CATE & LEVI: Evaluating Options for Growth Harvard Case Solution & Analysis

INTRODUCTION

Josh Title founded the Cate & Levi that provides Toys&children's clothes. The targeted audience of the company is mostly children. Currently, it is operating in the United States and Canada. The business model adopted by Josh Title for the company was too simple. Their employees are mostly graduates specialized in arts and design.

PROBLEM STATEMENT

After successful introduction as a toy manufacturing company, it has earned a positive revenue stream of 1 million in their early years. Josh Title wanted to enhance the growth of his company and he knew that the 1 million stream of revenue would help him. Therefore, he decided to look out for the strategic growth opportunities available for his company to augment his growth and revenues.

ANALYSIS:

The case analysis is based on the evaluation of the growth opportunities that are available for the company. In addition to this, the best growth option is given based on the overall analysis of the growth options.

Entrepreneurial Characteristics

Entrepreneurs are generally defined as the first movers. To be an entrepreneur, several characteristics must be possessed by a person. A successful entrepreneur should have a motivation and passion of doing something new, the entrepreneur should be a risk taker, ability to actively manage funds, ability to plan, ability to build relationships, should be prepared to take an exit, know their product and its market, and dedication to its work.

Josh Title, the founder of the Cate & Levi,possesses certain skills that are mentioned, but not all of them. As an entrepreneur, he possesses some qualities like risk taking, passion, and he knows the product & its market & dedication.

The risk taking ability of Josh creates many opportunities because he was not confined to think out of the box. The motivation & passion leads him to think that the company needs a change and in order to do that he needs to identify some options available through continuous research on different development.Moreover, as it is mention in the case that he evaluated the response of the public through different shows about their toys,this brought different modifications into the toys & children’s clothes. He has also possesses other qualities like he did in light manufacturing company, which created the opportunity to open Cate & Levi.

By knowing its product & market both he successfully launched Cate & Levi and targeted a niche market, which mostly includes children. However, the planning skills of Josh were not pretty impressive, although he did manage to start his business, but he is planning to manage the internal affairs of the company, which was not successful as he was forced to sell his product at a higher price due to high operational & managerial cost.

Entrepreneurial Growth as a Process

Small businesses possess several growth phases and each phase possesses some objectives, achievements and constraints.

In the startup phase, every company needed skills of leaderships and entrepreneurship like Josh Title for Cate & Levi. In this early phase, creativity was a major aspect in the growth of the company. The revenues in the early phase were low, how ever it would increase as the company starts to grow. In each phase of the company there will be crisis that needs to be overcome in order to grow.

The next phase was to attain a direction for Cate &Levi, which would bring further opportunities for growth. The direction creates a sense of purpose and vision in which the company plots his prospective plans. The crisis to this stage was self-government. Josh was not confined to ideas and was free to research according to him.

The next phase required proper controls to be implemented in the company due to the delegation of task to its employees, who would perform operations at their level best that would minimize the cost and generate revenues in a stable stream. The main reason behind the current strategic success was that the work force manually manufactured all of the Cate & Levi Toys and therefore,it also required proper controlling and supervision up to limited stance. This was because in the next phase as the Cate & Levi would grow, it required more supervision however,it should be noted that too much control would damage the reputation of the employees as they started to feel less valued.

This phase also required the ability to create good relations with employees and coordination between the employees as well. Josh Title was somewhat successful in this particular strategy as he managed to build these relationships among his employees...........................

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