PECBE 001 - ENTREPRENEURIAL MANAGEMENT

FINAL EXAMINATION
ENTREPRENEURIAL MANAGEMENT
Second Semester, School Year 2021-2022
IVY A. BARTIDO
Instructor

Part I. TRUE OR FALSE. Write TRUE if the statement is correct and FALSE if it is not.
Write CAPITAL words for your answer. (2 points each)

1. Business idea creates investment and fortune.

2. Steady monetary stability can be the promise of a business idea.
3. Analyzing trends can provide new business ventures.
4. Business ideas are not absolute.
5. You can eliminate barriers if you start with business ideas.

PART II. CASE ANALYSIS. Analyze the given case below and provide your answer clearly.
Graeter’s Ice Cream
Product Innovation and Long-Term Success
Graeter’s Ice Cream has been a Cincinnati tradition for generations. Since the days before
refrigeration, the family-owned business, with its Fresh Pot process of making frosty treats, has
been a popular choice among Ohioans. Since generating a loyal following in 1870, soon after the
company’s forefathers began selling fresh ice cream made two gallons at a time from an open-air
street market, Graeter’s has become synonymous with ice cream. The ice cream was a novelty
when Louis Charles Graeter and his wife, Regina, began making ice cream daily in the back
room of a storefront on East McMillan Street. The couple sold their ice cream along with
chocolate confections out front and lived upstairs. Since there were no mechanized freezers at
the time, ice cream was a rare treat, and the Graeters had to make small batches using rock salt
and ice.
As commercial refrigeration became widespread, Graeter’s Ice Cream produced and store more
products while still servicing consumers from the McMillan Street building. However, the
business took a blow when “Charlie” was killed in 1919 in a streetcar accident. In the 1920s,
Regina realized that the company could reach more customers by expanding to other locations.
She took a gamble and opened a satellite store across town—what would become the first of
several neighborhood stores to open as the company positioned itself as a maker of quality ice
cream available just about anywhere in town.
Following Regina’s death in 1955, sons Wilmer and Paul took over the business before ushering
in the third generation of family leadership with Wilmer’s four children. Over the next 30 years,
the face of the ice cream business changed. As more ice cream makers entered the market and
grocery stores became a viable outlet, selling ice cream entered a new realm. Most competitors
built the business on volume, and quality suffered, despite lower prices. Graeter’s, meanwhile,
stayed the course and continued with its time-consuming Fresh Pot process of spinning the

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 PECBE 001 - ENTREPRENEURIAL MANAGEMENT

recipe along with a chilled container. Although Graeter’s followed the trend and offered its ice
cream in grocery stores, its retail outlets offered consumers a distinctive buying experience.
Over the years, Graeter’s developed a line of candy and bakery goods, but ice cream has been the
company’s staple, enabling the small business to gain a national reputation. In recent years, the
company has appeared on the Food Network, Fine Living Channel, Travel Channel, and History
Channel. A crowning achievement occurred when Oprah Winfrey gave her endorsement to
Graeter’s, calling it the best ice cream she’d ever tasted. Mail-order sales substantially increased.
Growth has come in leaps and bounds for Graeter’s. With an aggressive marketing effort and a
strong alliance with the Kroger chain, the company more than doubled its number of grocery
store outlets in 2009. Today, the ice cream, now available in 22 flavors, can be found at 1,700
supermarkets and grocery stores and company-owned retail stores in Ohio, Missouri, Kentucky,
and nearby states. Graeter’s also expanded its distribution network to include restaurants and
country clubs, and it operates an online store that offers overnight shipping in 48 states,
including California, its largest market. Also, the company has diversified its portfolio by
offering a line of ice cream cakes and pies, travel packs, and sundaes, in addition to baked goods
and candies.
But the company is committed to further expansion. Graeter’s recently boosted its production
capacity from one factory to three, aiming for distribution to even more supermarkets and
grocery stores throughout the country. Additional retail stores as far away as Los Angeles and
New York are planned.
While competition continues to stiffen, Graeter’s remains one of the priciest ice creams on the
market, even without the shipping costs associated with online ordering. The ice cream is
considered a premium product at the retail level and commands a higher price than other
brands. With Kroger as its largest distribution partner, the company has built strong brand
loyalty, as evidenced by a recent trial in the Denver area. Graeter’s marketed 12 flavors in 30
King Soopers stores in Denver with hopes of selling two or three gallons per store per week.
Within a few weeks, stores were selling an average of five gallons.
The company focuses on making its product available at the country’s largest food stores, but its
leaders are conscious that new products, including established brands in a new market, have a
high failure rate. Challenges ahead are the company’s ability to establish relationships with new
consumers and build brand awareness.
Guide Questions:
1. While its ice cream was a success from the start, what innovations has the
company made to sustain its competitive advantage? Explain your answer (30
points)
2. Create a unique strategy for Graeter’s ice cream. You may illustrate your
answer. (30 points)
3. Considering the status of the company at present, and grabbing the opportunity
to expand, what business idea can you offer to the creative section of the
organization? Provide your analysis. (30 points)
The module is for the exclusive use of the University of La Salette, Inc. Any form of reproduction, distribution, uploading, or
posting online in any form or by any means without the written permission of the University is strictly prohibited.
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 PECBE 001 - ENTREPRENEURIAL MANAGEMENT

The module is for the exclusive use of the University of La Salette, Inc. Any form of reproduction, distribution, uploading, or
posting online in any form or by any means without the written permission of the University is strictly prohibited.
PA
GE