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Compact case
Case
-
Reference no. 500-034-1
Subject category: Marketing
Published by: Cranfield School of Management
Published in: 2000
Length: 5 pages
Data source: Field research

Abstract

This is the fourth of a four-case series (500-031-1, 500-032-1, 500-033-1 and 500-034-1). The immediate issues posed by the case are whether or not it is possible to open a new store directly opposite a major competitor (location), in the latter phase of an economic down-turn (timing)? Would finance be available to support such a high risk retail start-up and through setbacks in early growth stages? How could later growth be financed? The more basic issues comprise the credibility of the entrepreneurial partners, Andrew and Pauline Purves, in undertaking the venture (entrepreneurial personalities) and the suitability of different types of financial support for start-up through later growth stages (owner''s equity, angels'' equity and bank debt finance). The role in the marketing mix of low cost public relations (PR) in helping new starts, where funding for advertising is very limited, is an important issue to complement the basic location strategy. Key points for the case series include the importance of owner and angel equity in helping to offset the high business risk of new and early growth ventures, the importance of the prior business experience of the entrepreneurial company founders and the significance of low cost PR in business in parallel with and based upon an understanding of the country''s economic cycle should also be emphasised. A video ''500-031-3'' is available to accompany the case series.
Location:
Industry:
Size:
50 employees
Other setting(s):
1991-2000

About

Abstract

This is the fourth of a four-case series (500-031-1, 500-032-1, 500-033-1 and 500-034-1). The immediate issues posed by the case are whether or not it is possible to open a new store directly opposite a major competitor (location), in the latter phase of an economic down-turn (timing)? Would finance be available to support such a high risk retail start-up and through setbacks in early growth stages? How could later growth be financed? The more basic issues comprise the credibility of the entrepreneurial partners, Andrew and Pauline Purves, in undertaking the venture (entrepreneurial personalities) and the suitability of different types of financial support for start-up through later growth stages (owner''s equity, angels'' equity and bank debt finance). The role in the marketing mix of low cost public relations (PR) in helping new starts, where funding for advertising is very limited, is an important issue to complement the basic location strategy. Key points for the case series include the importance of owner and angel equity in helping to offset the high business risk of new and early growth ventures, the importance of the prior business experience of the entrepreneurial company founders and the significance of low cost PR in business in parallel with and based upon an understanding of the country''s economic cycle should also be emphasised. A video ''500-031-3'' is available to accompany the case series.

Settings

Location:
Industry:
Size:
50 employees
Other setting(s):
1991-2000

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