This case demonstrates the complexity surrounding the start-up of a Chinese joint venture by a small business, and the difficulty evaluating the joint ventures success in terms of the learning objectives used to justify, in part, the start-up. Students have the opportunity to explore the advantages and disadvantages of a small business entering a very foreign environment. Students are encouraged to explore the importance of experience as a learning model for management and the risks that can accompany such action. The case also illustrates the some of the role of a small business board in the governance of the enterprise.

The teaching note was written for an undergraduate courses in small business and entrepreneurship and is expected to be useful when discussing managing the growing enterprise, particularly where internationalization is considered as a strategy. It might also be useful in an introductory MBA course covering a similar area..
 

Arthur Jameson, ZyAx President, is struggling to put together an evaluation of the Chinese joint venture for the Board. His task is complicated because a major reason for entering China was to provide management with a significant, new learning experience in a non-western culture, an objective that does not lend itself easily to impartial, quantitative analysis. That fact, coupled with the small financial benefits gained thus far, the uncertainties involved in doing business in such a different cultural, economic, and political environment, and the lack of clarity surrounding the expectations of the joint venture partners have Arthur puzzled about how to proceed.

Despite the fact that its joint venture is 10 years old, ZyAx, Inc., a manufacturer of materials handling equipment with total sales approaching $33,000,000 has received few dividends, and the quality of the Chinese product is still not up to U.S. standards. On the other hand, using ZyAxs technology Shanxi-ZyAx, Ltd. has shown steady improvement in its manufacturing capabilities and its revenues have begun to rise.
 

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Contact Person: Richard Grover, University of Southern Maine, Portland, Maine 04104-9300
Voice (207) 780-4286 FAX(207) 780-4662 E-mail: rgrover@usm.maine.edu

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This case presents the difficulties a small business partnership can create when the owners have different financial needs and perspectives on how to build the business. The student is provided with alternative actions and the cost of implementing them; the reader is encouraged to choose a basic growth strategy and with it the actions that will provide the company with new momentum to continue its growth curve. The conflict between the partners is stark and clear, demonstrating that there are a myriad of choices and possibilities that one faces when managing a business with uncertain outcomes and consequences.

The teaching note was prepared for undergraduate courses in organization management or a capstone management class on the issues that could face the partnership form of business ownership. The case could also be used in a business entrepreneurship course.

The case reviews the time period from 1972 to present for Marty and Lynn H., successful entrepreneurs in the New York City construction trades industry. Starting out in business by buying a small fix-it tool shop located in Arbor, New York located near the Connecticut border, the couple built the company from one concentrating on fixing vacuum cleaners and toasters to one oriented towards the more lucrative market of selling and fixing light electrical, mechanical and hydraulic tools to the New York metro construction trades.

After receiving and ignoring repeated client requests for Arbor Tool to consider fabricating construction site brackets and made-to-order electrical junction boxes, the couple decided in 1990 for Lynn H. to become the CEO of a spin-off company to be called the Arbor Fabrication and Manufacturing Company so that they could pursue this business.

Not feeling comfortable as the sole proprietor, Lynn decided to find an outside partner and investor in Arbor Fabrication. Her tedious five month search led to Lynn finding Jerry S., someone who was mostly unknown to her but recommended by a mutual friend. Jerry agreed to form the new venture in the role of minority stockholder and investor.

Six years into the business, Lynn and Jerry have found a profitable niche business in the production of custom-made electrical junction boxes ranging in size from 4" to 4’. Arbor Fabrication has provided both excellent quality with just-in-time delivery service highly valued by their clients. However, Lynn and Jerry can no longer agree on how best to grow their business now that revenue has stalled at the $2.5 - 3.0 million level.

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Contact Person: Laurence Weinstein, Sacred Heart University, Fairfield, CT.
Mail: Dept. of Management, Sacred Heart, 5151 Park Avenue, Fairfield, CT. 06432-1000
Voice: (203) 371-7854 FAX: (203) 365-7538 E-mail: WeinsteinL@sacredheart.edu
 

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The focus of the case is on establishing a customer development strategy to stabilize sales and support sustainable sales growth. It highlights the importance of a customer development strategy involving maintaining current customers, selling more to current customers and developing new customers. It is designed to encourage students to consider characteristics of a target market to develop appropriate channel and new product development strategies. The case analysis will involve reviewing industry information to identify trends relevant to the development of a strategic marketing plan. As such, it provides the opportunity for students to sift through market data in order to translate it into useful information about how major trends in the industry impact long-term sustainable growth of a small manufacturer in a specific industry. It provides students a realistic exercise in developing skills needed to strategically guide a company to sustainable profitability, within the framework of the values and personal traits of the small business owner.

