30 Dec “Product Liability and

Small Giants 2017 Americas Best Small Companies

Select 4 of the companies on Forbes List, and explain what they all seem to have in common that would put them on Forbes List. How do the companies interact with the community and why do you think they are successful?

Learning Activity #2

When your first company is working but you may have a better idea

Read the case study laid out in the case above. Evaluate Mr. Badshah ‘s dilemma and explain which option you would take if you were Mr. Badshah. Include in your discussion the following:

Is Mr. Badshah an entrepreneur, intrapreneur, or a business owner? Select one and explain why you made this choice and why you did not choose the others?

Your recommendation should include a complete discussion of the options and reasons why you have selected one and not the others.

Week 2 learning activity

Learning Activity #1 Greta’s Glamps

Read the following case scenario:

Greta owns a business that makes geometric shaped lamps called Glamps. The glamps are made from plastic panels that fit together like puzzle pieces. The pieces make lamps of different shapes, patterns and colors. The Glamps come in a variety of shapes and sizes with the largest ball lamp being 4’ in diameter, or 4’ x 4’ square. The largest lamp sells for $125 while the most popular model, a 15” diameter model sells for $49.99. People who purchase more than three glamps get one free. The choice can be hanging lamps or sit on a desk or a table. Glamps are popular with children and teenagers for room decor. Party planners like Glamps because they can set a mood in the room and they can be use again in different ways supplementing the patterns or colors from time to time.

Greta first started the business in a kiosk of a local mall. The overhead was low and sales varied. She broke even almost immediately. By the end of the first year; she was making a profit. Greta expanded to another mall by the end of second year doubling sales. Encouraged by the success, Greta thought it may be time to open a shop. She looked for a spot in a small strip of stores but not in a strip mall. She found a place on the main street of “Old Town” in Ellicott City, Maryland. It was a small store with questionable parking.

Greta began doing lighting for party events and sales skyrocketed. Yearly sales went from $200,000 to $500,000. Thrilled with her success, Greta began to take on help. She even considered opening a shop or kiosk at the Baltimore Harbor Pier thinking she would have a lot of foot traffic. Greta was constantly thinking of ways to expand the customer base of the company. She opened a kiosk in the Harbor Building housing “Philips,” a popular Maryland landmark restaurant. Sales were far from stellar but the business still showed growth. The company was now looking at over a million dollars in sales with expenses of just over $500,000. The business had 18 employees. At this point, Greta had not really explored internet sales or social media.

Unbeknownst to Greta, who had been very busy growing the business, You Tube was showing instructional videos on how to make the lamps and included online websites where people could purchase the panels and other materials needed to make the lamps. One day, a downtown employee spoke with Greta about the videos. Greta was shocked. The employee said she overheard someone say to a friend, “Yes I think they are cute too, but you can go online and buy the panels and make it yourself for half the price.”

Within six months of this conversation, Greta, found that sales were dropping in the various kiosks, but not in the party business. Greta closed two of the kiosks, the Baltimore and the location at the first mall. She stuck with the store and the second mall location. Sales were doing well at both locations although profits were flat. One year later, Greta closed the remaining kiosk. She kept the party business in the store front. Later, Greta would close the party business as well but continued to work out of her house. Her million-dollar business had reverted to $300,000 in the span of three years.

Explain how Greta might have used the life-cycle theory to manage her business better.

Would a PESTLE OR SWOT analysis have helped her as well? Why or why not?

Learning Activity #2 Greta Glamps – The Sequel

Part A

Using the facts from the case scenario, Greta’s Glamps in Learning Activity #1, how could Greta have positioned her company for growth?

Explain the five disciplines theory and apply the theory to Greta’s situation.

Identify ways that Greta did not position her company for growth according to the theory.

Give specific suggestions as to how Greta might have planned her growth differently and achieved success. Be sure to explain the reasons for your conclusions, and support it with your class material.

Part B

After speaking to several small business owners, Greta decided to increase her party work and include a place in the store where customers could make their own lamps. Her sales rebounded and this year grew to $500,000.

What should Greta do to sustain the growth?

