Case: Black-Jack Antiques PDF

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Apply Yous Skills: Case for Critical Analysis
Black Jack Antiques
Textbook: Management Richard Daft ...

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I.

Main Problem and Any Assumptions

Black-Jack Antiques: Furniture and Restoration is founded and owned by Kevin Jack and Jeremy Black when they decided to leave their jobs in the state and start to make a living out of their passion. Jeremy is handling the shop's restoration while Kevin is responsible for the operations of the business, including financing. It is to be noted that the two are solely responsible for the daily activities of the shop. One day, Kevin found himself in a dilemma upon learning that Jeremy is eyeing a job opportunity to work in a nearby furniture design firm. Kevin is concerned about their business should Jeremy leaves, especially realizing that they do not have any business plan or partnership agreement. He is faced with the concern of running the restoration part of the business and if the selling of antiques could carry the weight of the business. Likewise, he is concerned for his friend's well-being knowing that Jeremy is facing financial woes, and he might let his dream die should he not take the opportunity. Kevin is now confronted with choices that he must make for the business, for his friend, and for himself. I.

Analysis (Integrate the concepts, impact to stakeholders, factors to consider) 1. If you were Kevin, how would you initiate a conversation with Jeremy? What would you want to learn? What would you say? If I were Kevin, I would make sure that I already cleared my mind from the anger that I felt upon knowing my friend’s intentions to seek opportunities in the furniture design firm. My conversation with him will have the goal of understanding how he is doing and coming up with a decision regarding our business I would talk to Jeremy casually, engaging with him in a light and friendly manner about how he is doing now, about his family, and about his plans. At this point, I have thought of two scenarios: a. If Jeremy talks about his plan of leaving the business, I would ask the following: ▪ Why do you want to leave the business? What factors do you consider in doing so? If there are issues in our business, can we still work it out? ▪ What are your career plans? Do you intend to mentor someone? ▪ What do you intend to do with our business, especially knowing the fact that we do not have a business plan or a partnership agreement? b. If Jeremy does not tell his plan of leaving the business, I will open it up to him, saying that I learned it from an anonymous person and will ask the mentioned questions above. Whatever Jeremy’s answers are, I would emphasize to him that I am his friend and would like to support him whatever he does. However, I would also like to tell him about the fate of our business should he leave, and of course the possibility of what could happen to me as the shop is the source of my living. In coming up with a decision, I would lay-out our business' current state, the implication should he choose to leave or not, and the possible outcomes.

2. What does this case illustrate about the risks of starting a business with a partner? How might those risks be minimized? Explain.

