Question

Chapter One Assignment

GAZELLE … OR TURTLE?

Summit Software, Inc., recently celebrated its fifth year of business. Jim Mueller, the proprietor, started the software manufacturing and distribution company when he was still working as a professor at the local college, but now he enjoys being in the fast-paced technology industry. Growth and expansion were easy for Jim, thanks to his knowledge, his contacts, and the pool of readily available workers from which to choose. The company that originated in his den now occupies a nice space close to downtown.

Going into the sixth year, Jim continues to serve the same target market with customer support and lengthy projects. He acknowledges that technological advancements and new clientele are in the immediate future. All of the current and forecasted work leaves Jim and his three employees with little time to spend on administrative duties—let alone new accounts. Jim also realizes that the company needs its own upgrades to continue its rate of success and to stay competitive. Looking at Summit’s financials and the amount of work necessary to maintain the business, he’s not sure where to go from here. Following is a snapshot of Jim’s annual sales since inception:

Year 1 $112,000

Year 2 $195,000

Year 3 $250,000

Year 4 $335,000

Year 5 $487,000

QUESTIONS

1.      Is Summit Software a gazelle? Support your answer.

2.      What problems may Jim face by owning such a fast-growing business?

3.      Are gazelles more important to the economy than traditional growth businesses? Why or why not?

Answer 1