ERG International, Inc.

ISBN 0-538-88388-X

Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 22 pages in length and its case teaching package is 10 pages.

Abstract

Claude Robbins and his dozen staff members were deeply disappointed when ERG International failed to win a consulting contract from the National Energy Research Laboratory—a contract that would have tripled the firm's size. Still, Robbins was convinced the firm could grow at 50 percent per year for the next five years. He has developed the business’ systems and procedures to support growth, and now suggests hiring a full-time marketer, setting up a matrix organization, and removing himself from most of his present management and marketing duties.

Fit Within a Course/Linkages to Textbooks or Journal Articles

This case is intended for an undergraduate or graduate course in Business Strategy or EntrepreneurshipThe case is positioned to discuss the growth and competitive positioning issues facing a start-up company in an emerging industry.

A major theme of this case is the transition from owner/manager controlled startup company to diversified, matrix organization. This case should serve as a basis for discussion about:

1. The competitive forces in the emerging energy-consulting industry.
2. Strategic positioning in a fragmented, emerging industry.
3. The transition from owner/manager to management-team.
4. The risks of rapid growth in a small, entrepreneurial company.