Case Study:

Read the case study Running a Business:

Part 2: Graeter's: A Fourth-Generation Family Business

Using information from the written case and the video, thoroughly answer the following questions:

1. Graeter's began as a partnership between a husband and wife, and then the company was passed on to the sons. What advantages and disadvantages would Graeter's have experienced as a partnership?

Explain each. Currently, Graeter's is a closed corporation?

What are the advantages of being a closed corporation? Explain each.

2. Graeter's has recently hired management consultants to help improve its hiring and training processes and, especially, to assist in the continued expansion of its distribution chain. "I think my cousins and I all have come to realize we can't do it alone," says the CEO.

Why do you think the management team made this decision? Does bringing these outsiders into the firm make Graeter's less of a family company than it has been? Explain why or why not.

3. Do some additional Internet research on Graeter's. Based on your research and the definition of a small business in lesson 5, would Graeter's be considered a small business? Explain why or why not.

4. Why did Graeter's decide to stop franchising? Do you think Graeter's made the right decision to close its franchise operation? Explain why or why not.