Ivey Publishing

Essentials of Entrepreneurship and Small Business Management

Scarborough, N.M.,7/e (Canada, Pearson Education, 2013)
Prepared By CaseMate Editor,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Foundations of Entrepreneurship

AZZA FAHMY JEWELLERY: EXPAND LOCALLY OR INTERNATIONALLY?
Marina Apaydin, Hend Mostafa, Mariam Mohamed Sherin, Mariam Ali Mobarak, Amal Mohsen Fahmy, Dina Sameh Labib

Product Number: 9B13M098
Publication Date: 3/31/2014
Revision Date: 3/27/2014
Length: 7 pages

This is the second case in the Azza Fahmy series. This case and the three others in this series (9B13M097, 9B13M099 and 9B14M023) can be used together or on a standalone basis.

This case series features a female Egyptian entrepreneur who faces the challenge of developing her self-titled jewellery brand. In this case, the entrepreneur realizes the importance of having a clear organizational structure with different departments and a clear chain of authority. As a result, she hires her daughter as the managing director to take on the responsibility of developing a mission, vision and explicit organizational structure. This restructuring allows the company to grow further, which leads the entrepreneur to consider her opportunities in the international market.


Teaching Note: 8B13M098 (10 pages)
Industry: Other Services
Issues: Internationalization; institutionalization; alliances; Egypt
Difficulty: 4 - Undergraduate/MBA



ECOVATIVE DESIGN LLC: A BIOLOGICAL MATERIALS STARTUP
Chris Laszlo, Abdel Latif Ladki, Abraham Weiner

Product Number: 9B13M125
Publication Date: 12/20/2013
Revision Date: 12/20/2013
Length: 8 pages

Ecovative Designs (Ecovative), a start-up company in upstate New York, uses an innovative process to combine agricultural waste and mycelium (mushroom “roots”) to grow forms for use in a wide variety of applications, especially a protective packaging material. Not only does this new product replace the need for the environmentally harmful alternative, extruded polystyrene, but the production process is less energy intensive. It exemplifies the cradle-to-cradle design indicative of a sustainably embedded product and attractive to companies looking to reduce their carbon footprint. In just a few years, Ecovative has expanded from a lab to a large facility funded partly through research grants and partly from contracts with two large corporations. In 2013, the partners are considering whether to sign a contract with Sealed Air, one of the largest distributors of packaging materials in the world, but the deal would mean relinquishing control over the only profitable segment of their company. They are considering alternative growth strategies to find the one that fits best with their goal: to have the largest impact on the planet while remaining profitable.

Teaching Note: 8B13M125 (10 pages)
Industry: Manufacturing
Issues: Sustainability; science, biomimicry; United States
Difficulty: 5 - MBA/Postgraduate



INTERNATIONAL ENTREPRENEURSHIP AT INFUSION
Christopher Williams, Melissa Davis

Product Number: 9B11M014
Publication Date: 2/18/2011
Revision Date: 9/29/2017
Length: 17 pages

Infusion had grown over the 10 years between 2000 and 2010 to become a $50 million per year international software services business with 350 employees. The president was wondering how he could move the company towards becoming a $100 million per year international business through a mix of organic growth and initiatives with partners. The entrepreneurial vision of its original founders lived on in many ways, but the company had found it necessary to install an administrative structure with a professional management layer to underpin delivery in both domestic and international markets. It had not been an easy ride. The company had encountered problems in India, and there had been periods of staff attrition and challenging deliveries to clients. Clients were beginning to pull the company in new directions. The pace of technology change appeared to be relentless. While entrepreneurship was still encouraged in the form of an idea incubator called Infusion Angels, the CEO was faced with some critical decisions.

Teaching Note: 8B11M014 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Personal Development; Entrepreneurial Behaviour; Growth Strategy; Technological Change
Difficulty: 4 - Undergraduate/MBA



HOLEY SOLES
Jean-Louis Schaan, Huanglin Wang

Product Number: 9B09M057
Publication Date: 12/11/2009
Revision Date: 9/21/2011
Length: 19 pages

The president and chief executive officer (CEO) of Holey Soles - a developer, manufacturer and distributor of injected-molded footwear - was optimistic and upbeat. Sales had grown at 300 per cent in each of the past two years, it ranked number four in a leading publication's 2006 Canada's Emerging Growth Companies, and the CEO herself was a finalist for the 2007 Ernst & Young Entrepreneur of the Year Award. Sustaining the momentum that had been building since the company had been bought in 2004 was proving to be a challenge. Fast growth was stretching the capabilities of Holey Soles in all areas: securing financing, sourcing, developing new markets, maintaining high quality, expanding the product portfolio and management talent. The CEO wondered what the available options, priorities and next steps would be to continue to build a strong foundation for growth, and to reach her aggressive target of $40 million in sales by 2009.

Teaching Note: 8B09M57 (10 pages)
Industry: Manufacturing
Issues: Strategy; Planning; Corporate Strategy; Market Strategy; Growth
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Inside the Entrepreneurial Mind: From Ideas to Reality

GROWING TENTREE: SOCIAL ENTERPRISE, SOCIAL MEDIA AND ENVIRONMENTAL SUSTAINABILITY
Peter W. Moroz, Simon Parker, Edward Gamble

Product Number: 9B14M030
Publication Date: 3/24/2014
Revision Date: 4/2/2014
Length: 12 pages

Two friends have launched tentree (TT), a Canadian entrepreneurial venture that sells an environmentally sustainable and trendy brand of apparel. For every product sold, TT plants 10 trees in locations around the world. Although TT is still in its infancy, it is already experiencing huge growth. The entrepreneurial founders now face several challenges: how to keep pace with the growing demand; how to plant as many trees as they can while staying true to their sustainable, environmental philosophy; how to break into the U.S. and other markets; and where to source their product.

Teaching Note: 8B14M030 (7 pages)
Industry: Manufacturing
Issues: Social enterprise; media; sustainability; growth; Canada; United States
Difficulty: 4 - Undergraduate/MBA



WHOLE FOODS MARKET INC.: EXPANSION IN CANADA
Cara C. Maurer, Valentina Bardorf

Product Number: 9B13M127
Length: 18 pages

In December 2012, the senior management team of Whole Foods Markets, Inc. was contemplating the company’s options for international expansion. Headquartered in Austin, Texas, the company was a natural and organic foods supermarket that was known as, and trademarked as “America’s Healthiest Grocery Store.” Since 1977, the company had grown from a single small store to a multinational chain with a presence in Canada and the United Kingdom. Its goal was to achieve a total of 1,000 stores by 2022 across all markets. Now, counting on the demand for organic products from the growing demographic of well-educated and wealthy professionals concerned about obesity and its related health issues, senior managers were wondering if it was time to expand further into Canada and, if yes, into which provinces. With unions being a clear factor in a Quebec expansion, would it be possible to enter the province without risking cultural inconsistency? Would its current U.S. team facilitate the expansion, or should a Canadian management team be developed? These issues must be resolved before the company can move forward.

