Knowledge that Transforms

Opt–e–scrip, Inc., has developed a patented test for determining the efficacy of drugs in individual patients so that doctors can prescribe the drug that really works for each person. In addition, test results show that older, less expensive drugs are often as or more efficacious than the newer, expensive drugs pushed by manufacturers. It, thus, benefits physicians, patients, and drug benefit payers. However, the company has had difficulty entering the market, given its complexity and their lack of resources. The test remains a product in search of an application and a customer willing to pay for its usage.

This case deals with the dilemma faced by an entrepreneur named John Styles who was faced with the decision of whether or not to enter into a partnership with M.D. Anderson Cancer Center in Houston to build a Proton Cancer Therapy Center. The decision was clouded by the fact that most of the $100 million investment required for the venture would be invested in facilities and technology that could be used for nothing else if the project failed. In addition, the typical venture capitalists who would normally invest in such a venture would not find this deal enticing because of the long time lag to profitability.

In 2001, the United Parcel Service (UPS) purchased the entire Mail Boxes Etc. (MBE) franchise system. After test marketing several new concepts in 2003, the corporation strongly encouraged franchise owners to reposition their MBE outlets as “The UPS Store.” Joseph and Courtney Morris, owners of a thriving MBE outlet, faced a quandary: should they retain their well–established MBE identity, adopt the new UPS brand name, or sell their franchise outright? The case incorporates both family issues and business factors as the franchisees struggle with a decision that could have significant impacts on their financial future.

RHS, Inc. presents the story of an agricultural equipment business initially founded in 1980 on Rick Heiniger's personal experience and desire to improve his financial situation during challenging economic times. Having successfully expanded by leveraging technology through innovation over two decades, and most recently through a partnership with another venture, he now faced issues of how best to integrate the two entities to foster continued future successful growth. Despite his continued enjoyment in the process of building new businesses, he also wondered how his role as a leader would need to evolve.

This case focuses on the decisions confronting Marc van der Bilt and his family. At the age of 59, Marc had been a franchisee of the Dutch DA drugstore chain for 23 years and had always planned to remain one until his retirement. In the spring of 2003, however, a change of management at the DA headquarters sparked major strategic changes to the DA chain that placed Marc and his family in a difficult position. They must decide on the future of their family business; should they go along with their franchisor's new plans or not?

This case focuses on Envirofit International, a student start–up venture that began in an undergraduate entrepreneurship course. Two engineering students and two faculty members at a land grant university in the United States designed a retrofit kit to vastly reduce emissions from dirty two–stroke motorcycles, which are used throughout Asian cities as taxis. This case presents the beginnings of the Envirofit story, and the issues involved in creating an entrepreneurial venture focused on triple bottom line objectives in “base of pyramid” markets. Specifically, the case examines the ambiguity facing a start–up as it begins to develop a technology, a business model, and a management team. The case demonstrates the tension between planning and doing in managing the uncertainty facing a new venture.