DVD GUIDE
to accompany
Launching New Ventures, 5th edition
Table of Contents
Case 1: New Belgium Brewery
Case 2: Rise of Finagle a Bagel
Case 3: Social Responsibility at Stonyfield Farms
Case 4: Creating a Business Plan for Quadrant Capital
Case 5: Entrepreneurship at American Flatbread
Case 6: The Behavior of an Entrepreneur—The Milton Rodriguez Story
Case 7: Finagle a Bagel: A Fast Growing Small Business
Video Case 1
New Belgium Brewery
Length: 10:00
Video Overview
Entrepreneurs Jeff Lebesch and Kim Jordan are the founders of New Belgium Brewing Company. This video clip provides some behind the scenes looks at this maker of Fat Tire Amber Ale and a variety of other permanent and seasonal beers. Like many small businesses, this one began with experiments in a basement. Originally sold only in the Fort Collins, Colorado area, Fat Tire Ale’s reputation quickly pushed distribution into ten Western states.
The entrepreneurial company tries to encourage the creative spirit of its employees. Kim explains that as a company grows, so does its need for a more formal organization structure – BUT, you can’t have so many rules, policies, and forms that you kill entrepreneurial drive in employees.
This video shows that there is more to owning and running a business than just making a product. Kim states that if they were just in the business of making beer, they would have been bored a long time ago. Entrepreneurs have to create “magic” – support a community of people, impact a larger community, push the envelope of technology - to stay engaged in business.
Discussion Questions
1. Where and how did Jeff Lebesch get his inspiration for starting New Belgium?
2. New Belgium has a policy that twenty percent of new technology purchases must come from cutting-edge products – fifty percent of them are expected to fail. Why? What does this policy say about the company culture?
3. What similarities (besides making beer!) and what differences can you see between New Belgium and the Boston Beer story from the chapter opener?
4. What is New Belgium Brewery’s competitive advantage?
Video Case 2
The Rise of Finagle a Bagel
Length: 13:02
Video Overview
Alan Litchman and Laura B. Trust, Co-Presidents of Finagle a Bagel, got into the bagel business originally as a sideline to a cheesecake business. This video shows the story of how they created a bagel chain in Boston. Alan and Laura met in business school and after gaining business experience in other industries they purchased the bagel business with the intent of growing it as much as possible. They have two primary target markets – retail stores and wholesale accounts with large institutions.
Discussion Questions
1. What entrepreneurial characteristics do Alan and Laura exhibit? Give examples of creativity, innovation, risk assumption, general management, and performance intentions.
2. Laura says that many businesses can be expanded globally. Do you think this applies to Finagle a Bagel? Why or why not?
3. What form of ownership would be most appropriate for Alan and Laura? Why?
4. What is Finagle a Bagel’s competitive advantage?
Video Case 3
Social Responsibility at Stonyfield Farms
Length: 15:44
Video Overview
This video shows the story of Stonyfield Farms, a company that started with three cows and a great yogurt recipe. Eventually, it grew to be the 3rd largest yogurt producer in the U.S. Much of Stonyfield’s success is attributed to the fact that it is an environmentally conscious and socially responsible company. It uses yogurt as a medium to spread important messages about our world. Stonyfield’s message is demonstrated in its five-point mission statement: 1) support family farms, 2) profitability, 3) quality 4) environmental stewardship, and 5) make a great work environment for its employees. Stonyfield’s product is not separated from its mission.
Stonyfield bonds with suppliers and with customers to produce loyalty in both directions. Stonyfield understands and demonstrates the role of business in interacting with other businesses, with its environment, and with its employees…AND it manages to make a profit.
Stonyfield recently expanded its original mission and created a chain of fast food restaurants called O’Naturals. The restaurants, which can be found on the U.S. East Coast, serve a variety of organic, all natural, healthy foods.
Discussion Questions
1. Stonyfield does not believe in wasting anything. How does it prevent waste?
2. President and CEO Gary Hirshberg states that “the responsible thing to do is to identify and examine every potential for doing good and make some kind of investment there.” What examples can you provide of Stonyfield’s actions to improve? What still needs to be done?
3. How does Stonyfield combine social responsibility, ethics, and strategic planning?
4. What is Stonyfield’s competitive advantage?
Video Case 4
Creating a Business Plan for Quadrant Capital
Length: 14:19
Video Overview:
This video clip discusses the components of a business plan – market need, availability of startup capital, cash flow until a customer base is found, operating capital, risk factors, skills of employees, credit, growth plan, changing conditions, inventory, and competitive analysis. Quadrant Capital provides investment and financial planning to high net-worth individuals in New York City. Quadrant Capital’s business plan outlined how it would make money in its first year of operation and every year afterward. The company continuously refers to the plan to identify potential changes that it must make for the future.
