Case Study - Dereks Shawarma

Topics: Management, Working time, Employment Pages: 29 (10131 words) Published: February 13, 2013
ADM 1300

Executive Summary

To: Derek
From: XXXX
Subject: Derek’s Shawarma
Date: Wednesday, March 2nd, 2011
Primary Problem:
Derek and his newfound business partner, Sal, obtain the funds to establish their own business but are unsure of which form of ownership to adopt.

Status Quo
Limited Partnership
General Partnership

Facts Considered:
1)Derek studied at the University of Ottawa and received a degree specializing in management. 2)Derek would like to pursue the opening of his newfound business, Derek’s Shawarma. 3)Derek wants to leave his career as a middle manager in a firm to begin to operate Derek’s Shawarma. 4)Derek does not like the feel of the corporate atmosphere, even promotions could not keep him motivated. 5)Sal, a retired physician and Derek’s friend, is also willing to start a start a small business. 6)Sal and Derek have decided to combine Derek’s knowledge of business with Sal’s investment to form Derek’s Shawarma. 7)Derek and Sal are unaware of the structure of ownership they should adopt. Recommendation:

Derek wants to leave his current position in the corporate world to become his own boss. •Since the case states that Derek attended the University of Ottawa’s Telfer School of Management he possess the needed skills to effectively run a shawarma business. •Sal obtains the funds to start up this business because he is a retired physician. •He will use the funds from his pension plan to supply Derek and himself with the needed funds to start their small business •Sal and Derek together have the needed skills, from past experiences to successfully operate such shawarma business. •The case states that Derek is a long-time Ottawa resident, thus to his knowledge he believes that Derek’s Shawarma will be very profitable. •Since Derek did not like working in the corporate world, he does not prefer to operate a larger business with a lot of employees compared to a small business. •Sal is also willing to start a start a small business and could become Derek’s new business partner. •Since the case stated that Derek wanted to leave the corporate world, they will not invest in adopting a corporation or co-operative as a forms of ownership.

Statement of the Problem
Satellite Problems
Derek feels that he needs to quit his job as a middle manager to fulfill self-satisfaction. •
Primary Problem
Derek and his newfound business partner, Sal, obtain the funds to establish their own business but are unsure of which form of ownership to adopt.

Implications on the Organization
Implications on the Personnel
Alternative Solutions
Status Quo
The status quo involves Derek staying at the firm he works at now as a middle manager. This would cause problems for Derek seeing as he does not want to continue working in the corporate environment. There is no risk in keeping his job as the middle manager at this firm but he will be lacking self-satisfaction in achieving his goal to run his own business.

If Derek and Sal do not take the action in pursuing Derek’s Shawarma, they will not loose any money and no time will be wasted.

In not opening Derek’s Shawarma, Derek will feel discouraged and also have to stay at his current position as a middle manager. •Derek will stay in the corporate world and not become his own boss as desired. •Sal will not be keeping busy as he is a retired physician. Analysis

Derek and Sal are willing to invest together their time and money to open up Derek’s Shawarma. In this Status Quo scenario the problem still persist because they are not solving the problem at hand. Derek and Sal do not know which type of ownership will satisfy both their...
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