Answered: Discuss the following characteristics…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Discuss the following characteristics in relation to the trio and its importance in the success of the business: A) Visionary B)Flexibility C)Passion D)Resilience

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ISLAND SUNGLASSES
Ishmael's entrepreneurial journey
Ishmael James showed his entrepreneurial potential in high school in Port of Spain, Trinidad, when, as a young football player, he invented a cleaning product for
football boots that he sold to his teammates, then on eBay, Amazon, and finally on a website for the company he created. This passion for the sport had turned into
a source of income. Ishmael, as the sole owner of the company, continued manufacturing and selling his product. His products were well supported, but he was
balancing his high school exam preparations on one end and his business on the other. Despite this, he persevered and received a passing grade on his exam. He
never complains about his demanding schedule because he loves what he does. He wishes to expand his business, but manpower is a constraint in his path.
The creation of Island Sunglasses
A few years later, while attending Miami University in Florida., Ishmael and two friends, Arnold Brown, and Luke Mills, were inspired by the growing social
entrepreneurship movement and the success of local companies on the international market. One day while walking through the Miami shopping district, the friends
noticed a display of sunglasses and decided to create a business that would market cool sunglasses with Caribbean styles and provide eye examinations to someone
in need for every pair sold. In keeping with the idea of a socially responsible company, Ishmael suggested that they make their sunglasses frames from eco-friendly
bamboo, a lightweight, sturdy wood that grows extremely fast. Having spent some time in China, Ishmael was familiar with the properties of the renewable wood
and knew that it was the perfect material from which to make sunglasses frames. They formed a company called Island Sunglasses, agreed on how earnings would
be distributed among themselves, and set out to identify companies that could manufacture the product they wanted. Ishmael knew bamboo was the most used
wood in China, so the team set out to find a company in China that could build the frames to their specifications. They not only found a Chinese wood shop to build
their sunglasses frames, but also a Chinese eyewear factory to make the polarized lenses. Combining the two enterprises resulted in their one-of-a-kind, fashionable,
floating Caribbean eyewear. They launched a website and began selling them for US$120 each pair. Luke connected the young entrepreneurs with the Caribbean
Medical Outreach Association (CMOA), a nonprofit organization that provides eye examinations and other health services to Caribbean communities. They
immediately came to an agreement: for each pair of Island Sunglasses sold, the company would pay for one eye exam through CMOA.
The growth
Ishmael and friends hired twelve (12) employees to help with Island Sunglasses' day-to-day operations, but as the owners, they were able to think on their feet and
make critical decisions, even when they did not have all the information. Employees will be strategically assigned to finance, human resources, production, sales,
marketing, and purchasing. The cofounders always kept a positive attitude, and when problems with staff's dynamics arose, they would always pause and think
hefore making a decision They care about their employees but they will always tell them the truth They assure staff during weekly meetings that they will accent.
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Transcribed Image Text:The growth Ishmael and friends hired twelve (12) employees to help with Island Sunglasses' day-to-day operations, but as the owners, they were able to think on their feet and make critical decisions, even when they did not have all the information. Employees will be strategically assigned to finance, human resources, production, sales, marketing, and purchasing. The cofounders always kept a positive attitude, and when problems with staff's dynamics arose, they would always pause and think before making a decision. They care about their employees, but they will always tell them the truth. They assure staff during weekly meetings that they will accept responsibility for their actions and encourages staff to do the same. These management strategies appear to have been successful with the employees. The entrepreneurs' next task was to sell their distinctive sunglasses and their ability to help those in need. They understood that without sales, their efforts at "conscious capitalism" would be futile. The cofounders had no prior expertise in the retail industry, but they soon learned on the job. The young men had recently graduated and had taken "regular" jobs to pay their expenses, but they were still committed to making Island Sunglasses a success. After evaluating their sunglasses' internet sales, the trio began applying for spots at other accessory trade events. One of the shows they applied to was the prestigious OWN International trade show, which attract more than 300,000 buyers and press members from across the globe. Companies that are accepted to the juried show find sales lead that generate total sales of more than US$1 billion. Mills joked in an email to Ishmael that if their application was successful, they would be happy to set up in a broom closet at OWN. Ishmael shared that email with OWN executives, who replied, "We'll find you a both instead." At the OWN exhibition, Ishmael, and his cofounders, who were just out of college, erected a booth with a big bamboo background that drew a lot of attention. They struck up a conversation with three women, who turned out to be buyers for the retail brand Nordstrom. The trade fair provided numerous opportunities for the new company, and less than two years later, Island Sunglasses was generating yearly sales of US$550,000. The three cofounders believe in the concept of employee personal engagement. They are adamant about hiring people from diverse backgrounds and encouraging employee creativity. The Future They intend to stay in the same line of work for a long while, but wishes to start a clothing line, which they discover is in high demand. The cofounders are alert student entrepreneurs who keep their eyes open for new opportunities and seizes them to make the most of them. With expansion and staff additions on the horizon, they must ensure that they understand the type of organizational structure they require to hire the best people. They will be tasked with developing an organizational culture for success once the organizational structure and personnel are in place.

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