need answers kf rhis case study wuestion is in the black pen on kast page please

CASE STUDY In January, Gus Duprea, a shoe salesman for a big department store in Chicago was discussing his future with the sales manager of a shoe manufacturer Mr. Duprea confided: I'm unhappy. I'm making a living, but I spend $400 a week to live and this doesn't leave anything to put away. My wife and I aren't getting any younger. I've been in this store 17 years now. I'd like to have my own store, be my own boss. Do you know of any shoe stores for sale? The sales manager told Mr. DuPrea of a store in Elko, Indiana, whose owner wanted to sell out: The man is retiring to Florida as soon as he can find a buyer. He has already sold his other properties in town. His name is Toc Watkins, and he's been in Elko all his life. He has the only shoe store there: about all the town can handle. Tom serves the townspeople and the majority of farmers for about 10 miles around. Tom told me about the store & couple of months ago. You could buy it for $40,000 in cash. Tom says there is no point in saying how much he earns from the store. He'22 sive anyone all the facts and let him see for himselr that, with the lower cost of living in Enko, there's enough in it to make a good living and still put a little aside. A week later, Mr. Du Prea drove to ko and visited the store. It was not fancy, but he told his wife later, "It's a nice store. It sure looked good compared to the other stores in Elko." Elko is the county seat. The townspeople number 1.776 and take up one-third of the population of the trading area. Most business activities there center on servicing the food industry. The town has two canneries, shippers, flour 1, Pam machinery dealers and food stores. The store is located on 3 busy comer of town. It has two display windows. The larger one, on Main Street, faces most of the everyday shopping traffic. Mr. Watkins usually had about 25 pairs of shoes in this window. Mr. Watkins took Mr. DuPrea around town and found a house for sale in a sustable neighborhood. On the level that Mr. Duprea planned to live, he thought he could get by on $1,200 month in Elko. Mr. Watkins said he was so well-known that he did not have to advertise. A credit check later disclosed that Mr. Watkins did Indeed have an unusually good reputation. When he returned to Chicago, Mr. Du Prea rigured that has total assets could be converted into 348,000 in cash if necessary. 12 I. STATEMENT OF THE PROBLEM of living and improve his quality of life. Gus Duprea needs to determine a way to increase his standard II. ALTERNATIVE SOLUTIONS A. He should purchase the shoe store in elko, Indiana. Advantages 1. The store has an established customer base. 2. Elko is the county seat, and the store is in a good location in town. 3. Duprea would achieve his desire of being his own boss. 4. Duprea is familiar with the shoe industry. Disadvantages 1. The population base of the trading area is relatively small and does not promise growth. 2. DuPrea has been a salesman for 17 years in a big department store and has no experience in management of a small business. 3. DuPrea would need to invest most of his assets for an uncertain return. 4. It is not clear what he is buying - the inventory may be out of date. B. DuPrea could start his own business from scratch. Advantages 1. There is tremendous psychological satisfaction in creating your own business. 2. He would have control as far as any aspect of the business was concerned, e.g. location, size, inventory 3. He would not be paying for "goodwill. Disadvantages 1. This is the riskiest way to get into a business, especially with no experience. 2. Start up costs for a new retail business are high since you need everything from fixtures to inventory. 3. It takes considerable time to build up a customer base, meanwhile he may have little income coming in. 4. It takes time to plan and execute the start up of new business, during which he would have no income coming in. c. Duprea should ask for a promotion within his own company. Advantages 1. He will have new challenges and a higher salary. 2. He would not need to invest his own assets to start up a business. 3. He already knows the business and the organization and will require less training. Disadvantages 1. He does not have management experience and would need training. 2. He may find he does not enjoy sanagement functions and responsibilities and wouid rather stay in salas. 3. There may not be any immediate openings for him. D. He should seek a sales job with another company, e.g. a shoe manufacturer. Advantages 1. His salary (commission) would depend on him and his efforts. 2. He would have the challenge and excitement of a new job. 3. When you are out in the field, it is like "being your own boss". 