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Small BusinessEntrepreneurship - Boulevard Brewing Company

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Small BusinessEntrepreneurship - Boulevard Brewing Company ...

    ABE’S? REAL BAGELS OF CHICAGO

    Stephen Bowden, University of Waikato

    Kate Kearins, Auckland University of Technology

    Case Objectives and Use

This is a general entrepreneurship/strategy case whose original purpose was as the subject of a

    case competition for undergraduate students in strategic management. The case is, therefore,

    intentionally broad providing enough information for a strategic analysis of both the company and its environment. The case also provides the opportunity for students to develop strategic

    recommendations for the future of the company. Intentionally, no particular direction for the

    company is specified in the case. Nevertheless, the ABE’S? case deals strongly with three

    particular aspects growth, competitive defense and international adaptation. ABE’S? at the

    time of the case is dealing with large growth that has the potential to threaten the small business

    feel of the company that the owners clearly enjoy. The growing bagel market in New Zealand

    has the potential to attract the entry of the major bakers in New Zealand who dwarf ABE’S? in terms of resources. Finally, bagels are largely unknown in New Zealand meaning the whole

    market needs to be developed and preferences defined.

The case has been used in a case competition by 125 undergraduate strategy students.

    Case Synopsis

ABE’S? Real Bagels of Chicago was founded by co-owners Megan Sargent and Brent Milburn

    in 1996. After a difficult beginning, ABE’s was now one the fastest growing companies in New

    Zealand and the market leader in the small New Zealand bagel market. In April 2003, ABE’S? produced 70,000 bagels per week out of the 255,000 bagels baked in New Zealand and

    distributed them mainly through 80 supermarkets in the North Island. In addition, ABE’S?

    operated a café in downtown Auckland and distributed further bagels through other cafés.

    ABE’S? had recently formed a joint venture with a Christchurch accountant that had led to a

    second café being opened in Christchurch and a deal in place to distribute to South Island

    supermarkets. ABE’S? was also set to launch their range of bagel crisps through supermarkets.

    Going forward, ABE’S? wanted to continue their growth without losing control and to position

    themselves to defend against the potential entry of larger bakers in the future.

     ___________________________________

    This case was prepared by Stephen Bowden, University of Waikato, and Kate Kearins, Auckland University of

    Technology, and is intended to be used for class discussion rather than to illustrate either effective or ineffective

    handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Stephen Bowden and

    Kate Kearins.

    BLUE MOON NATURAL FOODS

    Margaret j. Naumes & Jill a. Kammermeyer

    University of New Hampshire

    Case Objectives and Use

This case involves growth in a small, entrepreneurial business, a natural foods market and café .

    Students will be able to examine the evolution of the entrepreneur’s strategy and vision over time.

    The case asks students to develop a strategy for further growth and an appropriate exit strategy

    for Kathy Gallant. A more advanced topic is the development of a plan for employee ownership

    and/or profit sharing. The case was developed for courses in Entrepreneurship/Small Business

    Management and can be used at either the undergraduate or graduate level. In an undergraduate

    course, the case can be used to evaluate ―success,‖ and to develop strategies for continued

    growth and the entrepreneur’s exit from the business. Graduate students could be expected to

    take on the issue of employee ownership/profit sharing.

While not a difficult business to understand, financial analysis may be frustrating due to the

    informal nature of the data, as is sometimes true for an entrepreneurial business. Growth issues

    could be studied early in the course. Development of an exit strategy for Blue Moon should be

    positioned in connection with text or course readings. The profit sharing/ownership issue is not

    found in all entrepreneurship texts, and would require understanding of legal and financial, as

    well as motivational issues involved.

    Case Synopsis

Blue Moon began as a natural foods market, added a small restaurant based on its deli, and, in

    December 2002, had just opened an upstairs space which was used for classes by instructors

    from the local community. Blue Moon’s founder, Kathy O’Leary Gallant, had a vision that had

    evolved over time and a strong commitment to her customers and employees. New business

    segments within Blue Moon had been added in response to perceived opportunities and Kathy’s

    interests.

