Strategic Management 1

ACTIVITY 2
Directions
Type Individual
Friday March 20th, 11:55 pm
Due date and time
(late submissions will have -20 points penalty)
Word document (.doc or .docx) via Moodle.
Submission
If document submitted in PDF, Pages or other format it will graded as a zero (0).
Deliverables Essay
Format Font Times New Roman or Arial size 12, double space, page numbering
Length Word count 500 words minimum, 750 words maximum (excluding references)
Essay will be scanned via Turnitin for originality.
Originality The tolerance level is 24%, if percentage is higher, it will be deducted from your final score
(% similarity - 24%).
Cite your references at the end of the essay (APA style).
References
Failure to include references will have a -10 point deduction.

Case: Print the Legend

The objective of Activity 2 is to put into practice some of the concepts we have covered in the course and practice your
English writing skills.

According to Hofer and Charan (1984:1), “after the starting difficulties have been overcome, the most likely causes of
business failure are the problems encountered in the transition from a one-person, entrepreneurial style of management to a
functionally organized, professional management team.” In the documentary Print the Legend, we saw some of the
challenges entrepreneurs face when starting and transitioning from a “group of friends” to a “real company”.

The startups in the documentary had very different strategies on how to compete in a 3D printing industry dominated by
big companies such as Stratasys and 3D systems. The table contains some of the differences in their business strategy:
Makerbot Formlabs
Type of 3D printing technology Fused deposition modeling (FDM) Stereolithography (SLA)
Top-management composition CEO strong in marketing CEO strong in engineering
Co-founders strong in engineering Co-founder strong interpersonal skills
Raising of capital Received capital from important firms. Raised around 3 million USD by using
Eventually bought by main competitor Kickstarter
Stratasys
Production Built a factory for production Used a third party for production
Intellectual property management Started using an open-source approach Used a technology that was patented
and then went closed-source by main competitor 3D systems and
got sued by them

One of the main objectives of any company is to grow and to consolidate in order to survive and thrive. Therefore, having
a strategy on how to manage growth can be crucial for the long-term survival of the company. As it was seen in the
documentary, both startups faced problems managing growth. So, it is very important that in the initial stage of a company, to
have a strategy on how to manage growth. Some of the challenges related to growth include: capital (where to find money for
continuing the operation), human resources (who and how many people should be hired to meet objectives), scale (should the
company produce by itself or outsource production), or geographical (when and how the company moves to new markets),
among others. Sometimes young companies focus on growing without considering the consequences they could face if they
are not prepared.
 Strategic Management 2

Essay
You are required to write an essay discussing the problems entrepreneurs face when starting a company. Your target
audience are young entrepreneurs that are working on their startup. By using the cases of Makerbot and Formlabs, you will
provide some advice to your target audience on which things they should avoid if they want to grow successfully.

Therefore, you need to give a brief case overview as who are these two startups (Makerbot and Formlabs) and the context
they were facing as they entered the 3D printing industry. Then, you must present some of the problems these companies
faced when growing from a startup into a bigger company. You need to describe what happened (the problems) and propose
some ideas on how they could have done things differently. Finally, based on the analysis of the problems you presented
previously, you will give one tip to your target audience. This advice is based on what you think is the most important thing
they should take care for successfully managing growth in the initial stages of their company. Although it is your opinion, it
needs to be backed by external sources.

Remember an essay has the purpose to convince the reader of your point of view. In this case, your objective is to provide
advice, using the stories from Print the Legend to make your point. An essay requires that you present your point of view by
providing clear arguments and evidence that support your claims. This evidence comes from external sources such as
readings, articles, news, etc. that help you prove your point. Also remember, even though your target audience are young
entrepreneurs, you should write in a professional business style.

Rubric
POOR AVERAGE GOOD EXCELLENT
SECTION VALUE
50% 70% 85% 100%
CONTENT**
It is very short; key information is It is short; some important It is good: some key information is It is excellent: the case is presented
Case overview 15% missing, and readers won’t information is missing missing to help readers understand with all relevant information to
understand who are these startups who are these startups understand who these startups are.
Partially presents the problems the Partially presents the problems the Presents the problems the startups Presents the problems the startups
startups faced. Does not present how startups faced and the strategy they faced and which strategy was faced, which strategy was chosen,
Problem analysis 15% things could have been done followed. Does not provide a clear chosen, but does not present clear and how they could have managed
differently. idea on how to do things differently. idea on how it to do things things differently
differently
Support for the analysis is based on Provides support for the analysis Provides good support for the Provides excellent support for the
personal opinions instead of external based on external sources. There is analysis based on external sources, analysis based on external sources
Supporting evidence 15% sources. no link between the support but there is no clear link with the that links the problem with the
information and the proposed proposed solution. proposed solution.
solution.
Provides one tip for the target Provides one tip for the target Provides one tip for the target Provides one tip for the target
audience, not related with the audience, which is related with the audience, which is related with the audience, which is related with the
Advice to target arguments presented previously. arguments presented previously. Is arguments presented previously. Is arguments presented previously.
15%
audience missing either point of view and missing either point of view or Includes point of view and
external sources for reference. external sources for reference. external sources for reference.
FORMAT
Format directions were not followed Two of these are missing: word One of these is missing font, word Essay is structured professionally:
(3 or more missing: word count, font, count, font, font size, line spacing, count, font, font size, line spacing, word count, font, font size, line
Format 10% font size, line spacing, page page numbering page numbering spacing, page numbering
numbering).
Document’s organization follows no Document is organized in a Document is organized well. Document is organized well and
logical or coherent order. reasonable manner but needs Information follows a logical invites readers to read more.
Organization 10% revision. Some information is order. Information follows a logical order
misplaced. and creates flow and clarity.
Information is not tailored toward the Document shows evidence of Document is written Document is tailored nicely
Audience Awareness target audience. Document is audience awareness. professionally and appropriately toward target audience. Target
10% confusing to reader. for the target audience. audience can follow proposed
advice.
Grammar and Errors make document unreadable. Some errors exist but only Minimal errors exist and do not Document is free of grammatical
10% occasionally impede meaning. impede meaning. or mechanical errors.
Mechanics
** If one of the content sections is missing (i.e. there is no advice) you will not receive points on that section.

References
Gordon, S., Klein, S., O’Meara, D., & Troutwine, C. (Producers), Lopez, L. & Tweel, C. (Directors). (2014). Print the
Legend [Video file]. Retrieved from http://www.netflix.com
Hofer, C. W., & Charan, R. (1984). The transition to professional management: Mission impossible?. American Journal of
Small Business, 9(1), 1-11.