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Gloria Londono's Case Summary

980 Words4 Pages

Summary of case Gloria Londono, an owner of Calidad de Vida, which provides treatments for elder people, faces dilemma in business decisions. An angel investor, Victor Serna, agrees to invest three millions euros in the company. However, Victor Serna prefers controlling health centers directly rather than franchising. He also asks for 25% of the stake and a vote on all decisions. Under the investment, the company can expand quickly with direct ownership. As an exchange, Gloria will lose control to some certain extent and Victor Serna will have more engagement in business than her friends and family members. If Gloria chooses to maintain franchising, the company may have cash flow problems easily and it will grow slowly. What’s more, it is difficult …show more content…

Have you defined the problem accurately? The problem is whether to franchise or have the quick expansion. ( Herzlinger&Regina, 2014) The company will grow quickly with the investment of Victor Serna and the company will be managed directly, however, at the expense of level of the investment of Gloria’s friends and her family members. Gloria will also lose control to some extent. On the contrary, the company may face cash flow problems and is hard to maintain the quality of services if it remains having franchising. Also, the company will expand slowly. 2. How would you define the problem if you stood on the other side of the fence? Expansion requires the investment of Victor Serna and Victor Serna wants to have vote on all decisions and 25% of stake in return. With three millions investments, company can make aggressive growth and the operating pattern can be changed. 3. How did this situation arise in the first place? The investment of Victor Serna creates the situation, and the conflict arose when Victor Serna asked for 25% of stake and a vote on all decision making. The conflicts are also created when Victor Serna wanted the health centres to be managed directly. 4. To whom and to what do you give your loyalty as a person and as a member of the

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