ERAD - The Entrepreneur's Challenge
The chief executive officer of eRAD Inc., a company that develops picture archiving and communications systems for the diagnostic imagery industry, is preparing for an upcoming board meeting, where he will face several challenges related to the potential sale of the company. The founder’s recent death in a plane crash has left the company struggling to meet its financial obligations. On one hand, the sale of eRAD to a larger health care technology company will provide enough money to end the ongoing struggle to keep solvent. On the other hand, the business is on the threshold of profitability, and some board members consider the sale premature. All that remains is to reach agreement on the factoring of debt and a few other financial details to satisfy the many shareholders whose votes are needed to accept the offer.
- To understand the role that the personal characteristics of entrepreneurs play in venturing, especially as they relate to control over the venture.
- To understand the appropriate type of funding to pursue for different types of ventures, the process of negotiation and the question of when to cut one’s losses based on the financial calculations of ownership.
- To discuss the importance of a sales force in this type of business-to-business software venture.
- To explore how times of crises in the emergence of an entrepreneurial venture are also the times for changing old traditions and commitments.
Information, Media & Telecommunications
United States, Small, 2010
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