PAMANTASAN NG LUNGSOD NG PASIG

College of Business and Accountancy

Pasig City

NAME:
Date:
Chapter 1 Case 1.1 GAZELLE….or TURTLE?

Summit Software, Inc., recently celebrated its fifth (5 th) year of business. Jim Mueller, the proprietor,
started the software manufacturing and distribution company when he was still working as a professor
at the local college, but now he enjoys being in the fast-paced technology industry. Growth and
expansion were easy for Jim, thanks to his knowledge, his contacts and the pool of readily available
workers from which to choose. The company that originated in his den now occupies a nice space close
to downtown.

Going into the sixth (6th) year, Jim continues to serve the same target market with customer support and
lengthy projects. He acknowledge that technological advancements and new clientele are in the
immediate future. All of the current and forecasted work leaves Jim and his three (3) employees with
little time to spend on administrative duties – let alone new accounts. Jim also realizes that the company
needs its own upgrades to continue its rate of success and to stay competitive. Looking at summit’s
financials and the amount of work necessary to maintain the business, he’s not sure where to go from
here. Following is a snapshot of Jim’s annual sales since inception:

Year 1 P 112,000.00
Year 2 P 195,000.00
Year 3 P 250,000.00
Year 4 P 335,000.00
Year 5 P 487,000.00

Questions: Please answer briefly with content each question based on your understanding, opinion and
point of view. 5 points each.

1. Is Summit Software a gazelle? Support your answer. 5 points.

 Summit Software is indeed, a gazelle. It is a high-growth corporation with a five-year revenue
increase of at least 20%. As a result, we can refer to this software as gazelle.

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 2. What problems may Jim face by owning such a fast-growing business? 5 points
 Here are some issues that may arise as the company expands rapidly. Clients would have higher
expectations, for starters. Second, their clients foresee more innovation and change in their
products, which will pose a significant challenge to their opponents. Finally, the right personnel
must be hired.

3. Are gazelles more important to the economy than traditional growth business? Why or why not.
Explain your answer briefly with content. 5points
 The profit made by gazelles benefits the country, hence they are essential for economic
prosperity. The economy of the country expands at a quick pace, as do gazelles. Gazelles, on the
other hand, grow at a faster rate than regular businesses. The production of jobs and riches is
aided by gazelles.

4. Discuss the significance of the case to the real world of business and relating to
Entrepreneurship.
Discuss briefly with content. 5 points.

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