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Appendix: Case Studies

Case Study 1: Rooted Grounds Café

This case study is associated with Chapter 2: Business Concepts.

As the founder and general manager of Rooted Grounds Café, Kiran Mehta built their coffee shop from the ground up after graduating from business school. Five years in, the business has grown steadily, but a recent drop in customer visits and a rise in supplier costs are putting pressure on revenue. Kiran is concerned about maintaining profitability without sacrificing the café’s commitments to local sourcing and inclusive hiring. They need to make a decision that aligns with their values while balancing the interests of different stakeholders. This dilemma is central to Kiran’s role not only as an entrepreneur but as a decision-maker accountable to a wider web of individuals and groups.

Rooted Grounds Café is in a busy neighbourhood in Hamilton, Ontario. Kiran employs 12 people, many of whom they hired through a local employment program supporting newcomers to Canada. The café’s menu features organic coffee, teas, and baked goods sourced from regional farms and cooperatives. The business primarily serves young professionals, university and college students, and families in the local area. Rooted Grounds earns revenue through in-store sales and a small but growing mobile coffee cart service at local events. While sales have increased annually until recently, rising input costs and changing consumer habits have begun to affect Kiran’s bottom line. The café has earned a reputation for ethical sourcing and community engagement, but Kiran is unsure of how much customers will value those efforts when prices start to rise.

Kiran sees three potential courses of action. The first option is to raise prices across the board. This option could offset increased costs and preserve the café’s revenue stream. However, they worry this might alienate budget-conscious customers and reduce foot traffic further. Kiran would need to consider the potential reaction of their customer base, a key stakeholder group in the business.

A second option is to negotiate lower prices with suppliers, some of whom are smaller producers that depend on businesses like Rooted Grounds. While this strategy could help maintain affordability for customers, it would strain relationships with farmers and vendors, who are also critical stakeholders. Kiran is worried that compromising on their values might damage the brand’s identity and long-term trust in the community.

The third option is to expand the café’s catering and coffee cart services. These segments have shown promise and involve lower overhead costs compared to daily operations at the café. Scaling them could increase overall revenue while reducing dependency on in-store traffic. However, this would require reassigning staff and possibly hiring event-focused workers, creating operational complexity and requiring input from employees, another key group of stakeholders.

With bills mounting and employee concerns growing, Kiran needs to make a timely and informed decision. Ignoring the needs of any one group could have long-term consequences. Understanding the web of stakeholders—customers, employees, suppliers, and the broader community—is essential to navigating the café’s future without compromising its purpose or profitability.

Discussion Questions

  1. Identify at least four stakeholder groups relevant to Rooted Grounds Café. How might each group be impacted by the decisions Kiran is considering?
  2. Using this case, explain the concepts of entrepreneurship, profit, and revenue. How do these terms apply to Kiran’s role and decision-making?
  3. Describe two dimensions of today’s business environment visible in this case and explain how they influence the decisions Kiran must make.

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Case Study 2: Navigating Uncertainty at Northern Bean Roasters

This case study is associated with Chapter 3: Economics and Banking.

Mika Schmidt, the co-owner of Northern Bean Roasters, is reviewing the company’s financials with concern. Sales have slowed over the past six months, and costs are rising. Customers are spending less, and suppliers are warning of upcoming price increases. Mika and his business partner, Mattis Tremblay, started the specialty coffee roasting company five years ago in Sudbury, Ontario. They’ve built a loyal customer base through local cafés, online sales, and a small retail shop. But now, they’re unsure how to plan for the year ahead.

Northern Bean Roasters employs 18 people and sources its beans from fair-trade cooperatives in Central and South America. The company’s revenue depends on both wholesale and direct-to-consumer sales. While the business has grown steadily, Mika notices that consumer demand is softening. They suspect that broader economic conditions are playing a role, but they aren’t sure how to interpret the signals or what actions to take.

