SUCCESS101 Needs Improvement
(1)
Satisfactory
(2)
Exemplary
(3)
Content Many key elements of the
assignment unmet. Content
not covered in a substantive
and/or comprehensive way.
Work reflects some
confusion with important
aspects of the assignment.
Student illustrates a lack of
understanding and insight of
assignment objectives.
All key elements of the
assignment are met, but
content not always covered in
a substantive and/or
comprehensive way. Work
reflects a solid grasp of each
important aspect of the
assignment. Student
illustrates insight and
understanding of assignment
objectives.
All key elements of the
assignment met. Content is
covered in a substantive and
comprehensive way with
each important aspect of the
assignment addressed.
Student illustrates insight and
understanding of assignment
objectives.
Organization Main points are unclear and
many are not sufficiently
supported. Ideas are not
logically arranged.
Construction of sentences
and paragraphs reflects
difficulty with organizing
coherent thoughts.
Main points are clearly stated,
but not always supported.
Ideas are logically arranged,
but sentences and paragraphs
are not well-constructed.
Organization reflects coherent
thought, but transitions are
needed to help connect ideas.
Main points are clearly stated
and supported. Ideas are
logically arranged. Sentences
and paragraphs are well-
constructed. Organization
reflects coherent thought
with effective transitions
used to connect ideas.
Support
(Support and
Elaboration)
Points are not supported
with evidence. Student
does not make an effort to
anticipate the reader's
concerns.
Most points are supported
with evidence (facts, statistics
when applicable) and
examples.
Student makes an effort to
anticipate the reader’s
concerns by offering relevant
explanations and clear
support for the author’s
position.
Main points are supported
with effective evidence
(facts, statistics when
applicable) and examples.
Student anticipates the
reader’s concerns by offering
relevant explanations and
clear support for the author’s
position.
Tone & Style
(Professionalism)
Word choice is informal and
is not directed towards
appropriate audience. Tone
and style are not
appropriate for assignment.
Font type and/or size are
not appropriate for
assignment. White space is
not used effectively.
Word choice is directed
towards the appropriate
audience, but some issues
related to tone and style
noted. Font type and size
choices may not be
appropriate for assignment.
White space is used
effectively.
Word choice is directed
towards the appropriate
audience. Tone and style are
appropriate for assignment.
Professional font type and
size for assignment purpose.
Effective use of white space.
Grammar/Mechanics Many errors noted in
sentence structure and/or
spelling. Rules of grammar,
usage, and punctuation not
followed. Document.
1. SUCCESS101 Needs Improvement
(1)
Satisfactory
(2)
Exemplary
(3)
Content Many key elements of the
assignment unmet. Content
not covered in a substantive
and/or comprehensive way.
Work reflects some
confusion with important
aspects of the assignment.
Student illustrates a lack of
understanding and insight of
assignment objectives.
All key elements of the
assignment are met, but
content not always covered in
a substantive and/or
comprehensive way. Work
reflects a solid grasp of each
important aspect of the
assignment. Student
illustrates insight and
understanding of assignment
objectives.
2. All key elements of the
assignment met. Content is
covered in a substantive and
comprehensive way with
each important aspect of the
assignment addressed.
Student illustrates insight and
understanding of assignment
objectives.
Organization Main points are unclear and
many are not sufficiently
supported. Ideas are not
logically arranged.
Construction of sentences
and paragraphs reflects
difficulty with organizing
coherent thoughts.
Main points are clearly stated,
but not always supported.
Ideas are logically arranged,
but sentences and paragraphs
are not well-constructed.
Organization reflects coherent
thought, but transitions are
needed to help connect ideas.
Main points are clearly stated
and supported. Ideas are
logically arranged. Sentences
and paragraphs are well-
constructed. Organization
reflects coherent thought
with effective transitions
used to connect ideas.
3. Support
(Support and
Elaboration)
Points are not supported
with evidence. Student
does not make an effort to
anticipate the reader's
concerns.
