The Tennessee Business Retention and Expansion Course is a one and a half day course which focuses on how to develop, implement and evaluate an effective retention and expansion program. The course included these interactive case studies.

1. LIFEBOAT
An
Exercise
in
Identifying
Your
Best
Customers
The
Scenario:
You
are
the
business
retention
manager
for
Anytown,
Tennessee.
A
“perfect
storm”
is
brewing
in
Normandy
Lake.
There
are
seven
companies
adrift
in
these
rough
waters.
You
are
navigating
a
lifeboat
towards
the
storm
in
hopes
of
saving
as
many
of
these
companies
as
possible.
Your
Dilemma:
The
lifeboat
can
only
accommodate
five
companies.
You
have
to
decide
which
five
companies
to
take…and
which
two
companies
to
leave
adrift.
The
companies
are
as
follows.
• A
candy
store
on
Anytown’s
Main
Street
• A
small
manufacturer
• A
mid-­‐sized
legal
firm
• A
12-­‐person
IT
firm
• One
of
Anytown’s
largest
employers
• A
third-­‐generation
family
farm
• A
five-­‐and-­‐dime
store
on
Main
Street
Which
companies
do
you
rescue?
Which
companies
stay
behind?
Why?
© ExecutivePulse, Inc. All Rights Reserved

2. A CANDY STORE ON ANYTOWN’S
MAIN STREET
Carvelli’s
Candies
on
Main
Street
only
looks
like
an
ordinary
small
town
candy
store.
Behind
the
front
counter
is
an
aggressive,
growing
company
specializing
in
high
quality,
low
fat
chocolates.
Originally
sold
from
just
this
one
retail
outlet,
Carvelli’s
chocolates
are
now
sold
nationally
through
its
interactive
web
site
which
accounts
for
80%
of
its
total
sales.
With
18
full-­‐time
and
10
part-­‐time
workers,
Carvelli’s
has
established
a
national
reputation
in
the
world
of
candy.
Now,
it
is
about
to
announce
a
major
supplier
agreement
in
which
it
will
supply
Wal-­‐Mart
with
private-­‐brand,
low
fat
chocolates
on
a
regional
basis.
There
is
the
further
potential
to
supply
all
Wal-­‐Marts
in
North
America.
To
accommodate
this
new
customer,
Carvellis’
will
build
a
new
25,000
s.f.
facility
and
hire
another
75
full
time,
workers
earning
family-­‐sustaining
wages
in
the
next
6-­‐9
months.
Further
expansions
are
planned
as
the
product
rolls
out
to
all
Wal-­‐Marts
nationally.
Does this company get saved?
Yes ¨ No ¨
A MID-SIZED LEGAL FIRM
The
law
firm
of
Krayer
Moyer
and
Smythe
is
well
known
in
the
Anytown,
Tennessee
area.
The
trio
has
been
in
business
for
35
years
and
each
has
been
active
in
the
community.
As
the
founders
near
retirement,
the
company
has
stagnated.
The
trio
seem
reluctant
to
expand
their
market,
preferring
instead
to
concentrate
on
the
immediate
Anytown
area.
Employment
at
the
firm
has
dropped
from
25
to
10
good-­‐paying
jobs,
primarily
through
attrition
and
retirement
over
the
past
five
years.
Almost
all
of
the
staff
is
nearing
retirement.
Most
troubling
of
all,
the
trio
does
not
have
a
succession
plan
and
have
started
to
spend
more
time
at
their
‘winter’
homes
in
California.
Does this company get saved?
1
Yes ¨ No ¨
© ExecutivePulse, Inc. All Rights Reserved

