Case Study 3 Sbe560

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Date Submitted: 11/27/2012 02:07 PM

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The following case study provides insight on how to build a profitable business from a small product idea. The company is Zatswho, LLC and its founders are CEO Trish Cooper and her daughter, Carrie Schwinoff, VP. Their patent-pending Zatswho Soft Photo Recognition Flashcard has a universal appeal, providing an opportunity for families to bond as they stimulate their baby, toddlers, and pre-school aged child’s growing mind during play (, 2012). This assignment analyzes Zatswho’s marketing techniques and provides recommendations for additional strategies that could be implemented in order to extend the company’s established market as well as open new markets for them.


1. What tips can you offer Cooper and Schwinoff about family members who start and run a business together? What pitfalls would you warn them to avoid?

It can certainly be complex when members of a family decide to work together and even more strain can arise when they’re children grow older and also want to be become part of the business as well as other extensions in the family. First and foremost, Cooper and Schwinoff must respect each other’s work. They must understand their educational limitations and be flexible to each other’s ideas and opinions about every aspect of the company. A clear lay-put of their job duties must be put in place. They also need to set up a financial plan, indicating the distribution of profit for both sides.

2. Suppose that Cooper and Schwinoff had approached you when they were launching Zatswho concerning the form of ownership they should use. Which form of ownership do you recommend they use. Why?

Either the limited liability corporation or partnership forms of ownership would be a good fit for Zatswho. The LLC is more regulated than the partnership and each carries its advantages and disadvantages. A partnership agreement can include any terms the partners want (unless they are illegal). A...