Small Business Management 5th Edition by Timothy Hatten

Exercise 2

"Gardeners love this crap." That's the slogan for Pierce Ledbetter's Memphis, Tennessee-based company, Zoo Doo. In 1990, while still a student at Cornell University, Ledbetter returned home to Memphis and talked the managers at the local zoo into selling him composted animal manure from the enormous amounts produced by the zoo's animals daily. Why would any sane individual want animal manure Well, it's extremely rich in soil nutrients. Wanting to cash in on the gardening craze just beginning to sweep across the United States, Ledbetter saw a marketing opportunity. He began selling his "Zoo
Doo" in attractively designed pails. He even had the unique idea of having the manure compressed into various animal-shaped sculptures that gardeners could place in their gardens to decompose naturally and organically. His designs caught the eye of garden centers and mass merchandisers across the United States. Ledbetter's Zoo Doo now claims sales of about $1.5 million.
But having a great product and a great slogan isn't enough to make any small business a success. It's important to choose a form of business ownership that best meets your individual needs, goals, and constraints.
Factors such as availability of adequate funding, amount of management expertise, product liability possibilities, and willingness to share decision making can influence which form of ownership is most appropriate.
Now that you've looked at the various ways to organize Zoo Doo, it's time to convince your management professor at Cornell University of your decision. Write a letter describing the approach you've decided to take in organizing your Zoo Doo business and why.