Instructor Manuals For Canadian Entrepreneurship And Small Business
Management 11th Edition By Wesley Balderson
1
,Supplemental Case Notes WQ WQ
Thompson Greenhouse ................................................................................................................................. 1
WQ
Robinson Test Prep Co .................................................................................................................................. 4
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The Beach Buddy........................................................................................................................................... 6
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Organic Gourmet Express ............................................................................................................................. 8
WQ WQ
The Winslow Clock Company ........................................................................................................................ 9
WQ WQ WQ
Windows Tech ............................................................................................................................................. 10
WQ
Edge Hockey ................................................................................................................................................ 12
WQ
Beach Stake ................................................................................................................................................. 14
WQ
The Framemakers........................................................................................................................................ 15
WQ
Top Human Tech Inc. .................................................................................................................................. 21
WQ WQ WQ
Clovis Jewellers............................................................................................................................................ 22
WQ
Blake Lock and Security Systems ................................................................................................................ 23
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Thompson Greenhouse WQ
W Q Case overview WQ
Thompson Greenhouse is family business owned by Earl and Lisa Thompson. The business has
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
enabled them to supplement their income and provide work for their children. With increased c
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ompetition from major retailers the Thompsons are unsure how they should compete in the year
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
’s ahead and if they should invest further into their business.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
W Q Discussion questions WQ
1. Discuss the implications of the Thomsons’ attempt to obtain additional commercial contracts
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
(the department stores) for their products.
WQ WQ WQ WQ WQ WQ
2. Evaluate the decision to construct another greenhouse from a financial and an organizational
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
point of view. (Use rate of return, payback, and break-even analysis in your evaluation.)
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
3. Comment on the financial health of Thomson Greenhouse through a review of the financial
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
statements.
WQ
2
,4. Discuss the implications for succession of the business if the decision were to pass the
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
business to one of the sons sell the business to someone outside the family.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Instructors may opt to use these questions or ask the students to complete a simple case analysis
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
including a problem statement, SWOT, alternatives and recommendation.
WQ WQ WQ WQ WQ WQ WQ
W Q Solutions to discussion questions WQ WQ WQ
1. Discuss the implications of the Thomsons’ attempt to obtain additional commercial contracts
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
(the department stores) for their products.
WQ WQ WQ WQ WQ
Student answers will vary. Students will likely point out that this is becoming an increasing pop
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ular choice amongst consumers. Students should also note that the business will come with muc
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
h lower margins than they have now. Some students may question if the Thompson’s should pur
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
sue this type of business.
WQ WQ WQ WQ
2. Evaluate the decision to construct another greenhouse from a financial and an organizational
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
point of view. (Use rate of return, payback, and break-even analysis in your evaluation.)
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
The case does not provide all the financial information needed to complete the tasks at hand, so
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
some estimates are needed.
WQ WQ WQ
To keep things simple:
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Margin: 20.53% (using revenue and all expenses) N
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ew Greenhouse - $75,000
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Variable Cost of the Greenhouse - WQ WQ WQ WQ WQ
$60,0000 @ 8 percent interest over ten years = $26,861.45 in interest costs. Total repayment in
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
cluding interest would be $86,861.45. Variable cost per year using interest only would be 26,86
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
1.45/12 = 2,238.45 WQ WQ
Extra Income - $60,000 a year
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If you read through their financials, most of their costs are fixed and would likely not increase as
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
a result of the added greenhouse.
WQ WQ WQ WQ WQ WQ
The two extra expenses would be Power and Heat@ $6,450. There is no discussion of additional
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
labour required.
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Hence the income before income, taxes and depreciation would be:
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60,000 – 6450 – 2,223.45 (interest)
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= $53, 326.55
WQ WQ
3
, 3. Comment on the financial health of Thomson Greenhouse through a review of the financial
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
statements.
Student answers will vary.
WQ WQ WQ
4. Discuss the implications for succession of the business if the decision were to pass the
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ W
business to one of the sons sell the business to someone outside the family.
Q WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
If the business is sold, the owner would most likely maximize the value of the company. The sal
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
e may be slightly hindered as the marketplace is changing. Leaving the business in the family w
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ould ensure the long-
WQ WQ WQ
term continuation of the company but the owner’s may not be able to maximize the sales price.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Anytime there is an internal succession there is potential for stress among family members.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Case Method:
WQ
Problem Statement: Long term succession/planning
WQ WQ WQ WQ
Strengths:
• Family owned and operated WQ WQ WQ
• Due income WQ
• Partnership agreement – tax benefits WQ WQ WQ WQ
• Income from renting land WQ WQ WQ
• Loyal customers WQ
• Customer Service WQ
• Commercial accounts WQ
Weaknesses:
• Seasonal and perishable business WQ WQ WQ
• Marketing (while effective) is aged in methods WQ WQ WQ WQ WQ WQ
• Greenhouse condition WQ
• No income in the winter WQ WQ WQ WQ
• Sales
Opportunities:
• Pursue commercial accounts WQ WQ
• Expand
Threats:
• Large retailers WQ
• Succession planning WQ
Alternatives:
1. Sell the business WQ WQ
2. Expand and allow one of the interested son’s to take over
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
4
Management 11th Edition By Wesley Balderson
1
,Supplemental Case Notes WQ WQ
Thompson Greenhouse ................................................................................................................................. 1
WQ
Robinson Test Prep Co .................................................................................................................................. 4
WQ WQ WQ
The Beach Buddy........................................................................................................................................... 6
WQ WQ
Organic Gourmet Express ............................................................................................................................. 8
WQ WQ
The Winslow Clock Company ........................................................................................................................ 9
WQ WQ WQ
Windows Tech ............................................................................................................................................. 10
WQ
Edge Hockey ................................................................................................................................................ 12
WQ
Beach Stake ................................................................................................................................................. 14
WQ
The Framemakers........................................................................................................................................ 15
WQ
Top Human Tech Inc. .................................................................................................................................. 21
WQ WQ WQ
Clovis Jewellers............................................................................................................................................ 22
WQ
Blake Lock and Security Systems ................................................................................................................ 23
WQ WQ WQ WQ
Thompson Greenhouse WQ
W Q Case overview WQ
Thompson Greenhouse is family business owned by Earl and Lisa Thompson. The business has
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
enabled them to supplement their income and provide work for their children. With increased c
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ompetition from major retailers the Thompsons are unsure how they should compete in the year
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
’s ahead and if they should invest further into their business.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
W Q Discussion questions WQ
1. Discuss the implications of the Thomsons’ attempt to obtain additional commercial contracts
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
(the department stores) for their products.