Kathy had just held an evening meeting with her whole staff, where she had told them her dream

    of offering ownership to all employees. She saw employee ownership as a motivator, and

    possibly as a way for her to eventually leave the business and move to Mexico with her husband.

    At the same time, she still had many ideas for growth, and was still enjoying her day-to-day

    involvement in Blue Moon.

     ___________________________________

    This case was prepared by Margaret J. Naumes and Jill A. Kammermeyer, University of New Hampshire, and is

    intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the

    situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Margaret J. Naumes

    and Jill A. Kammermeyer.

    BOULEVARD BREWING COMPANY

    Karyl Leggio, Jeff Young, & Marilyn Taylor

    University of Missouri, Kansas City

    Case Objectives and Use

The Boulevard case focuses on this 14-year-old craft brewery success story as CEO/founder

    John McDonald and CFO Jeff Krum wrestle with major alternatives confronting the $10M

    company. The firm manufactures four craft beers and introduces seasonal beers each year. For

    the latter Boulevard has deliberately under-produced expected market demand. The firm’s

    facilities are located in Kansas City in a historic district and distributes its beers only in nine

    Midwestern states with a major portion of sales coming from the Kansas City region.

In early 2003 Boulevard’s current facilities were expected to meet demand for about the next 18

    months. A facility expansion was planned; however, John and Jeff were wrestling with whether

    to expand at their current location or establish a second site. Simultaneously the firm has been

    presented with a $30M buyout offer from a major brewery and an opportunity to acquire a

    Colorado-based craft brewery for $12M. McDonald has also been considering whether to

    develop the firm’s own distribution capabilities in Missouri, a state with a lion’s portion of

    current sales. This latter alternative presents significant savings potential.

A buyout will bring cessation to brewing activities for John and his partners. The firm’s

    resources do not permit simultaneous pursuit of the other three alternatives although the projects

    could be pursued as staged investments. Thus, Boulevard’s CEO and CFO must consider whether to sell out or not and if not how to prioritize each of the three other alternatives.

    Case Synopsis

The case is written primarily for introductory finance and permits capital budgeting and basic

    real options considerations of the four strategic alternatives. The case may also be used in

    Strategic Management and Entrepreneurship. For Strategic Management it is recommended that

    the case be positioned about mid-way through the course after the SWOTS, Value Chain, Core

    Competence, and Five Forces Models have been reviewed.

     ___________________________________

    This case was prepared by Karyl Leggio, Jeff Young, and Marilyn Taylor, University of Missouri, Kansas City, and

    is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the

    situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Karyl Leggio, Jeff

    Young, and Marilyn Taylor.

    FLORAL FANTASIES

    William E. Matthews, William Paterson University

    Case Objectives and Use

    This case focuses on the marketing problems experienced by a new business started by two individuals on a part-time basis. While the evidence suggests that they have an attractive product line and that they have not experienced serious concerns over their pricing, they have made little progress in terms of identifying appropriate market segment(s) and developing optimal channel and promotional strategies.

    The primary objective of the case is to provide students with an opportunity to put themselves in the shoes of the founders and, based on what has been learned during the first six months of operations, develop a strategy to make effective use of all elements of the marketing mix. A secondary objective of the case is enable them to step beyond the marketing aspects of the case and also address a series of organizational challenges, which need to be resolved before the venture achieves substantial growth.

    The teaching note is consistent with the case being used in an undergraduate course in either entrepreneurship or marketing. In an entrepreneurship course, it could be used early in the case sequence to highlight the strengths and weaknesses of a low-cost, part-time business.

    Case Synopsis

    In December 2002, Tricia Hanson and her colleague, Susan Carelli, decided to start a business selling silk flower creations. Susan had had considerable experience in the floral industry and Tricia was looking for a new venture to replace her dwindling bookkeeping service. At the end of May 2003, Tricia and Susan are still enthusiastic about the venture. People who see their creations invariably say how fantastic they are and they are regularly complimented on the attractiveness of their overall display at hospitals, schools, and stores. People can't believe that the arrangements are artificial. However, despite trying a variety of marketing approaches, Floral Fantasies has yet to capitalize on the perceived opportunities. On the positive side, price does not seem to be a critical factor (i.e., rarely do they get the response that the products are too expensive) and the profit margin appears to be more than satisfactory.

