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Case
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Reference no. 802-088-1
Subject category: Entrepreneurship
Published by: Babson College
Originally published in: 2002
Version: 12.16.02
Length: 20 pages
Data source: Field research

Abstract

Opportunity keeps knocking for a start-up company selling cable for computer networks. Despite frequent cash-flow problems and bankers looking for sound financial ratios including monthly profit statements, the partners feel that new opportunities must be seized despite the pains that come with rapid growth. Expanding first into the network installation business, they keep costs low by hiring subcontractors while they manage the projects. Next, they begin researching and designing network test equipment to increase the quality of their installations and to give their company a competitive advantage. As the company grows, human resource issues develop such as hiring and firing procedures and relocation decisions. The company soon becomes a multibillion dollar company and the largest employer in New Hampshire. This case can be used with ''Collingsworth Corporation'' (802-057-1), which details the founding of Cabletron. The teaching note, includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.
Industry:
Size:
Growth
Other setting(s):
1984-1988

About

Abstract

Opportunity keeps knocking for a start-up company selling cable for computer networks. Despite frequent cash-flow problems and bankers looking for sound financial ratios including monthly profit statements, the partners feel that new opportunities must be seized despite the pains that come with rapid growth. Expanding first into the network installation business, they keep costs low by hiring subcontractors while they manage the projects. Next, they begin researching and designing network test equipment to increase the quality of their installations and to give their company a competitive advantage. As the company grows, human resource issues develop such as hiring and firing procedures and relocation decisions. The company soon becomes a multibillion dollar company and the largest employer in New Hampshire. This case can be used with ''Collingsworth Corporation'' (802-057-1), which details the founding of Cabletron. The teaching note, includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.

Settings

Industry:
Size:
Growth
Other setting(s):
1984-1988

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