ETP6500 The Entrepreneurial Challenge

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ETP6500 The Entrepreneurial Challenge


Read through the case that you have been given on Seaside Organics.  Answer the following questions, using your knowledge from class and your understanding of entrepreneurship and business growth.  Most answers will be a few sentences long.  If you need more room, just use the back of your page.

1.  Do you think that Sara Norton paid too much for her initial share of Seaside Organics?  Defend your answer, and do not use the current valuation or situation as your defense.

2.  When Sara Norton first started working with Lara Green, how did Seaside Organics match Michael Gerber’s description of a business in adolescence,?  What were some things that Seaside Organics was doing incorrectly at that time?

3.  How did Sara incorporate Gerber’s advice about Primary Aim into her management of Seaside Organics?

4. After Sara’s CEO rejected her proposal to hike prices and roll out a cosmetics line, Sara questioned her, and then wondered if it was time for her to retire and sell her shares of the company.  What principle did we study that applies to a founder staying on to manage a company. How could you advise her through this decision?

5. Do you agree with Sara’s assertion that great products are more powerful than great marketing?  Do this statement make sense, knowing what you know about marketing?  Does it seem the company is doing enough promotion? What evidence do you have?

6.  What is incorrect about the ways Sara handles her relationships with her employees?

7. Was Lisa Mackintosh the right person for Sara to hire on to direct Seaside Organics in 2009?  Is she the right CEO now?  Why or why not?

8.  What would you say is the company’s current most pressing problem?  How would you propose remedying the problem?

9.  Should the company take advantage of the opportunity of organic cosmetics?  Defend your answer.

10.  What is the valuation of the company, according to its ESOP? What is Sara’s share worth?

11. Are Sara’s 2016 projections reasonable, given her strategic recommendations for change?  Are her margin estimates probable?  Why or why not?

12. What perils of a quickly growing company might Seaside Organics expect if it continues on this trajectory?

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