Industry: Retail Trade
Issues: Organic food industry; international expansion; growth strategy; Canada; United States
Difficulty: 4 - Undergraduate/MBA



MUSICJUICE.NET: THE CHALLENGES OF STARTING UP A NEW INTERNET VENTURE
Simon Parker, Rocky Liu

Product Number: 9B10A013
Publication Date: 5/21/2010
Length: 6 pages

MusicJuice.net is a new website designed to bring together musicians and a fan-base in order to raise finance for new bands. It enables musicians to bypass the large established record companies and their high royalty takes, while giving fans direct contact and involvement with exciting new acts. It is an example of a venture idea transported from one country (the Netherlands) and applied in a new and larger geographical setting (North America). The case illustrates the novel crowd-sourcing business model, which is designed to raise finance from customers rather than the entrepreneur. Most importantly, the case illustrates the challenges of starting new Internet ventures and the early stage founding issues that are involved. After a long and costly delay in establishing their website, the two founders of MusicJuice.net have struggled to generate any interest or even awareness amongst online musicians and fans, despite only limited competition from other players in the marketplace - a situation, which is already beginning to change. Students are asked what the entrepreneurs behind MusicJuice.net can do to raise awareness of their service and to generate enough customers to survive.

Teaching Note: 8B10A13 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Internet; Competition; Dominant Designs; New Venture Challenges; Startups
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



CYTEC INDUSTRIES, INC.
W. Glenn Rowe, Ken Mark

Product Number: 9B04M007
Publication Date: 8/10/2004
Revision Date: 2/3/2016
Length: 9 pages

In this supplement to American Cyanamid, product 9B04M006, the executive vice-president of agriculture has taken over the chemical division and renamed it Cytec Industries Inc. He took the company public, and working with an underperforming division, narrowed the scope to focus on key profitable segments and in just a few years had increased its market value by 11 times.

Teaching Note: 8B04M06 (9 pages)
Industry: Manufacturing
Issues: Stakeholder Analysis; Uncertainty; Strategic Scope; Action Planning and Implementation
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Designing a Competitive Business Model and Building a Solid Strategic Plan

ENTREPRENEURS AT TWITTER: BUILDING A BRAND, A SOCIAL TOOL OR A TECH POWERHOUSE?
Simon Parker, Ken Mark

Product Number: 9B10M028
Publication Date: 3/22/2010
Revision Date: 5/4/2017
Length: 10 pages

Twitter has become an incredibly popular micro-blogging service since its launch in 2006. Its founders have ambitious plans for the service, and are backed by hundreds of millions of dollars of venture capital funding, which values the company at $3.7 billion in 2011. Twitter seems to attract a diverse audience of users, such as political organizers looking to disseminate information to their followers; businesses looking to reach out, in real time, to potential customers; and social users. The company charges consumers nothing for its service. By 2011, competitors have emerged, some of whom are financially strong. It remains unclear - at least to some observers - whether the company will ever make money from its service.

Teaching Note: 8B10M28 (10 pages)
Industry: Other Services
Issues: Social Networking Media; Strategic Positioning; New Venture
Difficulty: 4 - Undergraduate/MBA



REPEATSEAT
David Simpson, Ken Mark

Product Number: 9B09M031
Publication Date: 10/21/2009
Length: 7 pages

The president, chief executive officer (CEO) and co-founder of RepeatSeat wanted his company to be the first to enable mobile ticketing by targeting consumers at movie theatres. But the company's U.K.-based mobile solutions partner had not yet perfected a way to send bar codes wirelessly over the code division multiple access (CDMA) network. The CEO is faced with whether the company should continue to stay the course with its U.K. partner, rely on a local Calgary, Alberta firm's technology or seek to build the solution by itself.

Teaching Note: 8B09M31 (3 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Assets; Strategic Planning; Acquisitions
Difficulty: 4 - Undergraduate/MBA



IMAX: LARGER THAN LIFE
Anil Nair

Product Number: 9B09M019
Publication Date: 5/22/2009
Revision Date: 5/4/2017
Length: 18 pages

IMAX was involved in several aspects of the large-format film business: production, distribution, theatre operations, system development and leasing. The case illustrates IMAX's use of its unique capabilities to pursue a focused differentiation strategy. IMAX was initially focused on large format films that were educational yet entertaining, and the theatres were located in institutions such as museums, aquariums and national parks. However, IMAX found that its growth and profitability were constrained by its niche strategy. In response, IMAX sought to grow by expanding into multiplexes. Additionally, IMAX expanded its film portfolio by converting Hollywood movies, such as Harry Potter and Superman, into the large film format. This shift in strategy was supported by the development of two technological capabilities - DMR for conversion of standard 35 mm film into large format, and DMX to convert standard multiplexes to IMAX systems. The shift in strategy was partially successful, but carried the risk of IMAX losing its unique reputation.

Teaching Note: 8B09M19 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Business Policy; Strategic Positioning; Industry Analysis; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



PRINCE EDWARD ISLAND PRESERVE COMPANY: TURNAROUND
Paul W. Beamish, Nathaniel Lupton

Product Number: 9B08M049
Publication Date: 5/15/2008
Revision Date: 11/17/2014
Length: 18 pages

In April 2008, Bruce MacNaughton, president of Prince Edward Island Preserve Co. Ltd. (P.E.I. Preserves), was focused on turnaround. The company he had founded in 1985 had gone into receivership in May 2007. Although this had resulted in losses for various mortgage holders and unsecured creditors, MacNaughton had been able to buy back his New Glasgow shop/cafe, the adjacent garden property and inventory, and restart the business. He now needed a viable product-market strategy.

