Case Study R&R Essay Sample
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- Category: economics
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Case Study R&R Essay Sample
1) Is the Timmons model useful for entrepreneurs or do you think it is too theoretical to be practical? Provide your reasons.
The Timmons model considers opportunity, team, and resources as the most important factors an entrepreneur has to deal with in order to succeed in a new business. As far as I am concerned, the Timmons model is useful for entrepreneurs. It deals with logical notions that aim to improve in a very smart way the creation of a business.
First, the Timmons model starts with a market opportunity. Here, the demand determines the potential of an idea. In other words, the opportunity is not only a good idea, it is an idea that will reach costumers’ demands and expectations, and selling its products or services is the goal of any entrepreneur. It needs creativity to get into the market with a real new and good idea.
Then, the entrepreneur has to put together the team and the resources. As far as I am concerned, a good team is indispensable for success. It cannot be denied that a bas team can ruin a great idea, and only a good team can get a higher potential with any opportunity. How to deal with the team is also very important, and a good relationship between team members is very important. If you can count on your team and that you know your team will do the best for you, it will improve the quality of the business. A good team depends on the leadership of the entrepreneur and on how he chooses the team members.
Finally, resources are treated in a different way they usually are in other business models. In fact, the Timmons model focuses on the fact that a great amount of ressources is not necessarily reducing the risk of starting a venture. On the contrary, less ressources can improve the creativity of the use of resources and allow to achieve more with a limited amount of money. The use of a good communication is indispensible to succeed in this step.
To conclude, the Timmons model deals with concrete notions that are totally realizable and that are useful to any entrepreneur.
2) Briefly describe how the three elements of the Timmons model applied in Reiss’ case.
Reiss applied the three elements of the Timmons model in the creation of the TV guide trivia game.
Reiss first noticed that the game “Trivial pursuit” was having a great success in term of sales in Canada. Because of his experience in the toy market, he knew that the US market usually multiplies by ten the sells of the Canadian market. This was to him a great opportunity. A great idea based on sales and market demands. At this point he knew that trivia games were not commercialized yet is the US and that he could be able to take this opportunity by creating his own trivia game. He would distance himself by changing the question topics.
By all these year Reiss has worked in the toys industry, he created a lot of relations with his employees and suppliers. He always listened to their point of view and this is how he found the idea of focusing on the TV subject for his trivia game. He surrounded himself by the good people that would help him to succeed. The idea of a partnership with the publisher of the TV guide was a very smart idea. It was directly related to the subject of his game, and it will provide it a real advantage in term of sales communication and public relations.
From the beginning to the end of his business creation, Reiss always used a good communication to get the resources he needed. He knew he was not able to compete with big toy firms in term of budget for advertising. He was always thinking to the best approach he could use to reach his goal, always balancing the pros and the cons of each possibility. He tried as much as possible to get win/win relationships with people and companies tht could help him getting the resources he needed.
3) Why did others contribute to Reiss’ success- who where they, what did they contribute and why ?
The others who contributes to Reiss’ success are numerous, Reiss’ knew how and with who he’ll have to work. We can notice in the case that three persons contribute to Reiss’ success :
First of all we have Mr Eric Larson: we can say that Mr LARSON contributes to Reiss’ success because Mr Larson is the publisher of TV Guide. He was the first guy to whom Reiss sent a letter describing the project. Thanks to Mr Larson, Reiss could start the project and product the game under the TV Guide name. Mr Larson, through his assistant, Mr Deitch, helps Reiss because he think that the game is a good opportunity for TV Guide. Secondly, a man called Alan Charles helps a lot Mr Reiss by developing the game. Mr Charles was a “professional game developer”. His tasks were to find a good name for the game and mine for play value and product graphics in a highly competitive market. The role of Mr Charles is one of the most important ‘cause it’s the role who allowed a serious aspect for the game and who give the notoriety. Finally, a name called Sam Kaplan contributes to Reiss’ success by helping for advertising. Mr Kaplan was a famous advertiser before. Sam Kaplan and Reiss’ built a plan for creating a company called Trivia.Inc. The aim of this project is to run correctly the advertising plan. Moreover this option is really clever because this new company will give them equity and allow Reiss to work without the press time, the printing and administrative work. Sam helped Reiss because they are long-time friends.
4) Did Reiss benefit financially from the TV Guide venture and how much did he make? Be sure to take into account money Reiss gained via his own company (R&R) doing some of the work, as well as trough the partnership with Kaplan.
Reiss benefit financial help from TV Guide. As we can see in the document, Mr Reiss’s got financial help from TV Guide because we can see in the letter for TVs Guide that “TV Guide assume all financial responsibilities to game”. Mr Reiss make 7 250 000 $ by selling 580 000 products in 1984. Reiss sold more than he expected. The profits on the 580 000 products are 1 136 800 $. Reiss gave to Trivia.Inc 20% of the wholesale so: 1 450 000 $ and 4% (in average) to Kaplan: 290 000 $. Moreover he gaves to Heller 1% of the wholesale so 72 500 $ and 7% for each advertiser: 507 500 $ each. Reiss makes 4 422 500 $ thanks to the game.