    While Floral Fantasies clearly has a basic problem relative to the sales and marketing of its products, it also has a number of issues that need to be resolved with respect to the name of the company, the attitude of one of the principals, Susan Carelli, and the involvement of the Tom Hanson who is acting as the director of sales and marketing.

     ___________________________________

    This case was prepared by William E. Matthews, William Paterson University, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

    Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting, November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by William E. Matthews.

    HASTINGS PLACE, INC.: AN ENTREPRENEURIAL DILEMMA

    Donald L. Lester, Arkansas State University

    Case Objectives and Use

This case focuses on the issue of combining an investment group with two owner/operators. The

    investment group wants to protect their investment while the owner/operators are interested in

    maximizing their earnings. The decision by the two owner/operators to purchase a supplier to

    the company without including any of the other partners has led to a showdown. Students are

    provided with a clearly identifiable decision point. The case demonstrates the complicated issue

    of conflict of interest, and it also examines the issue of fairness regarding compensation of

    operating partners as opposed to investors.

The Teaching Note was written for undergraduate courses in Small Business Management and

    Entrepreneurship. The case also contains an ethical dilemma regarding one of the

    owner/operators as he must make a tough choice regarding his career and that of a friend of his.

    Case Synopsis

A small restaurant chain, Hastings Place, Inc., operating in the mid-south was about to conduct a

    board meeting. At issue was the attempt by two owner/operators, Ron Bishop and John Lynch,

    to purchase a supplier to the chain’s four units, Bar Needs, without involving any of the other

    partners. The owner/operators, Ron Bishop and John Lynch, are young and ambitious, and the

    investors are financially secure businessmen with several other sources of income.

Not being content with salaries and benefits recently voted them by the board, Ron and John

    secretly agreed to this investment opportunity that would provide them additional income. At

    the last minute, Ron decided to back out of the deal. John Lynch was torn as to what he should

    do. The board had decided to fire Ron or John if they insisted on going through with the

    purchase. A key factor in John Lynch’s mind was that his friend had already quit his secure

    position with the Internal Revenue Service to manage Bar Needs.

     ___________________________________

    This case was prepared by Donald L. Lester, Arkansas State University, and is intended to be used for class

    discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by Donald L. Lester.

    JOHN GILLIAN: RIDING THE SURFWEAR WAVES

    Brian McKenzie, CSU Hayward

    Case Objectives and Use

    This case demonstrates the mechanics of a business failure to entrepreneurship students. Five particular aspects of entrepreneurship are addressed in this case: (1) the nature of entrepreneurship, (2) planning for asset protection during the organization of a new venture, (3) management of a crisis severe enough to lead to business failure (4) re-organization both out of court and under the US Bankruptcy Code and (5) the relationship between self-identity and entrepreneurship. This case is intended for use in undergraduate and graduate entrepreneurship courses.

    Case Synopsis

    In 1994, John Gillian saw an opportunity to sell clothing to a group of young people who identified with the culture of boarding: skateboarding, snowboarding, surfing and wakeboarding. John and his friend Brad developed a chain of clothing stores named: ―Mountain Wave‖ after their home in the mountain states. The partners started with next to nothing and by the end of their fiscal year in June of 2001 had grown the company to three stores and annual sales of almost $2.5 million. That year, John and Brad were named ―Young Entrepreneurs of the Year‖ for their state.

