Ivey Publishing

Canadian Entrepreneurship & Small Business Management

Balderson, D.W.; Clark, J.D.,9/e (Canada, McGraw-Hill Ryerson, 2014)
Prepared By CaseMate Editor,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Role of Entrepreneurship and Small Business in Canada

KORRA DANCEWEAR
Elizabeth M.A. Grasby, Ron Hae

Product Number: 9B14A011
Publication Date: 5/27/2014
Revision Date: 5/15/2014
Length: 10 pages

In early 2013, the 23-year-old owner and designer of Korra Dancewear was brainstorming ideas to garner more attention for her new dancewear collection. Her business sold dance apparel online, and the company needed a comprehensive marketing plan to improve sales. With limited funds, this would be a challenge, but the young owner was keen to examine three pieces of her marketing plan: distribution options; launching a new children’s line; and pricing challenges and promotional options.

Teaching Note: 8B14A011 (12 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Planning; consumer analysis; distribution; retail; Canada
Difficulty: 2 - Intro/Undergraduate



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



SWEET LEAF BATH CO.
Melissa Jean

Product Number: 9B13A044
Publication Date: 2/4/2014
Revision Date: 1/27/2014
Length: 15 pages

Sweet Leaf Bath Co. is a small, family-operated bath and body products company specializing in fairtrade, environmentally conscious products. The company progressed from initially selling its high-quality, unique products at craft shows and exhibitions to limited sales through local retailers. Through these sales channels, Sweet Leaf’s founding partners learned more about the bath and body industry and the international issues surrounding the sourcing of many raw ingredients used in their products. However, after a year of minimal sales growth, the partners realized that they needed to develop and implement a new marketing strategy that would enable them to grow the business. Out of the many options available to expand the company’s distribution plans and promotional efforts, its owners must select those opportunities that will offer maximum benefits on a limited budget.

Teaching Note: 8B13A044 (18 pages)
Industry: Manufacturing
Issues: Planning; channels; breakeven analysis; fairtrade; Canada
Difficulty: 2 - Intro/Undergraduate



SOJO: MODELING SOCIAL ENTERPRISE
Kanika Gupta, Melissa Leithwood, Oana Branzei

Product Number: 9B13M103
Publication Date: 9/26/2013
Revision Date: 9/26/2013
Length: 9 pages

SoJo is an online resource hub — optimized for web and mobile — focused on helping early-stage social innovators turn their ideas into action. Founded in Canada as a for-profit venture in 2010, the company depends mainly on volunteer part-time staff and competes for traffic in cyberspace with its own content providers. Many skeptics doubted the idea would ever work: why would content providers forego traffic on their own sites by relinquishing their “good stuff” to SoJo? Yet by 2012, with over 2,000 active users, 50 content partners, 1,300 Twitter followers, 80,000 articles viewed and more than 1,000 unique pieces of content that earned global praise from traditional business media outlets, SoJo is well positioned to grow even further and faster. However, its founder and chief catalyst, an award-winning social entrepreneur, is anxious to make the company self-sustaining by generating revenue through product and service extensions and by increasing its user base a hundred-fold. How can such a social enterprise be modeled to support the pace of growth it needs to remain the one best resource for change-makers the world over?

Teaching Note: 8B13M103 (11 pages)
Industry: Social Advocacy Organizations
Issues: social enterprise; social innovation; social change; youth entrepreneurship; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
The Small Business Decision

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



THE GALLERY PROJECT
Jean-Philippe Vergne, Alexander (A.J.) Miller

Product Number: 9B13M072
Publication Date: 6/21/2013
Revision Date: 6/20/2013
Length: 4 pages

A young entrepreneur is considering options for starting an art dealership. Everyone has some commonsense knowledge of what an art gallery is, yet very few have realized how competitive the art market is and what it takes to succeed in that industry. The price of a painting can be anywhere between $50 and $500,000, and that price typically does not depend on the objective properties of the artwork itself. This is where the art dealer plays an important role. The budding entrepreneur has to make strategic decisions regarding which segment of the art market to serve (high or low brow?), where to start his business (mid-size hometown or large city?), how to deliver the art to market (by opening a traditional art gallery, by partnering with retail locations such as restaurants to put the artworks on display or by organizing temporary exhibitions in rented spaces) and whether he should ally with a local arts collective.

