Paul Olsen Case Essay - 673 Words

The Paul Olsen case describes the situation for a decision that Paul Olsen needs to make. Paul and Robert Rose devised a plan to open a piano bar in a new urban mall development in Pittsburg, PA. If successful, Paul and Robert would add a restaurant and cafà © at the same location to grow their business. With three and a half months before opening, Paul did not have enough investors to fund the startup costs, so he needs to decide whether to invest all of his student loan money ($12,500) to maintain the timetable for the opening. Similar to the Ramp;R case, the Paul Olsen case is about identifying risks and developing strategies to manage that risk. By controlling risk, Paul is able to minimize his exposure to potential losses if the†¦show more content†¦Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. supp liers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success. A final question is whether Paul should apply his student loan money to the startup costs. Since his living expenses and tuition are already paid by the Ford Foundation grant, the loan money is not immediately needed. The contract in exhibit 3 shows that his services towards opening the bar are valued at $17,500 in addition to the cash contribution. Therefore, his percentage claim towards any profits fromShow MoreRelatedEurochem Case Study1621 Words   |  7 Pagesï » ¿EUROCHEM CASE Part 1 (Environment/Context) The eurochem case is about Paul Paus, who was sent by Mr. Vandenbergh (the marketing director of the head office in Belgium) from the Eurochem head office in Antwerp to the Chinese head office in order to adapt it to the rest of the world. For this reason Paus decided to change the marketing system to the European standards, which is already working well in Europe and the US. Three month later the Eurochem sales decreased and Li tells Olsen about theRead MoreEssay on Cub Foods Case Study805 Words   |  4 Pagesstated in the case the whole store exudes a seductive, horn of plenty feeling that usually makes the Cub customer typically buy in volume and spend four times the supermarket average per shopping trip. The ceiling joists and girders are exposed giving â€Å"the subliminal Feeling of all the spaciousness up there. Which suggests there’s massive buying going on that translates into the shopper’s mind that there’s tremendous savings going on as well† as stated in the case by Paul Suneson, directorRead More Religious Controversy During the Time of Karl Marx Essay1372 Words   |  6 Pagesof the protestant Reformations. This reformation tried to entice those who left the church into coming back to see the changes it made. The council of Trent was supposed to be a very important turning point in the Catholic Religion. In 1545 Pope Paul III was forced by the protestant movement to define the church doctrine once and for all. The council tried to correct some of the major problems of the Church. [6] In other words they tried to coax people to come back by eliminating the problemsRead MoreEntitlement Programs And The Entitlement Program1250 Words   |à ‚  5 Pages America was founded on several principles to include, that all men are created equal. However, throughout history, it has been made clear through the various social classes that this is not the case within the realm of monetary value. It is for reasons such as this that the entitlement programs were born. Entitlement programs were created to provide security and assistance to those in need. They would allocate basic necessities for eligible persons and families to live comfortably until they areRead MoreUnited Healthcare: A Case Study1466 Words   |  6 PagesHealth Organization Case Study It was in 1977 that the United Healthcare United Health group was founded by Richard Burke. The headquarters of the company are in Minnetonka, Minnesota. This organization works towards the betterment of peoples health, it help them in living a healthy life by providing them with the kind of health care that would be best for them. The main focus of United Healthcare which is a major division of the United Health group is to provide the people with better healthRead More Contrasting Theories on the Extinction of Dinosaurs Essay examples1273 Words   |  6 Pagesearth this has been proved by finding, â€Å"Levels of the metal iridium-which rarely occurs naturally on the Earth’s surface and mostly arrives on extraterrestrial objects†¦Ã¢â‚¬  But yet again there is always someone to dispute that and in this case it is Paul Olsen of Columbia University in New York. He would rather have more evidence of iridium in the sediment around the area than to jump to conclusions. He is also not ruling out â€Å"massive eruptions of volcanic lava that could have caused mass extinctionRead MoreIn Australia, sick leave is a major issue and concern in organisations and businesses. There has1400 Words   |  6 Pagesdifficulties. However, many organisations and business apply strategies, finding solutions to such issues. In reference to the case study, the president and chief executive of Toyota motor corporation Australia, Max Yasuda illustrated that 30 percent of employees take sick leave on Friday if there is public holiday on Thursday. The managing director of Direct Health Solutions, Paul Dundon stated that in organisations and businesses, the average of 6.5 days of sick leave every year is approvable. IncreasingRead MoreReview Of Babylon Revisited And I Stand Here Ironing2008 Words   |  9 Pagesa lot of money to waste and did not take care of his family properly. When he returned back from Paris, we realize that he has stopped his extravagant lifestyle. We also learn that he had lost his wealth when he is talking to Paul towards the end of the story. He tells Paul that he lost all his money in the short selling of the stock market. The short selling here is a metaphor, which means that he used all his money in an extravagant lifestyle. He spent more than he made; hence, he lost everythingRead MoreMedical Marijuana Should Be Legal1545 Words   |  7 Pagesconflict within federalism. Court cases also impacted medical marijuana legislation.   In 1988 Judge Young recognized marijuana’s safety and concluded marijuana should be lawfully transferred to Schedule II. However the Drug Enforcement Association still argued its classification and finally rejected all pleas for reclassification in 1992 (Grinspoon 10-13). Further federal action also stopped medical marijuana through the case of Gonzales v. Raich in 2005. This   case expanded federal authority and upheldRead More Does Playing Violent Video Games Promote Aggressive Behavior?2480 Words   |  10 PagesEC (early childhood), E (everyone), E10+ (everyone 10 and over), T (teen), M (mature), and AO (adults only). While assessing the efficacy of violent video game ratings, it is unknown how effective these ratings are for the intended audience (Becker-Olsen Norberg, 2010). The purpose of this paper is to present a literature review on existing articles relating to the possibility of violent video games promoting aggressive behavior. The hypothesis set forth was that people who played non-violent