Mika starts researching the basics of economics to better understand what’s happening. They learn that economics is the study of how individuals, businesses, and governments make choices about allocating limited resources. They also begin tracking key indicators like GDP growth, unemployment rates, and inflation. Mika sees that Canada’s GDP growth has slowed, unemployment is rising slightly, and inflation remains above the Bank of Canada’s target. These trends suggest that the economy may be entering a slowdown.

Mika also looks into fiscal and monetary policy. They read that the federal government has recently introduced new spending programs to support small businesses and stimulate demand—an example of expansionary fiscal policy. At the same time, the Bank of Canada has raised interest rates to combat inflation, a form of contractionary monetary policy. Mika is confused. One policy is trying to boost the economy, while the other is trying to cool it down. They wonder how these mixed signals will affect their business.

Mattis suggests they consider delaying a planned equipment upgrade and focus on preserving cash. Mika agrees but also wants to explore whether they can benefit from any government support programs. They also consider adjusting pricing or offering promotions to maintain customer loyalty during uncertain times. Before making any decisions, Mika wants to better understand how economic performance is measured and how policy decisions might affect consumer behaviour, borrowing costs, and business investment.

Discussion Questions

  1. How does the definition of economics help explain the challenges Mika and Mattis are facing at Northern Bean Roasters?
  2. What are the key tools and indicators Mika is using to evaluate economic performance, and what do they suggest about the current state of the economy?
  3. How might fiscal and monetary policy affect Northern Bean Roasters’ short-term decisions and long-term planning?

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Case Study 3: Navigating Cultural Expectations at NovaTech

This case study is associated with Chapter 4: Global Business.

Remi Roy is the Director of International Partnerships at NovaTech Solutions. They are currently leading the company’s efforts to establish a joint venture with a mid-sized technology firm in South Korea. As the primary liaison between the two organizations, Remi notices growing tension during virtual meetings. Communication feels strained, deadlines are interpreted differently, and decision-making processes do not align. These issues concern them because the success of the joint venture depends on effective collaboration. Remi needs to understand what is causing the disconnect and how to address it before the partnership deteriorates.

NovaTech Solutions is a Canadian software company based in Kitchener, Ontario. It develops enterprise software for mid-sized businesses, focusing on workflow automation, data analytics, and customer relationship management. The company employs around 300 people, most of whom work at the headquarters. NovaTech’s clients include logistics firms, healthcare providers, and educational institutions, primarily located in North America and Western Europe. The company earns revenue through software licensing, subscription services, and consulting. With a strong domestic presence, NovaTech is now expanding into Asia to diversify its customer base. The joint venture in South Korea represents its first major step into this market.

Remi considers several options to address the cultural misalignment. One option is to implement a cross-cultural training program for both the Canadian and Korean teams. This program introduces Hofstede’s cultural dimensions, such as power distance, individualism versus collectivism, and uncertainty avoidance. The goal is to build mutual understanding and provide both teams with tools to navigate cultural differences. Remi believes this could improve communication and collaboration, but it requires time and resources to develop and deliver.

Another option is to restructure the leadership model of the joint venture to include co-leads from both countries. This approach ensures that both cultural perspectives are represented in decision-making. Remi thinks this could help balance expectations and reduce misunderstandings. However, they also recognize that it might slow down decision-making and create ambiguity if leadership roles are not clearly defined.

A third option is to adopt a more adaptive project management framework. This would involve customizing workflows to accommodate cultural preferences, such as hierarchical communication in the Korean context and consensus-driven approaches in the Canadian context. Remi sees potential in this approach to improve operational harmony, but they are also aware that it could complicate standardization and increase administrative overhead.

Remi must decide how to proceed. The cultural tensions between the teams threaten the success of the joint venture. If Remi does not act quickly, NovaTech risks damaging its reputation and losing a valuable opportunity in the Asian market. A timely and thoughtful solution is essential to ensure the partnership’s long-term success.

Discussion Questions

  1. Using Hofstede’s cultural dimensions, identify and explain the key cultural differences that may be contributing to the challenges between the Canadian and Korean teams.
  2. Evaluate the three options Remi is considering. Which option do you think best addresses the cultural challenges, and why?
  3. Propose an additional strategy that Remi could use to manage cultural differences in international partnerships. How does your strategy align with Hofstede’s framework?

