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Starting Right Corporation

In: Business and Management

Submitted By ragnarok062786
Words 1273
Pages 6
Starting Right Corporation
Jemichael Manora
December 10, 2013
Columbia Southern University

Summary
The case study Starting Right Corporation chronicle Julia Day’s decision to create her own company (Render, Stair, and Hanna, 2012). Shortly after watching a movie, she made the decision to resign from her job to start a company, whose specialty would be premium baby food (Render, Stair, & Hanna, 2012). Seeing a gap in the current market of products, she developed a plan to advertise and a focus on high end products (Render, Stair, & Hanna, 2012). Instead of putting her product in jars and bottles, she targeted enhanced nutrition by freezing the baby food (Render, Stair, & Hanna, 2012). However, Julie understood that that her plan and company startup would not be easy (Render, Stair, & Hanna, 2012). She sought out partners who had specialties in business, marketing, production, and finance to assist her as subject matter experts (Render, Stair, & Hanna, 2012). Also, Julie knew that startup money was essential for her company to be immediate success (Render, Stair, & Hanna, 2012).
She presented three options to raise initial revenue being corporate bonds, preferred stock, and common stock (Render, Stair, & Hanna, 2012). She wanted $30,000 blocks for each investment (Render, Stair, & Hanna, 2012). Also, selected investors had to have minimum income of $40,000 with a $100,000 in net worth (Render, Stair, & Hanna, 2012). The corporate bonds came with 13% return for 5 years (Render, Stair, & Hanna, 2012). After five years, Julia stated that investors would receive a minimum of $20,000 back from their investment in the corporate bonds (Render, Stair, & Hanna, 2012). Investors who decided to invest in preferred stock would see a factor increase of four in a favorable market; and, an investment drop by 50% in an unfavorable…...

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