Teaching Note: 8B08M49 (9 pages)
Industry: Manufacturing, Retail Trade
Issues: Bankruptcy; Product Diversification; Growth Strategy; Exports
Difficulty: 4 - Undergraduate/MBA



NEOGENIUS CO., LTD.
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



LULULEMON ATHLETICA: PRIMED FOR GROWTH
Eric Morse, Ken Mark, Patrick A. Walsh

Product Number: 9B06M092
Publication Date: 10/25/2006
Revision Date: 9/23/2009
Length: 15 pages

The chairman and chief product designer of lululemon athletica is preparing to address an audience at an investor's conference. He describes lululemon's great success from 1998 to 2006 and analyses the growth opportunities it faces. This case helps students understand the concept of competitive advantage in relation to the functional and emotion marketing drivers. In addition, it underlines the importance of preserving brand equity and prioritizing strategic growth options.

Teaching Note: 8B06M92 (7 pages)
Industry: Manufacturing
Issues: Decision Theory; Decision Trees; Decision Support Systems; Decision Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Conducting a Feasibility Analysis and Crafting a Winning Business Plan

SCUBY'S ENTERPRISES: STARTING A BUSINESS IN GHANA
Francis Ayensu, Nicole R.D. Haggerty, Julianna Faircloth, Helen Fisher, David MacNicol

Product Number: 9B14M041
Publication Date: 4/2/2014
Revision Date: 4/1/2014
Length: 5 pages

In October 2011, a young entrepreneur in Ghana faced a critical moment. Given his degree in marketing from the Ghana Institute of Management and Public Administration and his past work experience running a retail clothing store, he was confident he could branch out and start his own photocopying service in his hometown of Koforidua, where there was a distinct undersupply of photocopying services. The proposed store would be located near All Nations University, whose students and faculty would provide a stable demand for his offerings. Now he must perform a breakeven analysis and return on investment calculation to assess whether he should go forward with the venture.

Teaching Note: 8B14M041 (8 pages)
Industry: Other Services
Issues: Breakeven analysis; return on investment; new venture; emerging markets; Ghana
Difficulty: 4 - Undergraduate/MBA



JILL'S TABLE: DIGITIZING A RETAIL LEGACY
Raymond Pirouz, Janice Zolf

Product Number: 9B14A002
Publication Date: 3/20/2014
Revision Date: 3/20/2014
Length: 12 pages

The founder of a bricks-and-mortar kitchen accessories retail store, Jill's Table, is considering the expansion of her existing information-based website to an e-commerce presence, but wonders whether the factors that have led to her current success can be replicated in the virtual world. Students are asked to make decisions related to translating brand values from the real world to the virtual world; overcoming technological hurdles; addressing design issues in terms of the user experience; developing a content marketing and digital promotions strategy, including social media and email marketing; determining a pricing strategy; planning for fulfillment and returns; handling customer service and measuring performance.

Teaching Note: 8B14A002 (3 pages)
Industry: Retail Trade
Issues: Online retailing; etailing; ecommerce; Internet marketing; Canada
Difficulty: 4 - Undergraduate/MBA



EMBRACE (A): OPPORTUNITY IDENTIFICATION
Mridula Anand, Anand Nandkumar, Charles Dhanaraj

Product Number: 9B13M004
Publication Date: 4/16/2013
Revision Date: 4/16/2013
Length: 7 pages

AWARD WINNING CASE - Indian Management Issues and Opportunities Award, 2013 European Foundation for Management Development (EFMD) Case Writing Competition.The Embrace case series provides an engaging context to understand social innovation, by taking students through a sequence of critical decisions from opportunity analysis and market feasibility study to formulating a competitive strategy and developing business models for growth. The focus of the case is on an innovative idea to solve the problem of a high number of fatalities in premature births in rural India, and the potential for an affordable product.

The case is structured as a four-part series:
  • Part A: Opportunity Identification. The setting is an MBA classroom where five teams have been given five ideas and the students are asked to match each idea to each team. The focus is on how to identify and evaluate an appropriate opportunity given a unique entrepreneurial team, its composition, and its prior experience. Often, entrepreneurs discount the critical role that team-task fit plays in subsequent success.
  • Part B: Market Feasibility Analysis (9B13M005). The social problem associated with neonatal care in rural India is presented and the economics of providing reasonable care for premature babies is discussed. Is it possible to find an affordable and profitable price point, and make the project sustainable?
  • Part C: Competitive Strategy (9B13M006). The students are taken through an external analysis of the potential competition. This calls for a close analysis of what the competitive advantage of the venture is and whether it is sustainable. It forces the students to consider other available neonatal care options in the market, as well as to think about the IP issues they could face.
  • Part D: Building the Business Model (9B13M007). The team must decide between manufacturing the product in-house or outsourcing to vendors. Also, issues of distribution and sales require consideration.


Teaching Note: 8B13M004 (16 pages)
Industry: Health Care Services
Issues: Emerging markets; affordable innovation; business plan; social entrepreneurship; India
Difficulty: 5 - MBA/Postgraduate



GLOBAL SOURCE HEALTHCARE: TO START OR NOT TO START
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


Chapter 5:
Forms of Business Ownership

DRIVING INNOVATION AT PAR SPRINGER-MILLER (A)
Susan Fleming, Alyssa W. Goldman

Product Number: 9B14C022
Publication Date: 5/2/2014
Revision Date: 4/23/2014
Length: 12 pages

In fall 2009, the new president and chief executive officer of PAR Springer-Miller Systems, based in Stowe, Vermont, is tasked with leading the most significant innovation effort the company has undertaken since its founding in 1984. The company is a leading provider of property management, point-of-sale and spa management systems for high-end hotels, resorts, spas and casinos worldwide, but its legacy products are based on outdated technology and subject to increasing customer complaints; at the same time, the global recession has negatively affected the high-end market. In his first year, the new president has made significant progress in restructuring the organization and shifting its culture to a more entrepreneurial one. He is ready to begin the development of an entirely new product but has to decide on strategy, in particular deciding on the best market on which to focus the new software product and then mapping out a plan to execute its development and launch. How can he elicit a radical innovation from a team of management and employees so culturally rooted in their past accomplishments and legacy products? Should he look for a technology partner and develop the new product in a different location? Can the legacy products be kept up and running long enough for the new product to generate sufficient sales that they can be retired? These are the issues that must be addressed or the company may well face a dire future. See B Case 9B14C023.

