Ivey Publishing

Entrepreneurship: Theory, Process and Practice

Kuratko, D.F., Hodgetts, R.M.,7/e (United States, Cengage Learning, 2007)
Prepared By Vanessa M. Strike, Ph.D. Student (General Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Revolutionary Impact of Entrepreneurship

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



CORAL DIVERS RESORT
Paul W. Beamish, Kent E. Neupert

Product Number: 9A96M001
Publication Date: 2/6/1996
Revision Date: 2/10/2010
Length: 18 pages

The owner of a small scuba diving operation in the Bahamas is reassessing his strategic direction in the light of declining revenues. Among the changes being considered are shark diving, family diving, exit, and shifting operations to another Caribbean location. These options are not easily combined, nor are they subtle. The case is intended to provide a work-out on the relationship between strategy, organization and performance, and how changes in strategy will dramatically affect the organization. The case also highlights the importance of understanding demographic changes as part of an environmental analysis. (A nine-minute video can be purchased with this case, video 7A96M001.)

Teaching Note: 8A96M01 (15 pages)
Industry: Other Services
Issues: Strategic Change; Small Business; Services; Industry Analysis
Difficulty: 4 - Undergraduate/MBA



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

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

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

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


Chapter 2:
The Evolutionary Development of Entrepreneurship

BRUCE CRUICKSHANK
Joerg Dietz, Anoop Malhotra

Product Number: 9B01C031
Publication Date: 12/6/2001
Revision Date: 12/16/2009
Length: 8 pages

As a family man and the president of a small consulting company, Bruce Cruickshank has a lot of hats to wear. Bruce is passionate about his business and enjoys his work, but the pressures of balancing professional life and family life are beginning to take a physical and mental toll. Bruce has a plan in mind for streamlining and expanding his business, but, as it is, he already feels pressed for time to get things accomplished at the office. His assistant is just as busy with her own duties, and it's difficult to make the time to find, hire and train a new employee. At home, Bruce's wife wishes they could spend more time together. As well, Bruce is a devoted father, and being with his children is important to him. The challenges involved in successfully combining his professional life with his family life and leisure time are uppermost in Bruce's thoughts, and he wants to find a healthier balance for the future.

Teaching Note: 8B01C31 (21 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Family-Work Interaction; Personal Values; Organizational Behaviour
Difficulty: 4 - Undergraduate/MBA



WAYNE DAWSON: GENERATION X
James A. Erskine, Marvin Esser

Product Number: 9B00C016
Publication Date: 3/6/2000
Revision Date: 1/7/2010
Length: 10 pages

A rapidly changing social, economic and technical environment have led to a difficult career situation for a young man with an entrepreneurial spirit who feels trapped in his position. He explores several available options to change his environment, including pursuing his own business, returning to the career for which he was formally trained, switching careers, returning to school, or staying where he is.

Teaching Note: 8B00C16 (8 pages)
Industry: Manufacturing
Issues: Career Development; Career Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Corporate Entrepreneurship: Developing the Entrepreneurial Mind-Set in Organizations

BIOVELOCITY
Elena Skliarenko

Product Number: 9B04M061
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 4 pages

BioveloCity is a specialized networking and information source that would assist in the development and successful growth of a life sciences related community. The chief executive officer was preparing to present to the board the recently launched web-based portal as a potential source for raising funds. His concern was whether to commercialize the program or look for other alternatives, as well as determining what kind of additional research should be done.

Teaching Note: 8B04M61 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Entrepreneurial Finance; Generating Profit from New Technology; Market Entry; Technology
Difficulty: 4 - Undergraduate/MBA



EXTREME CCTV
Stewart Thornhill, Ken Mark

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

Extreme CCTV, a start-up company that specializes in closed circuit television equipment, is looking at purchasing one of it distribution partners, Derwent Systems Ltd - a leading European manufacturer of infrared illuminators. The two companies have been successful in promoting the others products in their respective markets, now Derwent's founder wants to retire. Without Derwent's founder, Extreme CCTV will lose the ability to sell complementary Derwent products in North America and will have to look for another way to distribute its products in the European market. The president and founder of Extreme CCTV has to decide whether or not he should proceed with the purchase of Derwent Systems Ltd. and how he would manage both companies while preparing for an initial public offer.