According to Kopp, a partnership is a formal arrangement by two or more parties to manage and operate a business. This type of business is often formed with a friend. Although this has benefits, such as having someone to share the costs, responsibilities, and risks, having access to your partner's network, and having someone who could offer mutual support and motivation (Kiger, 2014); however, this could also pose some risks. In the case of Jeremy and Kevin, they developed a strong friendship throughout the years, which could have led them to neglect the need for a business plan and a partnership agreement, having in mind that I know this person very much. We could also magnify the issue of conflicts in interest from the case. Jeremy, who is eight years younger than Kevin, intends to join a furniture design firm and probably expand his career. On the other hand, Kevin is seen to be more focused on their business; he knows that he is already advanced in age and might not find other opportunities. Lastly, the case points out the reality that partnership sometimes cannot be sustainable. Ideally, for a business to run, it needs a hustler, hipster, and a hacker. The hustler is the one who builds the business, marketing, sales, and monetization person. The hipster is the know-it-all when it comes to the product’s functions and the operation. Lastly, the hacker is the back-end person who knows the technical side and has the skill to do a business’s product. These three mentioned types of people could be linked with a tripod; without one, the business fails to survive. In the case of Black-Jack Antiques, Kevin is the hustler, and Jeremy is the hacker since he is in charge of the restoration. Jeremy, who wants to leave, might lead the business to die. Risks, I think, could be minimized by having a business plan. A business plan specifies the business details prepared by an entrepreneur before opening a new business (Daft, 2012). I learned that business might be successful without it, but having one increases the chances of success. It also needs to be updated yearly to adapt to changes in the business. A party, or in this case, a partner could be protected by having a partnership agreement. It is a contract between partners that sets out the terms and conditions of the relationship between the partners (Muray, 2019). It helps sort out the confusion should there be a falling-out in the partnership. Risks in the case could also be minimized if Kevin and Jeremy have become more involved in each other's tasks. This way, the business can be somehow sustainable since they know how to do each other's part. This also prevents being bored or restless in their daily tasks. This adds another challenge and an avenue to learn more. Lastly, the business could have someone who is not their friend, who could be each other’s back-up. This could provide more stability and security in the business as that person can provide inputs more objectively. 3. Do you think Kevin could make a go of the business alone? Should he try? Discuss As I perceive him, Kevin is a person who has a tolerance for ambiguity, which is exemplified as he and his friend, Jeremy, ventured in the business in the first place. He could also resist the stress of running the business since Black-Jack Antiques: Furniture and Restoration was able to thrive, which was reflected in the steady growth year after year. Besides, he has empathy as he is much concerned about the well-being of Jeremy. In terms of skills, Kevin is business-savvy and detailed-oriented, and he already exercised this as he oversees sales and business operations. I think Kevin is an idealist entrepreneur who seeks excitement in doing something new and a chance for advancement, which he BLACK-JACK ANTIQUES

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did not find in his job previously. Moreover, Antiques is something he is passionate about, and he made the leap of turning this into a business. We could say that Kevin has the values of being a good manager and entrepreneur; however, Kevin is faced with a problem as Jeremy is the heart of restoration. What Kevin may opt to do here is to hire someone and be trained by Jeremy for a while. Given this, he should try running the whole business without his business partner and friend. It is worth the try since the business has already become his bread and butter for years, and the experiences in the business I think has enriched him to do better. This experience includes dealing with the burden of mundane activities and Jeremy’s desire to leave the business. II.

Decision (Include any alternatives and give a rationale for the decision) The case's main problem is what Kevin should do if his business partner, Jeremy decides to pursue the opportunity in the design firm. In this event, Kevin should determine how he should handle the business, especially the restoration part, and consider that Jeremy is also his friend. It is also equally important to take the point of view of Jeremy. He also has a decision to make, to leave the business or not. Jeremy leaves the business, Kevin to run the business If Jeremy is adamant about leaving, Kevin must respect his decision and let him join the design firm. Before doing that, Kevin must discuss Jeremy's issues and concerns as to why he decided to leave, be it personal or about the business. He should also ensure that they amicably settle business matters, such as the possibility of buying Jeremy's share of the business. Kevin to run the business, with the restoration and furniture. Given that Kevin is equipped with a good manager's characteristics and skills, with the purpose of making a living out of the business and passion for antiques, I think he can pull-off making things end meet when it comes to the restoration. It is also worth trying given that Black-Jack Antiques: Furniture and Restoration already has a solid base of customers and referrals and the fact that it made a steady growth year after year. Kevin to see if the business will take-off, maybe he could determine this in six months to a year. He could gauge it by setting parameters such as target sales, profit, or by looking at the financial statements of the business. Should the business with restoration would not work, he should focus on doing what he is best at, with the furniture side of the business. If the furniture side will still not work, maybe that is the time to reevaluate the business. It may be best to try doing other things such as to sell other products, worst case would be is to sell the business. Jeremy Decides to stay, and together they run the business Should Jeremy decide to stay, it could probably be because he is willing to give the business a second chance and focusing more on the business (e.g., being more aggressive in sales and marketing) could be enough for his financial needs, given that he is facing personal debt. It could also be because of the friendship that he and Kevin made since the start of their careers in the department of transportation.

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III.

Implementation The implementation part will be anchored in the two possible scenarios mentioned above.