    Winter weather was mild in 2000 and 2001, leaving Mountain Wave with unsold stock going into each of these spring seasons. John and Brad decided to open a dump store in a nearby college town to liquidate this dated merchandise. Their heavy reliance on trade credit became strained to the breaking point. The partners discounted all their merchandise 50% over the 2001 Christmas season in an effort to bring in enough cash to satisfy their creditors. However, this strategy lowered their sales volume and left Mountain Wave with no stock and insufficient funds to pay off their creditors. In the summer of 2002, John and Brad made an out of court proposal to their creditors. This proposal was rejected and the creditors forced Mountain Wave into involuntary bankruptcy. John and Brad had signed personal guarantees for much of Mountain Wave credit. In order to protect the equity in their homes, they each decided to file for voluntary liquidation of their assets under Chapter 7 of the bankruptcy code. Brad is discouraged by the loss of the company he helped to build and decides to get a regular job. John tries to find employment, but realizes he identifies himself as an entrepreneur and so begins the process of starting a new company.

     ___________________________________

    This case was prepared by Brian McKenzie, CSU Hayward, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

    Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting, November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by Brian McKenzie.

    JOSEPH’S GOURMET PASTA AND SAUCES (A)

    William Naumes & Michael Merenda

    University of New Hampshire

    Case Objectives and Use

    This case demonstrates the complexities of entrepreneurial growth and decision making. It provides the opportunity to follow an entrepreneurial firm from growth through early stages of growth and maturity. Students will be able to use a variety of analytical techniques from the fields of Entrepreneurship and Strategic Management while analyzing this case. These include, but are not limited to, Stages of Entrepreneurial Growth, Strategic Direction and focus, Industry analysis, Value Chain, and internal and external expansion for growth.

    By the end of the case, managers at the firm are faced with a decision as how to progress in the future. They are faced with a variety of strategies, each of which will require different analyses and commitment of resources. The Instructor’s Manual was written primarily for Undergraduate and Graduate courses in Entrepreneurship, but could also be used in a course in Strategic Management.

    Case Synopsis

    Joe Faro, President and Founder of Joseph’s Gourmet Pasta and Sauces is discussing a proposal that he acquire his largest competitor presented by its owner. The discussion includes Dave Robinson, Vice President of Sales and Marketing and Tom Bean, Vice President of Operations, Joe’s two, top officers. During the discussion, the history of the firm, strategic direction and consistent growth are presented.

    The company started as a family business and has grown to more than $13 million in revenues and has demonstrated consistent growth in sales and profits. It produces high quality specialty frozen pasta products and sauces for several different market segments. It has enjoyed

    considerable success against a variety of small competitors, including the company it is

    considering acquiring.

    The officers wonder whether it makes sense to buy the company or continue to beat it in the market. The pros and cons of acquisition, as well as other strategic options are presented in the case. The organizational culture and process of the company are also presented in the case.

     ___________________________________

    This case was prepared by William Naumes and Michael Merenda, University of New Hampshire, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November, 2003, Tampa Florida. All rights reserved to the authors and NACRA. ? 2003 by William Naumes and Michael Merenda.

    JOSEPH’S GOURMET PASTA AND SAUCES (B)

    William Naumes & Michael Merenda

     University of New Hampshire

    Case Objectives and Use

    This case is a follow up to the Joseph’s Gourmet and Pasta Case. It presents students with added information concerning a potential acquisition of the company’s principal competitor. The case

    is designed to demonstrate concerns that face an entrepreneurial firma it goes through growth

    stages of development. It also is designed to have students analyze the pros and cons of such a

    firm acquiring its largest competitor. These include strategic fit of its products, systems and

    culture.

The entrepreneur and founder of Joseph’s clearly wants to go through with the acquisition. He

    feels he needs to convince his top two managers of the need to do so, however. Students are

    asked to analyze the positions taken by the three managers. They are also asked to try to

    determine if the acquisition price is appropriate. The Instructor’s Manual was written primarily for Undergraduate and Graduate courses in Entrepreneurship, but could also be used in a course

    in Strategic Management.

    Case Synopsis

Joe Faro, President and Founder of Joseph’s Gourmet Pasta and Sauces is discussing the offer

    that he has tentatively accepted to acquire his largest competitor that he had worked out with its

    owner. The discussion includes Dave Robinson, Vice President of Sales and Marketing and Tom

    Bean, Vice President of Operations, Joe’s two, top officers. During the discussion, the pros and cons of the acquisition are presented.