Teaching Note: 8B14C022 (16 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Innovation; technology; hospitality; leading culture change; United States
Difficulty: 4 - Undergraduate/MBA



HUO'S GROUP: A PROFESSIONAL MANAGER IN A FAMILY FIRM IN CHINA
Ting Wang, Paul W. Beamish, Zhou Liman, Luo Jingjing

Product Number: 9B14C009
Publication Date: 2/14/2014
Revision Date: 2/14/2014
Length: 10 pages

In February 2012, a human resources appointment attracted wide attention from China's domestic lubricating oil industry. The iconic general manager of Shell Tongyi (Beijing) Petroleum Chemical Co., Ltd. officially took the position as the chief executive officer (CEO) of Huo's Group, thus returning to work for his former boss, the founder of the former Tongyi Lubricating Oil. Before the merger between Tongyi and Shell in 2006, the private entrepreneur and the professional manager had jointly created the well-known Tongyi Lubricating Oil and were renowned as "perfect partners" by many in the business media. In 2012, their hope was to achieve glory again on this wider business platform - Huo's Group. Was this likely?

Teaching Note: 8B14C009 (9 pages)
Industry: Manufacturing
Issues: Leadership; personnel; professional manager; family business; China
Difficulty: 4 - Undergraduate/MBA



CONFLICT OVER LEADERSHIP AND SUCCESSION IN A SUCCESSFUL FAMILY BUSINESS: THE LAKKARD LEATHER COMPANY
Simon Parker, Matthias A. Tietz

Product Number: 9B11M043
Publication Date: 6/21/2011
Revision Date: 11/1/2011
Length: 6 pages

The founder of the Lakkard Leather Company was proud of his business, and attributed much of its success to his own leadership style, which did not allow for anyone else’s participation in important decisions. When he was badly injured in a car accident, his son stepped in and kept the business going. Without any intention to take over, the son altered the leadership and operations of the company in the space of a few months, so that by the time the founder returned, the company had changed and his role was significantly reduced. The son, in the meantime, grew to like his interim position and believed he did a better job than his father. Both men became locked in a power struggle; yet the company faced several key decisions that had to be taken in terms of expansion, product offering, and sale opportunities.

Teaching Note: 8B11M043 (6 pages)
Industry: Manufacturing
Issues: Family Succession; Leadership Conflict; Leather; Family Business; Germany
Difficulty: 4 - Undergraduate/MBA



MEDIAGRIF INTERACTIVE TECHNOLOGIES: THE IPO DECISION
James E. Hatch, Louis Gagnon

Product Number: 9B01N007
Publication Date: 1/22/2002
Revision Date: 1/5/2010
Length: 20 pages

Mediagrif Interactive Technologies operates vertical business-to-business e-commerce marketplaces. The chief executive officer must decide whether to go forward with a previously delayed initial public offering. He must consider the effect of changing market conditions and how to value the company in order to determine the price range that would be used.

Teaching Note: 8B01N07 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Initial Public Offerings; Valuation
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Franchising and the Entrepreneur

MARBLE SLAB CREAMERY: THE WEIGHING DECISION
John S. Haywood-Farmer, Emily Hubling, Azim Remani

Product Number: 9B09D008
Publication Date: 10/21/2009
Revision Date: 9/23/2011
Length: 16 pages

A current franchisee of Marble Slab Creamery (producer of the self-proclaimed "Freshest Ice Cream on Earth") was set to open his second location in Waterloo, Ontario. In a recent phone conversation with Marble Slab's Canadian president, the contentious issue of the corporate ice-cream weighing policy had come up. The franchisee was convinced that his managerial abilities and the growth potential of the new location would result in an ultimately successful franchise; however, the president had expressed hesitation at the franchisee straying from the policy. Two questions were foremost in his mind as he weighed his options: 1) What did customers truly value in the Marble Slab service concept? 2) How would the chosen weighing policy affect the customer experience? The franchisee had hopes of owning several Marble Slab franchises, and knew that his weighing policy decision could have lasting effects on his business operations and his relationship with head office.

Teaching Note: 8B09D008 (13 pages)
Industry: Accommodation & Food Services
Issues: Customer Service; Service Quality; Operations Analysis; Franchising
Difficulty: 4 - Undergraduate/MBA



MASTER INTERNATIONAL FRANCHISING IN CHINA: THE ATHLETE'S FOOT INC.
Ilan Alon, Amber Xu

Product Number: 9B06M054
Publication Date: 4/28/2006
Revision Date: 9/21/2009
Length: 11 pages

Franchising in China is a relatively new and growing phenomenon. Among the franchising pioneers in China are the large and well-known food and beverage brands such as Kentucky Fried Chicken and McDonald's. Less known, but equally important, are the non-food retailing and service industries, such as The Athlete's Foot company. This U.S. born company made early entry into China using master international franchising. As the industry continues to grow, The Athlete's Foot franchise is losing its first-mover advantage and faces increased competition from department stores and brand-specific retailers, among other challenges. The case describes franchising in China, the Athlete's Foot company, and the experiences of the Chinese master franchisee.

Teaching Note: 8B06M54 (14 pages)
Industry: Retail Trade
Issues: China; Competition; Franchising; Retailing; CEIBS
Difficulty: 4 - Undergraduate/MBA



CARTRIDGE WORLD: THE MASTER FRANCHISE OPPORTUNITY
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


Chapter 7:
Buying an Existing Business

LISCO ACQUISITION OF A MINORITY INTEREST OF ORION
Richard Howard, Kimberley Howard

Product Number: 9B13N008
Publication Date: 6/12/2013
Revision Date: 7/27/2017
Length: 11 pages

A wealth management company in Chile that provided financial advisory services to high net worth individuals and pension funds was at a crossroads. After 15 years in business, the company had become very successful. To increase its value without incurring undue corporate financial risk, the owner, who has invested most of his personal wealth in the company, has the opportunity to make an investment in a similar wealth management company in Colombia. What are the risks and rewards of such a complex international merger and acquisition for this medium-sized enterprise operating in an uncertain political and economic environment?

Teaching Note: 8B13N008 (13 pages)
Industry: Finance and Insurance
Issues: Company valuation; minority acquisitions; Chile; Colombia
Difficulty: 4 - Undergraduate/MBA



IMAGE PIPELINE SERVICES: WEIGHING THE BUYOUT OFFER
David Sparling, Ken Mark

Product Number: 9B11D004
Publication Date: 4/13/2012
Revision Date: 2/10/2012
Length: 12 pages

The president of Image Pipeline Services, a pipeline flushing and inspection firm, is taking a step back from the past few weeks, where he has spent virtually all his waking time working on his new business in Edmonton’s oil sands industry. A few months after starting his business, he controls virtually the entire market, but competitors will be encroaching soon. One competitor has offered to purchase his business and the president wants to weigh his options before agreeing to sell or continuing to compete.