What lessons should she take from the 5 disciplines?

Week 3 learning activity

Learning Activity #1: Greta Glamps III

You have been given the following statement related to the Greta Glamps case scenario that is presented again for your convenience

Discuss the statement including in the discussion the following:

What is a brand?

Why is a brand important in marketing?

How does branding relate to the growth of a business?

A clearly stated agree or disagree statement

Why did you conclude to agree or disagree with statement?

Why did you eliminate the other choice?

“Had Greta developed a strong marketing brand her growth strategy would have worked.”

Repeat of the case scenario:

Greta owns a business that makes geometric shaped lamps called Glamps. The glamps are made from plastic panels that fit together like puzzle pieces. The pieces make lamps of different shapes, patterns and colors. The Glamps come in a variety of shapes and sizes with the largest ball lamp being 4’ in diameter, or 4’ x 4’ square. The largest lamp sells for $125 while the most popular model, a 15” diameter model sells for $49.99. People who purchase more than three glamps get one free. The choice can be hanging lamps or sit on a desk or a table. Glamps are popular with children and teenagers for room decor. Party planners like Glamps because they can set a mood in the room and they can be use again in different ways supplementing the patterns or colors from time to time.

Greta first started the business in a kiosk of a local mall. The overhead was low and sales varied. She broke even almost immediately. By the end of the first year; she was making a profit. Greta expanded to another mall by the end of second year doubling sales. Encouraged by the success, Greta thought it may be time to open a shop. She looked for a spot in a small strip of stores but not in a strip mall. She found a place on the main street of “Old Town” in Ellicott City, Maryland. It was a small store with questionable parking.

Greta began doing lighting for party events and sales skyrocketed. Yearly sales went from $200,000 to $500,000. Thrilled with her success, Greta began to take on help. She even considered opening a shop or kiosk at the Baltimore Harbor Pier thinking she would have a lot of foot traffic. Greta was constantly thinking of ways to expand the customer base of the company. She opened a kiosk in the Harbor Building housing “Philips,” a popular Maryland landmark restaurant. Sales were far from stellar but the business still showed growth. The company was now looking at over a million dollars in sales with expenses of just over $500,000. The business had 18 employees. At this point, Greta had not really explored internet sales or social media.

Unbeknownst to Greta, who had been very busy growing the business, You Tube was showing instructional videos on how to make the lamps and included online websites where people could purchase the panels and other materials needed to make the lamps. One day, a downtown employee spoke with Greta about the videos. Greta was shocked. The employee said she overheard someone say to a friend, “Yes I think they are cute too, but you can go online and buy the panels and make it yourself for half the price.”

Within six months of this conversation, Greta, found that sales were dropping in the various kiosks, but not in the party business. Greta closed two of the kiosks, the Baltimore and the location at the first mall. She stuck with the store and the second mall location. Sales were doing well at both locations although profits were flat. One year later, Greta closed the remaining kiosk. She kept the party business in the store front. Later, Greta would close the party business as well but continued to work out of her house. Her million-dollar business had reverted to $300,000 in the span of three years.

Learning Activity #2

Review the 4’P’S and detail ways that Greta could have better used each P in deciding a market strategy. Be sure to give detailed examples. For instance, should she be pricing the glamps differently to the retail buyer than she does to the party planner?

Week 4 learning activity

To respond to the Learning Activities, click on the blue hyperlink in the Topic area.

Learning Activity #1

Research the best ways a small business manager can stay on top of cash flow in operating a business. Select three (3) articles that give practical suggestions as to the best practices a manager can use to stay on top of cash flow and money issues.

Synthesize and evaluate the articles as well as those in the classroom, to find ways to manage money as well as pitfalls to avoid.

Using these points as a guide, create a checklist that you or any manager can use weekly to stay on top of the company’s financial resources. For instance, what is the best way to control accounts receivables. Be sure to explain why you chose the points to include on the list.

Try not to just pick the most common ideas; look for those that are different as well.

