CaseAnalysis – MooBella, Inc.
WrittenAssignment: Chapter 7, Page 245 – Case Study: MooBella, Inc.
Respondin detail to the following questions:
1.What Categories of costs would you expect to see in MooBella`sstart-up costs?
Inthe start-up costs, I would be expecting to see purchases ofice-cream dispensing machines. Innovative machines would becategorized under capital expenses. The company would also need tohire business premises and acquire raw materials. Besides, some legalcosts may be incurred in that lawyers will be needed to ensure thecompany is incorporated. Furthermore, the business will need toemploy various workers in its facilities. Additionally, miscellaneouscosts may be incurred in handling other expenses.
2.It took nearly 20 years from idea to market for MooBella. Clearly, ithad a long development and start-up period. Reflect on the emotionaland any other non-monetary factors that were likely involved forBruce Ginsberg.
Severalnon-monetary factors were involved for Bruce Ginsberg before the icecream business became a reality. For example, he inherited thebusiness from his father in 1985. At the time, the company hadoperating losses of over $1 million and meager revenues of $8.5million. Within a span of eight years, Ginsberg had managed toincrease the revenues to $50 million (Mariotti & Glackin, 2016).Therefore, he expended considerable effort to develop the company. Itmust have been quite emotional to witness the growth of an entitythat previously belonged to his father. Moreover, Ginsburgencountered many challenges since the early machines were not onlyexpensive but also difficult to operate.
3.What was the mix of funds used by MooBella to get started?
MooBellaused several sources to provide start-up funding. For example, SaturnAsset Management provided $25 million in equity over a five-yearperiod. Furthermore, Bruce Ginsberg contributed $1 million. Thecompany also used inventages worth $15 million in 2007 and $18million in 2009. In addition, $9 million was acquired from W. HealthL.P. in 2009 (Mariotti & Glackin, 2016). The entity also useddebt of $17.5 million in convertible notes and high-interest loans.
4.What are the start-up costs that you would expect to encounter if youwere a company that purchased a MooBella machine?
Afterpurchasing a MooBella machine, I would expect to encounter start-upcosts related to rebranding. I would also expect to incur costsassociated with understanding the complexity of the machines.
CaseAnalysis – CakeLove and Love Cafe
WrittenAssignment: Chapter9, Page 313 – Case Study: Managing Cash – CakeLove and Love Cafe
Respondin detail to the following questions:
1.How was Warren Brown able to finance the growth of his company?
WarrenBrown abandoned his position at the U.S. Department of Health andSocial Services to embark on full-time entrepreneurship. At the timeof his career switch, Warren had personal resources worth $10,000.Nevertheless, he required $125,000 to open a functional storefront.In this regard, Warren needed to borrow funds from external sourcesto cover the shortfall. Unfortunately, large financial institutionsturned him down due to doubts surrounding his credit-worthiness.However, Warren obtained a loan from the CityFirst Bank of DC(Mariotti & Glackin, 2016). Notably, the loan from his communitybank did not prevent him from exercising 100% ownership of CakeLove.
2.What methods has CakeLove used to manage cash flow? What others mightit adopt?
Warrenserves as the primary cash flow manager for his business. CakeLovehas adopted cash-handling policies designed to avoid instances ofcash pilferage from the drawers. Such policies include cash-countingsystems that track all inflows and outflows. Besides, the companyuses a waste-tracking system to oversee the movement of inventory.The latter system is significant since unsold products and spoilageslead to cash flow problems. Nevertheless, the company may need tohire professional accountants and analysts to manage its cash flowand identify additional ways in which costs can be reduced(Jeffrey,2014).
3.What types of cash flow management issues would you expect CakeLoveto encounter if it grows at a rate of three bakeries per year ormore?
CakeLovewould experience various cash flow management issues if it grew at arate of more than three bakeries per year. For example, the laborcosts would increase beyond customary expectations. Meeting the cashflow needs of an expanded payroll would be quite challenging.Inevitably, each new employee would seek to earn enough to supporttheir families. In addition, opening new locations incurs expensessuch as licensing, purchasing of equipment, and renting offacilities.
4.Discuss the importance of establishing and maintaining a good workingrelationship with CakeLove`s source of funding.
Establishingand fostering a good relationship with CakeLove’s source of fundingis important since it helps to ensure goodwill. Having an amicablerelationship with his lending institution enabled Warren to seekadditional funds from CityFirst Bank.
CaseAnalysis – Sew What? Inc.
WrittenAssignment: Chapter 12, Page 413 – Case Study: Sewing Up Business inNew Ways – Sew What? Inc.
Respondin detail to the following questions:
Formore information about this company, see http://www.sewwhatinc.com
1.How did technology sustain Megan Duckett`s business?
