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Dwayne and Fred were the two executive employees of ACME with more than six years’ service experience in the company. They were later acquired by a large national company, Garden & Pet Central. …
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Download file to see previous pages... Both Dwayne and Fred faced some ethical issues since they had to operate cooperatively with their eventual competitors; therefore they decided to start a new venture of their own. They had better access to market and suppliers and several years’ industry experience as their main competitive advantages for running a new venture. However, in my opinion, they did not have an accurate business plan at the beginning and it caused dilemma at every phase of the project development. In addition, they were not adequately leveraged with capital, and subsequently their business confronted with a sequence of crises. It seems that some assumptions they made were unreasonable. For instance, they thought that capital acquisition would be an easy process; and that misconception led them to difficulties. 2. Dwayne and Fred had to address many ethical issues while contemplating starting their business. They were to spend more in order to comply with the projected ramp up. It caused some unexpected financial expenditure and badly affected the balance of designed budget. In order to meet the startup costs of $87,500 and possible operational losses, the partners took a loan of $300k a large regional bank called Zinc’s. As a result of various expansion activities, their monthly operational expenses rose to $24k (including several interests). ...Download file to see next pagesRead More
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