Jeremy leaves the business, Kevin to run the business Given that Jeremy leaves the business and Kevin to run the business, both the furniture and the restoration, Kevin should already form his business plan. He needs it the most during this time since he is now alone. He should now incorporate the business under a sole proprietorship. Kevin should hire someone who can handle the restoration part of the business and, if possible, be mentored by Jeremy, maybe one to two months. Kevin should also immerse himself in the restoration process to serve as the back-up of the newly hired. If restoration does not work, going back to selling antiques will be the key. But this time, Kevin should now be more aggressive in the market. Aside from brick-and-mortar marketing (i.e., creating a memorable shopping experience), the business can be visible online through various platforms that would increase his sales. He could also opt for blogging and highlight the latest trends and discoveries in the antique market. He could also offer discounts from time to time. Lastly, he could show up in different fairs and flea markets, thus increasing the business's exposure. Jeremy Decides to stay, and together they run the business Jeremy's decision to stay in business could open many opportunities. The first thing that they need to do is to iron things out by drafting their business plan and partnership agreement, which could be limited or general partners. Both men would now need to understand each other's responsibilities to serve as each other's back-up. This would also widen their knowledge of running the business. Depending on what is stated on their business plan (e.g., increasing sales and increasing the number of restored antiques), I think they will now be more focused on the business. If Jeremy has a dream of designing, maybe they could opt to sell hand-crafted woodworks (e.g., toys, picture frames, furniture). Aside from this, they can use marketing platforms online for more exposure. IV. Monitoring Plan Jeremy leaves the business, Kevin to run the business Given that Kevin now has a business plan, monitoring and control would now be more manageable. As part of the monitoring, Kevin should review his drafted plan regularly, monthly, quarterly, or annually. Should Kevin's business plan include measurable goals (e.g., sales, profit, number of services), he should now develop a tracking system, it could be in a simple MS Excel worksheet or by using other software. Part of this is checking his customer's satisfaction through a survey. It is also important to note that Kevin should look at his business financial statements. Part of the decision and implementation is to hire someone who could do the restoration of antiques, given this Kevin should coordinate his business and marketing plans to that person. Being aligned will make things easier in achieving any company's target. It is also in the monitoring plan that Kevin will see if the business is taking-off. This can determine if he should stick with the restoration side of the business or let it go. He can derive data in which he could use to establish his decision.

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Jeremy Decides to stay, and together they run the business The monitoring in the scenario, should Jeremy stay in business, is similar to what is mentioned above. The business plan to guide them and help them decide. Likewise, Kevin and Jeremy need to develop a tracking system. Even if they are handling different units of the business—furniture, and restoration, it is vital to be updated with each other's progress to have a holistic view as to where the business is heading. Surveys should also be made to check their customer's satisfaction and to know which areas they could improve. Also, they can hold a monthly review in the form of a discussion or a meeting about the operations of the business for the month. This way, they could see their strong and weak points, which could leverage them to do better next month. Coordination with two business units should also be part of this scenario's implementation. For example, the monthly service for restoration is short by x amount, to hit the business' monthly profit target, the furniture sales should do something, or the restoration unit should generate ways to increase its service. Lastly, they need to update the business plan from time to time. V. Reference Daft, R. (2012). Management (10th ed.). Mason : South-Western Cengage Learning . Kiger, D. (2014 , June 26). Business To Community . Retrieved from https://www.business2community.com/business-intelligence/risks-benefits-getting-businesspartner0920649#:~:text=You%20do%20not%20have%20total,may%20not%20survive%20a%20partners hip. Kopp, C. (2019, September 12). Investopedia . Retrieved from https://www.investopedia.com/terms/p/partnership.asp Murray, J. (2019 , October 21). The Balance Small Business . Retrieved from https://www.thebalancesmb.com/why-your-partnership-needs-a-written-agreement398401#:~:text=A%20partnership%20agreement%20is%20a,and%20duties%20of%20each%20p artner

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