This case was written for inclusion in an upper level undergraduate marketing management course or a small business/entrepreneurial management course, to supplement discussions on customer development and management. The primary focus relates to the marketing management decisions of a small business, and the development of specific actions that should be taken to ensure long-term viability.

The Bag Lady was established in 1968 by Dianna Christiansen, whose desire was to design and produce American-made luggage, women’s handbags and accessories that were both fashionable and of the highest quality. The Bag Lady is primarily involved in manufacturing, with its manufacturing facility located amidst the White Mountains in Woodstock, New Hampshire. Goods are sold both domestically and exported to Europe, with company sales fluctuating between $2 and $4 million annually. Goods are either distributed directly for resale by The Bag Lady or through manufacturer reps. The Bag Lady also operates four Company Stores which include one factory outlet and three specialty retail stores. The Bag Lady has experienced fluctuating sales within the last several years due to dramatic changes in the channels of distribution for its products, and heavy competition by foreign contractors. Dianna is faced with the need to develop a customer development strategy in order to stabilize and grow sales.

____________________
Contact Person: Jeanne Munger, University of Southern Maine, Portland, ME 04104
Mail: School of Business, 96 Falmouth Street, Box 9300, Portland, ME 04104-9300
Voice: (207) 780-4925 FAX: (207) 780-4662 E-mail: jmunger@usm.maine.edu
 

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The Cancer Pharmaceuticals case presents an opportunity to examine a bio-pharmaceutical technology startup company in the science technology phase searching for a cure for cancer. Students can examine the challenges faced by company founders in this high technology environment faced with decisions under extremely high degrees of uncertainty. Students are asked to offer recommendations in an industry with very long time frames for product testing and introduction, very large capital requirement, and very high risk of failure. The case is based on field research and is appropriate for courses in strategy and small business and entrepreneurship at the undergraduate and graduate levels.
 

This case is about an entrepreneur with a medical education interested in starting technology oriented companies with a particular passion for technologies that have the potential to help cure cancer. Dr. David Ford was introduced to two Russian research scientists that had been working under government funding at a major medical research facility. The two scientists presented data that showed that they had discovered a new bio-pharmaceutical technology that had treated a wide range of tumors in mice and they thought that it was likely that it would do the same in humans. After viewing the data Ford was convinced that the scientists had made a discovery that had the potential to prevent suffering and save thousands of lives.

In July of 1996 Dr. Ford and the two scientists formed a company. By September of 1997 they were faced with some critical issues: a) should they sell the company for shares in another company or, b) continue to test the technology, adding credibility to the technology and demand more money in the future. A decision had to be made by November or they could lose out on some key opportunities that might disappear if they did not act quickly.

____________________
Contact Person: John Friar, College of Business, Northeastern University, Boston, MA 02115
(617) 373-4784 FAX (617) 373-8366 E-mail: Jfriar@cba.neu.edu

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Consolidated Industries: A Case on Black-Owned Businesses is a teaching case designed to give student insights into ethnic business enterprises (also known as minority-owned businesses). There were four objectives: (1) to provide students with a definition and overview of ethnic business enterprises, (2) to explain how set-aside programs such as 8(a) certification work and are used to aid in the development of ethnic business enterprises, (3) to provide students with an opportunity to develop strategies to build strong relationships between ethnic business enterprises and major corporations or industry players, and (4) to facilitate discussions on the issue of government assistance to people of color and affirmative action.

This case could be useful in several courses: courses on entrepreneurship, courses on small business management, courses that address corporate social responsibility such as business policy/strategic management, as well as courses on organizational behavior in which affirmative action policies are addressed.
 

Consolidated Industries Inc., is a Black-owned business located in Huntsville, Alabama. Columbus Sanders bought the firm in 1982 and reoriented it from a research and development company into a successful firm that competes in the space and defense industries.

This teaching case provides some insights into Black-owned businesses and other ethnic business enterprises. A definition of ethnic business enterprises, as well as an explanation of set-asides programs—8(a) in particular are provided. Students are given an opportunity to discuss some of the concerns surrounding these issues and formulate strategies to build better relationships between major corporations and ethnic business enterprises.
 

