Quiz 6: Managing Change and Innovation

Business

Mr. K would have initiated the conversation in a friendly, open manner regarding his/her decision to change career from entrepreneurship to a job. The following questions can be analyzed. • What made him feel to look for a job suddenly and stop the business setup • If anything went wrong between them If so, why did he did not tell him If nothing went wrong, then why he did not tell him even that he is looking for opportunities • What can be done to improve / change so as to continue the business (If he responds positively) • What does he expect; so as to know what is his attitude today towards this business as well as Mr. K (If he responds negatively) Mr. K could say the following: • What happened How did Mr. J decide all of a sudden to shift in such a way • Based on his response, if he is answering positively, I will try to ask in detail. • Forget about business and other stuff. Can I ask you as a friend, what made you to take this decision • Mr. K was surprised to know that Mr. J was looking for a job and leaves all this business setup built by Mr. K and Mr. J over the last 6 years, out of common interest.

In buying a franchise office supply store that is for sale, it is important to weigh the merit of the investment. One must ensure that the business to be purchased is an established one, and not a start-up to minimize the risk associated. Evaluating the financial position of the company is the primary need prior to the investment. Moreover, when several outside investors are needed to raise startup costs and franchise fees, certain areas and questions cannot be avoided. Questions that should be answered and enumerated prior to investment and rising fund from outside are: • What stage of business growth is the store currently operating under • Has the owner/manager already delegated and decentralized the management portions of the different departments, or will extra time be needed to make this part happen • Will any of the investors require partnership in the venture

The ethical dilemma that CC faces involves $16 Million investment that has put him in a kind of trouble. As explained by BM about the flawed estimates, CC realized about the situation and cross-checked the estimates. Soon he understood that renewal income figure, which impressed the venture capitalist firms, was a flawed report. If he came out with the truth to the venture capitalists, then the company would not get the funding. It is better to resort to the truth and believing in growth without resorting to any kind of fraud. So, CC should inform the investors about the flawed reports.

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