Problem
"Gardeners love this crap." That's the slogan for Pierce Ledbetter's Memphis, Tennesseebased company, Zoo Doo. In 1990, while still a student at Cornell University, Ledbetter returned home to Memphis and talked the managers at the local zoo into selling him composed animal droppings from the enormous amounts produced by the zoo's animal daily. Why would any sane individual want animal droppings? Well, it's extremely rich in soil nutrients. Wanting to cash in on the gardening craze just beginning to sweep across the United States, Ledbetter saw a marketing opportunity. He began selling "Zoo Doo" in attractively designed pails. He even had the unique idea of having the droppings compressed into various animal-shaped sculptures that gardeners could place in their gardens to decompose naturally and organically. His designs caught the eye of garden centers and mass merchandisers across the United States. Ledbetter's Zoo Doo now claims sales of about $1.5million.
But having a great product and a great slogan isn't enough to make any small business a success. It's important to choose a form of business ownership that best meets your individual needs, goals and constraints. Factors such as availability of adequate funding, amount of management expertise, product liability possibilities and willingness to share decision making can influence which form of ownership is most appropriate.
Source: Adapted from Hatten, T.S. (2009) Small Business Management: Entrepreneurship and Beyond, 4th ed. Cengage Learning, South Western.
Task
A. If you are Pierce Ledbetter's business associates, suggest the appropriate type of business ownership for Zoo Doo with four appropriate reasoning.
B. Discuss the three ways that may have assisted Pierce Ledbetter to identify the attractive opportunity.
C. Recommend any three foreign-market entry strategies that Pierce Ledbetter can utilize to venture his business into overseas market.