Topic: Case Analysis #1

Assignment #1, ___/30:

This submission is worth 15% of your final grade.

Submit to Drop-box by Sunday, October 31st, 2021, at 5:00pm. Lateness will cause loss of

marks, 10% per day.

Instructions:

In your assigned groups and using what you have learned in Lessons 1 to 5, analyze the following case and answer the questions listed below.

Show your work. Answers to questions should be in a paragraph format. You may refer to the case analysis conducted in class during Week 5. A similar approach should be taken with this assignment.

Please pay attention to spelling, grammar and sentence structure. Please reference your work appropriately using APA guidelines.

Prestige Dance Academy

Picture a group of children pretending to be butterflies twirling and leaping around a calming blue room. Their teacher is enthusiastic and encourages them to be creative and carefree. The children are smiling and having the time of their lives. This is much more than a dance lesson for their teacher, Amanda Hunsley; it is the realization of a life-long dream.

After graduating in December 2004 from the Applied Business and Entrepreneurship degree program at Mount Royal College (MRC) in Calgary, Amada combined her passion for dance and her drive for success to open Prestige Dance Academy. The studio offers a wide range of ballet, music theatre, hip-hop, preschool, Mom & Me, and private dance lessons.

Her entrepreneurial spirit was evident at a young age, and beyond just the typical lemonade stand or paper route. She would fold laundry, do cleaning, and make her Dad his lunch and invoice us, her parents Pat and Don Harburn say. Her business idea also came at a young age. She started dancing when she was three, and always imagined that she would become a dance teacher. As a teenager she worked at a local dance studio where she had the chance to try almost every jobfrom caretaker to secretary to instructorand realized she wanted to do it all. One summer she and another youthful instructor opened a holiday dance camp. Things worked out well. I had a business mind and once I realized I loved working with kids, I just put them together. She pursued her dream in a logical manner, starting by working one night a week in an office to acquaint herself with basic accounting and administrative process while in high school. The business program courses were geared toward entrepreneurship and prepared her for all aspects of starting the business. However, being a true entrepreneur, she launched her venture at age 19 prior to starting her postsecondary education. It was not easy.

Amanda did extensive research on the competition throughout the city that indicated that the booming Westhills area of Calgarys southwest quadrant was the place to set up. There were expanding communities, young upscale families, high disposable income, and a gap in competition. So, in 2002, with $20,000, and large amounts of volunteer elbow grease, including drywalling duties free of charge by Amandas father, she transformed an ordinary storefront into a professional studio. At times its been hard to make people believe in me, says Amanda. The bankers didnt. She had neither a track record nor a credit rating when she asked for a start-up loan. They showed her the door. The contractors who installed her sprung (and costly) dance floor didnt show much respect either. Soon after she opened, one of her retail neighbours caught her by surprise. We all have bets on how long youll survive, revealed her fellow entrepreneur. Well, I hope youre betting I will be here for a long time, was Amandas cheerful rejoinder. Nope, said the man from a few doors down. I bet against you.

The doubter did not collect on his wager. In less than three years, the studio went from zero students to over 400, Amanda was able to turn a respectable profit and become debt free. In 2004 Amanda was selected out of over 200 college and university students across Canada as the CIBC Student Entrepreneur of the Year winner. She dazzled the judges with her airtight business plan, her presentation, and her encouraging revenues.

Amanda has had success, although she acknowledges that it hasnt been easy. She admits she made a serious mistake when she spent her entire promotional budget the wrong way, hiring a marketing firm that failed to drum up results. You learn and you fail and you try again, she shrugged. I was devastated. Now her marketing cash goes to CanadaPost, which twice a year

delivers Prestige Dance Academy flyers to homes in her target neighbourhoods. After examining a city map detailing traffic flow, she placed a sign for four months a year on a major road leading into the area. Returns have been encouraging; enrolment has quadrupled in less than three years. Like all small business operators, she has also had to learn how to deal with the occasional disappointed customer, as well as with the odd NSF cheque. She has also learned to rely on her own instincts when it comes to her business. She maintains high standards, limiting class size to 10 pupils. She also asks that students commit to a 10-month program, allowing her to maintain a consistent cash flow and plan for financial contingencies. Amanda has since completed her undergraduate degree and is now juggling marriage, motherhood, and her business. In order to satisfy her personal goals, she now manages her business from home and teaches just one night a week at the studio. She remains extremely dedicated and passionate about her business.

Life is short, she says. Its going to go fast, so you might as well be doing something every day that youre passionate about. She encourages others interested in pursuing a dream to follow her example. As she says, Jump off the edge and do it. If you have the desire and the passion and willingness to work hard, youll find success.

Her studio continues to grow and attract customers, in fact, classes are often waitlisted at her studio. She has hired additional dance instructors to help with the business, however, Amanda wonders about the future growth of her business and whether to expand the business and add a second location.

Questions

1. Referring to the theories of entrepreneurship character, does Amandas experience and character fit the model?

2. Evaluate Amandas preparation for entrepreneurship. How did it affect the process of her starting a venture?

3. What are the challenges associated with operating her business at home?

4. What issues will Amanda encounter if she decides to open a second site?

5. What other growth strategies might she consider?

Sources: Adapted from Tom Keyser, Business Edge, vol. 4, no. 37, October 21, 2004; author discussions with Amanda Harburn; Jessica Patterson, Step by Step. Calgary Entrepreneur Dances Her Way to Success, November 1, 2010, available

at: http://albertaventure.com/2010/11/step-by-step; and www.prestigedance.com.