How to write a case report analysis

Report Overview:After a detailed analysis of the key issues facing the selection of Vann Hux Lampshade Company for entrepreneurship, this report proposes two options for each of the three major aspects of the entrepreneurial strategy plan, evaluates the strengths and weaknesses of each option, and finally summarizes an optimal plan, describes the resources required for the optimal plan and some of the problems that may be encountered and the solutions.

1. Critical Issues in Choosing Vanessa Lampshade Company to Start a Business

1.1 Background of the Company

Vanessa Lampshade Company is a manufacturer of high quality man-made fibers, acetate fibers, and hard-backed lampshades in the market. Its raw materials are not only diversified, but also come in different styles, shapes and colors. All his lampshades are customized to customer orders. The company's customers include department stores, independent lamp and shade sellers, and 80 percent of the company's sales come from Midwestern customers. "The company's brand name is well respected in the lampshade industry. Because the company has a good reputation for producing high-quality products.

1.2 Acquisitability of Van Nuys Lamp Shade Company

1.2.1 Industry Position of Van Nuys Lamp Shade Company

The lamp shade industry in the United States has annual sales of $70 million, which is shared by 34 manufacturers. Manufacturers are generally family-owned businesses with over 25 years of industry history. The lampshade industry is seasonal. Summer is the off-season and the peak sales season is before various holidays. Lampshade manufacturers fall into four main categories: lamp manufacturing companies, independent lampshade manufacturers, low to medium quality lampshade manufacturers, and quality lampshade manufacturers. Van Nuys Lamp Shade Company belongs to the last category. Competition in this industry is regional due to fairly high transportation costs. The company is located in a region with only one closest competitor - Silk, a 60-year-old lampshade company with annual sales of $2 million.

1.2.2 Customers of Van Nuys Lamp Shade Company

As a manufacturer of high-quality lamp shades, Van Nuys Lamp Shade Company has a stable and loyal customer base. More than 60% of its annual sales are generated by products sold to fine department stores. Van Nuys Shade Company has a total of 65 major customers***, 45 of which account for 80% of total sales. Unlike the low to medium priced lampshade customers, Van Nuys Lamp Shade Company's customers consider more than just price when making purchasing decisions. These customers value product quality and delivery as much as price. As a result, Van Nuys Lamp Shade Company's 50+ years of flawless products and service have built a strong reputation and a very loyal customer base.

1.2.3 Profitability and Potential of Van Nuys Lamp Shade Company

Van Nuys Lamp Shade Company has a relatively good profitability due to the good quality of its products and its very high reputation. What we value most is that Van Nuys Lamp Shade Company has a good potential for growth. Because the company's foundation is very good, although the sales rate is declining, that is due to the company's own negative attitude, but in the short term will not have much impact on the company, and through the reorganization of the company's transformation, in the long term, the company will have a very good potential for growth and profitability prospects.

1.2.4 Management and Employee Situation of Van Nuys Lampshade Company

The management of Van Nuys Lampshade Company consists of the clerical manager and the production supervisor. Both managers have been working in Van Nuys Lampshade Company for a long time and are familiar with all kinds of situations in the company. From the company's current good operation can be seen, the company's management's work is very effective. The only shortcoming is to strengthen its marketing management, you can consider the introduction of marketing management personnel with high salaries, preferably in the lampshade industry for a long time, have a wide range of good customer relationship network.

There are 16 general employees at Van Nuys Lamp Shade. These employees find Van Nuys Lamp Shade Company an attractive company to work for, primarily because of the great pay and benefits package. The company is now considering how to retain these employees, who are experienced and love and are dedicated to their work, which is important because it is the best guarantee of flawless products and services.