SewWhat? utilized technology to streamline and fine-tune their productsgiven their high quality clients and numerous contracts. Inparticular, the business upgraded its office equipment by installingfaster computers. A network setup was also established in conjunctionwith multiple servers. Integrating such advances in technologyenabled the company to have real-time interactions with customers(Mariotti & Glackin, 2016). Moreover, the entity has adoptedtechnologies that have progressive enhancements in functionality.Consequently, Sew What? has used its resources in a sustainablemanner.
2.Why did Megan credit computer technology and the Web for asignificant portion of her company`s growth?
Megancredited computer technology for her company’s growth since thebusiness has managed to reduce wastage of resources. Furthermore,computer technology had enabled the company to achieve optimum use ofavailable resources. Initially, Sew What? used an in-houseExcel-based configuration model. Subsequently, the company adopted anautomated accounting program. Currently, the enterprise uses acomplex manufacturing system referred to as VISTA (Mariotti &Glackin, 2016). Therefore, computer-guided tools have ensured thatall functions are timed and measured. Megan also credits the Web foracting as an essential sales tool. Having a website ensures that thefirm appears credible to prospective clients. Furthermore, the Webhas enabled the enterprise to service customers across the country.
3.What were some critical steps in the growth of the company? Why werethey so important?
Thecompany’s growth process began with the identification of a marketniche. The opportunity arose when Megan was contracted to reupholster10 caskets for a show. Another step can be seen in the acquisition ofa sewing machine and essential supplies. A steady stream of clientswas also important since it provided Megan with the resources neededto hire staff members (Mariotti & Glackin, 2016).
4.Describe and illustrate the sales cycles for Sew What?
Thecompany’s sales cycle depends on the caliber of customers. In thisregard, touring customers would receive quick deliveries. On theother hand, rock-and-roll curtains typically take three to four daysbefore they are ready to be ordered (Mariotti & Glackin, 2016).Additionally, schools and churches that purchase stage curtainstypically require a cycle lasting for three to six months.
5.What channels of distribution would you expect the company to use?Why?
Iexpect the company to use channels of distribution such as air androad transport. Air transport is sufficient for quick service ofinternational orders while using roads ensures that costs are kept ata minimum.
CaseAnalysis – Casino Grande
WrittenAssignment: Chapter 13, Page 449 – Case Study: Casino Grande
Respondin detail to the following questions:
1.List the pros and cons of Mr. Jackson`s decision to post the coffeebreak notice. Was it a good management decision? Why or why not?
RandolphJackson’s decision to post the notice on coffee breaks has variouspros and cons. The notice was necessary since many employees at thecasino had shown a general laxity towards being on time. Furthermore,staff members abused their privileges by having numerous coffee andsmoking breaks. In fact, Mrs. Kane noted that all workers arrivedlate for work. Besides, Roger Parks admits that the top managementdid not set a good example on punctuality (Mariotti & Glackin,2016). On the other hand, posting the notice shows little regard foremployees such as Mrs. Kane who have to get their children to schoolevery day. Also, some workers experience problems with their vehiclesthat cause unavoidable delays. Notwithstanding, having the notice isgood management decision since it sounds a warning to all staffmembers, including the general manager.
2.Imagine a scenario where you are Mr. Parks. What do you think youwould have done after the conversation with Mr. Jackson?  Writea paragraph describing your action plan.
IfI was Mr. Parks, I would have approached Kane and Kalumbo privatelyrather than involve a third party. Mr. Jackson had been particularlyangered by the behavior of the two women. Therefore, solving thematter would preclude the involvement of external parties.
3.Write a paragraph describing Mr. Jackson`s philosophy of humanresources management.
Mr.Jackson views human resources management as a constant interactionbetween employees and their managers. In this regard, he believesthat staff members who receive higher salaries or more privilegeshave to reciprocate through improved behavior. Furthermore, he isconvinced that workers need to be solitary when fulfilling theirduties and responsibilities. He despises to see groups from differentdepartments taking breaks together.
4.Discuss some examples of why the women might see the reprimands asunfair or unjust.
Thewomen might view the reprimands as unjust since they have cultivatedstrong friendships. Consequently, the directive against groupings wasintended to disrupt them. Besides, some women have school-goingchildren that need to be dropped off at school before they head towork. In particular, Mrs. Kane was hampered by regular car problemsespecially now that her husband was rarely at home (Mariotti &Glackin, 2016).
5.What is Jackson`s leadership style?
Jacksonhas an authoritative leadership style since he seeks to control allfacets of his workers’ affairs. Although he delegates some dutiesto Mr. Parks, he still intervenes by posting a notice. He alsoestablishes unreasonable requirements.
Jeffrey,C. (2014). Researchon professional responsibility and ethics in accounting.Bingley, UK: Emerald Group Publishing Limited.
Mariotti,S. & Glackin, C. (2016). Entrepreneurship:Starting & operating a small business.Boston, Mass.: Pearson.