Cover It Future Development
Cover-It’s future development
Executive summary
This case study has been performed to identify different alternatives for Cover-It and Jeremy to either sell or managing his business to develop it. From our analysis we will give Jeremy one final recommendation. Based on the situation analysis, we defined following main problem definition:
How should Jeremy adjust to the proposed offer from Cover Concepts?
Our final recommendation to Jeremy is to sell Cover-It, as he has poor health, the financial structure of the company, the relative small amount of employees and resources, and the negative future aspects of the company. Jeremy should use the capital he gets from this deal in combination with his core competences, such as harvest resources and creating new and use existing contacts, to develop something new.
1. Recommendation
Based on the given background, the situation analysis, and also our evaluation of the strategic options, our conclusion is that Jeremy should sell Cover-It to Cover Concepts. Below are the main reasons behind this recommendation presented.
1.1 Jeremy´s personality and poor health
Since the company is revolving around Jeremy and the main asset is Jeremy’s declining health could jeopardize the entire company. If Cover Concepts realizes that Jeremy has declining health, they could just stall the offer and wait for Jeremy to quit himself. If banks find out he has faltering health, they could decline loans, which would ruin the possibilities to expand the business and compete with Cover Concepts. The alternative to joint venture is disregarded since we do not think Jeremy’s personality will align with a new company culture as he is very driven and need to has some sort of control over the situation.
1.2 Financial structure of the company
Cover-It has basically no tangible assets in the company. Our opinion is that Cover It is a castle in the air. The company value stems from the cash flow and owners’ equity. As Cover Concepts is trying to
Executive summary
This case study has been performed to identify different alternatives for Cover-It and Jeremy to either sell or managing his business to develop it. From our analysis we will give Jeremy one final recommendation. Based on the situation analysis, we defined following main problem definition:
How should Jeremy adjust to the proposed offer from Cover Concepts?
Our final recommendation to Jeremy is to sell Cover-It, as he has poor health, the financial structure of the company, the relative small amount of employees and resources, and the negative future aspects of the company. Jeremy should use the capital he gets from this deal in combination with his core competences, such as harvest resources and creating new and use existing contacts, to develop something new.
1. Recommendation
Based on the given background, the situation analysis, and also our evaluation of the strategic options, our conclusion is that Jeremy should sell Cover-It to Cover Concepts. Below are the main reasons behind this recommendation presented.
1.1 Jeremy´s personality and poor health
Since the company is revolving around Jeremy and the main asset is Jeremy’s declining health could jeopardize the entire company. If Cover Concepts realizes that Jeremy has declining health, they could just stall the offer and wait for Jeremy to quit himself. If banks find out he has faltering health, they could decline loans, which would ruin the possibilities to expand the business and compete with Cover Concepts. The alternative to joint venture is disregarded since we do not think Jeremy’s personality will align with a new company culture as he is very driven and need to has some sort of control over the situation.
1.2 Financial structure of the company
Cover-It has basically no tangible assets in the company. Our opinion is that Cover It is a castle in the air. The company value stems from the cash flow and owners’ equity. As Cover Concepts is trying to