Teaching Note: 8B13M072 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategy; Alliance; Art; Canada
Difficulty: 2 - Intro/Undergraduate



MAKE GREEN DELICIOUS: SUSTAINABILITY AT JAMIE KENNEDY KITCHENS
Oana Branzei, Melissa Leithwood

Product Number: 9B07M073
Publication Date: 1/4/2008
Length: 19 pages

The case illustrates the challenges of growing sustainably by tracking the 30-year journey of a quintessentially Canadian chef, environmental champion, and strong advocate of slow food, seasonality, local sourcing and artisan food production. Set in mid May 2007, the case decision has Toronto-based Jamie Kennedy pondering several expansion options for Jamie Kennedy Kitchens, a corporation with three main ventures. Jamie Kennedy Kitchens' annual revenues were more than $7 million and earnings before taxes of 6.7 per cent in an industry typically averaging 3.2 per cent were testimony of the growing appeal of organic food and wine pairings. With influential cook-books, global accolades, rave reviews by acclaimed food critics, and a fast growing base of satisfied customers, Jamie Kennedy was well positioned for growth. Yet Jamie Kennedy grappled with the implications of growth for the core pillars of his business. The case explores the trade-offs between financially profitable growth and Jamie Kennedy's determination to stay true to local sourcing and cooking with seasonal ingredients and his environmental values. The case asks students to anticipate growth alternatives and articulate their points of leverage or disconnect with Jamie Kennedy Kitchens current business model, as well as Jamie Kennedy's cuisine and personal values.

Teaching Note: 8B07M73 (24 pages)
Industry: Accommodation & Food Services
Issues: Sustainable Development; Entrepreneurial Business Growth; Brand Positioning; Value-based Management
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Evaluation of a Business Opportunity

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



PHASE SEPARATION SOLUTIONS (PS2): THE CHINA QUESTION
George Peng, Paul W. Beamish

Product Number: 9B12M032
Publication Date: 4/3/2012
Revision Date: 3/29/2016
Length: 17 pages

In mid-2010, the president and chief executive officer of Phase Separation Solutions (PS2) needed to address potential cooperative opportunities with separate Chinese organizations regarding its Thermal Phase Separation (TPS) technology. PS2 was a Saskatchewan-based small environmental solutions company that had grown under the president's entrepreneurial direction to become a North American leader in the treatment of soil, sludge, and debris impacted with various organic contaminants. The company specialized in the cleanup of two waste streams using its TPS technology. The first was the remediation of soil contaminated with persistent organic pollutants (POPs) such as polychlorinated biphenyls (PCBs). The second was recovering usable oil from industrial sludge generated in various industries such as the oil and gas industry.

Teaching Note: 8B12M032 (17 pages)
Industry: Other Services
Issues: Growth Option; Pollution; Technological Change; Joint Venture; Entrepreneurial Business Growth; Entry Mode; Canada; China
Difficulty: 4 - Undergraduate/MBA



LA LIBERTE NEWSPAPER
Satyendra Singh, Martine Morin

Product Number: 9B07A007
Publication Date: 2/26/2007
Length: 6 pages

The director of La Liberte, a French not-for-profit weekly newspaper, needed to revitalize the newspaper as sales had been declining consistently for the past 15 years. The newspaper's mission was to serve the French community in Manitoba, Canada. Survival of a French newspaper was essential for the French culture in the community. To reverse the negative sales trend, the director conducted a survey. Based on the findings of the survey, the director had to balance his desire to serve the French community with the need to be financially viable.

Teaching Note: 8B07A07 (6 pages)
Industry: Manufacturing
Issues: Feasibility Analysis; Break-Even Analysis; Not-For-Profit Marketing; Cross Cultural Management
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Organizing a Business? The Business Plan

HUSTREAM TECHNOLOGIES INTERACTIVE VIDEO
Barbara L. Marcolin, Kathryn Brohman, Ning Su, Norine Webster, Laura Marcolin

Product Number: 9B14E008
Publication Date: 4/29/2014
Revision Date: 4/29/2014
Length: 10 pages

A management consulting team has been hired to advise HuStream Technologies on a new business model and target market. HuStream operates a service-based business model, providing customers with fully produced interactive video content. In the founders’ efforts to transition to a product-based business, they have built a cloud-based platform to provide easy accessibility to their company’s products and services. Using that platform, clients can produce their own interactive content. HuStream faces the challenge of transitioning from an entirely service- based business model to an entirely product-based business model. The consultancy’s task is to identify HuStream’s top business and marketing opportunities using the service-based business model and keeping within the constraints of limited funding.

Teaching Note: 8B14E008 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Interactivity; open services; business models; technology strategy; Canada
Difficulty: 4 - Undergraduate/MBA



COMPLETE SERVICE BILLING
Elizabeth M.A. Grasby, David House

Product Number: 9B14N008
Publication Date: 3/20/2014
Revision Date: 3/20/2014
Length: 7 pages

An entrepreneur is reviewing her business plan for a proposed new venture that would provide billing services to emergency room physicians in a hospital setting. She has to make a final recommendation regarding the feasibility of the plan. The entrepreneur must ensure that her financial analysis provides a realistic projection of the revenue and profit. She also wants to consider all the pertinent factors that could potentially affect the viability of this business before she invests $20,000 of personal funds in the venture.

Teaching Note: 8B14N008 (6 pages)
Industry: Health Care Services
Issues: Financial analysis; industry analysis; competition; new venture; Canada
Difficulty: 2 - Intro/Undergraduate



BEYOND THE BEAN
Elizabeth M.A. Grasby, David House

Product Number: 9B13A006
Publication Date: 4/3/2013
Revision Date: 3/18/2013
Length: 13 pages

A young entrepreneur is preparing the marketing portion of a business plan to launch a board games café, and he needs to complete the plan within a week so that he can review it with his business partner. The marketing plan must include a recommendation for a target market and detail plans for promotion, pricing and product offering. The partners have budgeted $6,000 for promotion to gain exposure and bring customers into the café.