____________________
Contact Person: Vickie Cox Edmondson, The University of Alabama at Birmingham
Mail: 1150 10^th Ave. South Birmingham, AL 35294
(O) 205-934-6922 (FAX) 205-975-1845 E-mail: Coxedmon@UAB.edu

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This case demonstrates many of the problems new international ventures are confronted with both in its start up process and later on in the expansion process. So far the main body of literature on this type of firms has been either descriptive or cross-sectional statistics, very few have addressed the complexity and amount of problems these firms are confronted with. The case stresses the need for establishing international contacts in order to survive as a niche manufacture on a small domestic market. Planning the company strategy is perhaps an impossible task when founding the company, but as the expansion continues the need for strategic plans and focus becomes more evident. The students are encouraged to develop tools for the analysis of the future development of the company and to foresee the possible consequences of their strategic choice. The teaching note was written for graduate courses in Industrial Marketing, and is expected to be used at the end of the course. It is aimed for highlighting the situation for "Born Global" industrial firms and their possible further development. It may also be useful in courses in International Management and Strategic Marketplanning.

HILLTOP Brakes Inc. was founded in 1989 when Mr. Paul Carlsen took over an existing company and in 1991 the "new" company started production and sales of hydraulic disc brakes for the mining industry. In order to expand further and stabilize the future position the company looks for new business areas within the same core technology.

In the beginning of the case we follow the founder Mr. Paul Carlsen and the case displays some of the motives and aspirations of the entrepreneur. This introduction is followed by a section on how HILLTOP became a manufacturer of these brakes, stressing the relationships to a world-wide operating Swedish firm (LAND) who produces drive systems to e.g. the mining industry. Basing the whole business on one customer is, however, not a fruitful strategy to pursue, hence HILLTOP Brakes Inc. seeks new business areas to enter with this product. The founder receives some request from a producer of wind power turbines as to whether he is interested in producing brakes for windmills.

The case includes information on the windmill industry both locally and on export markets making it possible to make recommendations to Mr. Paul Carlsen as what to do in the future.

____________________
Contact Person: Per Servais, Odense University, School of Business and Economics,
Department of Marketing, Campusvej 55, DK-5230 Odense M, Denmark
Voice + 45 65 57 32 66 FAX: +45 66 15 51 29 E-mail: Per@busieco.ou.dk
 

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This case requires the reader to utilize the planning, analytical, and decision-making techniques of a prospective entrepreneur investigating a new business opportunity. The reader must understand and deal with the complex relationships that exist among the functional areas of a business in an entrepreneurial setting. The case invites a solution to the marketing challenges facing a company producing a product that may be viewed by the market as a commodity, but which has attributes that allow it to be differentiated and branded. In addition, the reader must address the opportunities and threats that a fractured and disorganized industry, producing a renewable natural resource, present to potential new entrants. Finally, the unique challenges and opportunities of a business operating in an economically depressed and remote region of North America must be considered.

The case was written for an integrated functional management course taught in an undergraduate business program. The case design, however, allows for great flexibility of use and for variety of target audiences. The case could be used in undergraduate, graduate, and executive management marketing, finance, entrepreneurship, international business, or strategic management courses, preferably near the end of the course. A great deal of industry data is provided allowing the reader to perform an in-depth analysis.

In late January 1996, Jan and Dave Bailey were considering establishing an aquaculture operation, a mussel farm, on an excellent cultivation site in Notre Dame Bay on the north coast of Newfoundland, Canada. Jan and Dave had collected a significant amount of information about the world aquaculture industry and the mussel industry in Atlantic Canada. While there seemed to be potential for a new mussel farming operation in the area where Jan and Dave lived, the industry presented a unique blend of opportunities and risks.

Was the seemingly attractive idea of a mussel operation a viable business opportunity, or did the nature of the business and the disorganized state of the industry in Newfoundland make the venture too risky? This case presents Jan and Dave at the point of a major task. They must develop a business plan for a mussel farming operation to determine whether this is a venture in which they will invest their savings. To be in operation for the 1996 season, their big decision must be made by mid-March.
 
