In June 2010, William Casey had just finished his last day different needed to h

Question

In June 2010, William Casey had just finished his last day different needed to happen if they were going to achieve at a national conference for IT and software companies. success. Their conversation focused on the long-term pros- He was attending on behalf of his current employer but pects and the potential value of Network Collie, as well was also there to promote Network Collie, a data man as the individual needs and circumstances of the found agement company he had started a little more than two ers. Each of the founders had different ideas about how to years earlier with three college friends. Launching the move forward, but the final choices were to (1) quit their new company had been hard work but also exciting for jobs and commit to Network Collie on a full-time basis, Casey and his three co-founders: Dallena Nguyen, Cody (2) hire someone to run the company, (3) try to sell the Rose, and John Dalton. Today was no different. Through company, or (4) walk away out the conference, they had received positive feedback from potential customers about their new service. How They still believed their service was the best among their ever, Casey was sl questioning whether Network Ce competition. At the same time, all of them were concerned would be a long-term success. He definitely had a passion about the risk of leaving their current jobs. Another con- to be an entrepreneur and believed that Network Collie cern was that the first two options would require the com had potential for success. However, the team was hing pany to obtain capital from outside investors, which was difficulty closing larger sales orders, and he questioned the something they had never attempted before. Casey knew commitment from the founding team, including his own. tha the time for a decision about the future of Network He knew that these two areas needed to be addressed and Collie was now. He just wasn't sure which choice was the a firm direction for the company needed to be established right choice. before he would begin to feel comfortable with the com pany's future. The team debated the pros and cons of each idea Background After dinner, the team began to share stories about conversations they had had with potential customers dur If ever there was a fast-rising and potentially sustainable ing the conference. The discussion quickly turned to how growth market, social networking certainly was in 2009 they should move forward. They talked about continuing ts foreseeable futureis truly exciting based on long-term down the same path, but everyone agreed that something projections. As shown in Exhibit C13.1, the social network C13.1 U.S. Social Network Users and Penetration, 2009-2013 180 164.2 157.8 147 34.6 Social network users % Internet Users 60.1 60 20 2009 2011 2012 2013 670 Case 13 Network Collie

Explanation / Answer

Answer to question 2:

If a company acquires network collie, they would get the chance of buying a good quality name, a business model as well as the intellectual property of the company. They won’t be buying a company that ensures long run profits.

Answer to question 4:

Yes, network colie is worth $1 million because of the forecasted growth in the social network, there is a need for data management in the business for efficient management of the business. Also they have very good platform, a good reputation, a better social networking, their commitment towards time which will all make the business for $1 million.

Answer to question 5:

Advantages of GNS Inc.:

Disadvantages:

Advantages of Groomy ID:

Disadvantages:

Answer to question 6:

They can quit their full time job and focus on network collie. They have a good business plan which will help them to change their company as a million-dollar worth. When they reach a higher level, they can go with selling. Because they can get very good offers this time which will also encourage and satisfy the founders.

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