Making it Big Note to Instructors

This case is about a manufacturer of clothing for large and “super size” women, and its founder. Graduating from college with a psychology degree in 1978, Cynthia Riggs started selling items in flea markets to make ends meet. In 1980, she moved her clothing and “collectibles” business to a retail site. In 1984, when she could not find appropriate clothing to sell in her store, she began the transition from retailer to manufacturer. From 1988 until 1992, Cynthia operated Making it Big out of a small storefront. In 1992, MIB's operations moved to a larger, 3,800 square foot facility. Selling mainly through its catalogue and the Internet, MIB grew from sales of $1.89 million in 1997 to $2.48 million in 2000. Buoyed by success, she began exploring ways to bring the company to a higher level of growth and productivity.

In 2001, revenues fell 5 percent, and 2002 sales were predicted to fall further. Employee morale was down and Cynthia felt burned out. After disappointing returns from the 2001 spring season, Cynthia invested in revamping the catalogue, improving the website, and expanding the mailing list. When sales from the 2002 fall catalogue started coming in lower than the previous year, Cynthia was not sure where to turn. She had hoped to build a management team to help her expand the business, but the disappointing returns threatened to derail her plans and her business.

The case is positioned to discuss the stages of new business development and growth. The two major themes of this case are (a) the personal decisions involved in starting and managing a business, and (b) dealing with the uncertainties that threaten a business's profitability and growth.

Many students will identify with the path Cynthia Riggs has taken in starting and building Making It Big. This case contains enough information to analyze the company's operations and the impact of the Internet and the changes in the economy on Making It Big's financial situation.

Key Issues and Discussion Points

A major theme of this case concerns the uncertainties involved in running a business in a highly competitive, fragmented, and turbulent marketplace. Key issues and discussion points include the following:

Potential Audiences and Uses

This case is intended for an undergraduate or graduate course in entrepreneurship or small business management. The instructor may choose to use this case to illustrate the experiences and opportunities that can precipitate the start of a new venture. The attention to personal commitment and skills issues that affect business growth potential makes this case useful for students who are writing their own business plans. This case is particularly helpful for students who have some familiarity with small–business management, because these students will most closely identify with Cynthia in her attempt to bring her company “to the next level.” Students should identify with the personal and lifestyle decisions that are integral to the decision to start and grow a business, as well as the nature and degree of commitment needed to form a cohesive partnership or management team.

Suggested Teaching Approach

The instructor may want to start the case discussion by asking students about Cynthia herself: is she an entrepreneur, is she an opportunist, is she an effective small–business manager? What role should she take in leading the company for the future? Students should discuss Cynthia's personal perspective and MIB's current strategy and operations to understand the impact of the current downturn and the potential for future growth. Having put themselves in Cynthia's shoes when she started the business, students can then consider the role that Cynthia should take now, as she attempts to regain her company's growth trajectory. Depending upon the nature and degree of strategic and operational analysis, students can recommend steps that Cynthia should take to bring the company to “the next level.”

The following questions may be used to guide a class discussion.

A “closing” question for students can be “What role should Cynthia take as the company changes and grows?” This can focus students’ attention on the nature of the changing role of the CEO in companies as they grow and mature.

Recommended Readings for Students

Related Topics

Depending upon the sophistication of the audience, this case can be used to discuss organizational structure and management succession. Specifically, issues such as legal and interpersonal issues in creating partnerships and management teams; staffing (hiring) issues such as skill assessment and training; competitive issues such as vertical integration, alliances, and logistics (retail location and Internet limitations). There is enough financial information in the case for a discussion of efficiency, systems and logistics, cash flow management, and marketing and product positioning.

Role of the Author

The case author met Cynthia Riggs at an Entrepreneurial Excellence workshop, hosted by Sonoma State University, in June 2002. Cynthia had come to the seminar looking for advice and management referrals for her company. At this time, as noted in the case, Cynthia's company had successfully launched its website and was mailing two catalogues per year to a mailing list of 5,000. During the summer of 2002, through a series of e–mail and phone conversations, the case writer helped Cynthia compile a chronology of Cynthia's personal and business experiences. Further communication with MIB's bookkeeper, general manager, and production manager helped solidify the issues in the case and provided additional financial and operational information.