Teaching Note: 8B13A006 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Marketing Management; Planning; Communication; Corporate Strategy; Canada
Difficulty: 2 - Intro/Undergraduate



THE FISH WHISPERER
Jim Kayalar

Product Number: 9B12M060
Publication Date: 6/13/2012
Revision Date: 6/9/2012
Length: 12 pages

This case depicts the start-up and business development challenges faced by a streetwise entrepreneur who has invented a unique fishing rod. The capabilities necessary to invent, prototype, and bring to market a limited quantity of product versus the challenges of larger-scale commercialization and management of a growing business are illustrated. The case primarily addresses why some entrepreneurial ventures succeed and grow while others stay insignificant, and why a majority of entrepreneurial initiatives eventually fail. Indigenous constructs such as entrepreneur- and organization-specific factors and exogenous constructs such as industry, location, and time-specific factors that may predetermine the outcome of an entrepreneurial venture are illustrated. A business plan, which has attracted angel investment, is presented for critical assessment. The case’s background story shows that all businesses face resource constraints and trade-offs and that managers must continuously adapt and upgrade their business models, competencies, and management styles to match evolving market standards.

Teaching Note: 8B12M060 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Entrepreneurial Behaviour; Entrepreneurial Business Growth; Entrepreneurial Marketing; Sales Strategy; Business Planning; United States
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


Chapter 5:
Buying a Business and Franchising

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



DEVELOPING AN INTERNATIONAL GROWTH STRATEGY AT NEW YORK FRIES
W. Glenn Rowe, Christopher Williams, Sharda Prashad

Product Number: 9B11M082
Publication Date: 8/19/2011
Revision Date: 11/18/2014
Length: 10 pages

New York Fries’ president and executive vice president were preparing for the next biannual meeting of domestic and international franchisees. They planned to provide an update on all aspect of corporate strategy and planning for the year ahead, but they only had a few days to formulate a new international growth strategy. The president and executive vice president were hesitant to expand into new territories partly due to poor experiences in Australia and South Korea, yet international franchisees had encouraged them to investigate promising areas of expansion into China and India. Complicating matters was the future development of the company’s chain of premium hamburger restaurants. While New York Fries was a well-received brand in Canada, it had not yet decided if and how to internationalize the brand. How could the president and executive vice president pursue new opportunities while maintaining their premium brands of French fries and hamburgers?

Teaching Note: 8B11M082 (10 pages)
Industry: Accommodation & Food Services
Issues: Location Selection; International Growth; Brand Management; Franchising; Fast Food; Canada
Difficulty: 4 - Undergraduate/MBA



INDUSTRIAL ACCESSORIES LTD.
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



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 6:
Financing the Small Business

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



GOLFGAMEZ (A): FUNDING A DIGITAL STARTUP
Derrick Neufeld

Product Number: 9B13E010
Publication Date: 4/9/2013
Revision Date: 4/9/2013
Length: 5 pages

A budding entrepreneur wants to start a mobile software company by developing a golf scoring and playing app called Golfgamez. He has assembled some raw data related to market size, as well as start-up and development costs, but is unsure how to proceed. He must evaluate the revenue and cost estimates for this business idea and prioritize the issues he faces. He must also consider the costs and benefits of available funding options, such as debt, equity or accelerator funding; crowdfunding; government grants; or sweat equity funding. Should he quit his successful career in banking to pursue his dream, should he try to do this part time and risk failure or should he give up altogether? Golfgamex (B): Funding a Digital Startup, 9B13E011, is the supplement to this case.

Teaching Note: 8B13E010 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Information Technology; Entrepreneurial Finance; Spreadsheet Modeling; Sports; Canada
Difficulty: 4 - Undergraduate/MBA



JOSEPH VIGNEAULT & THE CAPITAL POOL COMPANY PROGRAM
Colette Southam, Jeff McDonald

Product Number: 9B10N013
Publication Date: 4/8/2011
Length: 8 pages

Joseph Vigneault and his entrepreneurial partners wanted to raise $500,000 to pursue a new venture through the purchase of a currently existing company in the $4,000,000-5,000,000 price range. A boutique investment bank introduced them to the features of the Capital Pool Company (CPC) program. Vigneault needed to decide if a CPC was an option that he and his partners should consider. He needed to consider the effect on their ownership stake in the company and calculate the return on their investment.

Teaching Note: 8B10N013 (8 pages)
Industry: Finance and Insurance
Issues: Entrepreneurial Finance; Stock Exchange; Canada
Difficulty: 4 - Undergraduate/MBA



MASKWA RESOURCES: FINANCING WITH A EURO BOND
Stephen Sapp, Ken Mark

Product Number: 9B05N023
Publication Date: 6/30/2008
Revision Date: 10/4/2009
Length: 8 pages

The president of a small mining company is faced with an opportunity to purchase a mining refinery to complement its existing mining operations. It has the potential to bring the company into a situation of positive cashflow, but the small size of the company and high risk of the mining industry has left the president with few alternatives to raise the capital. The case focuses on the issuing of a Euro-denominated bond to finance this purchase and provide funds for future acquisitions. The case discusses the alternatives available in such a situation as well as the risks associated with changes in the price of metals and the value of the U.S. dollar, Canadian dollar and the Euro on the ability to make regular payments on the Euro-denominated bond and other financing alternatives.