WQ WQ WQ WQ WQ WQ
2. Evaluate the decision to construct another greenhouse from a financial and an organizational
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
point of view. (Use rate of return, payback, and break-even analysis in your evaluation.)
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
3. Comment on the financial health of Thomson Greenhouse through a review of the financial
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
statements.
WQ
2
,4. Discuss the implications for succession of the business if the decision were to pass the
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
business to one of the sons sell the business to someone outside the family.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Instructors may opt to use these questions or ask the students to complete a simple case analysis
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
including a problem statement, SWOT, alternatives and recommendation.
WQ WQ WQ WQ WQ WQ WQ
W Q Solutions to discussion questions WQ WQ WQ
1. Discuss the implications of the Thomsons’ attempt to obtain additional commercial contracts
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
(the department stores) for their products.
WQ WQ WQ WQ WQ
Student answers will vary. Students will likely point out that this is becoming an increasing pop
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ular choice amongst consumers. Students should also note that the business will come with muc
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
h lower margins than they have now. Some students may question if the Thompson’s should pur
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
sue this type of business.
WQ WQ WQ WQ
2. Evaluate the decision to construct another greenhouse from a financial and an organizational
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
point of view. (Use rate of return, payback, and break-even analysis in your evaluation.)
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
The case does not provide all the financial information needed to complete the tasks at hand, so
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
some estimates are needed.
WQ WQ WQ
To keep things simple:
WQ WQ WQ
Margin: 20.53% (using revenue and all expenses) N
WQ WQ WQ WQ WQ WQ WQ
ew Greenhouse - $75,000
WQ WQ WQ
Variable Cost of the Greenhouse - WQ WQ WQ WQ WQ
$60,0000 @ 8 percent interest over ten years = $26,861.45 in interest costs. Total repayment in
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
cluding interest would be $86,861.45. Variable cost per year using interest only would be 26,86
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
1.45/12 = 2,238.45 WQ WQ
Extra Income - $60,000 a year
WQ WQ WQ WQ WQ
If you read through their financials, most of their costs are fixed and would likely not increase as
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
a result of the added greenhouse.
WQ WQ WQ WQ WQ WQ
The two extra expenses would be Power and Heat@ $6,450. There is no discussion of additional
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
labour required.
WQ WQ
Hence the income before income, taxes and depreciation would be:
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
60,000 – 6450 – 2,223.45 (interest)
WQ WQ WQ WQ WQ
= $53, 326.55
WQ WQ
3
, 3. Comment on the financial health of Thomson Greenhouse through a review of the financial
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
statements.
Student answers will vary.
WQ WQ WQ
4. Discuss the implications for succession of the business if the decision were to pass the
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ W
business to one of the sons sell the business to someone outside the family.
Q WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
If the business is sold, the owner would most likely maximize the value of the company. The sal
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
e may be slightly hindered as the marketplace is changing. Leaving the business in the family w
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
ould ensure the long-
WQ WQ WQ
term continuation of the company but the owner’s may not be able to maximize the sales price.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Anytime there is an internal succession there is potential for stress among family members.
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
Case Method:
WQ
Problem Statement: Long term succession/planning
WQ WQ WQ WQ
Strengths:
• Family owned and operated WQ WQ WQ
• Due income WQ
• Partnership agreement – tax benefits WQ WQ WQ WQ
• Income from renting land WQ WQ WQ
• Loyal customers WQ
• Customer Service WQ
• Commercial accounts WQ
Weaknesses:
• Seasonal and perishable business WQ WQ WQ
• Marketing (while effective) is aged in methods WQ WQ WQ WQ WQ WQ
• Greenhouse condition WQ
• No income in the winter WQ WQ WQ WQ
• Sales
Opportunities:
• Pursue commercial accounts WQ WQ
• Expand
Threats:
• Large retailers WQ
• Succession planning WQ
Alternatives:
1. Sell the business WQ WQ
2. Expand and allow one of the interested son’s to take over
WQ WQ WQ WQ WQ WQ WQ WQ WQ WQ
4
