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Johnson Lumber: Bet on the Upside or Avoid the Downside?
James Baker is general manager of a large lumber mill in rural Virginia, Johnson Lumber. While on a business trip with the owner (the founder's grandson) and the owner's son, he receives the news that the company's planing mill has caught fire and is burning down. Baker, the owner, and the owner's son must decide what to do in the wake of losing the planing mill. Choices include rebuilding, seeking partnerships with other mills to use their facilities to fulfill existing business, or possibly closing shop and simply taking current profits. If they rebuild, Johnson Lumber will have to shut down for a year, risking the loss of customers and putting several people from the struggling community around the mill out of a job. If Johnson Lumber closes entirely, it will put its workers in an even worse position. But would it be feasible to use other mills' facilities? What if the other mills turned them down? On top of everything, the owner and his son have differences in their attitudes about and goals for the business. Baker must consider the options carefully and balance the pressure to please both the current and future owners of Johnson Lumber with what would be best for the business and the local community whose families it helped support. -
iCompute: The Marsh/Jones Dilemma
Jane Ryan is founder, owner, and CEO of iCompute, a computer-services firm. Ryan founded the company in 1995 and it has grown steadily, providing computer and networking services to a variety of clients. Initial growth was fueled by large contracts with large institutions, but more recently, growth has come from middle- and smaller-sized contracts. Furthermore, the industry space has become crowded with competitors and computer services is more of a commodity than it had been even five years before. Ryan is contemplating how to respond to a conflict between two of her key employees, Samuel Marsh and Becky Jones. Jones wants Ryan to penalize Marsh for poor performance. Jones is a good performer, and there is reason to believe that her area of business has the best growth potential, but she has spoken harshly to Ryan, and Ryan has long-standing loyalty to Marsh. -
Thompson & Litton: Risk, Risk, Reward
This field-based case introduces Ron Helton, a partner in a civil-engineering and design firm called Thompson & Litton. The firm has just learned that it did not get two major contracts it had bid on. Sales are flat. Still, there is a proposal on the table for Thompson & Litton to begin working with a consultant to develop and initiate new construction deals with the state. There is a good upside to the proposal, but the downside is that the risk is significant. Meanwhile, because prison reform has become a prominent political issue, Helton is exploring an alternative option-building new rehabilitation facilities instead of prisons. Helton and the rest of the firm's management must decide how to proceed. This case can be useful in courses exploring government procurement contracts, public-private partnerships, and political attitudes about business practices. -
Longview Services
This case traces the history of an engineering consulting firm and highlights differences between its two principals. The partnership worked very well overall, and Longview Services made money from the start. But it soon became clear that the duo had some differences in style that would need to be worked through. -
Haynsworth's Inc.: Should I Stay or Should I Go?
This case traces the history of a local, family-owned office supply business as it faces competition from national retailers. -
Lab Mice and Bank Loans: General National Bank and Salazar Services
It was 2010, and the Salazar family wanted funding to expand their animal husbandry support services business. They believed the time was right to pursue a bigger share of the expanding market for government, pharmaceutical, and biotechnology contracts with research labs. -
From Blues Brother to Industry Leader: Growing Revenues at ParkNPool
Every time Jim Fonner thought about how his own business had zigged and zagged, he was prone to laugh. Once employed at Weyerhaeuser, the international paper- and wood-products company, Fonner had left the management ranks to transform himself into something very different: one-half of the Beach Blues Brothers, a duo of singing, dancing, Hawaiian shirt-clad salesmen selling patio furniture door to door to Florida hotels. Ten years later, in 2007, he was running a company in Lexington, Virginia, supplying commercial outdoor furniture nationally. It had not exactly been a linear progression to the Shenandoah Valley. -
Relay Foods: Media Mix1
Arnie Katz was thinking about his company's recent expansion into Richmond. It was a different environment than Charlottesville, where the company had started up and experienced its first successes. In a larger, less tight-knit city such as Richmond, he did not believe the company could rely on the same organic word of mouth that had fueled its early growth in Charlottesville. Acquiring new customers in Richmond might require traditional advertising. What kind of mix of the two approaches should he employ? -
Bandyworks (B): Tom Bandy-Growing, Letting Go
Bandy was no stranger to entrepreneurship and the problems brought about by success. Having honed his programming skills in the 1980s, he had already founded a database company that had seen great success-and then had been squeezed out by investors. He spent a few years after that working for a computing firm in Richmond until a chance remark by his young son spurred him to become an entrepreneur again. In 2005, he founded BandyWorks, a computing services consulting firm. -
A Bowl of Good: Defining the Partnership
Katrina Didot's local organic food business, A Bowl of Good, was on the upswing now, and there was a chance to expand operations. In order to do that, Didot knew she needed a partner to shoulder some of the work. Didot had the recipes and knowledge-and she had drive. She needed someone who could make the trains run on time and ensure things flowed smoothly when it came to operations. -
A Better Yoga Block: Shanti Creek Yoga Products
This case follows a protagonist as he tries to secure start-up capital to get his entrepreneurial venture going.