Growing a Web-Development Company (Scenario)Vincent and Alice are ...

[Mr.Thesaxman]

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer–with a particular leaning toward Wordpress as a website backbone.

So far they have brought in less business than they had anticipated–about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.

As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.

You are now in the role of advising the partners about a number of issues.


Although a seemingly backwards step, doing a thorough evaluation of their business idea might be a wise exercise because Vincent and Alice could discover answers to all of the following questions EXCEPT ________.
◦ Do you ever plan on having the time for a personal life in the near future?
◦ Do you have a realistic picture of the venture's potential?
◦ Do you have the capabilities to do what you have chosen?
◦ Are you ready to work hard?
◦ Are you ready to be an entrepreneur?

[mathjasmine]

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[joesmith1212]

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer–with a particular leaning toward Wordpress as a website backbone.

So far they have brought in less business than they had anticipated–about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.

As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.

You are now in the role of advising the partners about a number of issues.


You recommend they redo their feasibility study with some of the new information they have gathered in their first year of operations. Given the speed with which Vincent and Alice launched their business, it will likely provide additional details about ________.
◦ human resource and impact on the partners' personal lives
◦ competitors and human resource needs
◦ human resource needs and financing
◦ competitors and financing
◦ cash flow and net income

[cassie_ragen]

competitors and financing

[cabate]

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer–with a particular leaning toward Wordpress as a website backbone.

So far they have brought in less business than they had anticipated–about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.

As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.

You are now in the role of advising the partners about a number of issues.


You notice that the possibility of operating at a loss was not even considered a possibility by Alice and Vincent. Had they done a proper ________ they probably would have at least been aware that this could happen.
◦ applied research study
◦ value proposition
◦ cash flow projection
◦ feasibility study
◦ business plan

[Perkypinki]

business plan

[segrsyd]

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer–with a particular leaning toward Wordpress as a website backbone.

So far they have brought in less business than they had anticipated–about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.

As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.

You are now in the role of advising the partners about a number of issues.


Of all the key elements of organizing their venture, the two-person partnership would likely have been least concerned about ________.
◦ research and development
◦ employee retention
◦ organization design and structure
◦ leading change
◦ employee recruitment

[jgranad15]

employee retention

[formula1]

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer–with a particular leaning toward Wordpress as a website backbone.

So far they have brought in less business than they had anticipated–about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.

As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.

You are now in the role of advising the partners about a number of issues.


One of the activities the two partners have engaged in effectively is keeping abreast of what is happening in the marketing world as well as what web developers around the world are creating and the related technological innovations along the way. This is a great example of ________.
◦ research and development
◦ feasibility research
◦ pure scientific research
◦ curiosity-driven research
◦ applied research

[kjohnson]

applied research