Natucket Nectars flyin' high
Entrepreneurial Management Case 11 - Nantucket
01/14/2014
I. Identify/Define the Key Issues/Situation Analysis
A. Key issues that will impact the focal firm’s ability to survive, thrive and grow.
First Nantucket Nectar has to decide on a strategy on how to achieve increased growth in future.
This may include an IPO, being bought by one of the big players in the beverage market or growing organically. Independently on how they achieve this goal, it is most important that they preserve the current spirit of the company. This includes both the inner structures and also the external image of the company. Internally they have to keep up the entrepreneurial spirit, like the nonhierarchical structures, the non-formal dress code and other factors which make Nantucket
Nectars a place where “work is still fun”. On the other side they have to maintain their image of being an independent company which only produces products with the highest quality and not 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 control of the company, so they should not give away too many of their shares in order to earn a lot now.
B. Critical Success Factors (then & now)
Their greatest success factor is primarily their great tasting, all natural, high quality product. This product enabled them to get a great and very committed customer base and build up a brand.
The current trend of people favoring healthy and natural beverages additionally helps them to grow successfully. Their entrepreneurial spirited and highly motivated team helps them to quickly react to new trends in a constantly evolving market and even with a small marketing budget they showed that they are able to establish their products
01/14/2014
I. Identify/Define the Key Issues/Situation Analysis
A. Key issues that will impact the focal firm’s ability to survive, thrive and grow.
First Nantucket Nectar has to decide on a strategy on how to achieve increased growth in future.
This may include an IPO, being bought by one of the big players in the beverage market or growing organically. Independently on how they achieve this goal, it is most important that they preserve the current spirit of the company. This includes both the inner structures and also the external image of the company. Internally they have to keep up the entrepreneurial spirit, like the nonhierarchical structures, the non-formal dress code and other factors which make Nantucket
Nectars a place where “work is still fun”. On the other side they have to maintain their image of being an independent company which only produces products with the highest quality and not 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 control of the company, so they should not give away too many of their shares in order to earn a lot now.
B. Critical Success Factors (then & now)
Their greatest success factor is primarily their great tasting, all natural, high quality product. This product enabled them to get a great and very committed customer base and build up a brand.
The current trend of people favoring healthy and natural beverages additionally helps them to grow successfully. Their entrepreneurial spirited and highly motivated team helps them to quickly react to new trends in a constantly evolving market and even with a small marketing budget they showed that they are able to establish their products