Solutions Essentials of Entrepreneurship and Small Business Management, 10E Scarborough
| Complete Chapters Solutions Included | | Case Solutions Included |
CASE SOLUTIONS
Case 1: The Avedis Zildjian Company https://zildjian.com/Related
Chapters:
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
Chapter 17: Building a New Venture Team and Planning for the Next Generation
1. What advice can you offer the current generation of leadership at Zildjian
concerning the creation of a management succession plan? (Chapter 17, LO 17.4) (AACSB:
Application of knowledge)
The stumbling block for most family businesses is management succession. Family businesses are
most vulnerable when they are ready to make the transition from one generation of leaders to the
next. While this applies to a family business like Zildjian, it is important to note that the family
business has survived for over 400 years and across 15 generations. In addition, it has survived
relocation from Turkey to the U.S., wars and economic upheavals, and also a change from male
leadership to being led by women family members.
The current generation of Zildjian family members should know the family business exhibits many
of the characteristics identified in Figure 17.12, Eight Characteristics of Successful Family
Businesses. In particular, Zildjian exhibits effective governance, capital management, sustaining
growth and profitability, culture and responsibility, balancing risk, and next-generation planning.
2. What recommendations can you make to the Zildjian family about encouraging
creativity and innovation in the family business? Why is innovation, even in businesses as
old as Zildjian, so important to success? (Chapter 3, LO 3.2) (AACSB: Application of
knowledge)
Innovation is the key driver of success for any company, whether it is small or big, family owned
or publicly listed. It was innovation that got the company started early in the 17th century in
Turkey. The Peter Drucker quote in the chapter, “[Innovative companies] are inventing the
different tomorrow that … replaces even the most successful products of today.” As a 400-year-
old company that has been very successful, Zildjian runs the dangers of complacency and the
idea of “why fix something that isn’t broken” thinking. Via innovation, Zildjian expanded its
product line over the years, and via acquisitions, it has broadened its offerings. These are keys to
its success. Zildjian’s ‘New Ventures” division is a step in the right direction.
3. Craigie, Debbie, and Cady diversified Zildjian by acquiring two businesses, one that
makes drumsticks and one that makes percussion mallets. Should the management team
explore other acquisitions? If so, what types of businesses should they consider? (Chapter
3, LO 3.2) (AACSB: Application of knowledge)
Copyright © 2026 Case Solutions, Page 310
,This is a good question for a student team project. From looking at Zildjian’s acquisition of Vic
Firth (drumsticks) first and Mike Balter Mallet Company (percussion mallets) later, it is clear that
the family wants to stay focused on a narrow range of musical instruments. This should provide
ideas to the student teams in coming up with potential acquisition candidates.
4. The “recipe” and process for combining copper, tin, and silver that Avedis Zildjian
developed in 1618 remain a family secret. What steps should the family take to protect that
secret? Should the company file a patent application for the process? Why or why not?
(Chapter 3, LO 3.7) (AACSB: Application of knowledge)
Zildjian’s “recipe” and process for combining copper, tin, and silver to produce unique musical
sounds are its intellectual property that it must protect against unauthorized use. The case does
not indicate if the family has patented its process, but if not, that is something that the family has
to strongly consider at this point in time. A patent is a grant to an inventor of a product, giving
the exclusive right to make, use, license, or sell the invention (and to prevent others from
making, using, or selling it) for 20 years from the date of filing. This means that Zildjian should
make periodic proprietary changes to the product to extend its patent life.
5. Note that brothers Armand and Robert had a “falling out” over the family business.
What steps can the current management team take to avoid similar problems in the future?
(Chapter 17, LO 17.4) (AACSB: Application of knowledge)
The case does not specify what events led to brothers Armand and Robert falling out and Robert
exiting the family business. However, as laid out in Chapter 17, succession planning is critical to
a family business such as Zildjian. Effective succession in a family business is typically the
outcome of a carefully crafted and well-thought-out succession plan. Emotion is a key barrier in
succession, and it could be a cause of the rift between the brothers. The key is to think of
succession as a process that has to be thought of as taking place in various stages.
6. Use Figure 17.13, Stages in Management Succession, to develop a succession plan
for Cady’s daughters, who may become the sixteenth generation of family ownership.
(Chapter 9, LO 9.4) (AACSB: Application of knowledge)
Cady’s daughters are currently 15 and 12 years old. While there is still time for them to
participate in the family business, succession should be thought of as a process. Figure 17.13
envisions succession as taking place in five stages. Stage 1 begins when the successors are in
high school, which Cady’s 15-year-old is getting set to. She should be given routine tasks during
her vacations. As she gets into college, her company responsibilities should rotate, even as her
younger sister gets simple assignments. The older daughter’s responsibilities (right now,
followed by the younger daughter) should increase so that she can transition to stage 5. However,
there is only a 3-year age difference between the siblings, and so role clarity is important to
avoid sibling rivalry.
