CLOSING CASE CHAPTER 12

1. Can Fried really say “no” to the big-box retailers? Why or why not?

In this case, Fried will say a “no” to the big-box retailers. Even though he will feel bad

due to the loss of millions he was going to make, he doesn’t have any other choice but

to continue with the earlier business plan. This may come about because he has

minimal time to do many things and ensure that all of them are done perfectly. Massive

production requires large capital investment, which will cater for the costs of operations.

Also, the business is still small hence not financially stable enough to increase

production abruptly, resulting in indebtedness. The current workforce is very small to do

such work within a short period and still expect to maintain high quality. Besides, as

mentioned in the case during trade shows, discounts will always apply since you attract

new customers, not forgetting that the big companies have to earn something for

marketing your products for sale. This will reduce the amount of revenue expected.

Lastly, recreating a new business is a lengthy process hence all have to agree on the

necessary changes required to be made.

2. What do you think Fried should do?

I think that Fried should go on with the earlier business plan that stressed specialty

shops. In any business, you cannot expect to jump from the birth stage to the maturity

stage at once because much is involved. Business is always a learning process that

educates someone on moving step by step from one stage to another through the

challenges you go through and overcome as an entrepreneur. Also, those big

companies that Fried sees now came from somewhere before they reached the level
where they are now. Therefore, Fried shouldn’t be in a hurry to gain a lot at once, yet

his business is small because he is working with only six people for whom he doesn’t

pay. He should first focus on building a quality brand to attract new customers hence

establish a customer base for the business. Next is to continue supplying the products

in specialty shops, and thus, from the revenue earned, he can continue to save for

bigger plans, after which he will be at the trade show one day. Lastly, he should do

product promotion, for example, advertising in the media to make his product known in

the market.