Most points are supported
with evidence (facts, statistics
when applicable) and
examples.
Student makes an effort to
anticipate the reader’s
concerns by offering relevant
explanations and clear
support for the author’s
position.
Main points are supported
with effective evidence
(facts, statistics when
applicable) and examples.
Student anticipates the
reader’s concerns by offering
relevant explanations and
clear support for the author’s
position.
Tone & Style
(Professionalism)
Word choice is informal and
4. is not directed towards
appropriate audience. Tone
and style are not
appropriate for assignment.
Font type and/or size are
not appropriate for
assignment. White space is
not used effectively.
Word choice is directed
towards the appropriate
audience, but some issues
related to tone and style
noted. Font type and size
choices may not be
appropriate for assignment.
White space is used
effectively.
Word choice is directed
towards the appropriate
audience. Tone and style are
appropriate for assignment.
Professional font type and
size for assignment purpose.
Effective use of white space.
Grammar/Mechanics Many errors noted in
sentence structure and/or
spelling. Rules of grammar,
usage, and punctuation not
followed. Documentation
style not used or formatting
contains several major
errors.
5. Sentences are complete and
spelling is correct. Minor
grammar, usage, and/or
punctuation errors noted.
Appropriate documentation
style used where applicable
with some minor formatting
errors.
Sentences are complete and
spelling is correct. Rules of
grammar, usage, and
punctuation followed.
Appropriate documentation
style used where applicable.
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Sheet3
This portion of the exam is OPEN BOOK, but you must do your
own work.
You may download the blank template above or whatever
template you choose, to do this assignment. You must answer
the 6 stated questions as well as upload your spreadsheet that
demonstrates the answers to those questions.
Good luck
Dog Eat Dog World: Challenges of an Entrepreneurial Start-up
The Opportunity
Dwayne Clarke and Fred Munk were sitting in their weekly
sales meeting with their new manager (GM) Bruce Hunter. The
local pet supply company, ACME Pets, for which they both had
9. worked more than six years, had recently been acquired by a
large national company, GC Pet Supplies (GCPS). This was
their 4th such meeting with the entire sales team. Dwayne and
Fred had caught eyes when their Machiavellian boss (Bruce)
had just announced another day and route change for delivery to
a particular area. Bruce defended the change with the comment,
‘who are the customers going to get their supplies from if they
don’t like it?’ GCPS had not only purchased ACME but also
their only significant competitor, attaining a virtual monopoly
in the region. Independently, Dwayne and Fred both thought
that perhaps ‘I should be the one that the customer can go to.’
After the sales meeting Dwayne and Fred privately shared their
thoughts with each other.
Background
Dwayne had worked for ACME Pets for nine years, starting as a
warehouse labourer while he finished college. Upon graduation,
the owner approached him about taking over a sales route for a
departing rep. The position was perfect for him. His warm
genuine personality quickly won over his customers and
eventually Dwayne grew his territory to over $2 million in
annual sales, one third of that office’s total.
Fred had started six years earlier as a buyer and had built a
strong relationship with over one hundred vendors from whom
they purchased products. Fred’s philosophy was that his city
was a small, expensive stop for most vendor sales reps;
therefore, he was keen to give them time and listen to their
presentations when they visited. He wasn’t an easy mark but he
gave everyone an honest shake. Fred worked hard and
simultaneously pursued an advanced management degree. His
efforts paid off and he moved up the company ladder rapidly
and at the time that GCPS bought ACME, he was the General
Manager. As such, Fred had ample opportunity to build
relationships with many of the customers and vendors that
worked with ACME. However, Fred rarely had contact with
Dwayne’s customers as they were already being serviced
10. beyond company expectations.
Status Quo or New Venture?
As Dwayne and Fred pondered the possibility of starting a new
pet supply company, they grappled with the ethics of
performing any due diligence while staying employed with their
eventual competitor. They decided to ask some questions and do
the underlying research over the coming months. Ultimately,
they had to determine at what point to terminate their
employment if they felt the opportunity was worth pursuing.