Tom is opposed to the acquisition, while Dave is moderately in favor of the acquisition. Clearly,

    Joe wants to go through with the acquisition. The strategic position of the other company, as

    well as some of its culture and structure are presented during the discussion.

As with the first case, the officers wonder whether it makes sense to buy the company or

    continue to beat it in the market. The pros and cons of acquisition, especially given the agreed

    upon price, the other company’s financial problems and some potential culture clashes between

    the two companies, are presented.. Joe impulsively proposes that he and Tom fly down and

    back to the other company’s plant that day - Saturday - to view what they would be buying.

     ___________________________________

    This case was prepared by William Naumes and Michael Merenda, University of New Hampshire, and is intended to

    be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November, 2003, Tampa Florida. All rights reserved to the authors and NACRA. ?2003 by William Naumes and

    Michael Merenda.

    DENVER’S HUE-MAN EXPERIENCE BOOKSTORE IN 2003

    Marilyn Taylor, University of Missouri at Kansas City

    Joan Winn, Denver University

    Case Objectives and Use

The case is intended for an undergraduate course in entrepreneurship or small business management.

    It can also be used as an introductory case in an undergraduate strategic management course. The

    two major themes of this case are (a) the personal attributes necessary for independent business

    success, and (b) dealing with market forces that threaten a business’s viability.

Specific learning objectives for this case include: examining the relationship between rational

    business practices and personal motivation and constraints of a business owner; understanding the

    difficulties of operating a business in a niche market; and understanding the changes in environment

    that impact the strategic positioning and success of a company reliant on a narrow demographic

    market.

    Case Synopsis

The case focuses on Joi Afzal, a young African American woman who has purchased the Hue-Man

    Experience Bookstore, a bookstore that specializes in books by and for African-Americans.

    Founded in 1984 by Clara Villarosa, an outgoing and charismatic community presence, the Hue-

    Man Experience Bookstore was well known both locally and nationally. At the time of its sale to

    Joi in 2000, the Hue-Man Experience was arguably the largest African American bookstore in the

    country, its 3,000 square feet of space housing approximately 4,200 titles.

As demographic patterns changed and independent bookstores suffered from chain-store expansion

    and on-line sales, the Hue-Man Experience Bookstore struggled. Clara Villarosa, prompted by

    investors in New York who wanted her to help launch a Harlem location of the Hue-Man

    Experience Bookstore, helped craft the sale of the Denver store to three young African Americans.

    Ultimately, that partnership dissolved and Joi Afzal, the remaining owner, was left with a run-down

    store, personal debt, and an overwhelming responsibility.

The case ends with Joi struggling for direction, as she entertains the feasibility of moving to a

    more attractive location, the possibility of forming an informal partnership with one of her

    employees, or selling or liquidating the storereturning to a secure corporate joband

    abandoning her dream.

     ___________________________________

    This case was prepared by Marilyn Taylor, university of Missouri at Kansas city and Joan Winn, Denver University,

    and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the

    situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Marilyn Taylor and

    Joan Winn.

    THE KELLY REINHART STORY

    Joseph R. Stasio Jr., Merrimack College

    Case Objectives and Use

This case is best suited for an entrepreneurship or small business management course. It allows

    the instructor the prospect of taking students through the process of assessing a new business

    opportunity and preparing a plan to seize it. It could also be used in a new product management,

    marketing management, or retail management course.

The TPAK, as a new product, needs to be managed. Developing a marketing strategy is

    paramount to success for this product. Managing the retail and manufacturing function is also an

    important consideration. In addition, the case offers the instructor a chance to address specific

    ethical and financial considerations inherent to the situation.

    Case Synopsis

This case follows Robert Reinhart and his daughter Kelly through the creation, development and

    evolution of a product and their pursuit of a satisfactory resolution to their achievements in that

    endeavor. Over three and a half years of work brought them in contact with many people and

    much information. The challenge they face is to digest their experiences and decide what is best

    for them and their product.

     ___________________________________

    This case was prepared by Joseph R. Stasio Jr., Merrimack College, and is intended to be used for class discussion

    rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? by Joseph R. Stasio Jr.

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