Organic Apoteke Case Study: Being Spoilt for Choice is Not Always Easy

Abstract

The case study tells the story of Organic Apoteke, a UK cosmeceutical start-up founded in 2004. It highlights the steps the founders took to develop and grow their business. In 2006, only two years after the registration of the company, a large American organic food chain offered to sell Organic Apoteke's products in all of its US stores. Up to this point, the new company had been entirely self-financed. To enable the immediate expansion into the US market, the founders, however, needed external investment. They were overwhelmed when they received various investment offers. Arriving at a decision on what would be the best investment option was not as easy as they thought - being spoilt for choice has its drawbacks. Students are invited to determine the value of the new company and discuss the various financing options. The case can also serve to discuss company start-up and managing growth. A detailed Teaching Note with an analysis and suggestions for questions is also available to stimulate discussions in the classroom.