Teaching Note: 8B11D004 (6 pages)
Industry: Other Services
Issues: Valuation; Uncertainty; Competition; Buyout; Alberta Oil Sands; Canada
Difficulty: 4 - Undergraduate/MBA



HAVELLS INDIA: THE SYLVANIA ACQUISITION DECISION
Charles Dhanaraj, Kavil Ramachandran, Swetha Dasari

Product Number: 9B09M089
Publication Date: 11/11/2009
Revision Date: 12/21/2011
Length: 13 pages

This case presents the management challenges of a high-growth manufacturing company based in India that is contemplating a major international acquisition. Its decision will involve both geographic and product diversification. Students have to grapple with the trade-offs of an exciting growth opportunity that can bring the company to new heights against significant risks and challenges that such an acquisition would entail. The case also provides an excellent context for studying the evolution of international strategy in a firm, as it shows Havells growing from an entrepreneurial start-up trading company to a successful manufacturing firm and then a global company.

Teaching Note: 8B09M89 (10 pages)
Industry: Manufacturing
Issues: International Acquisition; Mergers & Acquisitions; Growth Strategy; Diversification; India; Ivey/ISB
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Building a Powerful Guerrilla Marketing Plan

VICE MEDIA: COMPETITIVE ADVANTAGE AND GLOBAL EXPANSION
Farzad H. Alvi

Product Number: 9B14M039
Publication Date: 3/17/2014
Revision Date: 11/17/2014
Length: 13 pages

Vice Media has gone from a startup in Canada to landing in New York City and assiduously building a global youth brand through unique and seemingly inimitable competitive advantages. While globalizing its operations, Vice Media appears to have developed expertise in standardizing certain aspects of its business, adapting others to local context and, increasingly, building a global chain. Given Vice Media’s explosive growth, how can its global value chain be structured to maintain the carefully cultivated emotional connection the company has created with its audience?

Teaching Note: 8B14M039 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Competitive advantage; growth; Canada; United States; Global
Difficulty: 5 - MBA/Postgraduate



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR "GREENWASHING"?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
E-Commerce and the Entrepreneur

THE KINKAJOU BOTTLE CUTTER
Ron Mulholland

Product Number: 9B13A034
Publication Date: 11/14/2013
Revision Date: 11/7/2013
Length: 10 pages

The inventor of the Kinkajou, a portable glass bottle cutter, has successfully completed a crowd-sourced financing campaign. His funding goal of $75,000 was considered to be quite ambitious and the timeframe in which he aimed to secure the funding was only 30 days. He managed the campaign impressively and exceeded his goal on the last day of the campaign. At this point in his business development, this entrepreneur has secured an offshore manufacturer, all backers have received their products and he has resolved a number of technical and operational problems. With so many challenges behind him, he now faces questions of future distribution through multiple wholesalers and is considering the opportunity of joining with a major international retailer.

Teaching Note: 8B13A034 (9 pages)
Industry: Retail Trade
Issues: New product; start-up; crowd-source financing; Canada
Difficulty: 4 - Undergraduate/MBA



INFIBEAM INTERNET RETAILING
Piyush Kumar Sinha, Barbara L. Marcolin, Varsha Verma, Nupur Gupta

Product Number: 9B12M094
Publication Date: 3/14/2013
Revision Date: 2/25/2013
Length: 19 pages

This case focuses on Infibeam, a small, new e-commerce company in India, as an illustration of innovative B2B contractual agreements that enabled it to acquire a significant customer base at a very low cost. However, it must now develop innovative strategies for marketing communication, customer value proposition and a new IT e-commerce rural platform in order to achieve its required growth estimates and raise capital for a new project in cooperation with a state government. Internet retailing is rapidly growing in India, but it does contain challenges: the cost of acquiring customers is high; per person spending amount is smaller; and customers are spread all over the country, often 2,000 kilometres away from supply centres.

Teaching Note: 8B12M094 (11 pages)
Industry: Retail Trade
Issues: India Internet Retailing; e-commerce; Customer Acquisition; Lifetime Value; India
Difficulty: 5 - MBA/Postgraduate



BLINDS TO GO: EVALUATING THE BLINDSTOGO.COM RETAIL E-COMMERCE VENTURE
Michael R. Pearce, Ken Mark

Product Number: 9B01M005
Publication Date: 1/19/2001
Revision Date: 12/21/2009
Length: 13 pages

When Blindstogo.com, the online project of Blinds To Go (BTG), was first proposed in mid-1999 its board of directors was lukewarm to the idea. However, after six months of operation and seeing other retailers start to go online and the tremendous valuation being given to dot.coms, the board was encouraging BTG to devote more resources to the project. Plans were already in place to further expand their retail store network. Senior management at BTG had received sales, spending and survey results from their retail e-commerce venture. Data obtained from the Web site indicated that the people who visited the site were the same people that visited the stores. The vice-chairman of BTG wanted to evaluate the results of this online venture by examining the fit of the e-commerce project within the overall business strategy, to determine where resources should be focused.

Teaching Note: 8B01M05 (5 pages)
Industry: Manufacturing
Issues: Startups; E-Commerce; High Technology Products; Strategic Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Pricing Strategies

A COUPLE OF SQUARES: PRICING FOR THE FUTURE (A)
Dante Pirouz, Raymond Pirouz, Dina Ribbink, Emily Chen-Bendle

Product Number: 9B13A004
Publication Date: 3/14/2013
Revision Date: 3/21/2013
Length: 14 pages

A small upscale bakery produces artisan-quality, hand-decorated cookies, generating $1 million in annual revenue. In the (A) case, the two co-owners investigate the role of pricing in driving growth for their business and allowing them to achieve several fundamental financial goals. In the (B) case 9B13A005, the partners explore the possibility of a website to drive direct-to-consumer sales on an e-commerce platform.

The multimedia elements of the case 7B13A004 will add to the richness of the conversation. (A higher price applies to this case due to color exhibits.)