 

____________________
Contact Person: Sean Hennessey, School of Business Administration, University of Prince Edward Island, 550 University Ave, Charlottetown, P.E.I.,
Canada C1A 4P3.
Phone: (902) 566-0523 Fax: (902) 628-4302 E-mail: hennessey@upei.ca

This field-research-based case demonstrates the problems facing a small family-owned company in the transition process. The problems presented are further complicated by the fact that the rightful heir is not an only child. Potential conflicts between company and personal objectives are to be eliminated, but this might "make waves" within the family. The case addresses events and circumstances typical for family-owned businesses that might raise ethical red flags, and the overall perspective to be considered is whether family or business comes first. As most conflicts in the case are only hinted at, the case invites a broad discussion which may take many directions.

The Instructor's Manual was written for MBA courses in Small Business Management and Entrepreneurial Management. The manual may also be useful in courses in Business Ethics provided an adjunction of additional readings.

Kjeld Petersen Snr. founded Minex Vulk ApS by conceiving an entrepreneurial idea, providing the necessary capital and for a number of years performing the roles of entrepreneur and manager. However, second generation has taken over, and the case is built around a lunch-break conversation between CEO, Kjeld Peterson, and one of his old friends and co-workers. Petersen Snr. is having problems with his son, who now owns the company in which the father has been employed as CEO. The generational change and the power struggle between father and son have caused changes in regard to company procedures and culture. In the period of transition less emphasis has been on the welfare of the company as, to some extent, father and son have been pulling the company in different directions. Father and son are of a piece, and as they both have a Godfather mentality, they both feel eliminated from the business at some point. Petersen Snr. is frustrated releasing his hold on the company, and at the same time he is feeling proud of his son's achievements. He needs to find a balance between exclusive self-interest and complete selflessness. A balance which is difficult to find when the usual roles within the work-setting has been extended and now also includes the role of a "family member".

____________________________
Contact Person: Jeanette Larsen, Ph.D.-student, Department of Management, School of Business and Economics, Odense University, Campusvej 55, DK-5230 Odense M, Denmark
Voice: +45 6557 3372 FAX: +45 6593 0726 E-mail: jla@busieco.ou.dk

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This note was written to accompany the Pivot International case, but may be used alone. It is intended to provide a basis for analysis of the attractiveness of the various industry segments. If used with the company case, the basic issue is whether the company has opportunities in any segment and, if so, how they might go about positioning the company to enter the segment. If used alone the note should be used to assess the opportunities and threats (windows and deterrents) to successful investment in the industry.

This industry note covers the current situation in several industry segments of the security device and systems industry. Specifically the note focuses on the industry growth, demand drivers, industry segments (mass marketers; installers and small systems designers; large system designers, Value Added resellers, device manufacturers (including: OEMs and large device manufacturers), and high-end technology and product developers). The note also focuses on four technology developments: the biometrics sub-segment along with its demand drivers and deterrents; access control and Radio Frequency ID systems; closed circuit TV (CCTV); and integrated and environmental control systems.
 

____________________
Contact Person: Theresa L. Coates, Rensselaer Polytechnic Institute, Box 86, Mt. Misery Rd., Hannacroix, NY 12087
(518) 756-6376 E-mail: taylot@rpi.edu

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This case is intended to show students of entrepreneurship that well educated and experienced entrepreneurs can start a successful business that grows quickly and still find themselves in serious financial difficulty. The case allows students to develop a picture of how outside influences can complicate entrepreneurs= ability to forecast sales in a high cost sales environment. It also allows students to analyze the importance of the need for an exit strategy when financial uncertainty increases. The importance of developing scenarios and the likely consequences under each to the entrepreneur is emphasized with a retailing concept that college students can relate to. The progression of decisions that can lead to the potential for near financial ruin is illustrated along with the personal guarantees of company debt encountered by owners of small companies.

This case is most appropriate in a senior level entrepreneur strategy course. It probably fits near the beginning of the course if the students have experience forecasting sales and expenses, otherwise it should follow exercises on forecasting. It would also serve as a simple exercise in forecasting by ignoring the financial consequences to the owners. The case works well as an exercise in developing business plans as an example of how outside influences can lead to optimism.
 
 

On Air Designs, a small retailer of >licenced= merchandise, primarily tee shirts, associated with popular television shows and current motion pictures. The founder and president of the firm has many years of experience as a broadcast executive and as an entrepreneur. The other owners have extensive business and broadcast experience as well. The company has grown rapidly in a regional shopping mall and has developed a customer following looking for merchandise related to their current favorite television shows. The uniqueness of On Air Designs products has led to media attention from major newspapers. This is the only retailer in the country that sells products from all the major television and cable networks. The attention led to being contacted and >courted= by a very large regional mall in an affluent area of metropolitan Detroit.

