Starting Right Case Study
Teralyn Dunning
Columbia Southern University
After much consideration, and ideas about developing what type of product, the packaging,
and the resultant quality of her product, Julia now wants to establish her own baby food
company. Not only was she thinking of her product, but more importantly, Julia would also
have to put into consideration what type of people she would like to have working for her
new business. Because of her determination, she was able to discover suitable people to
help her develop a preliminary offering of her baby food. Through a small scale study, the
idea of a new baby food was positively received. Upon receiving a positive go ahead, she
realized she needed to create options in which to raise funding for this new company.
Thereafter, Julia has three options to consider: corporate bonds, preferred stock, and
common stock. As with any new business venture, she needs to be knowledgable of her
investors and consider their financial statuses, how much of a return rate she has for each
option, whether the market is favorable or unfavorable, as well as the current and future
inflation rates. Undoubtedly, evaluating Starting Right Corporation’s case study,
establishes reasons to discuss the potential investment by others, which giving them
varying perceptions of how to be successful in a new business. Thus, hopefully, a
development of legal documentations for investors who are both risk-averse and
risk-seekers, for the business and investment alternatives will also be discussed herein
( Render, Stair, & Hanna, 2012, pp. 110-11).
Since Sue wants to limit her exposure to loss, she’s smart to be cautious about change or
innovation. Therefore, I would recommend that she evaluates all of her options which
determine all possible outcomes, as far as her potential decisions relating to her
investments into Julia’s baby food company. Once she does her evaluation, she has the
option of conducting a utility assessment, so that she can use this measurement tool to
review everything in its entirety to show her best and worst possible outcomes of her
future investments (Render, Stair & Hanna, 2012, p. 91). Not to mention, it imperative that
she learns the value of the overall possible outcome of the utility assessment, in order to
decide if she is willing to accept or pass, on her investment (Machina, 1987).
Because Sue is a conservative, and a risk avoider, maybe the best possible option in Julia’s
company, is for her to invest her finances into a corporate bond option. Moreover, since
