Jimella, the younger of the Dawson children, smiled as she peeked into her mother's office. Good morning,
Question:
Jimella, the younger of the Dawson children, smiled as she peeked into her mother's office.
“Good morning, Mom! Do you have a minute?” “Sure, come in. I'm just preparing for a meeting..” Jimella, age 32, liked to work hard. She had learned every aspect of the family personal care products business—from filling and capping containers to working with markets, spas, and salons—and had started selling products door-to-door at 11. After earning an undergraduate degree from Wharton and an MBA from Duke, Jimella became Dawson's chief marketing officer. Soon after, she cleaned house in the department—transferring a well-liked 45-year-old worker and firing employees she considered lazy and unproductive. The company had developed a reputation for being a nurturing, family-oriented place where workers—even unproductive ones—could feel confident of long-term employment. Jimella's initiative sent a wake-up call to marginal employees, cut the marketing budget by a third and doubled profits—just as she had predicted.
Preparation Questions
1. Are this family and case about “family business” or “family enterprising”? What are the differences? Why does this distinction matter for understanding the case?
2. Assess the Dawson business / family using the mind-set and methods model for family enterprising.
3. How well is Jimella prepared to grow Indulgence Spa? What are her strengths and weaknesses? Identify the resources and capabilities she brings to the family group and to her startup.
4. What are the differences between Indulgence's target market and Dawson Products' target market? How will these differences affect Indulgence's business model? Does the different target market change the business's resource and capabilities requirements?
5. Give Jimella a series of recommendations to help her grow her entrepreneurial business while advancing a family enterprising strategy. Are the two mutually exclusive? How do your recommendations address the succession and family legacy issues in the case?
Step by Step Answer:
New Venture Creation Entrepreneurship For The 21st Century
ISBN: 0077862481
10th Edition
Authors: Stephen Spinelli, Rob Adams