On Air Designs and its owners are now confronted with the need to either personally borrow more money to put into the firm, or close the operation. If they borrow the money the company must make the holiday forecasts of sales and expenses or the owners will need to borrow again. If the owners decide to close the operation they will incur sizeable personal liability for company debts.
 

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Contact Person: Duncan Kretovich, Eastern Michigan University, College of Business, Ypsilanti, MI, 48197. (O) 734.487.9748, FAX 734.487.1949, E-mail: duncan.kretovich@emich.edu.

This case illustrates the challenge of entrepreneurship in an emerging market economy. In particular, it shows the problems related to resource scarcity, lack of a developed legal infrastructure, and environmental turbulence accompanying business development in Russia. Another objective is to demonstrate the similarities and differences regarding the traits of U.S. and Russian entrepreneurs. Finally, the case provides an opportunity for students to perform a strategic analysis on a small firm in Russia that involves: identification of strengths, weaknesses, opportunities and threats; issues/problem identification; evaluating a set of plausible alternatives; and developing a recommendation to the major decision maker, along with an implementation plan.

This case may be used both at the undergraduate and graduate levels in business schools. Courses most appropriate are international business, strategic management, and international entrepreneurship.

In 1996, Apete was a four-year old firm in St. Petersburg, Russia involved in research and development and manufacturing high quality orthopedic surgical instruments and joint prosthetics. Its founder, Valeri Michailovich Popkov, was an engineer who applied technologic processes involving titanium from Russia’s space program to manufacture hip and shoulder joints The company was operating during a period of rapid economic, political, and cultural change in Russia.

Although Apete was marginally profitable and Popkov was able to pay employees every month, further expansion required additional resources which were scarce. Part of the problem stemmed from the lack of national certification, which was a corrupt and very expensive process. To finance future growth in the core business, Popkov diversified Apete somewhat by signing a contract with a large oil company to supply steel lockers to house computer equipment in harsh environments. But as he reviewed the recent financial statements, Popkov wondered what he should do to increase sales and profits further. How could he get the resources he needed? If he could obtain a large contract, the cash flow situation would be easier. Perhaps further diversification was necessary. Popkov pondered these options and wondered "what next?"

____________________
Contact Person: Frances M. Amatucci, School of Business, Salem State College,
352 Lafayette Street, Salem, Massachusetts 01970
(978) 542-6823 FAX: (978) 542-6027 E-mail: famatucc@salem.mass.edu

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The case was developed for use in Strategic Management and Industry Assessment courses. It provides a rare opportunity to look at a contract design and contract manufacturer for Original Equipment Manufacturers. The case can be used to assess competitive advantage, industry potential given the firm’s competitive advantages, and marketing strategy components (including the firm‘s offering, marketing materials, and marketing approach).

This case focuses on a small contract manufacturing and engineering firm located in the Greater Kansas City suburbs. The company is part of a multi-national manufacturing and engineering firm owned by an investor in the Philippines. The other two offices are located in Taipei and Manila. The Taipei office focuses on tool and die design work and sourcing of components throughout Asia. The Manila facility is devoted to manufacturing.

The president of Pivot’s Kansas City division, Kirkland Douglass, wants to diversify the firm away from its reliance on the turbulent market it currently serves. In addition, the firm’s owner, Mr. Ching, is aggressive about the firm’s growth. Mr. Douglass and one of his senior engineers who is a major player in the firm’s marketing program have identified the security device and systems manufacturers as a possible target for their design and custom manufacturing services. Excerpts from a market research study commissioned by the company indicate demand for security services and products will continue to experience steady growth.

The case depicts Mr. Douglass as reviewing plans for the March, 1998 international security exhibition and conference in Las Vegas that he, his engineer-marketer, and four other Pivot personnel will attend in two weeks. The case portrays the company’s marketing materials and general approach. The case poses the questions about how Mr. Douglass and his team can make best use of their time at the exhibition-conference and the post-conference time period. It also asks whether the industry segment they are targeting is an appropriate one for them.

