Natucket Nectars flyin’ high

I. Identify/Define the Key Issues/Situation AnalysisA. Key issues that will partake the focal firms ability to survive, thrive and grow. First Nantucket ragweed has to decide on a scheme on how to achieve increase harvest-feast in rising. This whitethorn include an IPO, existence bought by angiotensin-converting enzyme of the vast players in the beverage securities exertion or growing organically. individually on how they achieve this remainder, it is most substantial that they go along the current aliveness of the troupe. This includes both the inner structures and in any case the external image of the participation.Internally they defend to donjon up the entrepreneurial spirit, like the nonhierarchical structures, the non-formal dress code and separate cistrons which make Nantucket Nectars a place where work is still fun. On the other side they have to chief(prenominal)tain their image of being an nonsymbiotic company which only produces products with the hi ghest quality and non willing to compromise that at any cost. Especially in the case of being sold to a big company, they have to make sure that they are not associated with the buyer but are still seen as the small independent good-guy company.Finally, as the founders have a long term interest in the company, they have to find a way of keeping check into of the company, so they should not give away too many of their shares in order to cook a lot now.B. Critical Success Factors (then & now)Their greatest success factor is primarily their great tasting, all pictorial, high quality product. This product en adaptedd them to originate a great and very committed customer base and draw up a brand. The current trend of people favoring healthy and natural beverages additionally helps them to grow favoredly.Their entrepreneurial spirited and highly motivated squad helps them to quickly react to new trends in a constantly evolving market and even with a small merchandise budget they showed that they are fitted to establish their products successfully on the market, mostly using highly originative and alternative marketing tools. Additionally, the story they can build up theirmarketing on is much more appealing than that of any of the brands introduced by big companies. While still suffering from low margins, cost will be reduced with greater volumes and more down in the market.II. Mobilize strategical Options A. Keep the company and grow organically1. This approach allows the founders to retain control everywhere the company and be able to leverage at best on the image and story developed through the years. They would also be able to secure the job for all the employees who were fundamental in the growth of the firm. This strategy wouldnt prevent the founders to sell the company in the future, after and increasing its paygrade.2. Refusing to sell shares would mean turning ingest fast growth opportunities and it would be difficult to access the multi-ser ve dispersion, which offers the highest growth possibilities. Furthermore they would not be able to decrease their cost structure, exposing them to the risk of being taken down on price competition by large firms. Finally, there is no certainty that the military rating of the company will increase in the future and an opportunity of selling on these favourable condition may not happen again. B. Go public and do an IPO1. This strategy would represent a fast way of gaining money to invest for growth while at the same time keeping a reasonable degree of control over the company by having a large number of shareholders with a couple of(prenominal) shares. The further growth of the company would permit Azzarello Chang Chemali PalluaEntrepreneurial Management Case 11 NantucketEoS, thus driving down the costs. In addition, the immature Age drinks industrys favorable market conditions would help increase the valuation of the company on the stock market. 2. An IPO would obviously enta il the risk of beingacquired by an undesired company. The process of contacting an investment bank and define valuation would be costly and timeconsuming. In addition, the short-term profits demanded by the investors would be in contrast with the long term orientation of the company. Finally, market conditions may change and this could be a source of stress for the founders and the employees. C. Sell the integral company or part of it to an establish firm1. Theres a big interest in the company at the moment, and this can indoctrinate a program line process that can further drive valuation up. Many of the possible investors are highly attracted by the industry and, collectable to a strong need to complement their product portfolio with a New Age product about of them may bid high. Beside money and an modify cost structure, large companies could provide access to a broad dispersion network, supermarkets and shelf-space as surface as know-how. The founders and their associate still own large part of the company and can leverage on that to keep some control after selling.2. The other side of the coin would be for the founders to overleap substantial control over the company after the acquisition. There is also the risk of losing the culture that has characterized and differentiated the firm throughout the years, providing a main source of competitive advantage. In addition, the company could be acquired by a big company with low reputation and this could result in a bad image transfer. Finally, the highly valued employees might be modify by the outcomes of the acquisition.III. RecommendationTo grow business without losing control and company culture, Nantucket should sell its shares to an established company, gaining resources for expansion as well securing their intangible asset. Getting momentum for growingBeing a small company in growing and competitive industry, selling the company enables Nantucket to scale up their business by leveraging the exper tise of bidder, including distribution capability, financial strengthand management. Compared to IPO, this approach allows Nantucket to receive resources for expansion as well as cash inflow. This strategy aligns with the vision of founders for long-term operation goal that would take aim up the business to a more sustainable level while keeping control of founders on the company.Start developing their own taskforceThe bidding combines the mutual interests for bidders to penetrate the market and for Nantucket to grow in the market. Current detail creates a favorable buying condition and bargaining power for Nantucket which would slander the loss of control so that Nantucket could still preserve their most important asset of business, the unique brand image and culture. With this good position, Nantucket should carefully favor bidders by to find the expertise that could be leveraged and match their strategic goal.Successful experience of Ben & Jerry and ZapposThe case of Ben& Jer ry acquired by Unilever and Zappos acquired by Amazon are two successful precedents of this strategy. After acquisition, these two companies were able to operate separately with bidders and secure their semiprecious intangible assets as well. Ben & Jerry kept running by its social certificate of indebtedness philosophy and Zappos continued to operate as an independent entity from Amazon, both preserve the intangible asset like brand image and company philosophy.Azzarello Chang Chemali Pallua