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Case Study 4: Going Global at ClearView Instruments

This case study is associated with Chapter 4: Global Business.

Jordan Thompson, the Business Development Manager at ClearView Instruments, is reviewing the company’s latest sales report. Domestic sales have remained flat for the past three quarters, and the leadership team is pressuring them to find new growth opportunities. Jordan believes that expanding into international markets could help the company grow, but they need to evaluate whether the potential benefits outweigh the risks. The decision matters not only for the company’s future but also for Jordan’s role in shaping its strategic direction.

ClearView Instruments is a Canadian company based in Waterloo, Ontario. It designs and manufactures precision lab equipment used in research labs, hospitals, and universities. The company employs about 200 people and earns revenue by selling high-quality instruments and offering service contracts. Most of its customers are located in Canada, and the company is known for its reliability and strong customer support. However, competition is increasing as international firms enter the Canadian market, and ClearView’s leadership is concerned about losing market share if they don’t expand.

Jordan identifies three possible strategies for international growth. The first option is to partner with a U.S.-based distributor. This would allow ClearView to enter the American market quickly by using the distributor’s existing sales network. It would reduce the company’s upfront costs and risks, but it would also mean giving up some control over pricing and customer relationships.

The second option is to begin exporting directly to fast-growing markets like India or Brazil. These countries are investing heavily in research and healthcare, and demand for lab equipment is rising. This approach could offer higher profits and more control, but it also comes with challenges. Jordan is concerned about tariffs, customs procedures, and currency fluctuations that could affect pricing and delivery.

The third option is to invest in a small office and warehouse in Germany, giving ClearView a base in the European Union. This would be a more expensive and long-term strategy, but it could provide access to a large, stable market with fewer trade barriers due to the EU’s free trade policies. Jordan notes that the EU’s harmonized regulations might also make it easier to meet product standards across multiple countries.

Jordan knows they need to present a clear recommendation to the executive team soon. The company can’t afford to delay, but each option involves trade-offs. Choosing the right path could help ClearView grow internationally and stay competitive, or lead to costly mistakes in unfamiliar markets.

Discussion Questions

  1. Why should ClearView Instruments consider international trade, and how do the reasons relate to the company’s current situation?
  2. What tools for measuring international trade should Jordan use to compare the three options, and what factors should they consider?
  3. What barriers to international trade might ClearView face under each option, and how could free trade agreements influence the company’s decision?

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Case Study 5: CrossWave Technologies and the Ethics of Expansion

This case study is associated with Chapter 5: Ethics and Social Responsibility.

As Chief Operating Officer at CrossWave Technologies, a mid-sized software development firm based in Mississauga, Ontario, Robin Lin is responsible for overseeing operational strategy during a critical phase of expansion. The company secured a contract with a major telecom provider to develop a new platform for customer data integration, and with that came increased pressure to hit tight deadlines and boost revenue. In the midst of the project, Robin discovered that one of the senior developers on the team obtained confidential specifications about a competing bid through a personal contact at the telecom provider. Although using this information could give CrossWave a significant advantage in finalizing its solution, Robin is deeply concerned about the ethical and legal implications. Robin faces a dilemma between advancing the firm’s competitive position and maintaining its commitment to ethical conduct.

CrossWave Technologies specializes in cloud-based software solutions for medium to large enterprises. It employs 85 staff, most of whom are software engineers, designers, and project managers. The firm generates revenue through service contracts with telecom, financial services, and logistics companies. Its value proposition is built around secure, customizable tools and long-term client support. The organization prides itself on being ethical and community-focused, regularly donating software licenses to local nonprofits and offering internship programs for students from underrepresented groups. The company’s revenue has grown steadily over the past three years, and its owners are preparing for a potential acquisition that could increase its market exposure.