Teaching Note: 8B05N23 (10 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Capital Markets; Risk Management; Hedging; Foreign Exchange; Financial Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 7:
Marketing Management

LE CERF DE TREMBLANT
Thomas Funk, Wendy Lange-Faria

Product Number: 9B13A037
Publication Date: 11/28/2013
Revision Date: 1/9/2014
Length: 8 pages

An owner was concerned about the condo she bought in Mont Tremblant, Quebec in 2006 as an investment property and for occasional use by her family. A beautiful, five-bedroom unit with a panoramic view over the La Bête golf course, it was close to the ski area, the village of Tremblant, shopping, spas, restaurants and a casino. It was fully furnished with many upgrades. However, by 2010, the number of rentals was disappointing, and the unit was operating well below expectations. Something had to be done to increase occupancy or she would have to sell the property. She considered changes in all aspects of marketing: her target, positioning, product features, pricing, distribution and promotion. She needed to assess the situation and determine what could be done to generate more bookings and make the venture profitable.

Teaching Note: 8B13A037 (7 pages)
Industry: Real Estate and Rental and Leasing
Issues: Marketing strategy; integrated marketing; hospitality and tourism; Canada
Difficulty: 2 - Intro/Undergraduate



MARKETING PLANNING AT JUST US! CAFÉS
Sara Loudyi, Julia Sagebien, Normand Turgeon, Ian McKillop

Product Number: 9B09A014
Publication Date: 9/10/2009
Revision Date: 6/9/2010
Length: 21 pages

Jeff and Debra Moore are the founders of Just Us!, a fair trade coffee cooperative, retailer and wholesaler. Just Us!’s mission is to actively promote fair trade and its benefits for producers in developing countries. The Moores have maintained a strong commitment to educating consumers while building strong brand identity and upholding constant growth. To support the main distribution channel in grocery stores, management opened four cafés (two each in Wolfville and Halifax) and distributed products on university campuses. Just Us!’s overall sales continued to grow, but sales were leveling off. In addition, the prevailing economic climate in Canada and increasing competition were worrying the founders. Recently, the Moores hired a new marketing director who was required to incorporate unique knowledge of fair trade practices, ethical purchasing and social entrepreneurship, combine it with typical growth-driven marketing decisions and ultimately propose a marketing plan that would consolidate coffee shop operations.

Teaching Note: 8B09A14 (15 pages)
Industry: Accommodation & Food Services
Issues: Services; Marketing Planning; Marketing Management; Fair Trade; Social Entrepreneurship
Difficulty: 4 - Undergraduate/MBA



ARTS & CRAFTS
Mark B. Vandenbosch, Nick Kuzyk

Product Number: 9B08A011
Publication Date: 8/14/2008
Length: 15 pages

The vice-president of marketing at Arts & Crafts was reflecting on the company's extremely successful year in the music business. New artists had been added to the company's roster, experiments with digital releases and marketing campaigns had been successful, and plenty of international licensing opportunities were emerging. In addition, one of the company's artists, Leslie Feist, had received multiple music awards. On the other hand, the music industry was facing some difficulties and most analysts predicted nothing but doom and gloom. The vice-president of marketing had to consider the future strategy of Arts & Crafts while considering the overall health of the industry.

Teaching Note: 8B08A11 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Market Analysis; Marketing Management; Operations Management; Consumer Marketing
Difficulty: 4 - Undergraduate/MBA



PRAEDA MANAGEMENT SYSTEMS INC.
Kenneth G. Hardy

Product Number: 9B06A003
Publication Date: 1/13/2006
Revision Date: 5/1/2014
Length: 8 pages

A venture fund has approached an entrepreneur to sell one of its poorly performing holdings, or if there is no reasonable sale opportunity, turn the company around. He finds no acceptable offers for the company. He searches to find more information on how buyers purchase and use the product, which is a software system for police and courts to lay charges and manage them across the court process. The case illustrates the leverage available from understanding customer budgeting and buying processes, and fitting the service to meet the mind of the customer.

Teaching Note: 8B06A03 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Marketing Planning; Consumer Behaviour; Market Strategy; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



GLOBAL HEALTHCARE EXCHANGE CANADA: TRADE EXCHANGE ADOPTION
Terry H. Deutscher, Dana Gruber

Product Number: 9B02A023
Publication Date: 12/9/2002
Revision Date: 10/28/2009
Length: 14 pages

Global Healthcare Exchange Canada is a business-to-business exchange that connects hospitals and their major suppliers through an electronic procurement process. Founded as a subsidiary of its global parent, the exchange has become the leading health-care exchange in the country, but it is still far short of break-even. It must develop a compelling value proposition if it is going to drive adoption among hospitals and suppliers to the target levels. To do so, it must overcome considerable inertia among hospitals that are often very reluctant to change from frequently inefficient purchasing processes. Although there are major benefits to be realized from automating supply chain operations in the industry, the adoption decision process among hospitals is highly complex, but very idiosyncratic. In confronting these challenges, the exchange must also re-examine its own business model, in particular its pricing strategy for both suppliers and hospitals.

