
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Discovering Opportunities

Stewart Thornhill, Tevya Rosenberg

Product Number: 9B09M010
Publication Date: 1/20/2009
Length: 7 pages

RSSWorks 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 Services
Issues: Deal Structuring; Fund Raising; Entrepreneurial Finance; Venture Capital
Difficulty: 4 - Undergraduate/MBA

Helena Barnard

Product Number: 9B08M072
Publication Date: 10/24/2008
Length: 13 pages

Post-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; GIBS
Difficulty: 5 - MBA/Postgraduate

Eric Morse, Dominic Lim

Product Number: 9B07M011
Publication Date: 7/31/2007
Length: 20 pages

NeoGenius 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 Services
Issues: New Venture Growth; New Venture Management; Startups
Difficulty: 5 - MBA/Postgraduate

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

Eric Morse, Joe Bubel

Product Number: 9B04M049
Publication Date: 9/20/2004
Revision Date: 10/15/2009
Length: 4 pages

The 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 Recreation
Issues: Business Development; Opportunity Recognition; Growth
Difficulty: 4 - Undergraduate/MBA

Chapter 7:

Kenneth G. Hardy, Renee Zatzman

Product Number: 9B08A008
Publication Date: 4/1/2008
Revision Date: 5/15/2009
Length: 17 pages

In 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 Recreation
Issues: New Product Launch; Customer Relationship Management; Loyalty Programs
Difficulty: 4 - Undergraduate/MBA

Donald W. Barclay, Eric Morse, Shamail Siddiqi

Product Number: 9B05M055
Publication Date: 9/1/2005
Revision Date: 10/1/2009
Length: 17 pages

An 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 Services
Issues: Strategy Development; Startups; Health
Difficulty: 4 - Undergraduate/MBA

Kenneth G. Hardy, Joe Bubel

Product Number: 9B04A027
Publication Date: 10/13/2004
Revision Date: 10/7/2009
Length: 18 pages

Two 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 Services
Issues: Market Strategy; Pricing; Market Segmentation; Real Estate
Difficulty: 4 - Undergraduate/MBA

Gayle W. Rosenthal, George C. Yates

Product Number: 9B01M067
Publication Date: 5/23/2002
Revision Date: 12/22/2009
Length: 12 pages

McNutt 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: Construction
Issues: Cost/Benefit Analysis; Location Strategy; Growth Strategy; Feasibility Analysis
Difficulty: 3 - Undergraduate

Chapter 8:
Business Plans and Planning

Kevin Coulson, Zane Swanson

Product Number: 9B09A025
Publication Date: 10/9/2009
Length: 8 pages

Your 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 Services
Issues: Market Strategy; Human Resources Management; Strategy and Resources; Strategic Alliances; Management Science and Info. Systems; Distribution Channels; Segmentation; Brand Positioning; New Product Development; Target Segment
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Brianna Ramsay

Product Number: 9B04M042
Publication Date: 11/23/2004
Revision Date: 10/14/2009
Length: 14 pages

4Print 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: Manufacturing
Issues: Corporate Culture; Negotiation; Management Succession
Difficulty: 4 - Undergraduate/MBA

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

Claude P. Lanfranconi, Peter Yuan

Product Number: 9A99B033
Publication Date: 4/4/2000
Revision Date: 1/14/2010
Length: 7 pages

A 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 Services
Issues: China; Cost Accounting; Entrepreneurial Finance; Management Accounting
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Pathways to Enterprise Creation

Thomas Lawton, Jonathan Doh

Product Number: 9B08M054
Publication Date: 10/31/2008
Revision Date: 7/21/2010
Length: 16 pages

In 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 Warehousing
Issues: International Business; Competitive Strategy; Strategic Positioning; Entrepreneurial Business Growth
Difficulty: 4 - Undergraduate/MBA

James E. Hatch, Ken Mark

Product Number: 9B08N024
Publication Date: 11/4/2008
Length: 11 pages

The 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: Manufacturing
Issues: Business Valuation; Valuation; Financial Analysis; Strategic Size-up; Financing Plans; Cash Flow Analysis
Difficulty: 4 - Undergraduate/MBA

Kenneth G. Hardy, Ken Mark, Jordan Mitchell

Product Number: 9B05A004
Publication Date: 1/31/2005
Revision Date: 9/24/2009
Length: 20 pages

