BUS 415 Week 4 Discussion Question 3

BUS 415 Week 4 Discussion Question 3

BUS 415 Week 4 Discussion Question 3
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BUS 415 Week 4 Discussion Question 3
Michael and Dwight decide to start up an online novelty mug store called “World’s Best Mugs.” Michael plans to be the boss of the company and will handle the inventory and distribution in his condo. Dwight is not planning on providing any of the funding for the store, but will be the lead salesman. Michael has contracted with Ryan to design mugs for the store. Unfortunately, Ryan is not very good at his job and spends most of his design time listening to his iPod he got for Christmas.

After a few months without much success or a decent product line, Dwight secretly contacts Kelly, an actual mug designer, and asks her to design a prototype mug line where people can customize their face on a star shaped background. When Dwight tells Michael about his solicitation Michael is upset because he doesn’t want to hurt Ryan’s feelings. But after some discussion Michael decides that he will buy Kelly’s designs and labels them the “Superstar” line.

The “Superstar” mugs are a hit. Slowly major corporations begin to order personalized superstar mugs for their employee appreciation and even retirement gifts. Michael’s operation gets so big that his condo association notices and tells him that he cannot operate a business at his home. Michael is still shy on capital and so he asks Dwight to help finance the first few months of rent until the Mug Store is making money. Dwight agrees. At the time they move into their office, Michael is working full time for the company and Dwight is working full time (although he does manage a beet farm on the...

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