Teaching Note: 8B02A23 (15 pages)
Industry: Health Care Services
Issues: E-Business; Market Strategy; Purchasing; Marketing Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Managing the Marketing Mix

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



INDIGO BOOKS AND MUSIC INC.
Dante Pirouz, Kelly Huang (Arman)

Product Number: 9B14A008
Publication Date: 3/13/2014
Revision Date: 3/13/2014
Length: 8 pages

Since 1996, Indigo Books and Music had grown to become essentially a book retail monopoly in Canada. But the global recession had hit the company hard, and the chief executive officer (CEO) was focused on creating innovation at every level of the national operation. The hope was that Indigo would eventually be able to compete internationally with giants such as Amazon.com and Barnes & Nobles. How to stabilize the company's financials while at the same time creating and promoting creative product lines that customers would crave was the critical question that the CEO had to answer if her company was to thrive in the future.

Teaching Note: 8B14A008 (3 pages)
Industry: Retail Trade
Issues: Retailing; finance; books; Canada
Difficulty: 4 - Undergraduate/MBA



A COUPLE OF SQUARES: E-COMMERCE OPPORTUNITIES FOR GROWTH (B)
Dante Pirouz, Raymond Pirouz, Dina Ribbink, Emily Chen-Bendle

Product Number: 9B13A005
Publication Date: 3/14/2013
Revision Date: 3/13/2013
Length: 4 pages

A small upscale bakery produces artisan-quality, hand-decorated cookies, generating $1 million in annual revenue. In the (A) case 9B13A004, 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, 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.


Teaching Note: 8B13A005 (4 pages)
Industry: Manufacturing
Issues: Pricing; Operations; Small Business; Social Media; B2C; B2B; Canada
Difficulty: 4 - Undergraduate/MBA



MISTURA BEAUTY SOLUTIONS
Ron Mulholland, Anthony Davis, Amanda Goupil, Christine Harvey, Kyle Marcus

Product Number: 9B12A034
Publication Date: 12/7/2012
Revision Date: 11/26/2012
Length: 11 pages

A four-year-old cosmetics company is experiencing the typical difficulties of a company evolving from a mom-and-pop operation to a scalable, systems-driven organization. The CEO and founder recognized a problem and opportunity with foundation makeup. She developed a self-adjusting, hard-powder makeup for use on any skin tone. Following an appearance on a reality TV show for entrepreneurs and numerous other promotional measures, the company’s sale grew to nearly $800,000. The recent acquisition of chain store clients requires the company to raise capital to finance the required inventory. Additionally, the company has consolidated its operations into a 4,000 square foot facility to improve logistics, quality control and management efficiency. Ambitious sales projections include a doubling of sales for the next two years. To support this projected growth, the CEO must ensure the appropriate systems are in place. She also needs to finance a marketing program to drive growth.

Teaching Note: 8B12A034 (6 pages)
Industry: Retail Trade
Issues: Business growth; product development; segmentation; Canada
Difficulty: 4 - Undergraduate/MBA



ORGANICKIDZ: MARKETING STRATEGY
Matthew Thomson, Ken Mark

Product Number: 9B10A023
Publication Date: 11/1/2010
Length: 6 pages

The founder of organicKidz is trying to create a plan to grow her start-up manufacturing firm. Calgary-based organicKidz is a manufacturer of stainless steel baby bottles and is sold in more than five countries. The founder's challenge is how to convey the superior benefits of her product and manage her retail channels given her limited resources. The setting of the case is at the September 2009 juvenile products tradeshow in the United States where organicKidz has to make a few key decisions about product promotion. All the key buyers from the retail organizations the founder is targeting will be at the show. In particular, the buyer from Costco, a large warehouse club chain, is interested in carrying her bottles and the founder wonders how she should respond.

Teaching Note: 8B10A023 (5 pages)
Industry: Manufacturing
Issues: Marketing Channels; Customer Relations; Decision Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Financial Management

DICORE INTERNATIONAL
Elizabeth M.A. Grasby, Robert Bremner

Product Number: 9B14B007
Publication Date: 5/8/2014
Revision Date: 4/6/2017
Length: 21 pages

Dicore, the third largest supplier of drilling services in the world, must increase its profitability. To do so, the executive committee is considering an expansion into the southwestern United States. The senior vice-president and general manager must create a plan that outlines whether or not Dicore should enter the southwest drilling market and, if so, if it should enter this market organically or through an acquisition.

