Kurt and John Bauer Case Essay

Published: 2020-04-22 15:24:05
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Category: Kurt and John Bauer

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The case Kurt and John Bauer aims at evaluating the threats and opportunities/ the case starts with describing Kurts background, his ideas, desires and prospects for future. In particular, Kurt Bauer has been attending well-known East Cost business school and now it is time for him to decide what to in future. Due to business school he recognized great business opportunities, and, what was more important, he became comfortable with the business risk. Before business school Kurt has worked for several years on economic reform in the former Soviet Union.

Therefore, the idea of selling business in Eastern Europe seems a good idea for Kurt as he was aware of how business was organized in the country, what strategies to implement and what things to avoid. Researches devoted to packaging company in Russia appeared to be informative and valuable. Eastern Europe is very likely to present a wide range of opportunities for those who are willing to start up a new business. Additional experience of working on privatization is of great help and importance.

Nevertheless, in some European countries starting business is too capital intensive and Kurt developed his own criteria: low fixed costs, low asset intensity, quick to break even, and high market potential. It means that favorable place for business is to be chosen based on those criteria. Selling business has significantly expanded over the past decades. Kurt started to think of developing publishing business that includes three steps: design, printing and distribution. The central idea is to distribute magazines through travel agencies, hotels, airline offices, etc.

According to statistics, magazine businesses operate with a cash flow. However, one more business idea suddenly occurred to Kurt and he researched the opportunity of starting online service for Eastern Europe. The idea is very attractive as in Poland, for example, daily volume of online service reached over $200 million. The key problem is building and marshalling human resources. As a result, Kurt has two attractive business ideas: publishing business and online service business and it is time for him to make final decision.

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