Teaching Note: 8B02M15 (5 pages)
Industry: Manufacturing
Issues: Growth; Mergers & Acquisitions; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



DEVELOPING ENTREPRENEURIAL GROWTH
John H. Eggers

Product Number: 9A99TB14
Publication Date: 3/1/1999
Length: 8 pages

Many CEOs are asking themselves How can my organization become more entrepreneurial? The author suggests four key factors that drive entrepreneurial growth in any organization: the window of competitive advantage and the market's potential size, psychological characteristics that lead individuals to desire and embrace growth, the skill capacity of individuals to effectively manage and lead growth, and, an organizational culture that promotes growth and encourages employees to exploit new market opportunities. Fortunately, these factors can be learned and measured so business leaders can understand and use this knowledge to help their firm grow into a successful entrepreneurial organization.

Issues: Growth



Chapter 4:
The Entrepreneurial Mind-Set in Individuals

BARRIE CHARITY BINGO
Eric Morse, Joe Bubel

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

The owner of a large bingo facility recently bought out his only competitor, but this purchase is putting a financial drain on his company. An impending smoking by-law could reduce the number of customers, putting a strain on both businesses. As part of the purchasing agreement, one facility must close, leaving the owner with a large building on prime land, which was of little use to him. With the vacant building costing him hundred of dollars per day to maintain, he must decide whether to sell the building, rent it out, or use it as a self-storage facility.

Teaching Note: 8B04M49 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Business Development; Opportunity Recognition; Growth
Difficulty: 4 - Undergraduate/MBA



KALISTA'S FINE CHOCOLATE
Eric Morse, Paul Artiuch

Product Number: 9B04M002
Publication Date: 9/20/2004
Revision Date: 10/8/2009
Length: 8 pages

Kalista's Fine Chocolate is a home-base business that produces high-quality chocolate products. The company has been very successful and had purchased a kiosk at local mall to accommodate the increase in business, but the demand for Kalista's products is still growing and the owners must decide whether to move into a larger space or continue working out of their home.

Teaching Note: 8B04M02 (11 pages)
Industry: Manufacturing
Issues: Opportunity Recognition; Business Development; Growth
Difficulty: 4 - Undergraduate/MBA



ENTREPRENEURS: WHAT IS THE STUFF OF AN ENTREPRENEUR?
James E. Hatch, Jeffrey Zweig

Product Number: 9B00TF04
Publication Date: 11/1/2000
Length: 7 pages

Entrepreneurs are widely perceived as having been superb students, athletes and simply outstanding in almost every aspect. But, say the authors of this article, that is not the case. Many successful entrepreneurs, from those who today head billion-dollar dot-coms to others who are sole operators were indifferent students and athletes. In fact, they were distinctly unremarkable. What did, and does, set them apart is the entrepreneurial spirit, which they have in abundance, and which any entrepreneur must have to win.




Chapter 5:
Creativity and Innovation

STAMYPOR
Wim Vanhaverbeke, Rein Nieland, Inge Leuverink, Femke van Hoven, Marijke van Wely

Product Number: 9B05M072
Publication Date: 10/28/2005
Revision Date: 10/3/2009
Length: 24 pages

The New Business Development unit is part of DSM, a Dutch globally operated chemical company. The unit looks for promising new ideas to develop into start-up businesses. Stamypor is a new project that the New Business Development unit is working on and the team leader of the project must decide if it should be developed into a start-up company. Students will apply their knowledge about new product development, new product evaluation, the stage-gate process, customer value, business models, and corporate venturing.

Teaching Note: 8B05M72 (22 pages)
Industry: Manufacturing
Issues: Innovation; New Products; Business Valuation; Business Models; the Netherlands
Difficulty: 4 - Undergraduate/MBA



WAVERIDER COMMUNICATIONS INC.: THE WIRELESS LAST MILE
Scott L. Schneberger, Ken Mark

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

WaveRider Communications, Inc. was a Toronto-based company with a mission to become the leader in global wireless technology by developing, selling and supporting products that enabled wireless Internet service providers. It recently launched market its Last Mile Solution, offering Internet service providers the opportunity to provide wireless Internet access at broadband speeds in the unlicensed 2.4 gigahertz spectrum. The wireless Internet access industry was relatively untapped and WaveRider's vice-president of marketing wondered whether the company, as it started its growth phase, should seek an alliance with a competing technology company. To determine the feasibility of this idea, he needed to classify the competition, review the customer barriers and evaluate which technology was the best fit.