Robin considers three primary options. One is to inform senior leadership of the situation and recommend reporting the incident to the client, which could protect the firm’s long-term credibility and align with its stated values. This option, however, carries risks: the company might lose the contract, and stakeholders such as employees and owners could face negative financial consequences.

A second option is to quietly discard the confidential information and continue working with no mention of the breach. Robin reasons that the firm did not solicit the data and wouldn’t act on it. This option avoids immediate conflict, but it fails to address the ethical lapse, particularly if the developer involved remains on the team without consequence.

The third option involves using the information to refine CrossWave’s bid while rationalizing that competitors would likely do the same in a high-stakes environment. The developer argues that this is common in the industry and that failing to use the advantage would hurt the team’s performance metrics. Robin knows this rationale—“everyone else does it”—is a familiar justification for unethical behaviour, but they cannot ignore the short-term gains that may follow.

In addition to the immediate ethical issue, Robin recognizes broader concerns about how ethical behaviour is fostered and monitored within the organization. While the company has a formal code of conduct, there has never been an internal review or corporate social responsibility audit to evaluate whether policies are implemented consistently. Employees have not received recent ethics training, and decisions tend to be guided by the pace of business rather than explicit ethical frameworks. Robin sees this situation not only as a singular dilemma but also as a reflection of the company’s larger responsibility to act ethically toward its stakeholders—owners, employees, customers, and the community.

Robin needs to decide how to proceed before the next project milestone in two weeks. Their response will shape both the outcome of the current project and the organization’s long-term approach to ethics and social responsibility. A timely resolution is necessary to preserve the integrity of the decision-making process and to ensure that the company remains accountable to its stated values.

Discussion Questions

  1. What ethical issue is Robin facing, and what rationalizations for unethical behaviour are present in the case? How does this relate to the definition of business ethics?
  2. Who are CrossWave’s key stakeholders, and how might each group be affected by the choices Robin is considering? In your response, explain the concept of corporate social responsibility and identify how each of the four types of CSR applies to this case.
  3. What steps could CrossWave take to become a more ethically conscious organization? Based on the case, how could the company perform a CSR audit?

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Case Study 6: Fork & Field Fresh Market

This case study is associated with Chapter 6: Entrepreneurship and Business Structure.

Roozbeh Nuri, owner and manager of Fork & Field Fresh Market, a small grocery store in Halifax, has operated the business as a sole proprietorship since opening it three years ago. After gaining traction in the local community, Roozbeh is considering expanding into a second location. However, they are unsure whether to continue as a sole proprietor, take on a business partner, or incorporate. Roozbeh’s concerns center on accessing capital, managing liability, and structuring the business in a way that supports growth. Roozbeh knows that the decision will impact not only their financial future but also the store’s sustainability in an increasingly competitive market.

Fork & Field Fresh Market offers locally sourced produce, baked goods, and prepared meals, catering to environmentally conscious shoppers and families seeking alternative grocery options. The business has six employees, including part-time staff and one assistant manager. Roozbeh handles procurement, marketing, and most financial tasks. Revenues come from in-store sales and a new subscription delivery service that has grown steadily during the past year. The store has built customer loyalty through farm partnerships and community events. With the prospect of increasing rent in her current space and rising competition from chain retailers introducing “local sections,” Roozbeh sees both opportunities for expansion and threats to long-term viability.

One option is to maintain their current sole proprietorship and seek a small business loan to open a second location. This structure would allow Roozbeh to retain complete control over business decisions and keep the company’s profits. However, they would remain personally liable for all debts, a risk they found unsettling with expansion on the horizon. If the new location struggled financially, their personal assets could be at stake.

A second option is to form a partnership with a former colleague who has experience in supply chain logistics and is interested in investing. This would bring complementary skills and financial backing, and lessen Roozbeh ’s day-to-day responsibilities. Yet it would also require shared decision-making, profit-sharing, and clear agreements around dispute resolution. Roozbeh values their independence and is worried about potential conflicts or the risk of misaligned visions for the business.