Teaching Note: 8B14B007 (18 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Global environment; acquisitions; natural resources; industry analysis; competitor analysis; Canada
Difficulty: 2 - Intro/Undergraduate



AZTEK CHOCOLATE STUDIO: ACCOUNTING SYSTEM SOFTWARE
Derrick Neufeld

Product Number: 9B14E004
Publication Date: 3/13/2014
Revision Date: 3/13/2014
Length: 4 pages

In late 2013, the founder of Aztek Chocolate, a candy manufacturer, in Winnipeg, Manitoba, is confronted with making an accounting system selection decision. He has two traditional options — outsourcing to an accounting or bookkeeping firm versus using an internally developed spreadsheet or commercial software package — as well as a third “hybrid” option — using an accounting cloud, or Software-as-a-Service, service provider. Sales are starting to flow in, and chocolates are shipping out, but he realizes he must now attend to setting up financial control and reporting systems before he loses control of the new firm’s financial performance. Should he hire an accountant, manage the finances himself with a commercial accounting software package or use an accounting cloud service provider?

Teaching Note: 8B14E004 (5 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Software-as-a-Service (SaaS); accounting; computer applications; Canada
Difficulty: 4 - Undergraduate/MBA



C. R. PLASTICS
David Wood, Mary Gillett

Product Number: 9B11D016
Publication Date: 1/3/2012
Revision Date: 10/13/2015
Length: 10 pages

Jamie Bailey, owner and president of C. R. Plastics, had successfully grown his business every year since 1994 when he began producing recycled plastic outdoor furniture. This rapid growth had provided its own challenges in terms of constrained financing and by summer 2010, Bailey was desperate for a new source of cash. He subsequently auditioned to be on Dragon’s Den, a television show where entrepreneurs could pitch their business to a group of venture capitalists, who could then choose to invest their own cash in exchange for a share of the business. With a week remaining before he had to present his final pitch, Bailey had to make a difficult prediction: How much money would he need to meet the growing demand into 2011? Complicating his analysis were competing proposals to fundamentally change how production was managed. In addition to reconfiguring labour allocation, one method required significant investment in equipment, while the other increased inventory during the off-season. Which alternative would allow the company to retain a greater share of the equity when Bailey pitched his business to the Dragon’s Den panel?

Teaching Note: 8B11D016 (8 pages)
Industry: Manufacturing
Issues: Cash Flow Projections; Financing; Valuation; Seasonal Working Capital Management; Furniture; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Operations Management

SCHUHREN CONSUMER PACKAGING: MANAGING RISK
Murray J. Bryant, Ken Mark

Product Number: 9B14M056
Publication Date: 4/30/2014
Revision Date: 4/29/2014
Length: 6 pages

The founder and chief executive officer (CEO) of Schuhren Consumer Packaging (Schuhren), a manufacturer of plastic food packaging based in Windsor, Ontario, is getting ready to meet a group of buyers from one of the top six fruit packaging firms in the world. An hour before their arrival, the CEO uncovers a whole series of issues concerning quality assurance, waste production and machine operations that could have an impact on the company’s operations, financial position and business development efforts.

Teaching Note: 8B14M056 (8 pages)
Industry: Manufacturing
Issues: Managing risk; operations; business development; management controls; growth, supply chain risks; Canada
Difficulty: 4 - Undergraduate/MBA



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



GREEN-TECH: BIO-FUELS HIGH GROWTH STRATEGY
Federico M. Berruti, Heng-Yih (Gordon) Liu

Product Number: 9B11M123
Publication Date: 1/20/2012
Length: 12 pages

Green-Tech Inc., a Canadian company founded in 2006, was dedicated to developing, manufacturing, and marketing portable and stationary systems for the production of bio-oils and bio-char from biomass residues and wastes. Green-Tech was a recent spinoff from a large university research centre with a very good reputation for providing bio-energy solutions. Although focused and well positioned, Green-Tech had to manage relationships with large companies such as Shell that controlled vast and complete supply chains of oil-related businesses, as well as small firms and clients that were unable to manage their waste effectively. Large firms could provide plenty of business opportunities for Green-Tech, but could also jeopardize the company’s autonomy. Small customers on their own might not bring in enough cash flow, but could give Green-Tech sufficient freedom to pursue its own strategic goals. Both relationships seemed to lead to a promising future for this entrepreneurial start-up company, but also created serious risks. At the time of the case in 2011, Fernando Bruteque, vice president and one of the principal engineers of Green-Tech, was seeking the appropriate growth approach for Green-Tech. Being in charge of business operations, Bruteque also had to maintain a balance between research and development (R&D), investor and client concerns, and business opportunities. What would be the appropriate growth strategies and business operation strategies for a resource-constrained firm such as Green-Tech? How should it proceed?