Teaching Note: 8B01E08 (12 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Information Systems; Action Planning and Implementation; Innovation; Technological Change
Difficulty: 4 - Undergraduate/MBA



SURGERY FUTURES RESEARCH
Rod E. White, Charlene L. Nicholls-Nixon, Hart Posen

Product Number: 9A99M048
Publication Date: 1/26/2001
Revision Date: 1/21/2010
Length: 15 pages

The founder of Surgery Futures Research, a London, Ontario-based startup, developed a new technique to assist with minimally invasive surgery. His innovation eliminated the need for incisions and retractors to manipulate the bowel, and relied instead upon magnets and an ingestible fluid. He put his surgical residency on hold and spent several years developing the technology as a sideline to his medical career. He invested his time, personal savings and much of his income into this enterprise. Even under the most optimistic scenario, commercialization was still years away and would require significant expenditures for research, development, manufacturing and marketing. At age 35, and with his wedding approaching, he felt the time had come to reevaluate the venture, considering what actions needed to be taken to commercialize the technology and what role he should play in the process.

Teaching Note: 8A99M48 (7 pages)
Industry: Health Care Services
Issues: Generating Profit from New Technology; Management of Technology; Innovation
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Entrepreneurial Ethics

ORANGEWERKS: A QUESTION OF ETHICS
Christina A. Cavanagh, Ken Mark

Product Number: 9B01C007
Publication Date: 4/23/2001
Revision Date: 5/18/2017
Length: 4 pages

OrangeWerks, an entrepreneurial company that creates software applications, is preparing to present to venture capital firms for its first major round of funding. However, during routine network maintenance, the network administrator becomes aware that the company may not have purchased the original software used to create the company's product, and that government workplace safety insurance was not in place. He must decide how to proceed with the knowledge by assessing available options and judging the stakeholder impact, as well as his career implications.

Teaching Note: 8B01C07 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Action Planning and Implementation; E-Commerce; Organizational Behaviour; Ethical Issues
Difficulty: 4 - Undergraduate/MBA



PHIL CHAN (A)
Paul W. Beamish, Jean-Louis Schaan

Product Number: 9A98M022
Publication Date: 11/5/1998
Revision Date: 2/1/2010
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9A98M023) is available.

Teaching Note: 8A98M22 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Negotiation; Human Behaviour; Ethical Issues; Personal Values
Difficulty: 4 - Undergraduate/MBA



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

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

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

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


Chapter 7:
Assessment of Entrepreneurial Opportunities

RUSSKI ADVENTURES
Paul W. Beamish, Ian Sullivan

Product Number: 9A92G002
Publication Date: 7/9/1992
Revision Date: 3/22/2010
Length: 18 pages

The two major partners in Russki Adventures contemplated their next move. They had spent the last year and a half exploring the possibility of starting a helicopter skiing operation in Russia. Their plan was to bring clients from Europe, North America and Japan to the Caucasus Mountains to ski the vast areas of secluded mountain terrain made accessible by the use of helicopter and the recent business opportunities offered by 'glasnost'. Three options for proceeding were being considered. The first was to proceed with the venture on their own, in the Caucasus Mountains area that had been made available to them by a Soviet government agency. The second was to accept the offer of partnership with Extreme Dreams, a French tour operator that had recently begun operations in the Caucasus region. The final option was to wait, save their money and not proceed with the venture at this time. This is a good case to emphasize small-scale international ventures and the complexities of operating in a rapidly changing and politically unstable environment.

Teaching Note: 8A92G02 (8 pages)
Industry: Accommodation & Food Services
Issues: Political environment; joint ventures; risk analysis; luxury services
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



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

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

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

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


Chapter 8:
Environmental Assessment of Entrepreneurial Ventures

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

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

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

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



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

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

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

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



NAPSTER AND MP3: REDEFINING THE MUSIC INDUSTRY
Mary M. Crossan, Margaret A. Wilkinson, Mark Perry, Trevor Hunter, Tammy Smith

Product Number: 9B01M002
Publication Date: 3/5/2001
Revision Date: 12/18/2009
Length: 19 pages

The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files -- which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

