Individual Case Study: Warm Fuzz Cards
Kristy Page
Professor Nancy Rossiter
ENT3004 - 02250
September 17, 2017
Introduction
Erica Mills owns a successful greeting card business, Warm Fuzz Cards, and is currently considering various ways to grow her business as she pursues motherhood. She could continue with her current, slow-growth strategy or incorporate a new fast-growth strategy. Opting for the slow growth strategy may cause her to forfeit some significant business opportunities. The fast-growth strategy presents additional obstacles for her to overcome such as obtaining additional financing and staff. This paper will identify her current issues, evaluate the advantages and disadvantages of slow and quick growth strategies, …show more content…
Her decisions have produced a successful business thus far but she wonders if her current strategy yields the greatest rate of return. Switching to a quick growth strategy would mean Mills would have to give up some control of the company and the flexibility that a slow-growth strategy offers.
Other related issues include time management and funding. Although Erica`s husband assists with the quality control, production and assembly aspects of the business, Erica assumes all the other roles solely by herself. She clearly needs more assistance with the everyday tasks if she`s going to also embark on the journey of motherhood shortly. Along with hiring more help, she also needs to consider additional sources of funding to expand her business. Bootstrapping doesn`t provide nearly enough capital to pay for additional equipment, employees, or rent needed to expand the …show more content…
Planning and implementing changes should be done sooner rather than later.
There are several reasons that support a fast growth strategy for Mills` business. First and foremost, she already has her husband`s support for growing the business faster. Afterall, this decision will directly impact his life as well. Her quality of work, unique designs, paper quality, printing quality and add-ons set her business apart from what the market offers. Her family, friends, and customers have said just as much.
Business volume will be increased and ultimately, her business cost per unit will decrease. The increasing volume of the business will ultimately lead to an increase the inventory cost, so Mills will have to invest in marketing and sales to offset the increase in inventory costs. She will also have to bear the additional labor cost as she herself cannot manage the sales, marketing and designing with the plans of starting motherhood. Growing faster will grow the business and this in turn bodes well to offset the increase in costs. This will eventually increase the business’s
Kristy Page
Professor Nancy Rossiter
ENT3004 - 02250
September 17, 2017
Introduction
Erica Mills owns a successful greeting card business, Warm Fuzz Cards, and is currently considering various ways to grow her business as she pursues motherhood. She could continue with her current, slow-growth strategy or incorporate a new fast-growth strategy. Opting for the slow growth strategy may cause her to forfeit some significant business opportunities. The fast-growth strategy presents additional obstacles for her to overcome such as obtaining additional financing and staff. This paper will identify her current issues, evaluate the advantages and disadvantages of slow and quick growth strategies, …show more content…
Her decisions have produced a successful business thus far but she wonders if her current strategy yields the greatest rate of return. Switching to a quick growth strategy would mean Mills would have to give up some control of the company and the flexibility that a slow-growth strategy offers.
Other related issues include time management and funding. Although Erica`s husband assists with the quality control, production and assembly aspects of the business, Erica assumes all the other roles solely by herself. She clearly needs more assistance with the everyday tasks if she`s going to also embark on the journey of motherhood shortly. Along with hiring more help, she also needs to consider additional sources of funding to expand her business. Bootstrapping doesn`t provide nearly enough capital to pay for additional equipment, employees, or rent needed to expand the …show more content…
Planning and implementing changes should be done sooner rather than later.
There are several reasons that support a fast growth strategy for Mills` business. First and foremost, she already has her husband`s support for growing the business faster. Afterall, this decision will directly impact his life as well. Her quality of work, unique designs, paper quality, printing quality and add-ons set her business apart from what the market offers. Her family, friends, and customers have said just as much.
Business volume will be increased and ultimately, her business cost per unit will decrease. The increasing volume of the business will ultimately lead to an increase the inventory cost, so Mills will have to invest in marketing and sales to offset the increase in inventory costs. She will also have to bear the additional labor cost as she herself cannot manage the sales, marketing and designing with the plans of starting motherhood. Growing faster will grow the business and this in turn bodes well to offset the increase in costs. This will eventually increase the business’s