The third option is to incorporate the business, thereby protecting Roozbeh ’s personal assets and opening new possibilities for attracting investors. Incorporation could enhance the store’s credibility and access to funding, which might be useful in opening additional locations in the future. However, Roozbeh is hesitant about the costs and administrative demands of incorporation, including corporate tax filings and formal record-keeping. Roozbeh also fears losing the community-driven identity that defines their small business.

Roozbeh needs to decide how to structure Fork & Field before pursuing the expansion. The timing is important, as her lease renewal is approaching, and the market for prime locations is tightening. Her decision will influence how the company grows, who has control, and how risk and reward are managed.

Discussion Questions

  1. What are the advantages and disadvantages of each ownership structure Roozbeh is considering? Based on their goals, what factors should they prioritize in their decision?
  2. What reasons did Roozbeh have for launching Fork & Field as a small business, and what opportunities and threats are they currently facing?
  3. If Roozbeh incorporated their business, what changes might they expect in terms of liability, financing, and day-to-day operations? How might this affect their ability to maintain the store’s local identity?

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Case Study 7: Organizing for Growth at Riverstone Outdoor Gear

This case study is associated with Chapter 7: Management and Leadership.

Alex Carter, the newly promoted Operations Manager at Riverstone Outdoor Gear, is facing a challenge. The company has grown rapidly over the past two years, and its once-simple structure is starting to show signs of strain. Employees are unclear about who makes decisions, departments are duplicating work, and long-term planning is inconsistent. Alex is responsible for improving coordination across the company and helping senior leadership prepare for the next phase of growth. Alex knows that how the company is structured—and how it plans—will be critical to its continued success.

Riverstone Outdoor Gear is a Canadian company based in Kelowna, British Columbia. It designs and sells outdoor equipment such as backpacks, tents, and hiking accessories. The company employs about 150 people and sells its products through both retail partners and its own e-commerce site. Riverstone has built a strong brand by focusing on sustainability and durability, and it has a loyal customer base across Canada. As demand grows, the company is expanding into the U.S. market and adding new product lines, which is putting pressure on its internal systems and leadership structure.

Alex works closely with the company’s three levels of management. The top-level executives, including the CEO and CFO, focus on long-term strategy and major financial decisions. Middle managers, like department heads in marketing, product development, and logistics, are responsible for translating those strategies into operational plans. Front-line supervisors manage day-to-day tasks and ensure that employees meet production and service goals. Alex realizes that improving communication and clarity between these levels is essential.

He also needs to recommend a better way to organize the company’s departments. Currently, Riverstone uses a functional structure, with departments based on business functions like sales, finance, and production. However, as the company grows, this model is creating silos. One option is to shift to a product-based departmentalization, where teams are organized around product lines such as camping gear, travel accessories, and apparel. Another option is to use geographic departmentalization to better serve the Canadian and U.S. markets separately. A third option is to adopt a matrix structure, combining functional and product-based approaches, though this could increase complexity.

In addition to restructuring, Alex is tasked with helping the executive team improve its planning process. Right now, most planning is reactive and short-term. Alex believes the company needs to adopt a more formal approach to strategic planning. This would involve setting long-term goals, analyzing internal and external environments, and aligning resources to achieve those goals. Alex knows that without a clear strategic plan, Riverstone risks losing focus as it grows.

Alex prepares to present their recommendations to the leadership team. They know that the company’s structure and planning process must evolve to support its growth, but each option has trade-offs. The decisions made now will shape how Riverstone operates for years to come.

Discussion Questions

  1. What are the three levels of management at Riverstone Outdoor Gear, and what are the responsibilities at each level?
  2. What are the advantages and disadvantages of the different departmentalization options Alex is considering?
  3. Why is strategic planning important for Riverstone at this stage, and what steps should the company take to develop an effective strategic plan?

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Case Study 8: Motivating the Team at NovaCare Wellness

This case study is associated with Chapter 7: Management and Leadership.