2 Entrepreneurial Strategic Programs in a Nutshell

Van Nuyshou Lamp Shade Company offered a total price of $800,000 for the company, but Steve was able to bargain the Van Nuyshou family into accepting a total price of $745,000. The above analysis of the company's industry position and outlook, profitability and potential. We believe by there are the following options to choose from:

2.1 Acquisition Funding Source Options

Option One

Of the total price, Steve and Miers pay $75,000 by check and invest $50,000 of their own money as a starting point. The other sources of funding are as follows: first, Vann Hundredth Lampshade has some assets that could be pledged as collateral to get a loan from the Small Business Administration. If the bank agrees to give Steve a loan, then the U.S. government can insure up to 85 percent of the loan. This would allow the government to assume some risk and thus significantly reduce the cost of the interest on the loan. Second, Steve could obtain other debt financing from certain states and certain local loan programs for investment in local businesses. Chicago has such a program and Steve can hopefully raise $100,000. Another $50,000 could potentially be obtained from a loan program in Illinois. Third, take some form of equity financing that allows each lender to take an equity stake in the loan without collateralizing the asset to ensure that dividends can be received. Fourth, become a mesbic (Minority Small Business Investment Corporation) so that Steve would be able to raise four times their equity capital in loans from individuals or commercial banks through government guarantees.

Through the above methods to the capital, because the source of funds to a high degree of confidence, can to a large extent to avoid investment risk. However, it is also because of the diversification of sources of capital, Steve in the company management decisions, taking into account the objective factors, there is a possibility of decision-making constraints and afraid to innovate.

Scheme two

In the total price, Steve and Miers pay $75,000 by check and invest $50,000 of their own money as a starting point. The remaining sources of funds can be considered as follows: the use of the United States perfect venture capital system, through a comprehensive examination of the development of enterprises, make a detailed report on the development of enterprises, as a basis for applying for risk funds, to some of the provision of risk funds for investment enterprises to apply for a loan program to obtain risk funds, as a source of funds for the acquisition of the VAN NUYSHINE Lampshade Company. And avoid multiple channels to obtain funds.

This kind of program has high investment risk and is suitable for enterprises with good development prospect. And through the analysis, we believe that the profitability of Van Nuys Lampshade Company is greater than the venture capital, this plan is also feasible.

2.2 Organizational Reorganization Program

Program 1

While Steve and Meehl will become the company's top managers, they do not have a deep understanding of the lampshade industry, so there will be some difficulties in the management of the decision-making process, but in order not to affect the normal operation of the company, the following can be considered: examine the loyalty of the company's employees, screen them and retain a portion of the loyal employees, that is, a part of the high loyalty of employees, and the company will not be affected by the normal operation of the company. A part of the staff with high loyalty, that is, the company to carry out a "partial blood change". This will not only establish a certain degree of prestige in the company, but also ensure profitability.

Scheme two

Steve in the takeover of the Vann Hundred Days Lampshade Company, in order to make the decision to make the order, the plan and so on the smooth implementation of the complete takeover of the company, he can also be "all the blood" of the company. Both the management staff and the laborers who work in various fields can be recruited from outside. In this way, it can ensure the understanding of human resources and facilitate the management of personnel, but in a certain period of time, it will affect the company's business, and even the phenomenon of loss.

2.3 Entrepreneurial Development Strategy Program

Program 1: Go for broke, go all out

From the case study, it can be seen that Steve and Meehl's ambition, ambitious, and they are very focused, and extraordinarily diligent efforts to carry out the acquisition of the Vann Hsu Lampshade Company. The opportunity to go all out, generally speaking, only once, entrepreneurs need to be urgent, must focus on human, material and financial resources. The lampshade of Van Nuysu Lampshade Company had the advantage in quality, but the company's marketing channels were not perfect, and the sales growth rate from 1983 to 1986 was only 1.3%, and if the trend continued, the company's market share would gradually decline. Therefore, it is necessary to reorganize the company's marketing channels and marketing personnel. The reorganization of marketing channels has a very important significance for the company's entrepreneurship: 1. For the impact of financing, although the company has a very good product and brand effect, but the venture capital companies (including a variety of financing institutions) will also notice that the sales rate of the company's Vann Hundred and Thirteen Lampshade has a tendency to decline year by year. So only by reorganizing its marketing channels and giving a very convincing financing application report to the financing institutions, we can successfully obtain the required funds.2. Due to the negative attitude of the company's owner towards marketing nowadays and the worries and concerns of some old customers about the changes in marketing policies brought about by the company's change of ownership, it is necessary to set up a set of customer-needs oriented customer relationship management mechanism from the consideration of the company's long term interests. Utilizing the good quality of the company's products and brand advantages, its marketing channels into the company's core competitiveness of part of the company's "second start-up" of the company.

