Faculty of Arts and Sciences

HARVARD UNIVERSITY FACULTY OF ARTS AND SCIENCES MGMT E- 5610 BUSINESS PLANNING FOR CLOSELY HELD ENTERPRISES FALL 2010 PROFESSOR KEVIN F. WALL

CASE QUESTIONS

The DAG Group

1. How should Chris and Val evaluate Superb as a potential acquisition candidate? Is this the opportunity they have been looking for? Should they make a serious offer? 2. How does the opportunity compare with the prospect of a start-up? What are the tradeoffs between the acquisition and start-up routes? Should they just go ahead and open their own store? 3. Is there an opportunity for a new entrant to essentially change the game in dry cleaning? If not, why not? If so, why have Chris and Val not been able to capitalize on it yet?

HINT: Class discussion should include the following issues: 1. Is the Superb acquisition an attractive opportunity for Chris and Val? a. Is Superb a good platform for implementing their strategy? b. Is the asking price of $450,000 reasonable? c. Can Superb’s investment meet the VC firms’ rate return hurdle? 2. What are the expected returns from buying dry cleaning stores so low? 3. Should Chris and Val try to launch a superstore on their own? a. What are the tradeoffs between buying a drycleaner and starting one? b. Are their protections for their superstore credible? c. What are returns to Chris and Val if the DAG superstore produces the pro forma results? 4. Should they quit? Do they have an adequate strategy to “revolutionize dry cleaning? a. What is the structure and profitability of the dry cleaning business? b. Will DAG’s strategy yield higher than industry average returns? Can it be implemented by Val and Chris? By competitors?

Zipcar

1. Evaluate this potential venture and the progress that Chase has made. 2. What is the business model and how has it changed between December 1999 and May 2000? What does the data from actual operations in September say about how the business model is playing out in practice? Does this data give you comfort or concern? 3. What actions should Chase take as a result of the September operating results? 4. What is the strongest argument Chase could make to a potential investor about the attractiveness of the venture? What specifically, should her elevator pitch be at the Springboard forum?

Endius Questions are found on page 11 of the case.

1 Nucleon

1. What are your recommendation regarding the manufacturing of CRP-1 for Phase I and Phase II clinical trials? What are your recommendations regarding manufacturing for Phase III clinical trials and commercialization? 2. How would you justify your recommendation to would-be company investors? 3. What is your recommendation regarding Nucleon’s long-term manufacturing strategy? What should this company look like in 10 years (e.g. R&D boutique, an R&D boutique with pilot scale manufacturing capabilities, or an integrated manufacturing enterprise)?