3. A SMALL MANUFACTURER
Dovetail
Wood
Products
makes
high-­‐end
wood
cabinetry
(case
goods)
for
office
and
bank
lobbies.
The
firm
is
well-­‐known
for
the
quality
of
their
work
and
design.
Major
architectural
firms
within
a
500
mile
radius
of
Anytown
gravitate
toward
Dovetail
because
they
can
purchase
high
quality
case
goods
for
their
clients
at
prices
far
less
than
other
case
good
manufacturers
in
the
major
cities.
Dovetail
is
just
six
years
old
and
started
with
five
highly
skilled
craftsmen.
Growth
has
been
steady
and
the
owners
have
willingly
invested
in
new
technologies
and
training.
The
owners,
both
of
whom
are
Anytown
natives,
conservatively
project
a
15-­‐25%
growth
rate
in
sales
and
employment
over
the
foreseeable
future.
They
plan
to
stay
and
grow
in
Anytown
as
they
expand
to
markets
beyond
Tennessee
Does this company get saved?
Yes ¨ No ¨
A 12-PERSON IT FIRM
Integrated
Sales
Solutions
is
a
small
software
development
firm
that
hit
the
big
time
four
years
ago.
At
the
time,
its
Tracker™
database
system
was
revolutionary,
enabling
small,
independently
owned
retailers
to
track
inventory,
communicate
and
place
orders
with
major
suppliers.
Unfortunately,
Tracker
has
been
eclipsed
by
other
products
on
the
market
and
ISS
has
not
been
able
to
develop
a
hot
new
product.
From
a
high
of
25
programmers,
ISS
has
declined
to
a
12-­‐person
firm.
One
of
the
co-­‐
founders,
an
Anytown
native,
just
left
after
a
highly
publicized
feud
with
Julie
Hopkins,
the
other
co-­‐founder.
Hopkins
is
a
New
York
native
who
has
never
adjusted
to
Anytown.
She
recently
sold
the
headquarters
mansion
on
Main
Street
and
is
now
leasing
space
in
a
suburban
strip
plaza.
There
are
rumors
that
she
is
trying
to
sell
the
Tracker
system
to
a
competitor.
Does this company get saved?
2
Yes ¨ No ¨
© ExecutivePulse, Inc. All Rights Reserved

4. ONE OF ANYTOWN’S LARGEST
EMPLOYERS
CJ
Industries
originally
started
life
as
the
Anytown
Chair
Company.
It
was
purchased
by
CJ
Industries
from
Texas
15
years
ago.
With
75
employees,
CJ
Industries
is
still
one
of
the
major
employers
in
town
but
the
handwriting
is
on
the
wall.
Employment
is
down
from
a
high
of
190
workers
as
recently
as
2002.
A
manufacturer
of
high-­‐end
office
furniture,
sales
are
down
40%
-­‐-­‐
just
like
the
premium
office
furniture
industry
as
a
whole.
Industry
experts
do
not
expect
the
premium
office
furniture
industry
to
recover
for
at
least
five
years.
The
Anytown
facility
has
been
operating
at
a
loss
for
the
past
four
years.
Once
actively
engaged
in
the
Anytown
facility,
management
at
the
parent
company
has
reduced
the
number
of
its
annual
visits
from
four
to
two.
In
the
last
year,
the
parent
company
has
discontinued
membership
in
the
local
chamber
of
commerce.
Does this company get saved?
Yes ¨ No ¨
A 3RD GENERATION FAMILY FARM
Enchanted
Valley
Farms
is
on
a
mission.
The
third
generation
owners
are
young,
college
educated,
and
understand
the
growing
trend
toward
organic
foods
among
big-­‐city
dwellers.
In
the
last
four
years,
they
have
transformed
Enchanted
Valley
Farms
from
a
dairy
farm
selling
milk
to
one
that
is
generating
over
65%
of
its
sales
and
profits
from
high
margin,
organically
grown
specialty
produce
sold
in
major
grocery
chains
under
the
Enchanted
Valley
Farms
brand
name.
Now,
the
owners
want
to
bring
packaging
and
labeling
operations
in-­‐house,
necessitating
a
$1.8
million,
30,000
square
foot
expansion
that
includes
cold
storage,
production
and
assembly
areas
as
well
as
additional
loading
docks.
Up
to
65
full
time
jobs
will
be
created,
adding
to
the
firm’s
current
25
full-­‐time
and
100
seasonal
workers.
The
expansion
is
part
of
the
strategic
plan
for
this
agribusiness
that
outlines
a
15-­‐20%
annual
growth
rate
in
sales
and
employment
over
the
next
five
years.
Does this company get saved?
3
Yes ¨ No ¨
© ExecutivePulse, Inc. All Rights Reserved

