Case Study Hazel had worked for the same Fortune 500 company for almost 15 years. Although the Company had gone through some tough times, things were starting to turn around. Customer orders were up, and quality and productivity had improved dramatically from what they had been only a few years earlier due to a company wide quality improvement program. So it came as a real shock to Hazel and about 400 of her co-workers when they were suddenly terminated following the new CEOs decision to downsize the Company. After recovering from the initial shock, Hazel tried to find employment elsewhere. Despite her efforts, after eight months of searching she was no closer to finding a job than the day she started. Her funds were being depleted and she was getting more discouraged. There was one bright spot, though: she was able to bring in a little money by mowing lawn for her neighbors. She got involved quite by chance when she heard one neighbour remark that now that his children were on their own, nobody was around to cut the grass. Almost jokingly, Hazel asked him how much hed be willing to pay. Soon Hazel was mowing the lawns of five neighbors. Other neighbors wanted her to work on their lawns, but she didnt feel that she could spare any more time from her job search. However, as the rejection letters began to pile up, Hazel knew she had to make an important decision in her life. On a rainy Tuesday morning, she decided to go into business for herself taking care of neighbourhood lawns. She was relieved to give up the stress of job hunting, and she was excited about the prospect of being her own boss. But she was also fearful of being completely on her own. Nevertheless, Hazel was determined to make a go of it. At first, business was a little slow, but once people realized Hazel was available, many asked her to take care of their lawns. Some people were simply glad to turn the work over to her; others switched from professional lawn cre services. By the end of her first year in business, Hazel knew she could earn a living this way. She also performed other services such as fertilizing lawns, weeding gardens, and trimming shrubbery. Business became so good that Hazel hired two part-time workers to assist her and, even then, she believed she could expand further if she wanted to. Questions:

1. What competitive advantage does Hazel have over a professional lawn care service?

2. Hazel would like to increase her profits, but she doesnt believe that it would be wise to raise her prices considering the current state of the local economy. Instead, she has given some though to increasing productivity.

a. Explain how increased productivity could be an alternative to increase prices.

b. What are some ways that Hazel could increase productivity?

3. Hazel is thinking about the purchase of new equipment. One would be power sidewalk edger. She believes edger will be helpful to an increase in productivity. Another would be a chain saw, which would be used for tree pruning. What trade-offs should she consider in her analysis?

4. Hazel has been fairly successful in her neighbourhood, and now wants to expand to other neighborhoods, including also that are five miles away. What would be the advantages and disadvantages of dong this?

5. Hazel does not have a mission statement or set of objectives. Take one of the following positions and defend it:

a. Hazel doesnt need a formal mission statement and objectives. Many small businesses dont have them.

b. She definitely needs a mission statement and a set of objectives. They would be extremely beneficial.

c. There may be some benefit to Hazels business, and she should consider developing one.