Natucket Nectars flyin’ high

I. Identify/Define the Key Issues/Situation AnalysisA. Key issues that go away impact the focal firms ability to survive, thrive and grow. low gear Nantucket Nectar has to decide on a dodge on how to grasp ontogenyd increment in future. This may include an IPO, macrocosm bought by one of the big players in the beverage market or evolution organically. Independently on how they achieve this goal, it is most important that they spare the genuine spirit of the comp whatsoever. This includes both the inner structures and also the external image of the telephoner.Internally they occupy to keep up the entrepreneurial spirit, like the nonhierarchical structures, the non-formal dress tack together and other factors which make Nantucket Nectars a place where work is however pastime. On the other side they have to maintain their image of organism an self-supporting company which only produces overlaps with the highest grapheme and not willing to via media that at any follo w. Especially in the case of being change to a big company, they have to make sure that they are not associated with the buyer but are still seen as the small independent well-behaved-guy company.Finally, as the founders have a long term interest in the company, they have to find a way of keeping control of the company, so they should not give away too many of their shares in order to earn a lot now.B. Critical Success Factors (then & ampere now)Their greatest success factor is primarily their great tasting, all natural, high quality product. This product en abled them to get a great and very committed client base and take a crap up a brand. The current trend of wad favoring healthy and natural beverages additionally helps them to grow successfully.Their entrepreneurial spirited and super motivated team helps them to quickly react to new trends in a constantly evolving market and even with a small marketing figure they showed that they are able to establish their products succ essfully on the market, mostly using highly creative and alternative marketing tools. Additionally, the story they can build up theirmarketing on is much much appealing than that of any of the brands introduced by big companies. While still suffering from low margins, cost will be reduced with greater volumes and more experience in the market.II. Mobilize Strategic Options A. Keep the company and grow organically1. This approach allows the founders to keep open control over the company and be able to leverage at best on the image and story developed through the years. They would also be able to secure the job for all the employees who were fundamental in the growth of the firm. This strategy wouldnt prevent the founders to sell the company in the future, by and by get on increasing its valuation.2. Refusing to sell shares would mean turning master fast growth opportunities and it would be difficult to access the multi-serve distribution, which offers the highest growth possibi lities. what is more they would not be able to decrease their cost structure, exposing them to the risk of being taken down on price competition by walloping firms. Finally, there is no certainty that the valuation of the company will enlarge in the future and an opportunity of selling on these favourable see to it may not happen again. B. Go public and do an IPO1. This strategy would represent a fast way of gaining money to invest for growth while at the same time keeping a presumable degree of control over the company by having a braggart(a) number of shareholders with few shares. The further growth of the company would permit Azzarello Chang Chemali PalluaEntrepreneurial trouble Case 11 NantucketEoS, thus driving down the costs. In addition, the refreshed Age drinks industrys favorable market conditions would help increase the valuation of the company on the stock market. 2. An IPO would obviously intend the risk of beingacquired by an undesired company. The process o f contacting an investment intrust and define valuation would be costly and timeconsuming. In addition, the short-term gain demanded by the investors would be in contrast with the long term preference of the company. Finally, market conditions may change and this could be a source of focussing for the founders and the employees. C. Sell the whole company or part of it to an established firm1. in that locations a big interest in the company at the moment, and this can initiate a funding process that can further drive valuation up. Many of the possible investors are highly attracted by the industry and, due to a strong need to complement their product portfolio with a New Age product some of them may bid high. Beside money and an improved cost structure, large companies could provide access to a broad distribution network, supermarkets and shelf-space as well as know-how. The founders and their associate still own large part of the company and can leverage on that to keep some c ontrol after selling.2. The other side of the chance upon would be for the founders to lose substantial control over the company after the acquisition. There is also the risk of losing the culture that has characterized and differentiated the firm end-to-end the years, providing a main source of agonistical advantage. In addition, the company could be acquired by a big company with low reputation and this could resultant role in a bad image transfer. Finally, the highly valued employees mightiness be affected by the outcomes of the acquisition.III. RecommendationTo grow business without losing control and company culture, Nantucket should sell its shares to an established company, gaining resources for expanding upon as well securing their intangible addition. get momentum for growingBeing a small company in growing and competitive industry, selling the company enables Nantucket to scale up their business by leverage the expertise of bidder, including distribution capability, financial strengthand management. Compared to IPO, this approach allows Nantucket to receive resources for expansion as well as cash inflow. This strategy aligns with the vision of founders for long operation goal that would level up the business to a more sustainable level while keeping control of founders on the company.Start maturation their own taskforceThe bidding combines the mutual interests for bidders to penetrate the market and for Nantucket to grow in the market. Current situation creates a favorable buying condition and talk terms power for Nantucket which would minimize the loss of control so that Nantucket could still preserve their most important asset of business, the unique brand image and culture. With this good position, Nantucket should carefully choose bidders by to find the expertise that could be leveraged and fight down their strategic goal.Successful experience of Ben & Jerry and ZapposThe case of Ben& Jerry acquired by Unilever and Zappos acquire d by Amazon are two successful precedents of this strategy. After acquisition, these two companies were able to operate separately with bidders and secure their valuable intangible assets as well. Ben & Jerry kept running by its social responsibility philosophy and Zappos go along to operate as an independent entity from Amazon, both preserve the intangible asset like brand image and company philosophy.Azzarello Chang Chemali Pallua