Teaching Note: 8B11M123 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Bio-fuels; Renewable Energy; Research and Development; Canada
Difficulty: 4 - Undergraduate/MBA



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


Chapter 11:
Human Resource Management

MOBILIA INTERIORS INC.: THE OPERATIONS DECISION
Eric Morse, Ken Mark, Matthew Wong

Product Number: 9B10M047
Publication Date: 9/24/2010
Length: 8 pages

In May 2008, the president of Montreal-based retailer of designer furniture store, Mobilia, was reviewing her workload. Mobilia's growth had required she to spend increasing amounts of her time in operations, finance and human resources and significantly less time on sourcing and purchasing. With a doubling of her direct reports in recent years, and recognizing that external hires would soon be necessary to support Mobilia's growth, she wondered if the organization might be best served by hiring an operations manager. A successful operations manager would need to be experienced, flexible and demonstrate a willingness to work in a family-owned enterprise; however, she also was cognizant of the costs to be incurred if the initiative stalled. She wondered what factors to consider when deciding whether outside help was needed or whether efficiencies could still be reached with her current team in place.

Teaching Note: 8B10M47 (8 pages)
Industry: Manufacturing
Issues: Strategic Planning; Corporate Strategy; Human Resources Management; Management Philosophy
Difficulty: 4 - Undergraduate/MBA



HOOPLAH MEDIA GROUP: MANAGING INDEPENDENT CONTRACTORS
John S. Haywood-Farmer, Jeff Greenspoon

Product Number: 9B07C030
Publication Date: 8/15/2007
Revision Date: 3/25/2008
Length: 8 pages

The majority partner in the Hooplah Media Group (Hooplah) of Toronto, Ontario, was trying to decide what to do about one of Hooplah's website design contractors (contractor). The contractor had taken on a project directly with a key contact at JewelWorks Inc., one of Hooplah's largest clients, without going through Hooplah. As an independent contractor, he offered to design a website for JewelWorks Inc. for a lower price than Hooplah's rate. Apparently, the project was not going smoothly, and there was significant tension between the contractor and the contact at JewelWorks Inc. The majority partner at Hooplah was unsure how he should react to the contractors' involvement with JewelWorks Inc. and whether he should assist in the completion of the website.

Teaching Note: 8B07C30 (4 pages)
Industry: Other Services
Issues: Accountability; Ethical Issues; Customer Relations; Contracting; Outsourcing; Organizational Behaviour; Management of Professionals
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Managing Taxes and getting Management Assistance

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



WESTWOOD PLASTICS INC.
James E. Hatch, Manpreet Hora

Product Number: 9B06N017
Publication Date: 10/12/2006
Revision Date: 5/2/2013
Length: 9 pages

The vice-president of finance for Westwood Plastics, Inc. (Westwood), wants to assess the impact of the possibility of a weakening Canadian dollar on the company's financial health given its exposure to the Euro. Because Westwood is required by a loan covenant to generate a minimum level of pre-tax earnings, management is concerned about the possible impact of the exchange rate volatility on projected income and cash flows. The vice-president of finance is considering both an option and a forward strategy to minimize the foreign exchange risk Westwood is facing. She must decide how to use financial instruments to hedge the risk.

Teaching Note: 8B06N17 (22 pages)
Industry: Manufacturing
Issues: Risk Management; Foreign Exchange; Hedging
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Managing Growth

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



EIKON DEVICE INC.: CREATING AN INTERNATIONAL STRATEGY
Anthony Goerzen

Product Number: 9B13M089
Publication Date: 2/14/2014
Revision Date: 2/13/2014
Length: 15 pages

Eikon Device Ltd, a tattoo equipment and supplies firm, has to choose between several alternatives. Their core business is the production of tattoo needles and the power supply that makes tattoo machines operate, selling primarily into the United States and Canada. With increasing international demand however, should they consider establishing a distribution facility abroad? Alternatively, since much of their success is derived from catering to the specific needs of tattoo artists, should Eikon expand its product line for the North American market? At the same time, competition from China has emerged to push Eikon out of its core markets. Eikon management has to prioritize their initiatives.

Teaching Note: 8B13M089 (6 pages)
Industry: Manufacturing
Issues: Foreign competition; tattoo industry; Canada
Difficulty: 4 - Undergraduate/MBA



FROGBOX
Michael Valente, Paul Bigus

Product Number: 9B13M037
Publication Date: 3/26/2013
Revision Date: 3/29/2016
Length: 17 pages

The co-founder and president of an environmentally friendly moving supply company faces the challenge of expanding his company’s brand. The company, which provides plastic, reusable moving bins and other moving supplies, has branded itself as providing a convenient, affordable and eco-friendly alternative to cardboard moving boxes. The company can expand by setting up additional corporate stores or by selling individual franchises. The co-founder and president also contemplates focusing his efforts on dominating and revolutionizing the Canadian moving industry. He also remains open to the possibility of eventually selling the company to a larger organization. In considering all options, he wants to sustain the integrity and success of the brand he has built and to ensure that any future expansion maintains his commitment to providing consumers with value, high quality and superior customer service.