4. He would not have to invest his own money. Disadvantages 1. It takes time to develop a customer base, so his income may be less at the beginning. 2. He would have to spend a lot of time on the road. 3. His quota may be high and stressful to attain. a III. CONCLUSIONS AND RECOMMENDATIONS Mr. DuPrea should first consider seeking a promotion within his own company. If this is not possible then he should look for a sales job with a shoe manufacturer. In both instances he could improve his standard of living while maintaining the support of a larger company or corporate structure. He has no experience with small businesses and should definitely not invest his total assests in buying a shoe store or starting his own business. His lack of entrepreneuria xperience would leave him vulnerable to failure and frustration. What Would You Do DO This case hond in vert werk "Gardeners love this crap" That is the slogan for Pierce Ledbetter's Memphis, Tennessee-based company 200 DOO In 1990, while still a student at Comell University, Ledbetter returned home to Memphis and talked the manager at the local zoo Into selling him composted animal manure from the enormous amounts produced by the zoo's animals daily. Why would any sane Individual want animal manure? Well, it is extremely rich in soll nutrients. Wanting to cash in on the gardening crate just beginning to sweep across the US, Ledbetter saw a marketing opportunity. He began selling his 200-Doo ta in attractively designed pails. He even had the unique idea of having the manure compressed into various animal shaped sculptures that gardeners could place in their gardens to decompose naturally and organically. His designis caught the eye of garden centers and mass merchandisers across the US Ledbetter's Zoo Doo now claims sales of about 15 million annually But having a great product and a great slogan is not enough to make any small business a success. It is Important to choose a form of business ownership that best meets your individual needs, goals, and constraints. Factors such as availability of adequate funding amount of management expertise, product liability possibilities, and willingness to share decision making can influence which form of ownership is most appropriate what the pohlen A) stileant ) solutions Sorc 2) portreship > Corp c) 3 A dute tages nd 3 distdese tips for each solution ) D Conclusion what would you do and why / 2 CASE STUDY In January, Gus Duprea, a shoe salesman for a big department store in Chicago was discussing his future with the sales manager of a shoe manufacturer Mr. Duprea confided: I'm unhappy. I'm making a living, but I spend $400 a week to live and this doesn't leave anything to put away. My wife and I aren't getting any younger. I've been in this store 17 years now. I'd like to have my own store, be my own boss. Do you know of any shoe stores for sale? The sales manager told Mr. DuPrea of a store in Elko, Indiana, whose owner wanted to sell out: The man is retiring to Florida as soon as he can find a buyer. He has already sold his other properties in town. His name is Toc Watkins, and he's been in Elko all his life. He has the only shoe store there: about all the town can handle. Tom serves the townspeople and the majority of farmers for about 10 miles around. Tom told me about the store & couple of months ago. You could buy it for $40,000 in cash. Tom says there is no point in saying how much he earns from the store. He'22 sive anyone all the facts and let him see for himselr that, with the lower cost of living in Enko, there's enough in it to make a good living and still put a little aside. A week later, Mr. Du Prea drove to ko and visited the store. It was not fancy, but he told his wife later, "It's a nice store. It sure looked good compared to the other stores in Elko." Elko is the county seat. The townspeople number 1.776 and take up one-third of the population of the trading area. Most business activities there center on servicing the food industry. The town has two canneries, shippers, flour 1, Pam machinery dealers and food stores. The store is located on 3 busy comer of town. It has two display windows. The larger one, on Main Street, faces most of the everyday shopping traffic. Mr. Watkins usually had about 25 pairs of shoes in this window. Mr. Watkins took Mr. DuPrea around town and found a house for sale in a sustable neighborhood. On the level that Mr. Duprea planned to live, he thought he could get by on $1,200 month in Elko. Mr. Watkins said he was so well-known that he did not have to advertise. A credit check later disclosed that Mr. Watkins did Indeed have an unusually good reputation. When he returned to Chicago, Mr. Du Prea rigured that has total assets could be converted into 348,000 in cash if necessary. 