After 7 months, the preliminary research looked promising.
They determined that the potential enterprise had merit.
However, the required financing was a significant roadblock.
Both were dissatisfied with their jobs at GCPS but, as creatures
of comfort, Fred and Dwayne wondered if they really wanted to
leave the security that they had in their current employment.
Years later, they admitted that they probably would not have
acted if their hand had not been forced.
GCPS senior management had heard rumors that Fred had
already started a competitive venture. Thus, they decided to
fire Fred. Shortly thereafter, Dwayne resigned his position so
that he could partner with Fred in the new venture.
Fortuitously, Dwayne and Fred found a mutual friend who
offered to help fund their new business. Out of work and armed
with a new hope for resources, Fred and Dwayne developed a
plan for Qualco Pet Supply.
Competitive Threat
GCPS was obviously not happy about the potential competition
and it attempted to flex its muscles and discourage suppliers
from selling to the budding competitor. However, suppliers and
customers were quite keen about the new pet supply distributor
in the area and Qualco was reasonably successful at securing
commitments. In fact, the number one supplier in the industry
sold and shipped product to Qualco three months before their
planned opening. This provided legitimacy for Qualco that Fred
11. and Dwayne were able to leverage. The fact that they had
already procured a significant amount of product from the
industry’s top supplier opened doors at many other suppliers.
Fred and Dwayne were able to dramatically enlarge their
product offerings.
GCPS became increasingly distressed by the competitive threat
and practiced open retribution on suppliers that sold to Qualco.
The effect, however, was the opposite of what they intended.
GCPS’s tactics generated a wave of support among suppliers for
Qualco, both overtly and covertly.
Preparation for Launch
While Dwayne was shoring up support from customers for the
projected launch, Fred was working feverishly on business plans
and projections. Fred was familiar with inventory turn rates and
gross margins in the industry, being 4 and 30% respectively.
He felt certain that that they could increase the turn rates but he
used the more conservative industry standards in his forecasts.
Based on discussions with potential customers, Fred and
Dwayne projected that they could capture approximately one
sixth of the six million dollar market in their first year
($1,000,000). They determined that it would ultimately take
three hundred thousand dollars in inventory to offer a full line
of products, which would be vital to achieve their long-term
market share goals. However, they could not justify that many
dollars in inventory for the initial launch. Thus, Fred calculated
the bare minimum level of inventory that he believed would be
needed to get started. If Qualco could start with $175,000 of
inventory, with a 30% gross margin, they would be able to
generate $250,000 in sales in a quarter. With 4 turns, they
would achieve their goal of $1 million in sales during the first
year.
In addition to the inventory costs, Fred anticipated that Qualco
would need $95,000 for other start-up costs of various
forms. He felt that they would need to attain funding of at least
$300,000 in order to cover inventory and other start-up costs,
12. with a small cushion for operational losses and an accounts
receivable balance. Monthly operational expenses were
expected to be approximately $18,000. Plusthey would have to
account for principle and interest payments on the $300,000
note. They planned to push any spare monies into additional
inventory. Fred knew that finances would be tight but he
believed that the plan was attainable.
Rather than providing funding for the venture, their friend opted
to help Fred and Dwayne secure a bank loan that would be
personally guaranteed by each of the three of them. The loan
would be collateralized with the value of their homes. With the
assistance of their friend, Fred and Dwayne were approved for a
$300,000 loan from a branch office of a large regional bank
called Zinc’s. The pieces were falling into place and Fred and
Dwayne were well prepared for the launch of Qualco Pet Supply
(or so they thought).
Always Expect the Unexpected
Armed with formal bank approval, Dwayne and Fred borrowed
some short term money from friends to pay for their first few
product orders and to cover some of their start-up expenses.
They leased warehouse space (personal guarantees) and hired a
couple of key employees. They also used personally guaranteed
loans to purchased trucks to be used for delivery.
