Answered: The attached photo is a Case Study.…

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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The attached photo is a Case Study.

What is the problem of the case of this case study?

Transcribed Image Text:5-B Case Problem STAPLES' INVENTION QUEST Henry Ford. Thomas Alva Edison. Adrian Chernoff. Adrian Chernoff? Maybe Chernoff isn't a household name like the first two inventors, but the 33-year-old Royal Oak, Michigan, man certainly shows potential. Chernoff's claim to fame a handy little office product called Rubber Bandits started gracing the shelves of every Staples store in North America a few years ago. The labelling bands, which retail at $2.99, also have their own Web site and can be purchased online through Staples. The General Motors Corp, employee was one of the finalists in an annual Staples' Invention Quest. The contest is part of a broad effort by Staples to develop an exclusive product line to distinguish its private brand from those of competitors. Inaugurated several years ago, the contest is aimed at budding inventors looking to create the next Post-it note or better. About 10,000 entries are received annually. In recent years, school children have been involved in the contest. Besides giving inventors the gratification of seeing their ideas hit the shelves in 1,600 office superstores, Staples promises to share the profits Winners of the contest receive $25,000 and as much as an 8 percent royalty have. One year's winner was a California man who created WordLock, a combination lock that allows users to select their combinations using letters rather than the traditional set of numbers. Chernoff walked away with $5,000, a licensing agreement with the office-supply store, and the official title of inventor. "The best part for me right now is seeing it actually make its way in the market place," Chernoff said. "The product is going into practice in the real world." Maybe an extra-large rubber band with a wear-and-tear-resistance label won't solve the world's problems. But Rubber Bandits do make it easier to bundle and label piles of paperwork. And it definitely makes a nice workplace projectile, although Chernoff says that was not its original purpose.