Teaching Note: 8B13A004 (4 pages)
Industry: Manufacturing
Issues: Pricing; Operations; Small Business; Social Media; B2C; B2B; Canada
Difficulty: 4 - Undergraduate/MBA



SY.MED DEVELOPMENT, INC.
Randle Raggio

Product Number: 9B09A010
Publication Date: 6/10/2009
Length: 20 pages

In March of 2001, the president of Sy.Med Development, Inc. (Sy.Med), a small health-care software firm, was concerned about his company's sales performance in the year-to-date. Nine units were projected, but only three had been sold. As a result, Sy.Med was 66 per cent below the president's unit forecast, 210 per cent below his net income forecast, and had lost $40,000. The president wondered whether a change to the base price of the software was necessary to boost sales. The case introduces the concept of value pricing, that is, pricing on the basis of value received by customers, not pricing on the basis of the cost of providing the product or service. The concept of value pricing at Sy.Med requires the simultaneous consideration of customer segments and sales force allocation in a high-tech setting. With careful calculation, students can determine the benefit to a particular customer of using the OneApp software. Some sensitivity analysis is required because not all practice sizes are equivalent, nor do they face the same labour costs. Although the pricing decision is the focus of the case, strategy (e.g. relating to customer selection, strategic focus) and sales force issues are inextricably linked to this decision. After the class discussion is complete, students should understand that pricing decisions cannot be made in isolation; the strategy and structure of the market must be considered. The case works well in the core MBA marketing course to introduce the concept of value pricing, and equally well in a course focused on pricing to emphasize the interrelations among organizational issues, the competitive market and the pricing decision. The case can also be used in an orientation program or as an introductory case to help train students in the art of preparing a quantitative case analysis.

Teaching Note: 8B09A10 (8 pages)
Industry: Health Care Services
Issues: Value Analysis; Pricing Strategy; Sales Organization; Sales Strategy
Difficulty: 4 - Undergraduate/MBA



NUWAY SOFTWARE
Derrick Neufeld, Ramasastry Chandrasekhar

Product Number: 9B09E005
Publication Date: 5/14/2009
Length: 15 pages

The founder and president of Nuway Software (Nuway) must determine the pricing strategy for their new internally-developed mobile software product, Nulogic. Nuway develops custom mobile software applications that provide great competitive advantage to each of their customers; no two software modules it develops are similar. Nuway is now ready to market Nulogic as a stand-alone product and has identified three unique customer segments: Corporate in-house developers, competitors and independent software developers. The company has historically followed a cost-plus pricing model and has maintained positive profit margins. The software industry as a whole is moving towards value-based pricing, where cost is based on perceived value to the customer. The president does not favour value-based pricing and views it as price-gouging; however, he is aware that cost-plus pricing has limitations with regards to cost accuracy. By considering the entire software industry, Nuway's capabilities and his own preferences, the president must determine how to price the new software.

Teaching Note: 8B09E05 (12 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Generating Profit from New Technology; Management of Technology; Pricing Strategy; Cost Accounting
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Creating a Successful Financial Plan

VALJIBHAI STONES
Debashis Sanyal, Smita Mazumdar

Product Number: 9B14N009
Publication Date: 4/17/2014
Revision Date: 4/17/2014
Length: 11 pages

Valjibhai Stones, a supplier of quality stone chips in India, has been approached by a multinational company that needs a reliable supplier of quality stone chips for the next eight years. Accepting the order would require a capacity expansion to produce high-quality aggregate solely for the multinational company and at the cost of foregoing all of its existing business. If the offer is accepted, the company would earn substantial revenue for eight years, but would then need to seek fresh business in a highly competitive market.

Teaching Note: 8B14N009 (14 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Strategic cost management; cost of capital; investment decision; return on investment; economic value added; India
Difficulty: 5 - MBA/Postgraduate



GLOBAL REMEDIATION: FUNDING FUTURE GROWTH
Stephen Sapp

Product Number: 9B13N007
Publication Date: 4/30/2013
Revision Date: 3/19/2015
Length: 9 pages

A small startup firm in the environmental services industry has spent the majority of its time developing its technology and overcoming the significant regulatory hurdles involved in bringing its technology to market. Having achieved success with the technology, the company must now decide which path to take to grow. The owners can try to raise the money themselves through a bank loan and do the expansion on their own terms. On the other hand, they can forge a financial partnership with a venture capital firm or a strategic partnership with another firm, or they can issue preferred shares to a local investment fund or corporate bonds to a local insurance company. These alternatives will share the risks and expense of expansion, but the company may lose some autonomy in its decision making in future.

Teaching Note: 8B13N007 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Capital Raising; Debt; Equity; Venture Capital; Canada
Difficulty: 4 - Undergraduate/MBA



HEALTH NUT
Colleen Sharen, Vanessa M. Strike

Product Number: 9B08M053
Publication Date: 8/25/2008
Revision Date: 8/11/2009
Length: 13 pages

Late in the afternoon on January 20, 2006, one of the owners of The Health Nut hung up the phone. Her account manager had just called to tell her that the bank was not going to extend any further credit to her small retail natural health products (NHP) store located in Grand Bend, Ontario. She and her life and business partner had owned The Health Nut since May 2003. While they had successfully grown sales, the business was not generating enough cash to sustain itself and provide the partners with adequate compensation. As a result, the business relied heavily on borrowing from the bank. Now that the bank was no longer a source of financing, the owners had a major problem on their hands. What should they do now? Something was going to have to change. They had about four weeks left before the business ran out of cash. The students will learn: 1. The role of emotion in decision making. 2. The nature and importance of due diligence. 3. When to let go of the business. 4. The importance of having enough working capital. 5. The dangers of over reliance on debt. 6. The challenges of cash flow management.

Teaching Note: 8B08M53 (11 pages)
Industry: Retail Trade
Issues: Decision Theory; Bankruptcy; Cash Flow; Organizational Behaviour; Human Resources Management; Opportunity Recognition
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Managing Cash Flow

SACD
Simon Parker

Product Number: 9B11M027
Publication Date: 4/8/2011
Length: 6 pages

Giel Bessels is one of the three founders of a Dutch classical music record label called PentaTone Music BV, which releases all of its recordings on a high-resolution audio format called Super Audio Compact Disc (SACD). Now a decade old, PentaTone has survived the commercial failure of SACD’s launch in 1999 and the adverse market characterized by a continually shrinking demand for classical music recordings. However, the founders wish to build their company further and know that they must stimulate demand for their products so that they can finance further recordings. Bessels and his team recognize the unique difficulties of educating consumers about the superior quality of high-resolution, surround-sound classical music on SACD, which needs to be heard to be fully appreciated. The case invites students to think creatively about alternative ways of growing and protecting PentaTone’s business, including novel uses of social media and possible expansion into China. The case also illustrates a relatively unusual motive for new venture creation — here, the business is seen as an asset to be built up to provide a future capital gain through a trade sale rather than as a vehicle to generate a stream of current and ongoing dividends (incomes).