Discussion questions
1. How do the business plan components discussed in this video compare with those in the text and those covered in your class?
2. How did a business plan benefit Quadrant Capital before it began and after it began operations? How do they use their plan to change their business?
3. Who are Quadrant Capital’s customers?
4. What is Quadrant Capital’s competitive advantage?
Video Case 5
Entrepreneurship at American Flatbread
Length: 9:52
Video Overview
This video features George Schenk, founder and president of American flatbread. The company, founded in 1985 in his backyard, currently has approximately 100 employees and two locations in Vermont. According to Schenk the company is a synthesis of influences including the health-food movement and the gourmet or new American food movement.
As American flatbread grew, Schenk realized that he could not do it all himself. He recognized that he had to empower others in ways that were real, to celebrate their work, and to allow them to make mistakes. Realizing that his idea is not always the best idea, he encourages others to bring their ideas “to the table." He believes that this approach leads to a much more satisfactory organization. Schenk also states that it's good and profitable to have constructive relationships with the community in which a firm operates. He feels that the same is true for employees -- that they give back more, they do a better job, they stay longer, and that they’re happier.
Discussion Questions:
1. The contribution of small business can be measured in terms of its effects on key aspects of an economic system. To which of these aspects (job creation, innovation, and importance to big business) is American Flatbread contributing?
2. Define the term “niche” and describe what niche American Flatbread is filling.
3. In what ways has Schenk’s choice of industry and his expertise in that industry aided or hindered him in achieving his success?
4. What are the factors that have contributed to Schenk’s success?
Video Case 6
The Behavior of an Entrepreneur—The Milton Rodriguez Story
Length: 10:04
Video Overview
Milton Rodriguez was a salesman at the top of his profession, working his way up to a position as the general manager of an auto dealership. But at age 35, he had second thoughts about that success. Rodriguez realized that his hard work and determination were greatly responsible for his accomplishments, but his family life was suffering. He wanted to spend more time with them, while still maintaining an active and profitable career. So he quit his job and founded the auto anti-theft firm, V.I.C.E. Script. V.I.C.E. Script is built upon a simple but powerful concept. The company provides the materials to permanently etch the vehicle’s unique identification number on all six of the auto’s windows. Auto thieves prefer to steal cars that are easy to disguise and re-sell—replacing all six windows would be prohibitively costly. Also etched on the windows is a toll-free phone number that allows law enforcement or insurance companies to call and check on the vehicle’s ownership. Information about a car is kept in the V.I.C.E. Script database, making it easy to track the car’s legal owners. A final benefit of the system is the company’s guarantee that they will pay the insurance companies’ deductible, up to $1,000, if a car is stolen and not recovered. V.I.C.E. sells its services directly to consumers via the Internet, and also sells distributorships, allowing entrepreneurs to re-sell their services to individuals or auto sellers.
After his initial success at V.I.C.E. Script, Rodriguez pursued an opportunity to again become involved in auto sales, becoming owner of two auto dealerships. His concern for family has extended to his employees, where an atmosphere of personal warmth and friendship creates a comfortable working environment. In summing up his work ethic, Rodriguez asserts, “Defeats are a part of history, but winning is a part of my life.”
Discussion Questions:
How did Rodriguez recognize the opportunity for V.I.C.E., and how did he make the decision to leave the relative security of his job?
- What would a concept statement look like for V.I.C.E. Script?
- Rodriquez might be considered a serial entrepreneur. Into what other areas could he take his expertise and experience?
- Do Rodriguez’ employees seem to be satisfied or dissatisfied with their jobs? Based on your answer, what are some of the expected consequences for Rodriguez and his firm?
Video Case 7
Finagle a Bagel: A Fast Growing Small Business
Length: 8:11
Video Overview
Finagle a Bagel is a bagel manufacturing bakery and retail café. They have 17 retail stores and a wholesale delivery system that now generates about $25 million in annual revenue. This growth has stemmed from a single location. Co-Presidents Alan Litchman and Laura B. Trust have made growth one of their primary goals. They constantly compare their performance to other chains, such as In-N-Out Burger and Dunkin’ Donuts. One way they stay close to their customers is with a Frequent Finagler card.
Discussion Questions
1.What financial issues has growth created for Finagle a Bagel?
2.What does Alan mean when he says that the restaurant business is a great “top line” business? What does this mean for their “bottom line?”
3. Do you agree with Laura when she says that franchising would not be a good way to grow Finagle a Bagel?
SUGGESTED VIDEO CASE AND CHAPTER CORRELATION
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Case 1: New Belgium Brewery / Case 2: Rise of Finagle / Case 3: Stonyfield Farms / Case 4: Quadrant Capital / Case 5: American Flatbread / Case 6: Entrepreneur Behavior / Case 7: Finagle a Bagel- Growth6
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