Graber Products Case Study

In: Business and Management

Submitted By auraglow
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Table of Contents Introduction 4 Question 1: Why was the support of employees so important to the company’s survival? 5 Question 2: Since the board members recommended that they declare bankruptcy and they did not take the advice, why have a board? 6 Question 3: Why would you say that Sara and Chris’s dilemma was an ethical one and not a legal one? 7 References 8 Appendix: Presentation Slides 9

Introduction

This report focuses on the Entrepreneurship and Society chapter, particularly on the Graber Products case study. Graber Products makes bicycle racks, parking, and training systems. Sara and Chris Fortune bought Graber Products in 1989 when it had 24 employees and $3.3 million in sales. When the video case study was filmed, there were up to 60 employees and with revenues over $10 million. They were sued for patent infringement and lost $1 million in the lawsuit which they were advised to declare bankruptcy but chose to not take that path. Sara and Chris were not quitters and they have 3 main reasons to their success are having a banker who believed with their road to recovery, psychological support from employees and board of directors, and their responsible upbringing.
The Graber Products brand represented quality and stability; however their sales were flat as they were known in a market as supplier of nuts and bolts. Chris had to reposition Graber Products as an innovative company as they need fresh energy to grow again. He then built on the good he bought and threw out the bad by working with University of Wisconsin and came up with thrilling new products to the marketplace. For small-business owners like Chris and Sara, they work shoulder to shoulder with their employees and their reputation is the most valuable asset.

Question 1: Why was the support of employees so important to the company’s survival?

Graber Products is an…...

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