Tico Manufacturing: A Case Study of Entrepreneurial Growth
This decision oriented case illustrates the critical abilities needed for starting and developing a small business. The case depicts the growth of an entrepreneur who went from picking up some extra work during his time off, to developing several successful businesses associated with pallet manufacturing, environmental recycling, and trucking. By taking advantage of business opportunities, a one man operation has grown into an organization of substantial size. As the business has grown there were a number of issues that had grown with it. There was a need to analyze existing product lines to determine which should be continued and which should be dropped. There needed to be an analysis of key financial ratios to determine the financial health of the businesses. Cash flow changes needed to be made to keep the companies operating smoothly. There was the possibility of starting another business, but it also needed careful analysis.
- Analyze pertinent trends from selected income statement and selected balance sheet accounts, using appropriate financial ratios.
- Breakdown the total income and expense statement into components to evaluate the impact of each product and service segment.
- Analyze the revenues and expenses for the proposed Truck-Trailer Repair Business and evaluate its’ feasibility.
- Develop a SWOT analysis for TICO.
- Evaluate the strategic direction of the business by having the students decide which product and service segments the business should add or drop.
Application: This case is about entrepreneurial growth and some of the financial problems that accompany it. It is a good case to be used in an entrepreneurship, accounting, or finance course, and has strategic decision making that would make it useful in a management course.