The case may be used alone or in conjunction with the Security Device and Systems Manufacturers Industry Note

___________________
Contact person: Marilyn L. Taylor, Bloch School of Business and Public Administration, University of Missouri at Kansas City, 5110 Cherry, Bloch 208, Kansas City, MO 64110
(816) 235-5774 FAX (816) 235-2312 E-mail: taylorm@umkc.edu

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In 1992, Polly Epstein began making birdhouses in her garage. The company was moved to several locations, eventually ending in a 12,000 square foot factory. The business, now with sales at approximately $2 million, needs direction. Polly and her husband, Sam, have to control the company’s growth, add new products, locate new markets and customers, out-maneuver the competition, and still have fun. This case can be used in small business, enterpreneurship, or business policy classes at both the undergraduate and graduate level.
 

In 1992, Polly Epstein began making birdhouses in her garage. Her husband, Sam, built the birdhouses, and she painted garden scenes on them. Polly took her first two birdhouses to a local seed and grain shop and asked the owner if he thought they would sell. The owner was not sure that they would be saleable, but he agreed to take them on consignment. The houses sold almost immediately, so the owner called Polly and asked her to make more because now he believed that there was a strong market for the product.

Polly’s Perch, manufacturer of birdhouses and other wood products, is now a two million dollar business with a diverse product line, 42 employees, a brand new 12,000 square foot factory, and unlimited potential. Now Polly and Sam have to control the company’s growth, add new products, locate new markets and customers, out-maneuver the competition and still have fun.
 

_____________________
Contact Person: Robert L. Anderson, School of Business and Economics, College of Charleston, Charleston, SC 29424
(843) 953-8108, FAX (843) 953-5697, E-mail: andersonr@cofc.edu

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This case focuses on the founder's reasoning about the future of a high tech company after six years of experience during which he was required to deal with some of the problems and issues of the typical early stage high tech firms. Critical issues such as heavy dependence on scientific market, obtaining money, early year losses, and harvesting rewards are encountered. Students are urged to think about the most effective strategy for this company and evaluate the risks and the opportunities that the venture encountered in the past and the future.

This case is designed in a manner where students can think through the entire entrepreneurial processes. Undergraduate, graduate, and executive level courses can relate to and learn from the issues presented. The case was written through direct interviews of Klauminzer during 1997.
 

After six years of operation and selling about 100 units of high tech lasers Gary Klauminzer's company, Questek, managed to secure a market share of 27% in the U.S. Since the products required frequent upgrading, Gary pumped more than half of his gross profits into R&D. The company, however, did not generate net profits until 1992 when it produced a small net profit of $9000 from sales of $4.1 million. At that time Spectra Physics, a large dedicated laser company, offered an option to buy the company within one year at $9.65 million.

Up to this point Questek targeted their laser product to scientific applications even though there were more attractive markets in medical and industrial areas. Gary reasoned that once the scientific market had reasonable penetration, doors to other markets open automatically. The opposing management reasoned that the scientific market would soon show signs of declines, thus more efforts should be expended on cultivating other markets. Gary, however, insisted that scientific products were the basis for other applications. With Spectra Physics offering to acquire Questek, Gary was faced with the alternative strategy to seek additional funding in order to properly pursue the scientific market.

____________________
Contact Person: James F. Molloy, Northeastern University, Boston, MA
Mail: 101 Hayden Hall, Boston, Ma 02115
Voice: (617) 373-4812 Fax: (617) 373-2056 Email: jmolloy@cba.neu.edu

Sticky Fingers is a profitable, fast growing barbecue ribs restaurant chain. The "Sticky" team, Jeff Goldstein, Todd Eischeid and Chad Walldorf, has some important short and long term decisions to make. They can continue opening restaurants in other cities, they can devote more time to their non-restaurant businesses, they can franchise their business, they can go public, or they can sell Sticky Fingers to a larger restaurant chain. This case can be used in hospitality/tourism, entrepreneurship, or policy classes at both the undergraduate and graduate level.
 

In 1992, lifelong friends Jeff Goldstein, Todd Eischeid and Chad Walldorf founded Sticky Fingers, a Memphis-style rib house in Mount Pleasant, South Carolina. Hard work, long hours, luck, and advice from Herb Goldstein, Jeff’s father, soon brought success to their venture. Within four years, the "Sticky" team had opened two other restaurants in the area and another in Chattanooga, Tennessee.

In addition to restaurants, Sticky Fingers also operated a catering service, mail order business, and a banquet facility. These other businesses have been successful; however, they did not contribute significantly to total revenue. Success has necessitated decision-making and long-term planning. The "Sticky" team needs to decide which, if any of the following options are feasible and attractive: continue opening restaurants in other southwestern states; spend more time and effort on the non-restaurant businesses; acquire another restaurant chain; sell to a larger restaurant chain; franchise the business; or take the company public.

