EECS 1520 Lecture Notes - Lecture 9: Sports Equipment, Small Business
21 Jun 2018
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EECS 1520 Lecture 9 Notes
Introduction
Small business dilemma
The ͞Small Business Dilemma͟ features allow students to recognize the dilemmas and
possible decisions that firms (such as this sporting goods firm) may face in a global
environment.
The application is on the development of the sporting goods firm that would conduct
international business.
Last month, Jim Logan completed his undergraduate degree in finance and decided to
pursue his dream of managing his own sporting goods business
Logan had worked in a sporting goods shop while going to college, and he had noticed
that many customers wanted to purchase a low-priced football.
However, the sporting goods store where he worked, like many others, sold only top-of-
the-line footballs.
From his experience, Logan was aware that top-of-the-line footballs had a high markup
and that a low-cost football could possibly penetrate the U.S. market.
He also knew how to produce footballs.
His goal was to create a firm that would produce low-priced footballs and sell them on a
wholesale basis to various sporting goods stores in the United States.
Unfortunately, many sporting goods stores began to sell low-priced footballs just before
Logan was about to start his business.
The firm that began to produce the low-cost footballs already provided many other
products to sporting goods stores in the United States and therefore had already
established a business relationship with these stores.
Logan did not believe that he could compete with this firm in the U.S. market.
Rather than pursue a different business, Logan decided to implement his idea on a
global basis.
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