Teaching Note: 8B01M02 (21 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: E-Commerce; Strategic Change; Intellectual Properties; Industry Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Marketing Research for Entrepreneurial Ventures

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

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

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

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



SPLASH CORPORATION (A): COMPETING WITH THE BIG BRANDS
Niraj Dawar, Nigel Goodwin

Product Number: 9B06A014
Publication Date: 4/28/2006
Revision Date: 9/11/2009
Length: 21 pages

Set in November 2005, the case examines a company that has been extremely successful in several product categories in its own domestic market and is defending its market position against intense competition from powerful multinational corporations, emerging domestic rivals and newer low-cost alternatives. The multinational corporations include some of the world's most sophisticated marketing companies. The case may be used independently or with the supplement Splash Corporation (B): International Expansion, product 9B06A015.

Teaching Note: 8B06A14 (7 pages)
Industry: Retail Trade
Issues: Competing with Multinationals; Branding; Consumer Marketing; Nanyang
Difficulty: 4 - Undergraduate/MBA



PRO ORGANICS (A)
Stewart Thornhill, Julie Gosse

Product Number: 9B05M003
Publication Date: 10/28/2005
Revision Date: 9/30/2009
Length: 5 pages

Pro Organics is a major distributor of organic fresh food. The owner is faced with the decision of broadening the company's market and opening a second location. The owner must develop an expansion strategy to test and ensure the viability of success in the new market. The supplement Pro Organics (B), product 9B05M004 discusses how the owner must reevaluate the company's future direction in response to the possibility of a shrinking market and an increasing trend of industry consolidation. An 8-minute video supplement is also available, product 7B05M003.

Teaching Note: 8B05M03 (8 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Acquisitions; Market Strategy; Expansion
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Financial Preparation for Entrepreneurial Ventures

PRIVATE EQUITY AT WORK: PURCHASING CAKE MASTERS
Craig Dunbar, Ken Mark, Michael Comisarow

Product Number: 9B06N007
Publication Date: 6/21/2006
Revision Date: 9/23/2008
Length: 13 pages

An entrepreneur must decide if he should bid to acquire a commercial bakery, Cake Masters, given his objectives in his search and his investors' expected returns of 20-30 per cent. If he bids, he must decide how much to bid and in what form of consideration. Students are introduced to valuation methodologies and will evaluate an acquisition or opportunity, understand the process of acquiring a small company, learn how preceding transactions are considered and learn about discounted cash flow analysis.

Teaching Note: 8B06N07 (8 pages)
Industry: Manufacturing
Issues: Entrepreneurial Finance; Valuation; Financial Analysis
Difficulty: 4 - Undergraduate/MBA



VIOSONIC INC.
Basil A. Kalymon, Robert Jaques

Product Number: 9B02N016
Publication Date: 11/29/2002
Revision Date: 12/5/2009
Length: 16 pages

Vivosonic is a start-up biomedical company that needs to raise $565,000 to continue research and development of its biomedical devices. The executive director of a venture capital firm feels Vivosonic's technology is sound but the costs for the company would be high. He must decide whether or not to invest in the company and determine what the best terms and conditions are for the deal.

Teaching Note: 8B02N16 (10 pages)
Industry: Manufacturing
Issues: Financing; Financial Analysis; Technology Transfer; Entrepreneurial Finance
Difficulty: 4 - Undergraduate/MBA



EHARVEST.COM
James E. Hatch, Tania Cunningham

Product Number: 9B00N011
Publication Date: 1/25/2001
Revision Date: 1/12/2010
Length: 10 pages

The chief executive officer of the venture capitalist Portal Investments had to decide whether to invest in eHarvest.com, a company with a vision to become the worldwide Internet portal for production agriculture. To do so, he needed to examine Portal Investment's strategic objectives; eHarvest.com's business model and the challenges and opportunities it faced in carrying it out; and issues related to valuation and deal structuring.