Huan Li, the Clinic Manager at NovaCare Wellness, is concerned about a recent drop in employee engagement. The clinic, which offers physiotherapy, massage therapy, and wellness coaching, has grown quickly over the past year. While patient numbers are up, staff morale is down. Huan notices that some team members are arriving late, others are missing deadlines, and a few have even started looking for jobs elsewhere. Huan knows that if they don’t address the issue soon, the clinic’s reputation and performance could suffer.

NovaCare Wellness is a mid-sized health and wellness clinic located in Mississauga, Ontario. It employs 35 people, including physiotherapists, massage therapists, administrative staff, and wellness coaches. The clinic serves a diverse client base and is known for its personalized care and community outreach. Huan, who has been with the company for five years, is responsible for day-to-day operations, staff scheduling, and performance management. They report directly to the clinic’s founder and CEO, Maria Lopez.

Huan begins by meeting with team members to understand what’s going on. Some employees say they feel overworked and underappreciated. Others mention that they don’t see a clear path for growth or advancement. A few say they enjoy the work but feel disconnected from the clinic’s goals. Huan realizes that different people are motivated by different things, and they need to find a way to address these concerns using a variety of approaches.

Huan considers several motivational theories to guide their strategy. One is Maslow’s Hierarchy of Needs, which suggests that people are motivated to meet basic needs before they seek higher-level goals like belonging and self-actualization. Huan wonders if some employees are struggling with job security or work-life balance, which could be affecting their motivation.

Huan also looks at Herzberg’s Two-Factor Theory, which separates hygiene factors (like salary and working conditions) from motivators (like recognition and achievement). Huan thinks that while the clinic offers competitive pay, it may be lacking in recognition and opportunities for personal growth.

Finally, Huan considers the Expectancy Theory, which suggests that motivation depends on whether people believe their effort will lead to good performance, that performance will lead to rewards, and that the rewards are valuable to them. Huan realizes that some employees may not see a clear link between their work and outcomes, or may not value the rewards currently offered by the clinic.

Huan prepares to present a plan to Maria that includes a mix of short-term and long-term actions. These include creating clearer career paths, offering more regular feedback and recognition, and involving staff in setting team goals. Huan also wants to ensure that employees understand how their efforts contribute to the clinic’s success and that rewards are meaningful and aligned with their values. Huan knows that improving motivation won’t happen overnight, but they believe that applying the right theories can help them build a more engaged and productive team.

Discussion Questions

  1. Which motivational theories are most relevant to the challenges Huan is facing at NovaCare Wellness, and why?
  2. How could Huan apply Herzberg’s Two-Factor Theory to improve employee motivation at the clinic?
  3. How can Expectancy Theory help Huan design a more effective motivation strategy for their team?

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Case Study 9: BrewNook Specialty Teas

This case study is associated with Chapter 8: Marketing Management.

Ishrat Hassan, the marketing lead at BrewNook Specialty Teas, is facing a plateau in customer acquisition despite a recent uptick in website visitors. While existing customers give positive reviews and repurchase rates are steady, the company’s new product line—herbal tea blends designed for evening relaxation—is underperforming. Ishrat believes the issue stems from the marketing mix not being aligned with target customer expectations, and they need to act quickly before the upcoming winter season, which historically drives the highest tea sales. This decision is crucial to Ishrat as their team is responsible for managing brand reputation and sustaining revenue from new product offerings.

BrewNook operates out of Victoria, British Columbia, and employs 15 full-time staff. The company sells loose-leaf tea blends and accessories through its online store and two retail kiosks located in urban shopping centers. Its core customer base consists of health-conscious consumers aged 25–55 who value small-batch, natural products. Revenue is primarily generated through e-commerce, with sales peaking during gift-giving seasons. The new product line, “Nightbrew,” is formulated to appeal to customers seeking caffeine-free, calming beverages. Despite this, early indicators suggested that website visitors are not converting to buyers at the expected rate, and retail staff report that many kiosk visitors are unaware that Nightbrew is a distinct product category.

Ishrat considers repositioning the product within the marketing mix. First, they can revise the product packaging and descriptions to more clearly emphasize the calming, health-related attributes of Nightbrew. This can help reinforce its differentiation as a specialty wellness item rather than a standard tea flavour. Refining the product’s classification can shift customer perception and clarify its intended value.

