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E and I Case Study 2 Decision Sheet: Submitted by Aditya Srivastava (22121002)

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E AND I CASE STUDY 2 DECISION SHEET

SUBMITTED BY ADITYA SRIVASTAVA (22121002)

GUIDED BY: PROF. DANISH HUSSAIN


Characters and their roles in the case:
Jim Boothe, an engineer.
Nora, Jim's wife
Case facts:

• Jim Boothe is planning to quit his job and start his own business
• He has invented dozens of products in his 25 years of work experience as an engineer
in an extensive research and development lab.
• Jim Boothe, an avid bicyclist
• He invented an automatic derailleur for a 15-speed bike
• This derailleur can be easily attached to any bicycle
• The bicycle shifts the gears of the bicycle automatically (depending on the terrain),
much like the automatic transmission on an automobile
• Jim feels that all he needs to do is to write a business plan and submit it to his bank to
obtain the estimated $100,000 needed to get started
• He can subcontract the manufacturing of the derailleur and the bicycle separately
• His wife Nora is tensed about Jim leaving his job because she focuses on the
practical aspect more and thinks that leaving his job will not be a good choice

Decision problem:
Whether Jim should leave his job and start his own business or not
Criteria:
Age: Jim thinks that now would be an excellent time to launch his own business since his
children are all grown up and living independently.
Technology: The user does no shifting as the bicycle shifts the gears of the bicycle
automatically (depending on terrain), much like the automatic transmission on an
automobile.
Risk: Leaving the job and starting his own business would involve many risks.
Market potential: Jim believes this idea has a huge commercial potential, especially in light
of the bicycle industry's explosive expansion.
Business plan: Jim is ready to back up this claim by taking out a second mortgage as
collateral since he believes that all he needs to do is draught a business plan and submit it to
his bank to acquire the estimated $100,000 required to get started.

Generating new entries:

• When a firm engages in a new entry, it is hoped that this new entry will provide the
firm with a sustainable competitive advantage
• Resources are the basic building blocks of a firm's functioning and performance. A
firm's resources are inputs into the production process, such as machinery, financial
capital, and skilled employees.
• These resources can be combined in different ways, and this bundle of resources
provides a firm with the capacity to achieve superior performance.
• Market knowledge refers to the entrepreneur’s possession of information,
technology, know-how, and skills that provide insight into a market and its
customers.

Analysis:

• Despite all the concerns, Jim has prepared a business plan that he expects to submit
to his banker in the next few days.
• The business plan consists of six parts: a one-page summary of the plan, a detailed
description of his invention, forecasts of growth for the bicycle market, a one-year
profit and loss statement, a plan for the manufacturing and final fabrication of the
derailleur and bicycle, an appendix that contains surveys with some of his friends
who own 10-speed bikes.

Final decision:
Jim Boothe should begin his endeavor by considering all the implications of his children
have grown up and the fact that he has no parental obligation. He also has a business strategy
to help him in his entrepreneurial journey.

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