Copyright © 2026 Case Solutions, Page 311
,7. Describe some of the tools that the Zildjian family can use to minimize the impact of
gift and estate taxes as the business passes from one generation to another. (Chapter 17,
LO 17.4) (AACSB: Application of knowledge)
There are a number of tools that the Zildjian family can use as the ownership transitions from
Cady (the 15th generation) to her daughters (the 16th generation). The family should actively
engage in estate planning so that generational tax payments are minimized. They should consider
tools such as buy-sell agreements, lifetime giving, and trusts to facilitate a smooth transition.
Copyright © 2026 Case Solutions, Page 312
, Case 2: GoPro. https://gopro.com/en/us/
Related Chapters:
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Chapter 10: E-Commerce and the Entrepreneur
1. What are the dangers of a company losing sight of its target customers? What
impact did doing so have on GoPro? (Chapter 9, LO 9.1) (AACSB: Application of
knowledge)
A marketing plan is a key part of the business plan. An effective marketing plan focuses on the
customer. A marketing plan identifies a company’s target customers—who is our customer and
what needs/wants of theirs are we fulfilling. It appears that after its IPO, perhaps in an effort to
grow, GoPro lost sight of who its customer is. When it branched out, for example, into drones, it
lost sight of the fact that its core customer was an individual with a sense of adventure. This loss
of focus on who its customer is led GoPro’s performance to deteriorate.
2. What should GoPro’s marketing strategy be going forward? How can the company
use the principles of bootstrap marketing to reach new customers? (Chapter 9, LO 9.4)
(AACSB: Application of knowledge)
Marketing refers to winning and retaining customers. GoPro has a loyal core of customers, but it is
finding challenges in going beyond its core customer group. GoPro can try bootstrap marketing
strategies. Bootstrap marketing strategies refer to unconventional, low-cost, creative techniques
that boost companies’ return on investment in marketing. GoPro can use a number of the bootstrap
marketing principles described in the chapter. For instance, it can entertain and not just sell. Its
product—a camera that captures the immediacy of an adventure—can be used to entertain and
thereby draw customers. It can build a community with its core and loyal users, all of whom are
possibly attracted by a sense of adventure.
3. Visit the GoPro website. What recommendations can you make for improving its
functionality? (Chapter 10, LO 14.2) (AACSB: Application of knowledge)
GoPro’s website is https://gopro.com/en/us [in the U.S.]. Students should be asked to visit the
site and critique its visual layout, the ease of usage, and how attractive the display of products is.
For example, when the “Cameras” tab is clicked, a visual of an underwater swimmer with a
Copyright © 2026 Case Solutions, Page 313
| Complete Chapters Solutions Included | | Case Solutions Included |
CASE SOLUTIONS
Case 1: The Avedis Zildjian Company https://zildjian.com/Related
Chapters:
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
Chapter 17: Building a New Venture Team and Planning for the Next Generation
1. What advice can you offer the current generation of leadership at Zildjian
concerning the creation of a management succession plan? (Chapter 17, LO 17.4) (AACSB:
Application of knowledge)
The stumbling block for most family businesses is management succession. Family businesses are
most vulnerable when they are ready to make the transition from one generation of leaders to the
next. While this applies to a family business like Zildjian, it is important to note that the family
business has survived for over 400 years and across 15 generations. In addition, it has survived
relocation from Turkey to the U.S., wars and economic upheavals, and also a change from male
leadership to being led by women family members.
The current generation of Zildjian family members should know the family business exhibits many
of the characteristics identified in Figure 17.12, Eight Characteristics of Successful Family
Businesses. In particular, Zildjian exhibits effective governance, capital management, sustaining
growth and profitability, culture and responsibility, balancing risk, and next-generation planning.
2. What recommendations can you make to the Zildjian family about encouraging
creativity and innovation in the family business? Why is innovation, even in businesses as
old as Zildjian, so important to success? (Chapter 3, LO 3.2) (AACSB: Application of
knowledge)
Innovation is the key driver of success for any company, whether it is small or big, family owned
or publicly listed. It was innovation that got the company started early in the 17th century in
Turkey. The Peter Drucker quote in the chapter, “[Innovative companies] are inventing the
different tomorrow that … replaces even the most successful products of today.” As a 400-year-
old company that has been very successful, Zildjian runs the dangers of complacency and the
idea of “why fix something that isn’t broken” thinking. Via innovation, Zildjian expanded its
product line over the years, and via acquisitions, it has broadened its offerings. These are keys to
its success. Zildjian’s ‘New Ventures” division is a step in the right direction.
3. Craigie, Debbie, and Cady diversified Zildjian by acquiring two businesses, one that
makes drumsticks and one that makes percussion mallets. Should the management team
explore other acquisitions? If so, what types of businesses should they consider? (Chapter
3, LO 3.2) (AACSB: Application of knowledge)
Copyright © 2026 Case Solutions, Page 310
,This is a good question for a student team project. From looking at Zildjian’s acquisition of Vic
Firth (drumsticks) first and Mike Balter Mallet Company (percussion mallets) later, it is clear that
the family wants to stay focused on a narrow range of musical instruments. This should provide
ideas to the student teams in coming up with potential acquisition candidates.
