FACTORY PANELS – TEACHING CASE

Abstract

The case shows the difficulties faced by an entrepreneur and his wife who, after a successful experience in a small furniture factory, decide to start a new company with a partner. After a year, they are involved with relationship problems with the partner, with difficulties that hit the production process and with lack of financial resources. The investments were higher than initially projected and the market proved to be more competitive than was reported by the partner. After undoing the society, they see as a solution a new partner with a financial contribution and able to help them administer. But how to show a new partner the company is viable? What is the need for capital? What is the value of the company? To answer these questions it is necessary information about the financial needs and to help design the conditions for the future viability of the company. The case can be used in various classes. In finance it can be used for the practice of budget and financial projections, focusing on calculations of new scenarios and on how to make decisions based on projected data. In disciplines that involve entrepreneurship, with no further calculations, the case can be used to discuss the importance of information needed before implementing a new business, as well as on the skills of the partners.