Teaching Note: 8B00N11 (3 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Entrepreneurial Finance; Venture Capital; Valuation; E-Commerce
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Developing an Effective Business Plan

EXTREME PACKET DEVICES (A)
Adrian B. Ryans

Product Number: 9B01A004
Publication Date: 3/5/2001
Revision Date: 12/4/2009
Length: 24 pages

Extreme Packet Devices was founded to develop very sophisticated application-specific, integrated circuits for the telecommunications industry. After six months of operation, its chief executive officer was reviewing the company's newly completed business plan. He wanted the plan to be ambitious and have a clear vision so it captured the imagination of employees, customers and financial supporters, and at the same time, provided a disciplined roadmap for the organization and benchmarks for the venture capitalists funding the company. While he examined the plan, he had to evaluate the company's progress and then wondered if the plan successfully addressed questions that venture capitalists and institutional investors would ask. There is a supplemental case available, Extreme Packet Devices (B), product 9B01A005, that addresses issues around the purchase of Extreme Packet Devices by PMC-Sierra.

Industry: Manufacturing
Issues: Market Entry; Marketing Planning; Strategic Planning
Difficulty: 5 - MBA/Postgraduate



SOFTWARE INNOVATIONS INC.
James E. Hatch, Tevya Rosenberg

Product Number: 9B06N012
Publication Date: 4/11/2006
Revision Date: 9/23/2009
Length: 12 pages

A partner in a venture capital firm is contemplating an investment in a software firm. He must perform a size up of the company and prepare a term sheet.

Teaching Note: 8B06N12 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Venture Capital
Difficulty: 4 - Undergraduate/MBA



SALESPHERE.COM: BUILDING AN INTERNET START-UP COMPANY IN HONG KONG
Charlene L. Nicholls-Nixon, Donna Everatt

Product Number: 9B01M042
Publication Date: 9/27/2001
Revision Date: 12/21/2009
Length: 17 pages

AWARD WINNING CASE - This case was one of the winning cases in the 2001 Regional Asia-Pacific Case Writing Competition. A young entrepreneur wants to launch an auction-based Web site where companies with excess inventories would be able to off-load their merchandise to consumers, while consumers would have selection and affordability with one-stop shopping for a variety of goods. Before presenting his business plan to investors he must undertake a thorough analysis by evaluating the attractiveness of the market, examining the viability of the business model, determining the magnitude and nature of resources required, evaluating the quality of the management team, and determining the type of financing deal required.

Teaching Note: 8B01M42 (12 pages)
Industry: Other Services
Issues: Startups; E-Business; Internet
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Legal Structures for New Business Ventures

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



PATHWAY COMMUNICATIONS INC.
David C. Shaw, Niels Billou

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

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

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



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

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

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

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


Chapter 13:
Legal Issues Related to Emerging Ventures

LICENSING OF APOEP1.B PEPTIDE TECHNOLOGY
James E. Hatch, Susanne Acklin

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

Representatives of the technology transfer office are preparing a commercialization strategy of a new peptide. The function of the technology transfer office at the University of Western Ontario is to prospect for suitable technologies for commercialization, to manage the patent protection for such inventions, and to identify ways to develop such inventions. Two licensing opportunities are being considered, both of which entail creation of a startup company. The representatives must evaluate options to determine which offers the best potential for the commercialization of the invention for everyone involved.

Teaching Note: 8B05N16 (14 pages)
Industry: Manufacturing
Issues: Entrepreneurial Finance; Licensing; Technology; Patents
Difficulty: 4 - Undergraduate/MBA



FUTURE OF "BIG PHARMA"?
David W. Conklin, Murray J. Bryant, Danielle Cadieux

Product Number: 9B05M047
Publication Date: 8/12/2005
Revision Date: 10/1/2009
Length: 17 pages

Several new developments were threatening the success of Big Pharma. The patents on well-known blockbusters were reaching expiry, and generic manufacturers were eagerly waiting to produce lower-priced copies. Throughout the world, governments were taking a more active role in determining the prices at which drugs could be sold. The expansion of government insurance programs was adding to the complexity of the marketing challenges. Another change involved a shift towards direct-to-customer advertising, including the proliferation of information on the Internet, in addition to the traditional process of sales visits to family doctors. Research funding had doubled since 1991, but the number of new drugs emerging each year had fallen by half. The research and development process was also changing dramatically. Whereas blockbuster drugs had been developed as general treatments for common conditions, it was becoming increasingly apparent that not all patients reacted in the same ways to these drugs, and some - although a very small percentage - suffered serious side effects. This reality was expected to lead to the creation of a much larger number of niche drugs, each one targeted at a narrower group of patients. Related to this development was the growth of biopharma in which new biotech companies were creating drugs that could attack specific cells. Some analysts felt that Big Pharma was in a peculiar predicament in that profits were still very large, and this served as a barrier to necessary changes in strategy.

