Facing Strategic Growth and Financing Options: Moore Unique Skin Care, Houston, Texas

Author
Cynthia B. Lloyd, Indiana University Purdue University Fort Wayne
Region
North America
Topic
Strategy & General Management
Accounting & Finance
Entrepreneurship
Length
10 pages
Keywords
strategy
financing
entrepreneurship
business formation
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

Dr. Milton Moore, a registered pharmacist and medical doctor, who originally started a skin care products business as an extension of his medical practice in dermatology, had personally managed Moore Unique Skin Care since its inception in 1993. Dr. Moore’s shaving products which successfully relieved an array of painful skin conditions, were immediately promoted within the Houston police department, as well as other “uniformed” local and national organizations. By early 2007, after several delays, the business was granted distribution contracts with two major retailers. In 2009, Dr. Moore obtained two patents for his shaving products. Due to these new business opportunities, the business grew and was relocated to expand its staff and warehouse. In response to this rapid expansion, Dr. Moore was faced with decisions related to business formation and strategic financing to keep pace with the growth spurt while protecting his personal assets, especially his patents.

Learning Outcomes
  1. Apply Porter’s Five Forces Model to analyze the weak links in Moore Unique SkinCare’s management strategy, and the company’s position in the male shaving and skin care products industry.
  2. Identify the financing options for Moore Unique Skin Care.
  3. Identify the various forms of business ownership available to Dr. Moore.
  4. Identify stakeholders involved in Moore Unique Skin Care, and analyze the effects of relevant financing options as they relate to each stakeholder.
  5. Recommend a strategic course of action for Moore Unique Skin Care.

Application: This decision case is designed for use in courses dealing with small business, strategic management, business finance, or a continuing education class. This case is appropriate for upper level business students, although undergraduate students may use this case with additional guidance in business formation, strategy and financing growth.