4. The “recipe” and process for combining copper, tin, and silver that Avedis Zildjian
developed in 1618 remain a family secret. What steps should the family take to protect that
secret? Should the company file a patent application for the process? Why or why not?
(Chapter 3, LO 3.7) (AACSB: Application of knowledge)
Zildjian’s “recipe” and process for combining copper, tin, and silver to produce unique musical
sounds are its intellectual property that it must protect against unauthorized use. The case does
not indicate if the family has patented its process, but if not, that is something that the family has
to strongly consider at this point in time. A patent is a grant to an inventor of a product, giving
the exclusive right to make, use, license, or sell the invention (and to prevent others from
making, using, or selling it) for 20 years from the date of filing. This means that Zildjian should
make periodic proprietary changes to the product to extend its patent life.
5. Note that brothers Armand and Robert had a “falling out” over the family business.
What steps can the current management team take to avoid similar problems in the future?
(Chapter 17, LO 17.4) (AACSB: Application of knowledge)
The case does not specify what events led to brothers Armand and Robert falling out and Robert
exiting the family business. However, as laid out in Chapter 17, succession planning is critical to
a family business such as Zildjian. Effective succession in a family business is typically the
outcome of a carefully crafted and well-thought-out succession plan. Emotion is a key barrier in
succession, and it could be a cause of the rift between the brothers. The key is to think of
succession as a process that has to be thought of as taking place in various stages.
6. Use Figure 17.13, Stages in Management Succession, to develop a succession plan
for Cady’s daughters, who may become the sixteenth generation of family ownership.
(Chapter 9, LO 9.4) (AACSB: Application of knowledge)
Cady’s daughters are currently 15 and 12 years old. While there is still time for them to
participate in the family business, succession should be thought of as a process. Figure 17.13
envisions succession as taking place in five stages. Stage 1 begins when the successors are in
high school, which Cady’s 15-year-old is getting set to. She should be given routine tasks during
her vacations. As she gets into college, her company responsibilities should rotate, even as her
younger sister gets simple assignments. The older daughter’s responsibilities (right now,
followed by the younger daughter) should increase so that she can transition to stage 5. However,
there is only a 3-year age difference between the siblings, and so role clarity is important to
avoid sibling rivalry.
Copyright © 2026 Case Solutions, Page 311
,7. Describe some of the tools that the Zildjian family can use to minimize the impact of
gift and estate taxes as the business passes from one generation to another. (Chapter 17,
LO 17.4) (AACSB: Application of knowledge)
There are a number of tools that the Zildjian family can use as the ownership transitions from
Cady (the 15th generation) to her daughters (the 16th generation). The family should actively
engage in estate planning so that generational tax payments are minimized. They should consider
tools such as buy-sell agreements, lifetime giving, and trusts to facilitate a smooth transition.
Copyright © 2026 Case Solutions, Page 312
, Case 2: GoPro. https://gopro.com/en/us/
Related Chapters:
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Chapter 10: E-Commerce and the Entrepreneur
1. What are the dangers of a company losing sight of its target customers? What
impact did doing so have on GoPro? (Chapter 9, LO 9.1) (AACSB: Application of
knowledge)
A marketing plan is a key part of the business plan. An effective marketing plan focuses on the
customer. A marketing plan identifies a company’s target customers—who is our customer and
what needs/wants of theirs are we fulfilling. It appears that after its IPO, perhaps in an effort to
grow, GoPro lost sight of who its customer is. When it branched out, for example, into drones, it
lost sight of the fact that its core customer was an individual with a sense of adventure. This loss
of focus on who its customer is led GoPro’s performance to deteriorate.
2. What should GoPro’s marketing strategy be going forward? How can the company
use the principles of bootstrap marketing to reach new customers? (Chapter 9, LO 9.4)
(AACSB: Application of knowledge)
Marketing refers to winning and retaining customers. GoPro has a loyal core of customers, but it is
finding challenges in going beyond its core customer group. GoPro can try bootstrap marketing
strategies. Bootstrap marketing strategies refer to unconventional, low-cost, creative techniques
that boost companies’ return on investment in marketing. GoPro can use a number of the bootstrap
marketing principles described in the chapter. For instance, it can entertain and not just sell. Its
product—a camera that captures the immediacy of an adventure—can be used to entertain and
thereby draw customers. It can build a community with its core and loyal users, all of whom are
possibly attracted by a sense of adventure.
3. Visit the GoPro website. What recommendations can you make for improving its
functionality? (Chapter 10, LO 14.2) (AACSB: Application of knowledge)
GoPro’s website is https://gopro.com/en/us [in the U.S.]. Students should be asked to visit the
site and critique its visual layout, the ease of usage, and how attractive the display of products is.
For example, when the “Cameras” tab is clicked, a visual of an underwater swimmer with a
Copyright © 2026 Case Solutions, Page 313