Teaching Note: 8B13M037 (7 pages)
Industry: Transportation and Warehousing
Issues: Business Sustainability; Growth Strategy; Canada; United States
Difficulty: 4 - Undergraduate/MBA



CATE & LEVI: EVALUATING OPTIONS FOR GROWTH
Brian Anderson

Product Number: 9B12M002
Publication Date: 8/14/2012
Revision Date: 8/9/2012
Length: 8 pages

Cate & Levi is a specialty gift manufacturer — primarily of children’s toys and clothing — based in Toronto, Canada. The founder of Cate & Levi is pondering growth options for his firm, recognizing that the business model so successfully employed to earn the company its first $1 million in revenues is not likely to sustain the company’s momentum. Just three years old, the company has grown dramatically in no small part due to its unique business model and design. Looking ahead, however, the founder is concerned that the business is not sustainable — the predominant raw materials used for the products are reclaimed wool sweaters, and each product is cut and sewn by hand both in-house and through contract labour across Canada. The case presents a series of growth alternatives for students to analyze and consider, contrasted against the constraints found in an adolescent business: constrained capital and human resources, limited brand recognition, and an underdeveloped supply chain.

Teaching Note: 8B12M002 (6 pages)
Industry: Manufacturing
Issues: Organizational Growth Strategies; Managing Growth; International Expansion; Entrepreneurial Management; Canada
Difficulty: 4 - Undergraduate/MBA



MEDMIRA LABORATORIES: THE U.S. OTC DECISION
Julia Sagebien, Melissa Whellams

Product Number: 9B06A024
Publication Date: 11/23/2006
Length: 14 pages

In December 2005, the vice-president of global sales and marketing for MedMira Laboratories in Halifax, Nova Scotia, has to decide whether to enter the over-the-counter (OTC) HIV testing market in the United States, if the company receives approval from the U.S. Food and Drug Administration. Entry into this market could potentially open the door to OTC sales of other infectious disease tests that MedMira could develop with its current technology. Not entering the market could result in shareholder disapproval and a significant missed opportunity. With the exception of China, the majority of the company's tests have been sold to hospitals and laboratories, therefore, U.S. OTC sales would require the development of new marketing and distribution expertise. It would also be a very expensive undertaking for such a small company with accumulated losses. If MedMira decides to enter the market, the vice-president of global sales and marketing would need to determine whether to go it alone or partner with Home Access Health Corporation, a Chicago-based company, which has the only FDA-approved at-home test system on market. There are also a number of ethical concerns surrounding at-home testing that would need to be addressed.

Teaching Note: 8B06A24 (6 pages)
Industry: Health Care Services, Manufacturing, Retail Trade
Issues: International Marketing; Ethical Issues; Corporate Social Responsibility; Market Entry; Drugs; New Product Development; Channels; Distribution
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Managing the Transfer of the Business

BEANZ VERSUS STARBUCKS: PERSONALITY IN A CUP!
Edward Gamble, Peter W. Moroz, Stewart Thornhill, Haley Beer

Product Number: 9B12M051
Publication Date: 5/15/2012
Revision Date: 5/14/2012
Length: 14 pages

Beanz Espresso Bar is located in downtown Charlottetown, Prince Edward Island, Canada. It is operating in a market with high rivalry (11 other coffee businesses in a two-block radius). The economy in Prince Edward Island has seen several diners, restaurants, and coffee shops close their doors within the past few years, while simultaneously drawing in large corporate businesses such as Starbucks and Running Room. Beanz has thus far survived the major environmental changes and managed to keep its clientele and the owners, Lori and Doug, feel it is time to either sell Beanz and leave the industry, or exploit their competitive advantages to grow and capture more market share. Beanz specializes in high-quality, baked-from-scratch food and specialty coffee beverages. The café is known for its artistic vibe, warm atmosphere, and eccentric staff. After operating Beanz for 16 years, the couple has made few changes to the decor, menu, the set-up. Internally, the company faces several issues concerning management control systems, marketing, and strategic direction. Lori and Doug must choose between five different directions for the future of Beanz.

Teaching Note: 8B12M051 (7 pages)
Industry: Accommodation & Food Services
Issues: Business Valuation; Growth Strategy; Exit Strategy; Environmental Analysis; Service Industry; Small Business; Coffee; Canada
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



T. EATON COMPANY LIMITED'S INITIAL PUBLIC OFFERING (ABRIDGED)
Craig Dunbar, Stephen R. Foerster, Ahmed Arif

Product Number: 9A99N016
Publication Date: 8/25/1999
Revision Date: 1/21/2010
Length: 15 pages

Canada's largest privately owned department store, the T. Eaton Company Ltd., founded in 1869, had recently emerged from bankruptcy protection and was now planning to raise $175 million through an initial public offering (IPO). Investment bankers must determine the appropriate share price and consider the appropriateness of the timing for the issue. The case describes North American retail industry trends and the bankruptcy protection process and provides a detailed discussion of the IPO process and valuation considerations. Detailed comparables are provided for such firms as Federated, Nordstrom's and Dillard. The case provides an opportunity to apply a number of valuation techniques, including discounted cash flow, price-to-earnings multiples and enterprise value-to-EBITDA multiples.

Teaching Note: 8A98N24 (16 pages)
Industry: Retail Trade
Issues: Valuation; Retailing; Investment Analysis; Initial Public Offerings
Difficulty: 4 - Undergraduate/MBA