A second option focuses on pricing strategy. Nightbrew is priced similarly to BrewNook’s traditional teas, but Ishrat wonders if this fails to signal its premium ingredients and functional purpose. Adjusting the price upward slightly can reposition the product as a targeted wellness solution, appealing to buyers seeking quality over quantity. However, Ishrat also needs to ensure that the value communicated through other elements of the mix supports this potential change.

A third option involves overhauling the promotional approach using integrated marketing communications. The current promotion relies heavily on weekly email newsletters and Instagram posts. Ishrat proposes launching a focused campaign that includes short explainer videos, podcast sponsorships in the wellness category, and sampling partnerships with sleep product brands. This strategy involves cohesive messaging across multiple platforms and provides more detailed product education for new customers.

With only six weeks before peak winter sales begin, Ishrat needs to realign the 4Ps to ensure Nightbrew reaches its intended market. Without a timely response, the product risks being overlooked despite its potential fit within growing wellness trends.

Discussion Questions

  1. Identify and describe the four elements of the marketing mix used in this case. How are they currently being applied, and what changes could better support Nightbrew’s success?
  2. How is BrewNook attempting to differentiate Nightbrew, and what role does product classification play in shaping marketing strategy?
  3. How might BrewNook integrate the various promotional activities to improve promotional effectiveness for Nightbrew?

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Case Study 10: Managing Risk at PrairieTech Solutions

This case study is associated with Chapter 12: Information and Risk Management.

Avery Sinclair, the Chief Operating Officer at PrairieTech Solutions, is preparing for a board meeting where they must present a risk management plan for the company’s upcoming product launch. PrairieTech, a Regina-based software firm, is preparing to release a new cloud-based platform for small business accounting. The product has strong market potential, but Avery knows that launching new technology always comes with risk. They need to assess how much risk the company is willing to take and how to manage it effectively.

PrairieTech employs 60 people and serves clients across Western Canada. The company has a reputation for reliable, user-friendly software and strong customer support. Its leadership team is ambitious but cautious. Avery knows that the company’s risk tolerance is shaped by several factors. First, its financial position is stable but not overly liquid, so a failed launch could strain resources. Second, the company’s leadership culture values careful planning and long-term relationships over rapid growth. Third, PrairieTech operates in a regulated industry where data security and compliance are critical.

Avery begins by identifying the potential risks associated with the product launch. These include technical failures, cybersecurity threats, customer adoption delays, and reputational damage if the product underperforms. They use the five steps of risk management to guide their approach: identifying risks, assessing their likelihood and impact, developing response strategies, implementing the plan, and monitoring outcomes.

To respond to these risks, Avery considers three main strategies. For technical failures, they recommend risk mitigation by investing in additional testing and quality assurance. For cybersecurity threats, they propose risk transfer by purchasing cyber liability insurance. For customer adoption delays, they suggest risk acceptance, recognizing that some uncertainty is unavoidable and planning to adjust marketing efforts as needed.

As Avery finalizes their presentation, they reflect on how risk is a natural part of doing business. The key is not to avoid risk entirely, but to understand it, plan for it, and make informed decisions that align with the company’s goals and values.

Discussion Questions

  1. What three factors influence PrairieTech’s risk tolerance, and how do they shape the company’s approach to the product launch?
  2. What are the five steps of risk management, and how does Avery apply them in this case?
  3. What are the three risk response strategies Avery uses, and what examples do they provide for each?

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Artificial Intelligence Disclosure:  These case studies were created using Microsoft Copilot, an AI-based tool designed to generate text based on user inputs, and edited by Anela Tomac and Conestoga Open Learning. In accordance with the current guidance from Creative Commons, the content created using generative AI tools is shared under a CC0 1.0 Universal Deed.

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To the extent possible under law, Conestoga College has waived all copyright and related or neighboring rights to Appendix: Case Studies, except where otherwise noted.

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