Product details

The primary subject matter of this case concerns relationships between three critical decisions facing founders of startups in planning for initial production capacity: space leasing, subcontracting, and cash burn. A startup wind turbine manufacturing company faces these decisions under an initial funding cash constraint as they plan the company's first two years of production capacity. Secondary issues are to understand 1) the elements of a manufacturing facility lease, 2) the rationale and motivations for subcontracting all or a subset of the product's component parts, 3) the financial forecasts necessary to determine the cash burn associated with various levels of production capacity, and 4) the complexities of integrating these decisions and forecasts in developing the optimal initial production capacity for the startup. The case has a difficulty level of four, appropriate for senior level. The case is designed to be taught in three or four class hours, depending on the student proficiency in finance and accounting, and is expected to require three hours of outside preparation by students.