5. A FIVE-AND-DIME STORE ON MAIN
STREET
Anchoring
the
block
across
the
street
from
Carvelli’s
in
downtown
Anytown
is
Kennedy’s
Old
Fashioned
Five
and
Dime.
Complete
with
wooden
floors,
original
store
fixtures
and
soda
fountain,
Kennedy’s
has
become
a
bona
fide
attraction,
attracting
those
seeking
the
five
and
dime
stores
of
yesterday.
It
has
become
nationally
known
and
has
even
been
featured
on
the
Travel
Channel.
Despite
its
old
fashioned
image,
Kennedy’s
does
a
robust
Internet
business.
In
just
three
years,
Internet
sales
have
grown
to
40%
of
its
total
and
the
percentage
continues
to
increase.
With
sales
growing
at
a
steady
10%
clip
and
approaching
$1.5
million,
Kennedy’s
employs
20
in
the
store
and
another
40
in
its
modern
distribution
center
at
the
edge
of
town.
With
as
many
as
10
bus
tours
per
day
in
the
summer
season,
Kennedy’s
draws
over
450,000
people
annually
from
around
the
US
and
even
Canada
and
Europe.
The
success
of
Kennedy’s
has
prompted
a
successful
Main
Street
program
in
Anytown
that
captures
the
small
town,
old
fashioned
feel
of
the
store.
Several
restaurants
and
other
specialty
stores
have
opened
in
downtown
Anytown,
encouraged
by
the
traffic
generated
by
Kennedy’s.
Does this company get saved?
4
Yes ¨ No ¨
© ExecutivePulse, Inc. All Rights Reserved

6.
September
15,
2013
To:
File
(For
Internal
Use)
From:
Mr.
David
Tyler
Re:
Music
City
Lighting
Industries
Inc.
I
recently
visited
with
Steven
MacDonald,
the
president
of
Music
City
Lighting
Industries
in
Nashville.
Here’s
a
brief
narrative
of
our
meeting.
Steven
is
a
second-­‐generation
owner
of
this
firm
that
makes
high-­‐end
lamps,
track
lighting
and
other
lighting
fixtures
for
residential
and
commercial
applications.
He
became
president
early
last
year
when
his
father
retired.
Steven
spent
15
years
in
Los
Angeles
working
for
a
major
architectural
firm
before
returning
home
to
this
area
in
2009
to
assist
with
the
company’s
expansion.
He
earned
both
his
undergraduate
and
MBA
degrees
at
The
University
of
Tennessee.
Steven
is
proud
that
the
firm
has
never
used
any
kind
of
government
assistance.
The
company
completely
financed
their
new
headquarters
and
manufacturing/distribution
facility
that
opened
in
March
2011.
Music
City
Lighting
Industries
generates
$25
million
in
sales
and
employs
110
people,
most
of
whom
are
highly
skilled.
Steven
was
not
especially
complimentary
about
state
or
local
economic
development
activities.
He
made
a
point
of
mentioning
that
no
one
from
any
agency
ever
welcomed
him
home
or
contacted
him
or
his
father
about
the
expansion.
If
it
weren’t
for
his
family’s
loyalty
to
their
workforce
(most
have
been
with
the
firm
for
over
20
years),
Steven
would
have
relocated
the
firm’s
headquarters
and
manufacturing
to
Los
Angeles
where
he
feels
most
at
home.
He
said
that
California
officials
contacted
him
in
early
2013
during
one
of
their
recruiting
trips
to
the
area.
The
California
officials
noticed
a
large
number
of
storage
trailers
next
to
Music
City’s
main
building
and
concluded
that
the
firm
was
strapped
for
space.
They
then
offered
an
attractive
incentive
package
but
Steven’s
father
had
already
decided
to
expand
in
Nashville.
Steven
wondered
with
a
laugh
why
local
economic
development
officials
did
not
notice
the
same
thing.
He
further
noted
that
he
was
personally
not
interested
in
incentives
when
making
a
site
decision.
He
prefers
the
California
lifestyle
and
is
bullish
on
the
LA
area.
When
we
talked
about
business
conditions,
Steven
acknowledged
that
global
competition
has
impacted
his
firm
because
their
products
are
high
end.
He
would
like
to
reduce
manufacturing
costs
so
they
can
maintain
margins.
He
would
like
to
evaluate
suppliers
as
well.
Finally,
he
would
like
to
“get
really
aggressive”
about
expanding
his
market
share
among
the
growing
gambling
market
in
the
U.S.
He
would
also
like
to
break
into
the
resort
markets
in
the
Caribbean
and
Central
America.
He’s
been
unable
expand
into
new
markets
because
he’s
being
stretched
to
the
limit
with
day-­‐to-­‐day
operational
issues.
I
reminded
him
that
we
want
to
see
his
company
grow.
I
gave
him
a
list
of
contacts
that
he
can
call
if
he
needs
help.
Copyright ExecutivePulse, Inc., All Rights Reserved