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Descripción: CASO The Jamestown Company
CASE 11-2 SERENDIPITY ENTERPRISES, INC.
1. Descr Describ ibee the the possi possibl blee adva advant ntag ages es and and disad disadva vant ntag ages es for for Blak Blakee by inco incorp rpor orat atin ing. g. Could a proprietorship have been more advantageous? ANS!"# $ossible Advantages# %he ma&or reason for incorporating 'as to protect his family. As by incorporating S!( there 'ere more shareholders to the company 'hich in turn reduces the risk of liabilities and the loses borne by the company. Also the profits 'ill be earned e)ually and 'ill not create any confusion in terms of returns. $ossible Disadvantages# *is shares in the company 'ill be limited as there 'ill be employees and other investors 'ho 'ill have their shares in the company. So he may or may not be the ma&or shareholder. N+. A proprietorship 'ould not have been more advantageous because he invested his family assets in it. And if he had to die his family assets 'ould 'ould have been at risk. Also Also a disp disput utee over over his his prop proper erty ty in 1,- 1,- 'hen 'hen Sere Serend ndip ipit ity y 'as 'as stil stilll a sole sole proprietorship had resulted in a serious la'suit/ and although he 'on the suit/ he realised that had the decision gone the other 'ay/ his family assets 'ould have been at risk. ith the business gro'ing/ there 'as a higher risk of litigation/ so Blake decided to separate business and personal assets. 0. !plain !plain the problems problems faced by entrepreneurs entrepreneurs for for succession. succession. (n Blake2s Blake2s situatio situation/ n/ 'hat are his options? ANS!"# hen Blake found that he had cancer and that the cancer 'as spreading he started thinking about ho' his business 'ould be controlled in his absence. *e 'as still a young a man in his 342s/ and he had 5 sons. *is oldest son/ a &unior in college/ had 'orked in the business for several years and 'as skilled at desk6top 'ork as 'ell as graphics development. Blake had staff 'hich included an office manager and several ecellent employees/ but non 'ho could take over as the head of a corporation. Apart for that he 'ondered 'ondered ho' he could protect protect his family2s family2s interest interest because his 'ife and sons 'ere minority stake holders/ having ac)uired stock at incorporation from assets that 'ere transferred to the company so 'hen Blake realised that if he died suddenly/ there 'ould be a succession problem and he also 'ondered 'hat 'ould happen to his stock. (n Blake2s situation he had options like7 a. *e could have given given his positio position n to his oldest oldest son 'ho had had 'orked 'orked in the busine business ss for for seve severa rall year yearss and and 'as 'as skil skille led d at desk desk6t 6top op 'ork 'ork as 'ell 'ell as grap graphi hics cs development. b. And start training his son and employees to be capable to take responsibilities and run the business in his absence.
c. Also guide and give the other t'o sons kno'ledge about the company and give them shares of the company so that 'hen they gro' up their careers and future are set and the family is secured. d. *e could have given is company on lease. By doing this/ his family 'ould have earned an income and the business 'ould have still been running. 5. hat other forms of business could Blake have chosen? !plain the possible advantages and disadvantages of each. ANS!"# 1. Desktop publishing tutorils Due to the multiple applications of desktop publishing and its huge relevance/ more individuals are seeking to learn ho' to use the various soft'are packages used by desktop publishers. 8ou can make additional income by teaching other people ho' to use programs like $hotoshop/ 9icrosoft publisher/ Corel Dra'/ and so on. Advantages# a. :e' employees are re)uired. b. ;uaranteed income. c. :leible timings. d. :leible 'orking days. e. Can be done at home.
Disadvantages# a. 9any competitors 'ith the same &ob 2. Print !o""uni!tion Businesses are constantly in need of print materials for communicating their products and services to potential customers. !amples of these materials include brochures/ fliers/ ads/ handbills/ and posters. %hese materials are very effective for offline advertising/ as they help spread 'ord of businesses to customers 'ho cannot be reached through online advertising. Advantages# a. :e' employees are re)uired. b. ;uaranteed income. c. :leible timings. d. :leible 'orking days. e. Can be done at home.
Disadvantages# a. 9any competitors 'ith the same &ob
5. #usiness brn$ing Some desktop publishers speciali
a. b. c. d. e.
:e' employees are re)uired. ;uaranteed income. :leible timings. :leible 'orking days. Can be done at home.
Disadvantages# a. 9any competitors 'ith the same &ob b. Difficult to get the best business o'ners.
CASE 1-1 PR%&RESS T'R%(&' INN%)ATI%N
1. !plain 9cCormick2s eperience in entrepreneurial terms based on the concepts of Adam Smith and Carl 9enger. ANS!"#
9any innovations have occurred/ but their significance has been forgotten along 'ith most of their inventors. Never the less/ efforts by a fe' inspired entrepreneurs have changed society in etraordinary 'ays. +ne of them 'as inventor and entrepreneur Cyrus 9cCormick/ 'ho created a revolution in agriculture 'ith the first mechanical reaper. *e invented the reaper in1-51 and unveiled it in the Shenandoah =alley/ cutting > acres of 'heat in less time than a healthy farmer could cut one acre. %he 9cCormick reaper replaced the 'ay farmers had harvested grain for more than 0444 years/ and the farm productivity had increased more than tenfold. %he idea began 'ith 9cCormick2s father/ 'ho 'as determined to and a 'ay to provide more food for America2s flo'ing population. *e had 'itnessed starvation in the cities and undernourished children in to'nship/ and the ans'er/ in his mind 'as to create a ne' method of harvesting food grains. ntil that time farmers 'ould so' only 'hat they could reap/ and the amount they could reap 'as limited to 'hat they could cut 'ith a hand sickle or scythe. 9cCormick2s father died 'ith his dream unfulfilled/ but young Cyrus pursued the idea. hen the first reaper 'ent into production/ it created chaos among farmers because those 'ho had 9cCormick suddenly out produced their neighbours by a substantial amount and could market grain at very lo' price. %he farmer 'ho 'orked only 'ith a scythe )uickly realised that he had to accept the inevitable change and purchase a reaper or lose his farm. *o'ever during those days farmers had little money and could not afford the 9cCormick harvester so 9cCormick founded (nternational *arvester Corporation this aloud the farmer2s use the reaper and pay on credit basis/ and he soon set up sales offices in every state and territory in the country. @ater 9cCormick refined his credit policies and introduced instalment sales 'ith lo' do'n payments and periodic payments. 9cCormick 'as an inventor turned entrepreneur 'ho recognised the value of marketing at the same time he hired the best people he could find 'ith marketing and engineering talent. *e encouraged them to think and act independently/ and many unusual innovations 'ere made. :or eample/ the company introduced four colour advertisement and posters7 these 'ere the forerunners of billboards. @ater he created brochures to attract customers/ and these evolved into mail6out orders that 'ere among the first efforts at direct marketing. (n short 9cCormick 'as a very hard 'orking and a successful inventor and entrepreneur 'ho 'orked for the people and al'ays encouraged his employees to do better and to bring out their hidden talents. 0. Cyrus 9cCormick 'as responsible for the first mechanical reaper and the critical idea of interchangeable parts7 ho'ever/ the success of 9cCormick is often attributed to his ability to organi
Cyrus 9cCormick 'as responsible for the first mechanical reaper and the critical idea of interchangeable parts7 ho'ever/ the success of 9cCormick is often attributed to his ability to organi
5. Compare 9cCormick2s contributions that led to a revolution in agriculture 'ith Apple Computer2s introduction of the microcomputer that revolutioni