Teaching Note: 8B11M027 (5 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Asset Generation versus Income Flow; Social Media; Classical Music Industry; the Netherlands; China
Difficulty: 4 - Undergraduate/MBA



MORE VINO LTD.—EXPANSION PROPOSAL
Elizabeth M.A. Grasby, Julie Gosse

Product Number: 9B08N004
Publication Date: 3/11/2008
Revision Date: 6/21/2017
Length: 10 pages

A shareholder and silent partner in More Vino Ltd. reviews a request for TT$600,000 in additional funding to finance a renovation for the company. He had initially invested a major portion of the start-up capital. Since then, More Vino has grown in popularity and is now considered the most popular spot for food, drink and entertainment. The shareholder believes that More Vino is a good investment, but he is uncertain whether lending additional capital at this time is the best solution for the business.

Teaching Note: 8B08N04 (15 pages)
Industry: Accommodation & Food Services
Issues: Expansion; Financial Analysis; Loan Evaluation; Cash Flow
Difficulty: 1 - Introductory



GANONG BROS. LIMITED
Eric Morse, Vanessa M. Strike

Product Number: 9B05M011
Publication Date: 3/7/2005
Revision Date: 11/18/2014
Length: 14 pages

Ganong Bros. Limited is a fifth generation family chocolate company in New Brunswick that is facing financial difficulties. The firm has been spreading its resources too thinly and needs to develop a plan to not only return to profitability but also to grow the business while upholding its responsibility to the local community. This case helps students to develop an understanding of cutting costs in a turnaround situation and seeking out alternative lines of business for strategic growth.

Teaching Note: 8B05M11 (6 pages)
Industry: Manufacturing
Issues: Strategic Change; Strategic Planning; Growth Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Sources of Financing: Equity and Debt

CROWDFUNDING AT THE BROOKLYN WAREHOUSE
Nicola Young, Karen Lightstone

Product Number: 9B13B020
Publication Date: 10/4/2013
Revision Date: 10/3/2013
Length: 8 pages

The Brooklyn Warehouse, a popular restaurant in Halifax, Nova Scotia, is cramped for space because of its popularity within its neighbourhood and as a tourist destination in the city. The restaurant is a private company with two shareholders, one of whom is not involved in operations. Because of the economic downturn, the risky nature of the business and the fact that it has been open only four years, the owners are having trouble securing financing for their expansion plans from their bank and other conventional lenders. However, while negotiating a renewal of their lease in late 2011, their landlord offered to pay for half the cost of building a patio to increase the size of the restaurant. To raise the other half, the owners turn to crowdfunding as a method of raising capital through social media by tapping into their community of friends, family and loyal customers. In return for their donation, which may vary from $100 to $2,500, sponsors are offered various packages, including free meals, a company T-shirt and their name listed on a wall of honour. However, little is known about the appropriate accounting or tax treatment for money raised in this manner. The owners had heard horror stories about businesses that used innovative ideas to raise funds only to have fines and penalties levied by government agencies for income tax and sales tax or even by the Securities Commission for improper accounting. The owners turn to their accountant for advice.

Teaching Note: 8B13B020 (10 pages)
Industry: Accommodation & Food Services
Issues: Crowdfunding; innovative financing; Canada
Difficulty: 3 - Undergraduate



RING-A-WING (A)
David Simpson, Colin McDougall

Product Number: 9B11N001
Publication Date: 2/3/2011
Length: 5 pages

Late in August 2004, Chris Higgins was forced into the unenviable position of determining the future of Ring-A-Wing, a London, Ontario-based fast food producer of premium chicken wings for home delivery. After making a personal loan to a friend wishing to invest in the business, the situation devolved in less than nine months from Higgins being a passive lender to being a significant investor to sitting in a bankruptcy meeting trying to determine the future of the business. The issue in the (A) case is whether the Higgins group should reopen Ring-A-Wing.

Teaching Note: 8B11N001 (4 pages)
Industry: Accommodation & Food Services
Issues: Personal Loan; Reopen; Bankruptcy; Food Delivery; Small Business
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Choosing the Right Location and Layout

SAWCHYN GUITARS: CAN AN OLD BUSINESS LEARN NEW TRICKS?
Meredith Woodwark, Matthew Wong

Product Number: 9B13M084
Publication Date: 8/23/2013
Revision Date: 11/18/2014
Length: 13 pages

AWARD WINNING CASE - Laurier School of Business and Economics Best Case Award 2013. The owner of Sawchyn Guitars makes fine handmade acoustic guitars and mandolins. After 40 years of operating from a two-storey backyard garage, he contemplates a shift from a solely custom-order business to a storefront location. Although his custom-order business is still strong, the owner sees the opportunity to realize his dream of providing a full-service musical instrument haven for the local music community through a proper storefront. After opening a new retail location, public reception to the new store is overwhelmingly positive, but the success in new business lines restricts the capacity to build new instruments. Despite the enthusiastic response to the store, the business is experiencing unanticipated growing pains related to managing small-business growth.

Teaching Note: 8B13M084 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Small Business Management; Change Management; Opportunity Assessment; Canada
Difficulty: 2 - Intro/Undergraduate



SHER-WOOD HOCKEY STICKS: GLOBAL SOURCING
Paul W. Beamish, Megan (Min) Zhang

Product Number: 9B12M003
Publication Date: 2/13/2012
Revision Date: 11/17/2014
Length: 11 pages

In early 2011, the senior executives of the venerable Canadian hockey stick manufacturer Sher-Wood Hockey were considering whether to move the remainder of the company’s high-end composite hockey and goalie stick production to its suppliers in China. Sher-Wood had been losing market share as retail prices continued to fall. Would outsourcing the production of the iconic, Canadian-made hockey sticks to China help Sher-Wood to boost demand significantly? Was there any other choice?

Teaching Note: 8B12M003 (15 pages)
Industry: Manufacturing
Issues: Offshoring; Outsourcing; Insourcing; Nearshoring; R&D Interface; Labour Costs; Canada
Difficulty: 4 - Undergraduate/MBA



TERRA BITE LOUNGE: PAY WHAT YOU WANT CAFÉ
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


Chapter 15:
Global Aspects of Entrepreneurship

LUMINAR: LEVERAGING BIG DATA USING CORPORATE ENTREPRENEURSHIP
Simon Parker, Ramasastry Chandrasekhar

Product Number: 9B14M063
Publication Date: 5/22/2015
Revision Date: 5/22/2015
Length: 13 pages

Entravision, a leading Spanish-language broadcasting company in the United States that targets Hispanic Americans, has just set up a digital analytics division called Luminar, which uses Big Data to focus a company’s marketing to a particular set of consumers. The idea of launching Luminar has been mooted by an outsider who is a friend and protegé of the company’s founding chairman. As the incumbent president of the new division, he is grappling with some major issues. How should he secure the buy-in of line and staff managers at Entravision? How should he find a structural fit between Entravision and Luminar? How should he leverage business opportunities beyond digital analytics? What kind of entry barriers can he build so that Luminar retains its first mover advantage?