Learning Activity #2

Read this case scenario: Start Ups Dilemmas a Lack of Capital or a Lack of Control

Using the class material help the owner make a decision by reviewing the forms of financing available to small business owners and discussing the options available to her

Week 5 learning activity

Learning Activity #1

Felicia’s Footwear is a small company that makes children’s custom footwear. The company make footwear for all ages and specialize in footwear for medical problems and for unusually large sizes (e.g., the 6’9’’young man who wears a size 18 shoe and is still growing, etc.). Although the business has become noted for its deft handling of “problem” footwear, the company still handles a full line of shoes for all children.

Felicia uses an old shoebox method of bookkeeping along with her Quicken Books program to keep track of her cash flow.

In a recent attempt to obtain a bank loan, the bank manager asked Felicia why she had such a large outstanding accounts receivables balance. Felicia was surprised at the question as she was not aware of its size. She often gave terms to some of her “problem” customers because her shoes were expensive and the parents needed time to pay on the bill. Felicia knew that sales had doubled this year. She had thought this was a good thing but had not realized that the accounts receivables had also doubled.

Explain how managing cash flow is important to a small business and its effects on the small business if not managed properly. In addition, give Felicia some tips on how to handle cash flow data collection and accounts receivables going forward.

Learning Activity #2

Identify the major challenges that an operations manager faces.

Of the major challenges facing today’s small business operational managers, which ones are the most important to a company’s success and why?

Week 6 learning activity

Learning Activity #1

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the evening, Frank went to school and received his MBA in Finance. By then, Arnold’s had expanded to include long distance moving as well as office moves in the Mid-Atlantic area. The company was making over $3,000,000 in sales and was growing at a rate of 8% -10 % a year. Competition was strong in the Mid-Atlantic region so Fred wanted to expand southward. About this time, Fred’s son decided it was time to come back into the business. He had been working in IT in Miami. He liked Miami and felt he could work from there and bring the business down the Eastern Seaboard.

Frank had been with the business for 12 years now and felt that with Fred’s son now back in the business, it might be time to leave. Fred saw Frank at lunch one day shortly after Frank started looking for a new job. “Frank, I just heard that you are looking for a senior management position. In fact, I had to hear it from Janice Jeppy of all people. I ran into her at the bank. She says you applied to Jeppy Movers for a job and was wondering why you would want to switch moving companies. I am wondering too. Don’t you want to stay with us?”

Frank was surprised. The thought had never occurred to him. He assumed that Mr. Arnold’s son and daughter would take over the business. Both of Fred’s children had been working in the business since they were in high school. “I don’t want to leave Mr. Arnold,” Frank replied, “but I assumed that with Frank back in the business, he would take over. I just couldn’t see where there was room for advancement.” Fred was afraid this is what the boy would say. His son was bright and showed promise, but Fred knew they needed experienced people like Frank to keep the company moving forward. Frank was great support for the business and would be the best support that he and his son could have. Fred wondered how he could keep Frank in the business. “Come see me tomorrow at 10 a.m., Frank and we will talk. I can’t let you go to Jeppy Movers, can I”?

What Can Fred Arnold do to keep Frank now and in the future? Include in the discussion how the growth of the company will affect Fred’s ideas.

Also, address succession and Frank’s role in the business going forward.

Learning Activity #2

How might Arnold’s son attempt to engage the business in the Miami community to solidify the company’s move southward?

Explain how small businesses and community support is important to business sustainability?

Week 7 learning activity

Learning Activity #1

Read and review this case scenario: Wiped Out by Sandy an Owner Sizes Up the Risk in Starting Over

From the obvious idea of getting more insurance, how could Lucci have managed risks better? Be sure to address the idea that Lucci had lost money during 9/11 which was also an unexpected occurrence.

Learning Activity #2

“Product Liability and Strict Liability are the same ideas from a legal standpoint, so a fireworks display business has the same legal risk as a candy manufacturer.”

Agree or disagree with this statement. Take a position and support it with the class material.

Week 8 learning activity

Learning Activity

Evaluate the statistical data presented in the reading, and in the theme introduction and profile (type, owners, business form, etc,) a startup business that is likely to succeed and a business that is likely to exist after 10 years.