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Unformatted text preview: Chapter 20 - Achieving Success in the Small Business CHAPTER 20: ACHIEVING SUCCESS IN THE SMALL BUSINESS Chapter Summary Just as industries and products go through life cycles, so does a small business. Small businesses have several growth strategies available to them and a number of options for harvesting or closing the business. Once again, critical success factors for the firm are discussed. Lastly, the quadruple bottom line, or what really makes a small business owner successful is presented. Learning Objectives After studying this chapter, the student should be able to: 1. Know how to recognize the stages of the small business life cycle. 2. Understand the four types of firm-level growth strategies. 3. Understand the options for harvesting or closing the small business. 4. Know the firm-level critical success factors for small business. 5. Understand what success means with the quadruple bottom line. Focus on Small Business: The Many Lives of Shoppers Service Store Shoppers Service was founded in 1962. Until its demise in 2004 the business had gone through three owners, five changes of its legal structure, over one dozen additions and deletions of subsidiary business entities, and forty-two years of profitable operations. Focus on Small Business: Discussion Questions 1. How would you describe the stages in the life of Shoppers Service Store? Clearly the business went through its emergence (in 1962) and existence stages. The company did achieve success (it seemed to turn a profit), enough so that it could be split as partners left, and the core business (and apparently even the spun-out firms) could keep going. It never achieved a takeoff, since they never saw major growth. In the firms resource maturity stage, it continued for a long time, occasionally shedding portions of the business. This shedding was also one way to handle decline, so that when Morris died in 2004, the business was a relatively small entity. 20-1 Chapter 20 - Achieving Success in the Small Business 2. How did Shoppers Service make use of outside help? As the case said, At each change in the business, the partners obtained expert assistance, working with attorneys, accountants, and industry consultants to make sure the valuations of the businesses were fairly determined. They also worked with the experts to minimize tax burdens on each of the soon-to-be separated firms and owners. 3. How do imagine long-term customers would describe Shoppers Service over the years? It always seemed to be a store selling things at a discount. The merchandise changed over the years, but Morris was always there as a point of continuity. 4. How successful would you say Shoppers Service was as a business?...
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- Spring '09