Reference no: EM133330666

Case Study: Read the case study below and answer the questions that follow:

Ten years ago, Linda was in an exercise class and saw a pregnant woman struggling through her routine. After class, Turner asked the woman if she knew of any products that would help her be more comfortable. Because none existed, she began developing a prototype of the Bellybra-a support device designed for women in their third trimester. The Bellybra has tank-top shoulder straps and fits snuggly all the way down below wearer's enlarged stomach area. Turner experimented with different fabrics, including white lace and CoolMax fabric that pulls heat away from the body:

The Bellybra prototypes tested well with consumers, but because Turner was a stay-at-home mom, she was not able to build a company at that time. She licensed the product to a company called Basic Comfort and became the firm's first employee. As the success of the Bellybra increased, Turner eventually left on friendly terms to go on her own. She sold 1,000 units in her first year and 10,000 units in her second year. Some growth rate! She has now expanded her focus from obstetricians and gynecologists to selling on her internet site (www.bellybra.com).

Question i) Linda Turner will face different challenges as her company progresses through the five stages of growth. Discuss how you believe her business would change in each stage.

Question ii) Business growth that occurs too quickly can present some significant problems and challenges compared with a business that grows at a slow, steady pace (of course, zero growth or decline makes for a whole new set of problems). Describe the challenges of hyper-growth that Turner could face and explain how she should respond as a small business owner.