Teaching Note: 8B05M47 (9 pages)
Industry: Health Care Services
Issues: Business and Society; Globalization; International Business
Difficulty: 4 - Undergraduate/MBA



TROJAN TECHNOLOGIES INC: THE CHINA OPPORTUNITY
Pratima Bansal, Paul W. Beamish, Ruihua Jiang

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

The senior market associate of Trojan Technologies reflected on the water shortages anticipated in developing countries created by their explosive economic growth. Trojan sold water disinfecting equipment, and the senior market associate's job was to find new areas for growth. China was particularly intriguing because it had as much water as Canada, but 40 times the population, and its economic boom would further stress current water resources. Trojan had set growth hurdles of 30 per cent per year, and it needed new markets to reach that objective. The task in new market development was to determine if Trojan should enter China, and if so, when, where and how. The associate knew little of China: how decisions were made for water disinfecting equipment, whether Trojan's patents would be protected, and what level of resources would be required. The vice-president of new business development wanted to see recommendations within the month. AWARD WINNING CASE - This case was second place winner of the MDC of Hong Kong Case Writer of the Year Award in 2000.

Teaching Note: 8A99M28 (10 pages)
Industry: Utilities
Issues: China; Environment; Strategic Planning; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Sources of Capital for Entrepreneurs

ZERO-KNOWLEDGE SYSTEMS, INC.
James E. Hatch, Amanda Clark

Product Number: 9B00N010
Publication Date: 5/10/2000
Revision Date: 1/12/2010
Length: 14 pages

An entrepreneurial company, Zero-Knowledge Systems, provided privacy solutions for Internet-based applications. Their product permitted users to create multiple digital pseudonyms. The entrepreneur and his two sons were looking to U.S. venture capitalists to fund the company's growth and to acquire some expertise. They must put together a list of criteria to use to choose among potential funders and must assign a value to their company, so they will have an idea what percentage of the company they are willing to give up.

Teaching Note: 8B00N10 (7 pages)
Industry: Other Services
Issues: Entrepreneurial Finance; Valuation; Venture Capital; E-Commerce
Difficulty: 4 - Undergraduate/MBA



ZERO-KNOWLEDGE 2000
James E. Hatch, Bryce Storie

Product Number: 9B01N003
Publication Date: 5/28/2001
Revision Date: 1/5/2010
Length: 13 pages

Zero-Knowledge designs software that protects the privacy of Internet users. The company needed US$10 million to expand its business. It had already raised half the amount from U.S. venture capitalists, and was trying to determine the best way to raise the remaining amount. The executive vice president of a securities firm must put together a private placement offering for Zero-Knowledge that meets the needs of both Zero-Knowledge and the proposed institutional investors.

Teaching Note: 8B01N03 (12 pages)
Industry: Other Services
Issues: Private Placement; Financial Strategy
Difficulty: 4 - Undergraduate/MBA



COW’S LONDON
Stephen R. Foerster, Rob Barbara

Product Number: 9A95B027
Publication Date: 10/18/1995
Revision Date: 2/11/2010
Length: 8 pages

James and Serena Udderlie were preparing a loan application to the Confederation Bank of Canada. They were requesting a $160,000 term loan, in addition to an operating loan, for the potential opening of a Cow's ice cream and clothing franchise. They needed to develop proforma income statements and balance sheets for the store's first two years of operation. They also wondered what collateral, if any, they would be able to provide the bank to secure against a loan, and what other terms the bank might deem necessary.

Teaching Note: 8A95B27 (7 pages)
Industry: Accommodation & Food Services
Issues: Bank Lending; Loan Evaluation; Financing
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Strategic Planning for Emerging Ventures

WILLIAMS COFFEE PUB
Kenneth G. Hardy

Product Number: 9B04A006
Publication Date: 10/13/2004
Revision Date: 10/7/2009
Length: 19 pages

Two brothers have developed Williams Coffee Pub into a 44-unit, quick service restaurant franchise in Southwestern Ontario. Williams Coffee Pub has a very broad positioning with different segments frequenting it in different parts of the day. The brothers have hired a new chief executive officer and they are about to hand significant operational and strategic control to this new executive and the new board of directors. The broad positioning is an issue and the future communications campaign is also an issue.