12 I. STATEMENT OF THE PROBLEM of living and improve his quality of life. Gus Duprea needs to determine a way to increase his standard II. ALTERNATIVE SOLUTIONS A. He should purchase the shoe store in elko, Indiana. Advantages 1. The store has an established customer base. 2. Elko is the county seat, and the store is in a good location in town. 3. Duprea would achieve his desire of being his own boss. 4. Duprea is familiar with the shoe industry. Disadvantages 1. The population base of the trading area is relatively small and does not promise growth. 2. DuPrea has been a salesman for 17 years in a big department store and has no experience in management of a small business. 3. DuPrea would need to invest most of his assets for an uncertain return. 4. It is not clear what he is buying - the inventory may be out of date. B. DuPrea could start his own business from scratch. Advantages 1. There is tremendous psychological satisfaction in creating your own business. 2. He would have control as far as any aspect of the business was concerned, e.g. location, size, inventory 3. He would not be paying for "goodwill. Disadvantages 1. This is the riskiest way to get into a business, especially with no experience. 2. Start up costs for a new retail business are high since you need everything from fixtures to inventory. 3. It takes considerable time to build up a customer base, meanwhile he may have little income coming in. 4. It takes time to plan and execute the start up of new business, during which he would have no income coming in. c. Duprea should ask for a promotion within his own company. Advantages 1. He will have new challenges and a higher salary. 2. He would not need to invest his own assets to start up a business. 3. He already knows the business and the organization and will require less training. Disadvantages 1. He does not have management experience and would need training. 2. He may find he does not enjoy sanagement functions and responsibilities and wouid rather stay in salas. 3. There may not be any immediate openings for him. D. He should seek a sales job with another company, e.g. a shoe manufacturer. Advantages 1. His salary (commission) would depend on him and his efforts. 2. He would have the challenge and excitement of a new job. 3. When you are out in the field, it is like "being your own boss". 4. He would not have to invest his own money. Disadvantages 1. It takes time to develop a customer base, so his income may be less at the beginning. 2. He would have to spend a lot of time on the road. 3. His quota may be high and stressful to attain. a III. CONCLUSIONS AND RECOMMENDATIONS Mr. DuPrea should first consider seeking a promotion within his own company. If this is not possible then he should look for a sales job with a shoe manufacturer. In both instances he could improve his standard of living while maintaining the support of a larger company or corporate structure. He has no experience with small businesses and should definitely not invest his total assests in buying a shoe store or starting his own business. His lack of entrepreneuria xperience would leave him vulnerable to failure and frustration. What Would You Do DO This case hond in vert werk "Gardeners love this crap" That is the slogan for Pierce Ledbetter's Memphis, Tennessee-based company 200 DOO In 1990, while still a student at Comell University, Ledbetter returned home to Memphis and talked the manager at the local zoo Into selling him composted animal manure from the enormous amounts produced by the zoo's animals daily. Why would any sane Individual want animal manure? Well, it is extremely rich in soll nutrients. Wanting to cash in on the gardening crate just beginning to sweep across the US, Ledbetter saw a marketing opportunity. He began selling his 200-Doo ta in attractively designed pails. He even had the unique idea of having the manure compressed into various animal shaped sculptures that gardeners could place in their gardens to decompose naturally and organically. His designis caught the eye of garden centers and mass merchandisers across the US Ledbetter's Zoo Doo now claims sales of about 15 million annually But having a great product and a great slogan is not enough to make any small business a success. It is Important to choose a form of business ownership that best meets your individual needs, goals, and constraints. Factors such as availability of adequate funding amount of management expertise, product liability possibilities, and willingness to share decision making can influence which form of ownership is most appropriate what the pohlen A) stileant ) solutions Sorc 2) portreship > Corp c) 3 A dute tages nd 3 distdese tips for each solution ) D Conclusion what would you do and why / 2