An 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: Utilities
Issues: Market Strategy; Market Entry; Vendor Selection; Visioning
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Lambros Karavis

Product Number: 9B02M041
Publication Date: 11/29/2002
Revision Date: 12/3/2009
Length: 10 pages

Selkirk 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: Manufacturing
Issues: International Business; Exports; Organizational Structure; International Marketing
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Purchasing a Business

Larry Wynant, Ken Mark

Product Number: 9B09N002
Publication Date: 1/20/2009
Revision Date: 2/9/2011
Length: 14 pages

The 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: Manufacturing
Issues: Mergers & Acquisitions; Financial Strategy; Financial Analysis
Difficulty: 4 - Undergraduate/MBA

Tevya Rosenberg

Product Number: 9B09N009
Publication Date: 4/7/2009
Length: 14 pages

This 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 Analysis
Difficulty: 4 - Undergraduate/MBA

Michael J. Rouse, David Maslach

Product Number: 9B08M055
Publication Date: 12/9/2008
Length: 12 pages

On 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, Manufacturing
Issues: Human Resources Management; Integration; Technological Growth; Acquisitions
Difficulty: 4 - Undergraduate/MBA

Stewart Thornhill, Ken Mark

Product Number: 9B02M015
Publication Date: 10/29/2002
Revision Date: 12/3/2009
Length: 17 pages

Extreme 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: Manufacturing
Issues: Growth; Mergers & Acquisitions; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

James E. Hatch, Victoria Young

Product Number: 9B00N012
Publication Date: 8/16/2000
Revision Date: 1/12/2010
Length: 15 pages

Regare 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 Insurance
Issues: Entrepreneurial Finance; Valuation; Acquisitions; Take-over Bids
Difficulty: 4 - Undergraduate/MBA

Stephen R. Foerster, Dominique Fortier

Product Number: 9A95B023
Publication Date: 10/4/1995
Revision Date: 2/11/2010
Length: 11 pages

The 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; Acquisitions
Difficulty: 4 - Undergraduate/MBA

Chapter 11:

Ilan Alon, Mirela Alpeza, Aleksandar Erceg

Product Number: 9B08A013
Publication Date: 8/14/2008
Revision Date: 4/20/2010
Length: 10 pages

On 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 Services
Issues: Business Development; Retail Marketing; Corporate Governance; Human Resources Management; Franchising; Brands
Difficulty: 2 - Intro/Undergraduate

Gregory S. Zaric, Hui Zhang

Product Number: 9B07E020
Publication Date: 1/8/2008
Revision Date: 3/10/2009
Length: 3 pages

An 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 Services
Issues: Sensitivity Analysis; Franchising; Small Business; Spread Sheet Application
Difficulty: 4 - Undergraduate/MBA

Michael H. Zack, Ben Compaine, David T.A. Wesley

Product Number: 9B07M064
Publication Date: 10/4/2007
Revision Date: 2/26/2010
Length: 20 pages

Undergroundhiphop.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 Recreation
Issues: Franchising; E-Business; Growth Strategy; Northeastern
Difficulty: 4 - Undergraduate/MBA

Stewart Thornhill, Ken Mark, Jordan Mitchell

Product Number: 9B05M071
Publication Date: 4/28/2006
Revision Date: 10/1/2009
Length: 12 pages

An 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 Trade
Issues: Models; Franchising; Investment Analysis; Market Analysis
Difficulty: 4 - Undergraduate/MBA

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

Chapter 12:
The Enterprising Mind

Fernando Olivera, Natalie Bin Zhao

Product Number: 9B07C015
Publication Date: 3/16/2007
Length: 6 pages

Linlin 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: Manufacturing
Issues: China; Entrepreneurship Opportunity; Career Anchor; Career Choice
Difficulty: 4 - Undergraduate/MBA

Scott L. Schneberger, Ken Mark

Product Number: 9B01E008
Publication Date: 3/6/2001
Revision Date: 12/18/2009
Length: 12 pages

WaveRider 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 Services
Issues: Information Systems; Action Planning and Implementation; Innovation; Technological Change
Difficulty: 4 - Undergraduate/MBA

Sid L. Huff, David Beckow

Product Number: 9A98E019
Publication Date: 1/29/1999
Revision Date: 5/18/2017
Length: 14 pages

Homegrocer 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 Trade
Issues: Internet; E-Commerce; Virtual Business
Difficulty: 4 - Undergraduate/MBA