Teaching Note: 8B14M063 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Big data; digital analytics; corporate venturing; United States
Difficulty: 4 - Undergraduate/MBA



TAVAZO CO.
Paul W. Beamish, Majid Eghbali-Zarch

Product Number: 9B10M093
Publication Date: 11/12/2010
Revision Date: 9/21/2011
Length: 13 pages

In June 2010, Naser Tavazo, one of the three owner/manager brothers of both Tavazo Iran Co. and Tavazo Canada Co., was considering the company's future expansion opportunities, including further international market entry. Candidate cities of interest were Los Angeles, Dubai and other cities with a high Iranian diaspora. Another question facing the owners was where to focus on the value chain. Should the family business use its limited resources to expand its retailer business into more international markets, or to expand their current retailer/wholesale activities within Canada and Iran?

The objectives of this case are: (A) to discuss the typical problems that small companies confront when growing internationally and the implication of being a family business in this transition; (B) to provide a vehicle for developing criteria for market selection; (C) to highlight the importance of focus in the value chain regarding horizontal vs. vertical integration.

This case can be used in international business, strategic management or family business (entrepreneurship) courses. In international business, it may be used as an internationalization case and positioned early in the course. In a strategic management course, it might be positioned in sections dealing with managerial preferences, or diversification.


Teaching Note: 8B10M93 (9 pages)
Industry: Agriculture, Forestry, Fishing and Hunting, Manufacturing
Issues: Market Selection; Family Business; Internationalization; Imports; Exports
Difficulty: 4 - Undergraduate/MBA



GENICON: A SURGICAL STRIKE INTO EMERGING MARKETS
Allen H. Kupetz, Adam P. Tindall, Gary Haberland

Product Number: 9B10M041
Publication Date: 5/5/2010
Revision Date: 5/3/2017
Length: 13 pages

A critical question facing a company's ability to grow its business internationally is where it should go next. One company facing that decision was GENICON, a U.S.-based firm that manufactured and distributed medical instruments for laparoscopic surgeries. Although the minimally invasive surgical market in the United States had long been the largest in the world, international markets were anticipated to grow at a much faster rate than the U.S. market for the foreseeable future. GENICON was already in over 40 international markets and was looking in particular at the rapidly emerging markets - Brazil, Russia, India and China - as potential new opportunities for growth. This case is appropriate for use in an international business course to introduce market selection strategy. It can also be used in sessions on international marketing, entrepreneurship and business strategy.

Teaching Note: 8B10M41 (9 pages)
Industry: Manufacturing
Issues: China; International Expansion; Entrepreneurial Marketing; Emerging Markets; International Business
Difficulty: 4 - Undergraduate/MBA



BEN & JERRY'S - JAPAN
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



SELKIRK GROUP IN ASIA
Paul W. Beamish, Lambros Karavis

Product Number: 9A99M003
Publication Date: 2/20/1999
Revision Date: 5/24/2017
Length: 16 pages

A family-owned brick manufacturer has built an export business to Japan and other Asian markets from zero to 10 per cent of its volume in seven years. The case examines the company's export strategy and organization in light of the recent Asian economic crisis and the reasons for their competitive success both in Australia and Asia. The managing director is raising the question of whether it is time to change their regional export strategy and organizational structure.

Teaching Note: 8A99M03 (9 pages)
Industry: Manufacturing
Issues: Organizational Structure; International Marketing; International Business; Exports
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Building a New Venture Team and Planning for the Next Generation

CYBERPRENEUR'S WAKE-UP CALL: CYBER SECURITY AND MILLENNIAL TALENT CRISES
Nakul Gupta, Arjun Bhatnagar, Jyotsna Bhatnagar

Product Number: 9B13E029
Publication Date: 10/17/2013
Revision Date: 5/2/2014
Length: 7 pages

It was summer of 2013, and the news of cyber-attacks and information security breaches was on the rise in India, as it was worldwide. Incidents such as the Axis bank’s cyber-crime incident and the news of the American National Security Agency’s global e-surveillance were creating consternation and dilemmas in the minds of information security consultants. One such consultant owned and operated an information security company, Percept Softech, a Lakshyaa Technology Lab’s Jaipur franchise. The consultant was bogged down by a number of problems and dilemmas. The first was his marketing and business growth strategy, which was not helping him in promotion of his business. Information security solutions, spying, vulnerability checks, key logging and allied propositions were difficult to promote. Managing young millennial talent was another major problem for him. Apart from the woes of business growth, inefficiency in promotion and talent issues, the consultant was now facing another dilemma. Should he start a new business away from the umbrella of the Lakshyaa Technology Lab? Should he partner with a detective agency? Or should he relocate from Jaipur to a more central location (such as New Delhi) where perhaps people would be more aware of the importance of cyber security and students would be more interested in pursuing cyber security training?

Teaching Note: 8B13E029 (15 pages)
Industry: Information, Media & Telecommunications
Issues: India
Difficulty: 4 - Undergraduate/MBA



VICTORIA HEAVY EQUIPMENT LIMITED
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



WORKBRAIN CORP. - A CASE IN EXIT STRATEGY
Tevya Rosenberg

Product Number: 9B07N007
Publication Date: 4/2/2007
Length: 14 pages

The chief financial officer (CFO) of Workbrain Corporation (Workbrain) must prepare a memo for the upcoming board of directors meeting. Workbrain, a venture-backed company, has grown substantially since its founding in November 1999. Now the CFO must communicate to the board whether it is time to consider an initial public offering (IPO) and, if so, in which exchange market the stock should be offered. The company must also consider what financing alternatives are available (including maintaining the current venture financing arrangement) and whether the company needs to raise money at all. The CFO is thinking about the memo, knowing that his words will have considerable impact on the company.

Teaching Note: 8B07N07 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Initial Public Offerings; Valuation; Exit Strategy; Venture Capital
Difficulty: 4 - Undergraduate/MBA