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Case summary:
Chuck is a newly recruited CEO of a startup. He makes a presentation to the investor and they commit verbally to provide $16 million funding, impressed by the numbers in the presentation. However Chuck is informed by his Betty that the numbers are exaggerated. From his further research on this, he understood that she was correct and there was remote possibility of achieving the numbers projected. But the renewal income figure which impressed the clients most was totally incorrect. Chuck is in a dilemma how to proceed further.
Characters in the case:
Chuck Campbell, Betty Mars, investors, a member of the management team are the characters mentioned in this case.
Adequate information:
Chuck is a newly recruited CEO of the startup. The investors had verbally committed to $16 million funding impressed by the renewal income.
To determine:
If Chuck should not inform about the incorrect numbers but when the company does not meet the numbers, provide an explanation to the investors as most high tech companies do.
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Chapter 6 Solutions
Bundle: Management, Loose-leaf Version, 12th + MindTap Management, 1 term (6 months) Printed Access Card
- So many people want to become their own boss. So they take the steps needed to become an Entrepreneur. Being an entrepreneur isn't just hard, it's really hard. Your days and nights, or more so your entire life, are dedicated to developing a business that you know in advance is highly likely to fail if it is not done properly. One of the biggest failures in a business adventure is planning. The reality is 80 percent of new businesses crash and burn within the first 18 months, according to Bloomberg. I believe that, more often than not, failures come as the result of people not being set up or prepared to leave behind stability for chaos. In this assignment, you will identify ways to properly plan and develop a strong strategy for a business to flourish.arrow_forwardIf your personal credit is shaky at the moment and youdon’t have a lot of cash to invest in a new business, whatsteps could you take to get a new company going?arrow_forwardYou and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the downtown area and who are healthy and fitness-minded. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions and "sweat-equity" made by each of you, another $400,000 is essential for the restaurant to succeed. 1. What type of organization is best suited for this business activity? 2. What steps would you take to manage the restaurant during times that you and your co-owners are not present? 3. What liabilities do you and your co-owners face?arrow_forward
- Your goal is to become the CEO of a multi-million-dollar food manufacturing corporation. You’ve had successes in the past running fast food franchises. What are your top business strategies to achieve your goal and how will you plan to execute them?arrow_forwardYou intend to start a business with a few friends producing independent movies for Netflix. You have heard of a concept called the liability of newness that suggest that that new firms are more likely to fail relative to older ones. Discuss 4 strategies that your entrepreneurial team will adopt to overcome this liability.arrow_forwardChoose a challenge in starting a new business and how you may be able to address that challenge with a well-designed business plan. Challenge can be unique to either a start-up or on-going business or both.arrow_forward
- In your initial response, please respond to the following questions: 1. Why do some businesses succeed while others fail? List and explain three main reasons why businesses fail. 2. Starting a new business from scratch can seem like a daunting proposition. Accordingly, some entrepreneurs may choose to buy a business that is already established, or purchase a franchise from a business that already has name recognition.arrow_forwardAs a business person or as a person who wants to start a business but doesn't have the money for it, who would be your first choice for help with the start-up?arrow_forwardSuppose you developed an app that can predict the likelihood a person will get the flu and you wanted to raise capital? What kind of business formation would you choose so that you can begin selling the app?arrow_forward
- When you want to be an entrepreneur, what are the qualities you have to possess to be able to distinguished from other businessmen?arrow_forwardWhat are the most important things you learne i when creating the business plan? Why are those things so important to you? What are the most important things you have learned in presenting your team's business plan and answering the questions from the investors? Why are those things so important to you? What are the most important things you have learned in participating as an investor? Why are those things so important to you? What are the most important things you have personally learned in your team in developing the business plan and making the decision to invest in another team? Why are those things so important to you?arrow_forward1. Could writing a conventional business plan ever cause more harm than good? Explain your answer?2. If you wanted some assistance in setting up and running a new business, you might look at business incubators as a solution. What kind of assistance would you consider the most valuable?3. Given the risks involved in starting any company, should an aspiring entrepreneur investigate all possible failure scenarios and develop action plans to avoid these potential outcomes? Explain your answer.4. How do autocratic, democratic, and laissez-faire leadership styles differ?5. Ethical considerations. Apart from meeting the company’s future talent needs, do managers have a personal ethical obligation to help their employees develop and advance in their careers? Explain your answer.6. What are the advantages and disadvantages of the unstructured organizational model?7. Suppose you are the marketing manager of the credit-card department of a financial institution. Your objective is to support the…arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub
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