Subject category:
Entrepreneurship
Published by:
Babson College
Version: 10.07.97
Length: 10 pages
Data source: Field research
Share a link:
https://casecent.re/p/21753
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
This is the first of a two-case series (802-061-1 and 802-062-1). This case follows a top Dunn and Bradstreet salesman when he resigns and launches a company to fill an under-served niche, credit and collections in the fresh seafood industry. The company rapidly grows to 35 employees before the lead entrepreneur decides to make the data available on-line. This requires a substantial investment in technology that will only be affordable if sales increase quickly. When sales remain flat, the company experiences a cash crisis. The SeaFax (B) case details the cash flow and other management tactics used to survive the crisis and can be found in the teaching note. The management team devise a survival strategy that includes layoffs, motivational exercises, and renegotiating fixed expenses. The investment in a new computer system ultimately enables SeaFax to expand horizontally into other industries that also benefit from an on-line credit and collections database.
About
Abstract
This is the first of a two-case series (802-061-1 and 802-062-1). This case follows a top Dunn and Bradstreet salesman when he resigns and launches a company to fill an under-served niche, credit and collections in the fresh seafood industry. The company rapidly grows to 35 employees before the lead entrepreneur decides to make the data available on-line. This requires a substantial investment in technology that will only be affordable if sales increase quickly. When sales remain flat, the company experiences a cash crisis. The SeaFax (B) case details the cash flow and other management tactics used to survive the crisis and can be found in the teaching note. The management team devise a survival strategy that includes layoffs, motivational exercises, and renegotiating fixed expenses. The investment in a new computer system ultimately enables SeaFax to expand horizontally into other industries that also benefit from an on-line credit and collections database.