____________________
Contact Person: Robert L. Anderson, School of Business and Economics,
College of Charleston, Charleston, SC 29424
(843) 953-8108 FAX (843) 953-5697 E-Mail: andersonr@cofc.edu

This case focuses on the relationship between an entrepreneurial business, and the business career of a young entrepreneur. This small business is not facing an existence-threatening crisis; it is viable as an owner-operated enterprise. But that’s not enough for an individual with considerable career potential. Students must assess the future possibilities for this business, in the context of both the entrepreneur’s personal attachment to it, and personal career aspirations.

The case is suitable for use in both undergraduate and MBA level courses. In a course on Small Business - Entrepreneurship, it will illustrate both the opportunities and the opportunity cost of owning and operating a small business, as well as the passion which entrepreneurs often bring to their business, and how this can be both a source of strength and a risk to the enterprise. It could also be used in a Strategy course, to illustrate strategy formulation as the intersection of corporate capabilities with environmental opportunity and management preference and values.
 

Helene Massicotte is a twenty-two year old entrepreneur, co-owner and manager of The Puzzle Store, (TPS) located in The Forks Market in Winnipeg, Manitoba CANADA. Helene has just graduated from the Administrative Studies program of the University of Winnipeg and is considering taking an MBA at the University of Manitoba. She has an strong attraction to TPS for many reasons, but at the same time she realizes that in its present form, its financial upside is limited, and its demands on her time will continue to be heavy.

Accordingly, Helene is contemplating a number of ways to grow the business, primarily market or product expansion at the retail level. These were originally scheduled for development after she completed her MBA program. However, a new possibility has suddenly arisen to backward integrate into production of puzzles, in partnership with two of her current suppliers, but a decision must be made soon, and work initiated shortly thereafter. Helene must decide if this is the best course of action to grow the business, and if so, how does she balance this major initiative with her own plans to pursue an MBA degree. As an undercurrent to both these decisions, Helene must also decide if indeed TPS has enough potential to figure in her future business career.

____________________
Contact Person: Helene Marie Massicotte, Co-owner, Puzzletique
Mail: 234, rue Notre-Dame Street,, Winnipeg, Manitoba CANADA R2H 0C3
Voice: (204) 233-7555 FAC (204) 233-1000 E-mail: puzzles@puzzletique.mb.ca

The lesson that is intended from this case is a very simple, but painful one. I know particularly well, since I, the protagonist in the case am the one who was hurt. Both from the standpoint of ego, and dollars--almost $10,000 worth. But there is a more specific and generalizable note too.

First, the case was written by our graduate student, Ms. Shehnaz Mamsa, under a program set-up several years ago called the Zinn Scholarship funded by Mrs. Robert Zinn in honor of her deceased husband, Robert Zinn, President and C.E.O. of Crown B.B.K. one of Southern California's largest food brokers, and a good friend of our college. Shehnaz wrote the case, by interviewing me, Dr. Julius Brown.

There are really three lessons from the case:

1. Not all entrepreneurial ideas turn into Microsoft or Yahoo--many fail.

2. Entrepreneurs easily fall prey to a common human frailty; believing what they want to believe, rather than taking cognizance of information that should hit them in the face during the development of their product or idea or service.

3. Brown did not heed negative signals early in the development process.

Dr. Julius S. Brown, a college professor, became hearing impaired to the point where hearing aids were advised by his otolaryngologist. Upon being tested and fitted by an audiologist, he was shocked to find the cost quoted as $2,000, then, in the face of competition, reduced to $1,500.

Brown made something of a study of hearing aids, and upon enlisting the aid of a graduate student in biology and materials engineering, came up with a one-step process instead of the two-step method being used currently. Since there are over 22,000,000 hearing impaired people in the United States, he thought he had an entrepreneurial bonanza.

From that point, he "tuned out" any warning signals and proceeded. He found out, after much effort and $10,000 in costs, that the overwhelming obstacle to hearing aids was not price, his only real selling point, but sheer vanity in a youth-oriented culture.
 

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Contact Person: Julius Brown, Loyola Marymount University, 7900 Loyola Blvd.,
Los Angeles, CA 90045-2699
(310) 338-7401 FAX: (310) 338-7790 E-mail: Jbrown@lmumail.lmu.edu