please answer all questions . if not please answer question 2

COMPREHENSIVE CASE DAN KIM: PART 1 Dan Kim has worked for a carpentry company building homes in Hamilton Ontaria, for the past the years. Although he has moved up in the organization to be a project man ages he is becoming increasingly frustrated with the negative aspects of working for a small company with little room for advancement Dan has offered advice to the business owner that he should consider expanding perhaps consider mon ing into commercial construction and that Dan himself could handie more duties under his proposed expansion plans Dan has even offered he would be willing to become a part- ner in the business or eventually buy the company from the owner. The owner who is nearing retirement age, prefers to maintain business as it is He recognizes Dan as ambitious dependable, and hardworking, but he has little desire to grow his company at this stage in his life. Dan while making a good wage is certain that he could make more money if he worked on his own. Having grown up with parents who owned their own restaurant, he also fondly remembers the freedom that his father had in taking time to attend Danishockey games and to the family trios. His fath er's restaurant had been successful and had grown to the point where he added tour additional locations and eventually sold them all for a significant profit Dan is not certain wants to work for someone else for the rest of his litende even certain he wants to be a carpenter Dan has recently started to think about ideas to start his own business and has been searching the Internet late into the evening for Information on the latest trends in the construction and housing industries Dans certain that his experience and hands-on ability wil help him identify an opportunity he could tum into a com party, and he has started making notes on his Phone out various busness ideas he has ourng the course of the city After spending six months thinking about various deas for a business, Dan be eves he has found one that would work. After watching extension ladders wobble lean and sometimes move. Dan thought there had to be a better way to increase their stability without having someone stand and hold a ladder all day long Dan spent the next few months building various prototypes that would solve this problem and he finally developed a set of rails that could be easily attached to extension ladders to make them more stable and Increase their safety. The rails ze made of lightweight alum Inum bentsorat they attach to a ladder through the holes of the ladder rungs. Dan was thrilled with his invention which he intends to call the ladder Rail. Dan is sure that the Product will especially appeal to those in the construction Indistry as well as to homeowners Dan is confident that he can produce enough badet ralls in his garage our of light weight aluminum (the same material that ladders are made from) with metal cutters and benders to launch a viable business Dan brought the Ladder Rail to work and showed it to his boss His boss thought it was an interesting invention but stated he did not think people would buy them. This reaction concemed Dan, and while he was excited about the prod: uts potential he decided to post some information about the concept on several crowd sourcing sites and on his Face book page asking for input While most respondents agreed the idea was a good one many entrepreneurs stated that Dan would never be able to produce enough of the ladders himself to meet demand Others suggested that rather than trying to make the extension he should bring his concept to some of the larger ladder manufacturers and see if they would buy the idea from them. At this point, Dan was satis- fied he had done enough research to determine the sea was a good one and he believed people would buy them: While he appreciated all the advice he received online, he wanted to be the one to build the ladders and he was not Interested in selling the idea. After all, if he sold the idea ne would just be back working at the same company again a best with little more money in his pocket Dan is more determined than ever to see his own bush ness. He sees that his invention has great potential He discusses the possibility of becoming an entrepreneur with his wife Sure Sure is somewhat apprehensive about the lishe and Dan both have good jobs and have aCCUITIL- ated some savings. Furthermore, Suzle is concerned that Dan has not done enough work to assess if the idea is good enough for Dian to quit his job and start a business Suite states that Dan's only real market research came online from friends and family and other entrepreneurs and they would course be encouraging She would prefer i Dan engaged in more traditional market research or tned to presell some of his laders on a crowd-sourcing de Dan is confident that he has collected enough information to determine there is a market for the product and given that he is unsure how he wil uitmately sell the ladder Rail he does not want to take any pre-orders at this time on crowd-funding sites. While Suze says she has reserverions she agrees trat Dan should at least do some additional research on the leasibility of the product Dan has learned by reading blog posts from success ful entrepreneurs that he needs to collect some formation to find out whether the Ladder Rail can provide a large enough income so he cancut his job and make a living ati CHAPTER 3 Evaluations Business Opportunity Ladder Rall. It costs On about Std to make the standard Led der Rils, and he estimates that he could sell them for about $40. A breakdown of his costs is shown in Figure - Here that he could surely get percent of the market to be would be a rich man Questions Dan fests that the primary market for the Ladder Railis construction and home renovation companies. He also wonders whether homeowners will buy the Ladder Rail This market would likely purchase ladders at their local hardware Stores such as Canadian Tire Home Depot, or Home Hard- ware. Dan believes that while the Ladder Rall would have global peal he should likely focus his business on Canada in the near term. Dan is also starting to realize that he will hely have to build a facility to manufacture in large quantities. Dan thinks that he should start smal by attempting to market the product initaly in the Hamilton Dan goes to the local library and obtains some data regarding construction, population households and Expenditures for Canada and for Hamdon The information that he collected 's found in Figure 1A below. Dan is not quite sure what to do with this formation or what actional information he needs He is aware that the company he worked for had 20 ladders and employed 100 people so he estimates that one ladde is purchased per live employees in a construction or rocking company. Dan esti mates that one out of households would buy an aluminum ladder for such things as roof repairs TV antennae adjust ments and putting up Christmas lights. He thinks that ar least 20 percent of these ladder owners will be interested in the Din came to you asking for active out whether pursue the idea what advice would you provide 2. What aspects of Dars background and personality traits are buted to owning his own business? What might hinder his succes Briefly discuss aspects of the product and business than may contribute to thinder the success of the business 4 What positive things hasDandbrein vestigating the new business 5 What additional information should not before completing his feasibility analysis 6. With the information provided prepare a feasibility analysis for the homeowner marker What other information would make this can morelaccurate? FIGURE 1-A Dan's Market Research CANADA ONTARIO HAMILTON Population Households Household expenditures (Hardware las per annum) 31.413.990 11.552,010 $1,655 11.410.046 4,302.10 $11928 862101 260.568 S848 FIGURE 1-B Manufacturing Expenses for the Ladder Rail Metal Labour 57 per unit $2 per unit $1 per unit Overhead