Reference no: EM132230994
Kevin Cranberry loves challenges. Growing up in Tacoma, Washington, he became the youngest person ever to climb Mount McKinley, the tallest mountain in North America. He also loves to help people, learning from his parents the joy that comes from serving others. No one was surprised when Kevin, after graduating with honors from the University of Washington in biology, joined the Peace Corps. After completing orientation, he went to Nepal.
In Nepal, Kevin put his knowledge of science to work. His duties consisted of basic disease prevention: distributing antibiotic medicine and teaching the Nepalese effective ways to purify drinking water. He loved his work, finding it challenging and, ultimately, rewarding – despite the physical hardships and the low pay he endured.
In Nepal, Kevin also renewed his love for mountain climbing. In his first year there, he climbed K-2 (the world’s second-tallest mountain and the most difficult climb) SOLO! The next year, also by himself, he scaled the tallest peak, Mount Everest.
After the Everest trip, with his Peace Corps stint over, Kevin returned to America and took up what would eventually become his next career challenge. Unhappy with the performance of the tent he’d taken up K-2 and Everest, he set about to design a really strong and durable tent that would withstand the fierce winds that pummel climbers on the “roof of the world.” After four months’ considerable effort, he felt he’d succeeded; he named his tent “The Penthouse” and joined (as a paid guide) an American expedition to climb Mount Everest. On this trip, he also wanted to test his “Penthouse” tent against the elements.
On this Everest expedition, Kevin’s “Penthouse” performed superbly. When an expensive, professionally made tent used by two wealthy Texas physicians collapsed, Kevin was pleased to take them into his tent. Back at base camp after reaching the summit, the physicians (who each paid $85,000 to go on the Everest expedition) raved that they “couldn’t have done it without the Penthouse!” When the doctors asked Kevin where they could buy their own Penthouse, he replied “Nowhere. Mine is the only one.”
After returning to America following his second Everest expedition (and first with “The Penthouse”), Kevin sat in his parents’ Tacoma house and pondered his next move. Recalling his mountaineering adventures in Nepal and his pride in his “Penthouse” tent, he decided to go into business.
Kevin founded KCP Incorporated [KCP Inc.], a business to manufacture and sell the “Penthouse” tent he’d created and taken to the 29,028-foot-top of Mount Everest.
Kevin Cranberry loves challenges. Growing up in Tacoma, Washington, he became the youngest person ever to climb Mount McKinley, the tallest mountain in North America. He also loves to help people, learning from his parents the joy that comes from serving others. No one was surprised when Kevin, after graduating with honors from the University of Washington in biology, joined the Peace Corps. After completing orientation, he went to Nepal.
In Nepal, Kevin put his knowledge of science to work. His duties consisted of basic disease prevention: distributing antibiotic medicine and teaching the Nepalese effective ways to purify drinking water. He loved his work, finding it challenging and, ultimately, rewarding – despite the physical hardships and the low pay he endured.
In Nepal, Kevin also renewed his love for mountain climbing. In his first year there, he climbed K-2 (the world’s second-tallest mountain and the most difficult climb) SOLO! The next year, also by himself, he scaled the tallest peak, Mount Everest.
After the Everest trip, with his Peace Corps stint over, Kevin returned to America and took up what would eventually become his next career challenge. Unhappy with the performance of the tent he’d taken up K-2 and Everest, he set about to design a really strong and durable tent that would withstand the fierce winds that pummel climbers on the “roof of the world.” After four months’ considerable effort, he felt he’d succeeded; he named his tent “The Penthouse” and joined (as a paid guide) an American expedition to climb Mount Everest. On this trip, he also wanted to test his “Penthouse” tent against the elements.
On this Everest expedition, Kevin’s “Penthouse” performed superbly. When an expensive, professionally made tent used by two wealthy Texas physicians collapsed, Kevin was pleased to take them into his tent. Back at base camp after reaching the summit, the physicians (who each paid $85,000 to go on the Everest expedition) raved that they “couldn’t have done it without the Penthouse!” When the doctors asked Kevin where they could buy their own Penthouse, he replied “Nowhere. Mine is the only one.”
After returning to America following his second Everest expedition (and first with “The Penthouse”), Kevin sat in his parents’ Tacoma house and pondered his next move. Recalling his mountaineering adventures in Nepal and his pride in his “Penthouse” tent, he decided to go into business.
Kevin founded KCP Incorporated [KCP Inc.], a business to manufacture and sell the “Penthouse” tent he’d created and taken to the 29,028-foot-top of Mount Everest.
Discussion Questions:
After one year of operating, during which the firm only made the Penthouse, Kevin wants to continue growing his business. For each of the following 7 growth grand strategies (concentration, related diversification, unrelated diversification, backward vertical integration, forward vertical integration, horizontal integration, joint venture), use an example to describe what KCP Inc. could do to carry it out.?