Teaching Note: 8B04A06 (5 pages)
Industry: Accommodation & Food Services
Issues: Franchising; Marketing Communication; Strategic Planning; Market Strategy
Difficulty: 4 - Undergraduate/MBA



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



CREATING AUCTIONWIRE
Nicole R.D. Haggerty, Ken Mark

Product Number: 9B06M051
Publication Date: 4/11/2006
Revision Date: 9/21/2009
Length: 18 pages

The co-founders of Auctionwire, a start-up online business that will sell goods on consignment, are trying to select the best software solution for their fledging business. The co-founders want to know how they can make the best decision possible in vendor selection. What criteria should be used? Which questions should they ask? As software is the key component of their online operation, the choice of a vendor can spell success or failure for Auctionwire. A video interview with co-founders is available, product 7B06M051.

Teaching Note: 8B06M51 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Information Systems; Strategic Planning; Vendor Selection
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Managing Entrepreneurial Growth

ECO-SHRED LTD. - 1999
Kenneth G. Hardy, Paul Heydon

Product Number: 9A99M043
Publication Date: 3/6/2000
Revision Date: 1/18/2010
Length: 22 pages

A Canadian entrepreneur has grown a start-up paper-shredding business to almost $5 million over a nine-year period and he now faces some real internal tension over the future pace and direction of growth. Although he would like rapid expansion, he refuses to sell shares or take on debt. Issues from labor to acquisitions are presented, as well as the difficulties in determining operating strategy while keeping up with day-to-day management.

Teaching Note: 8A99M43 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Planning; Internationalization; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



PRINCE EDWARD ISLAND PRESERVE CO.
Paul W. Beamish

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

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

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



ASIASPORTS: HOCKEY NIGHT IN HONG KONG
Andrew Karl Delios

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

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

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


Chapter 17:
Valuation of Entrepreneurial Ventures

CASH TECHNOLOGY LIMITED: A CHINESE IPO IN SINGAPORE
Larry Wynant, Nigel Goodwin

Product Number: 9B06N006
Publication Date: 1/13/2006
Revision Date: 8/2/2011
Length: 19 pages

Cash Technology Limited is a Xiamen-based manufacturer of self-service banking machines, touchscreens and related software. The company was set to issue its initial public offering on the Singapore Exchange. The proceeds from the IPO would help the mid-sized, entrepreneurial and private company secure its position in the burgeoning Chinese market for automated teller machines and related equipment. With six weeks left before the IPO, the chief executive officer and chief financial officer attempted to value their company by various methods and assess the reasonableness of the offering price proposed by the IPO manager. The case challenges students to examine the attractiveness and value of a business from the perspective of the issuer and potential investors, and can also provide the opportunity for students to develop a strategy for communicating with institutional investors.

Teaching Note: 8B06N06 (19 pages)
Industry: Manufacturing
Issues: China; Financial Analysis; Initial Public Offerings; Cost of Capital; Valuation; Nanyang
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



REGARE CORPORATION
James E. Hatch, Victoria Young

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

Regare Corporation is a telecommunications company offering a comprehensive array of telecom products including local access, long distance, calling card and toll free services, internet access, and paging to residential and small- to medium-sized corporate customers. A core strength of the company was its advanced convergent billing system, that enabled Regare to provide a customized bundle of services on a single customer bill. The company has been in business for less than two years and is on an aggressive growth track via organic growth and strategic acquisitions. Currently, Regare is in negotiations to effect a reverse takeover of a publicly traded company on the Vancouver Stock Exchange as well as the acquisition of a large private long distance reseller. The CEO must decide on what terms the deals will be made as well as how to finance the acquisitions. Students will learn how to value both a private and public company, the nature and structure of a reverse takeover and, about consolidation as a growth strategy.

Teaching Note: 8B00N12 (5 pages)
Industry: Finance and Insurance
Issues: Entrepreneurial Finance; Valuation; Acquisitions; Take-over Bids
Difficulty: 4 - Undergraduate/MBA


Chapter 18:
Harvesting the Entrepreneurial Venture

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

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

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

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



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

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

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

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



FLONETWORK INC.
James E. Hatch, Ryan Kovac

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

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

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



INNOMEDIA LOGIC INC.
James E. Hatch, Warren Roll

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

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

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