StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Main Keys to Success in Business - Case Study Example

Cite this document
Summary
The author of the paper "The Main Keys to Success in Business" will begin with the statement that out of the five keys to success mentioned in the question Dwayne and Fred had three out of five keys in place. They had good access to the market, access to suppliers, and industry experience…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
The Main Keys to Success in Business
Read Text Preview

Extract of sample "The Main Keys to Success in Business"

The business plan of Dwayne and Fred did not contemplate changes in the projected sales and it had zero room for error. Their capital position was weak evidenced by the fact that when the loan was lowered by 41.66% the company faced serious cash flow problems.

2.

Dwayne and Fred faced an ethical dilemma due to the fact that they started a company in the same industry as their previous jobs. As salesmen, they utilized their business connections from their previous jobs in order to attract customers for their own business. In essence, Dwayne and Fred stole the customer away from their old job. In the business world, these types of situations often occur. Companies have to protect themselves. A way the company could have protected itself was by forcing employees to sign a confidentiality agreement and no competition agreements. The no competition agreement should have had a clause that stated that the employees could not start a business in the same industry. Since these legal documents did not exist Dwayne and Fred were within their right to do what they did. Their actions might have been a bit unethical, but they were not illegal. 

3.

The net income for the project is illustrated below

Sales

 

1000000

CGS

 

700000

Gross profit

 

300000

     

Operating expenses

 

288000

Net profit

 

12000

 

Based on these results the business would be making a small profit at the end of year one. The net profit for the business is very low with a net margin of only 1.2%. If projected sales are not adequate the business will probably incur operating losses. At first glance, it does not seem as if the business venture is worth the effort of the founders. A piece of information that I need is to know how much salary the partner used to make in their old jobs and how much of the $24,000 monthly operating expenses are salaries for the partners. If their salary is lower the business venture looks less attractive. We are only considering the first year of sales. I would like to know how much potential room there is for sales growth in the pet supplies marketplace. If there is a large room for growth and low competition the company might be able to significantly increase its income in the future. If there is projected room for growth I could reconsider my opinion of the business venture and classify it as a viable business venture for the partners.

 

4.

The business venture Dwayne and Fred started is currently in a tough situation due to the fact the bank loan they had approved for $300,000 was reduced to $175,000 by the bank. The business partners already started to pour thousands of dollars into the operation which means they have to find a solution to the problem. There are many options available to them, but they have to be willing to change the current structure of the business. The first option the businessmen have is to look for a new equity partner for the operation. The new partner would have to invest at least $125,000 in order for the business to be back at its original position. The new partner should be offered somewhere between 20-30% of the company. A second option is to incorporate the business in order to be able to sell the common stock of the company in the open market. This option entails involving an investment banker to facilitate the sale of the stock. A third option available in this situation is to acquire money through the sale of corporate bonds. The fourth option available is to find a way to reduce costs so that the profit margin of the company increases. This would entail finding new suppliers from a developing nation such as China or India to reduce the price of supplies. The company currently has a gross margin of 30%. If the firm is able to increase its profit margin to 50% the company might be able to survive with the $175,000 loan. A fifth option available is to place a lawsuit against the bank for changing the terms of the loan after the fact. This option is a bit risky because it might take too long for the lawsuit procedure to be completed.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Case Study Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/geography/1408246-case
(Case Study Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/geography/1408246-case.
“Case Study Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/geography/1408246-case.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Main Keys to Success in Business

The Success of Family Business

Responsibility is fostered in these aspects of assessment, where all family members are expected to reflect on their conduct and how it affects the business, which could be positive or negative, but the main feature of assessment is how the organization of the family works (Walsh 2011, p.... This paper "The Success of Family business" discusses to assess the success of a family business.... The paper analyses a study of methods that are used to determine the relative success of a family business....
8 Pages (2000 words) Term Paper

To Compete or Cooperate in Business

So, in this globally competitive environment, is competition or collaboration the key to success ... Till not so long ago, business jargon was largely dominated by war terminology.... n business, as in war, there are winners as well as losers, but ultimately, both suffer causalities, often with the customer being the beneficiary.... For example, between Bank of England and Tesco, whereby the bank's services are available throughout Tesco's not inconsiderable chain of supermarkets, or ebay, an online trading company, and PayPal, an online finance company, where the complementary nature of the business is obvious....
9 Pages (2250 words) Essay

Importance of Key Success Factors in Business

The report "Importance of Key Success Factors in business" analyzes the role of the critical success factors by studying the case study of the South African Brewery (SAB).... The profile and the cultural characteristics of the main customers is one of the most efficient ways to determine the behavioral patterns of the target customers.... Another key historical event in SAB which was a major success factor was the latter acquisition of two other companies in the South African beer business which enabled the company to control 90% of the alcoholic beverage market share in 1960....
5 Pages (1250 words) Report

Harrison-Keyes Inc: Visions and Solutions

To neutralize the competition and achieve success, Harrison Keyes decided to implement CEO McGill's strategic plan of entering e-publishing and publish e-books.... That is, this plan of Keyes' management has evoked opposition from their main authors, whose works only Harrison Keyes is publishing successfully....
10 Pages (2500 words) Essay

Operations and Supply Chain Management

There are two ways for hunting, in which, as stated in the case study of a Veteran Hunters and Don Moos approach to reach success in an efficient way.... Furthermore, the Don was quite a financial success long before he became a Sheriff, in which, the professional business side is the main elements of study within the case.... Furthermore, the Don was quite a financial success long before he became a Sheriff, in which, the professional business side is the main elements of study within the case....
10 Pages (2500 words) Dissertation

Global Retail Business - the Keys to Success

This study, Global Retail Business - the keys to success, will use secondary research in order to create an understanding of the topic.... The conclusion of the study will provide a framework from which the findings have suggested evidence of success in other businesses.... Modern concepts are important to incorporate into a global retail business strategy.... hen dealing with a global strategy for a retail corporation, regulatory differences between different nations can sometimes impact the potential for success....
40 Pages (10000 words) Research Paper

Channel-serving the Key to a Success

he text to be analyzed in this paper touches on my favorite topic on how organizations adapt to changing business environment with its discussion on channel-serving as key to success in e-business.... The question is, where do I ensure my business is relevant and sustainable?... u/small-business/smallbiz-tech/channelserving-the-key-to-esuccess-20120415-1x1iy.... This paper ''Channel-serving the Key to a success'' tells that the digital age has been developing for some time now, but the customers' expectations drive businesses to adapt....
5 Pages (1250 words) Essay

Defining Business Success: Good to Great by Jim Collins

The author of the paper "Defining business Success: Good to Great by Jim Collins" will begin with the statement that defining what makes a good organization and what allows companies to succeed is one for which many have tried to find formulas and proof.... Approaching this from a research perspective, instead of one of the theoretical business concepts, allows this book to be set apart from others in how it is able to reach those who are interested in defining the characteristics of the business....
13 Pages (3250 words) Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us