This program may have obvious benefits in the short term, and there is a relatively large investment risk and marketing risk, but for the long-term development of the company has a very good prospect of profitability.

Option two: to remain unchanged

Considering that Steve and Meehl don't know enough about the lampshade industry and can't make a perfect plan for the company's long-term development in a short period of time, the main direction of the company's business, the management and the marketing channels will not be changed after the acquisition of the company. The main business of the company should be strengthened, which is the key to carry out the business, due to the high loyalty of the management, in order to maintain the stability of the company during the transition period and minimize the risk, no change in the management staff. For marketing, it is important to strengthen ties with existing customers and stabilize the relationship with them to show that the company's attention to them will not be weakened by the change of ownership.

This plan emphasizes the word "stability". In the short term, the impact on the company is not great. But in the long run, the company lacks momentum. In the United States in the fierce business competition, easy to be knocked over by the opponent.

3. Final Choice of Options

From the analysis, our final choice of options for the acquisition of the source of funding options, institutional restructuring options and entrepreneurial development strategy options for each of the first option.

3.1 Reasons for choosing

We choose the acquisition of the source of funds program one because: multi-channel financing can reduce the risk of financing, and the state loan interest rate is relatively low, although compared to the second option, the company's decision-making is to take into account the interests of a number of investors, which will have an impact on the effectiveness of the decision-making, and the financing of the procedures are troublesome, but more than the risk of the investment collected by the pressure is relatively small, the overall consideration or program The pressure is relatively small, comprehensive consideration or program one is optimal.

We chose to buy the organization reorganization program because: although the second program can establish their own prestige, so that their plans and decisions to be carried out smoothly, but the staff changes will be too large for the remaining staff to leave a shadow on the psychology of the staff, especially in the company has just changed the owner, the staff of their own future is very sensitive. The first option is from the perspective of competition in the industry, and the cost of retaining talent is much less than the cost of hiring new employees. And the company's employees are an experienced and dedicated labor force that will help the company in the future.

We chose the entrepreneurial development strategy program one because we chose this company to start a business is after many comparisons to value its long-term development potential. Compared to the second program, although the short-term interests will be affected, but in the long term, improve the company's marketing channels, develop new customers is the key to the development of the company.

3.2 Resources needed to start the business

Adequate working capital, experienced marketing staff, developing more representatives of lamp manufacturers

3.3 Problems that may be encountered and solutions

From within the company, due to the fierce competition, the psychology of the employees may change during the transition period of the company, and its competitors may poach. Moreover, there is a period of integration between new employees and old employees, which can have a negative impact on production. From outside the company, significant customers may have a crisis of confidence in the quality of products and services due to the change of ownership. Resulting in a decline in company sales and profits.

For the internal problems of the company, the management of the company should appease the employees, stabilize the psychological fluctuation of the employees, strengthen the training of the employees, and carry out humane management. For the company's external problems, the company should strengthen the contact with important customers, to make customers believe that: the company product quality and service and the importance of their attention is always unchanged.

References:

1. Jeffrey M. Timmons, USA. Timmons, Zhou Weimin, Tian Yingzhi translation "Entrepreneurship Translation Series", Volume 1-5, published by Huaxia Publishing House, "Entrepreneur" 『Van Nu Hundred Days Lampshade Company 』case, pp. 59-76.

2. Chen Dezhi, "Entrepreneurial Strategy Selection", Journal of Dalian University of Technology (Social Science Edition) December 2002

3. [US] Donald. Sal, "Strategies for Meeting the Challenges of Entrepreneurship", Foreign Social Science Digest January 2003

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