Finally, the big day to close on the loan arrived. The much
needed money would be used to pay off the short term loans and
acquire the additional inventory they needed to finally open the
doors. All three partners, and their wives, travelled to Zinc’s to
“sign their lives and homes away.” As they entered the bank,
they were greeted by a nervous loan officer who informed them
that a “committee” had met that morning and revised their
previously approved loan down from $300,000 to
$175,000. The bank was unyielding, even with the threat of a
lender liability suit.
Given the start-up expenses already incurred, that left Qualco
with half the needed money for inventory and nothing for
13. operational losses or accounts receivable. Dwayne and Fred
were literally sick! They had run the numbers a million times
and could not see how the business could survive with the
amount of money that was available. They had already spent
tens of thousands of dollars and had committed to tens of
thousands more. There just was not enough money for
inventories to get the job done.
Assignment:
Please demonstrate the validity of Dwayne and
Fred’s original financial assumptions by preparing the
appropriate financial statements and answering the following
questions using the assumptions below. State any additional
assumptions you make:
1. Was $300,000 enough to start this business? What was their
peak cash need (it will be $300k + or - their cash shortage or
overage)? Did they need more or less than $300k or less? If so
how much more or less did they need?
2. In what month did their peak cash need come?
3. In what month did they achieve operational break-even (GM
>, = Operating expenses)?
4. What was the first year’s net income?
5. What was the cash balance at the end of the first year?
6. Is this company worth pursuing? Why?
Assumptions:
· The first month they were only going to be open for two weeks
so sales were predicted at $20k, the second month would come
in at 40k, the remaining months increase at 15% per month with
the 12th month sales adjusted to $167,851 so that the year end
sales total $1,000,000
· 30% GM
14. · Monthly Operating Expenses do not need to be broken down,
they are $18k
· Of $95K, $25k should be booked as start-up expenses in the
first month on the income statement
· The remaining start-up expenses of $70k should be booked as
PPE on the balance sheet (assume no depreciation)
· Ignore taxes and depreciation
· There are no disbursements to owners
· Assume the beginning inventory of $175k was paid for at the
time it was received (month one, this should show up
automatically on your CF statement). Assume instant
replenishment and hold the inventory constant from month to
month (so all 12 months will show $175K in inventory).
· AR – Invoices are not collected for an average of 30 days
· AP – For reorders, vendors are not paid for 30 days
· Calculate the loan of $300,000 at 7% interest over 10 years;
insert loan and the amortization on the balance sheet and the
interest payments on the income statement.
· There was no capital contribution from the owners (no initial
equity)
· If cash is negative there is no need to show additional
financing, just show the shortage
Career Portfolio: Career Summary
Part II: Career Summary
Written Assignment Rubric
For this part of the assignment you’ll complete a career
summary which includes several parts including your desired
outcome and career goals: your “Mission Statement” (which
may be very similar to your statement of career objectives), a
summary of your present reality and your chosen career outlook.
In a 2 page Word document (.doc) create a three part "mission
statement" for your personal, academic and professional life at
this time. Discuss how your "present reality" coincides with that
15. mission. In addition, using the Internet, try to find as much
about your chosen career(s) as you can from the categories
listed below and include a summary of that information your
submission:
· The general employment outlook in your area (how likely are
you to find a job in the next 2-5 years in this career?).
· How much this career pays, on average, in your location.
· How "new" your career is to the market.
· How much training is generally required to enter the field in
this career?
· What is the potential for advancement in this career.
Be sure to label each section of your submission appropriately.
Along with your paper, include all of the web sites you used in
writing your paper. Please site all sources appropriately and
abide by all plagiarism policies outlined in your course.
Please Note:
· Final draft assignments submitted may take 5 days or more to
be graded.
· Grades are based on the above (attached) Written Assignment
Grade Rubric, please review the Rubric before attempting the
assignment.
· Your grade will be based directly on the percentage of points
earned according to the grade rubric but calculated out of 100
total points.
If you have questions about when your assignment grade will be
posted please contact your student advisor.
Last modified: Tuesday, December 11, 2012, 5:36 PM
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