DECISION SHEET

CENABAL (A)

 SUMMARY
The main protagonist in the case is Jennifer Macdonald. Though
she had less business knowledge she had high passion for her
products and proprietary process that she had personally
developed. She required investment to further develop her
business. She participated in a show The Dragon’s Den where
entrepreneurs pitched and convinced the investors to invest in
their respective business. Cenabal required amount of $200000.
MacDonald was chosen as a participant based on the credibility
of her business and she explained her background, business and
justification for the required amount for her business in return
providing 20% share of her company. First the Dragon investors
opted out then after MacDonald’s explanation one of the
investors offered to provide $100000 in exchange of 25% share
and later Jim Treliving the chairman and founder of Boston
Pizza restaurant offered same deal of $100000 in echange of
25% share. MacDonald now had the investment she required for
her business but at the stake of 50 % share of her company. She
negotiated to 40% of her company the investors declined the
offer as they required 50% of her company and Jim tried
convincing Macdonald and put forth his perspective and also
added a tempting offer that his organisation is already had a
national distribution company lined up to take on her product.
MacDonald had to choose how she would raise investment for
her business.

 Problem Statement
The problem statement in the case is how MacDonald would
raise investment of $200000 for further development of her
business.
  Criteria for Evaluation
The criteria for evaluation are as follows
1.Risk
2.Share of the company
3. Business Development
4.Control of the company
5.Management
6. Rights

 Alternative for Evaluation

The alternative for evaluation are as follows
 Option 1:- Accept the offer of the Dragon investor at the
stake of 50% share of the company.
This would help in receiving investment and also since the
dragin investors are experienced this would help MacDonald
to gain experience and understand the functioning as she
lacked that since she already developed a good product
gaining business knowledge at this point is much necessary.
She would still have hold over her company and risk
management would be easier since the investors are
experienced and would know how to manage it.
 Option 2:- Apply for loan
This would help her preserve 100% of her company with
her and raise the required investment through loan but this
wouldn’t help her develop her business as she lacked
knowledge of business and only had her product and
proprietorship which wouldn’t help in building the
business nor managing nor handling risk either.
 Option 3:- Accept only Jim Treliving’s offer of $100000 in
exchange of 25% share of her company.
This would help Macdonald in gaining investment for her
company as well s she would have hold over 75% of her
company which keeps her as the major stake holder of the
company and since Jim is already into the food industry
and had claimed to already have organisation with the
needed national distribution company lined up to take her
product would help her develop and expand her business
Jim would help in risk management as well as develop and
manage the company since he has 25% of the company .

 Decision
As the key decision maker I would choose Option 3 which
is to Accept only Jim Treliving’s offer of $100000 in
exchange of 25% share of her company as this would be
beneficial for the company as well as MacDonald as Jim
has good experience in the field and would help in
increasing productivity and develop her business and she
would remain as the major stake holder.