Summit Software, Inc., recently celebrated its fifth year of business. Jim Mueller, the proprietor, started the software manufacturing and distribution company when he was still working as a professor at the local college, but now he enjoys being in the fast-paced technology industry. Growth and expansion were easy for Jim, thanks to his knowledge, his contacts, and the pool of readily available workers from which to choose. The company that originated in his den now occupies a nice space close to downtown.

Going into the sixth year, Jim continues to serve the same target market with customer support and lengthy projects. He acknowledges that technological advancements and new clientele are in the immediate future. All of the current and forecasted work leaves Jim and his three employees with little time to spend on administrative duties—let alone new accounts. Jim also realizes that the company needs its own upgrades to continue its rate of success and to stay competitive. Looking at Summit’s financials and the amount of work necessary to maintain the business, he’s not sure where to go from here. Following is a snapshot of Jim’s annual sales since inception:

Year 1 $112,000

Year 2 $195,000

Year 3 $250,000

Year 4 $335,000

Year 5 $487,000

QUESTIONS

1. Is Summit Software a gazelle? Support your answer.

2. What problems may Jim face by owning such a fast-growing business?

3. Are gazelles more important to the economy than traditional growth businesses? Why or why not?

Ans. .Gazelle define as a gazelle company is a high-growth company that has been increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $1 million. Yes from this definition, we can say that this software is gazelle.

Q2.What problems may Jim face by owning such a fast-growing business?

Ans. Faces problems that the As the business grows rapidly, there would be more expectations from the customers. They would expect for change and more innovation in their products. Mr. JM has only three employees and they are burdened with heavy load of work.

The competition arises between firms. Some might be healthy and some might be unhealthy. Unhealthy competition may lead Mr. JM to go in a wrong path.

Q3. Are gazelle more important to the economy that traditional growth business?why or why not?

Ans. Gazelles are vital for the growth of the economy as the country is being benefitted by the profit received by gazelles. Gazelles grow rapidly and hence the economy of the country grows rapidly. Traditional growths in businesses are very slow but they also bring steady profit for the country at a lower and standard level.

Explanation:

topeadeniran2 topeadeniran2 · Answer 2 · 2021-08-21T20:22:17+02:00

1. Is Summit software a gazelle?

From the information given, it can be inferred that Summit Software is a gazelle. This is because the revenue of the company has being increasing by at least 20% for at least four years. The company had $112,000 in Year 1 which was gradually increase till $487,000 by Year 5.

2. What problems may Jim face by owning such a fast-growing business?

The challenges that can be faced by the company include:

• Challenges from competitors.

• Recruitment of the right personnel.

• Expectations from customers.

3. Are gazelle more important to the economy that traditional growth business?

• Gazelles are important for the growth of an economy.

• It should be noted that gazelles grow quicker than traditional business.

• They help in the creation of jobs and wealth.

• They also have a positive impact on an economy.

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