Mini-Case 4-1: the Need for a Plan

question 19

Essay

Mini-Case 4-1: The Need For A Plan
Andrew Sycamore has spent more than ten years in the human resources department of a large management consulting company. During his tenure, he was often put in charge of training new recruits, where he arranged for various company managers to address the recruits and teach them skills important in the workplace. What Andy had noticed was the one skill that was often the hardest to teach involved problem identification and problem solving. Even the best recruits from well-known universities found it hard to assess a situation to determine what the problem was and how to develop solutions for it. In his heart, Andy was an entrepreneur and he was dying to quit his corporate job and be his own boss. He was convinced there was a business opportunity in developing an interactive, online problem identification and problem solving tool.
Andy's idea, which he titled "Nested Learning," involved software that included a screen where a scenario was presented to the user and the user was asked to first identify the problem and then develop solutions for it. What was unique about "Nested Learning" was that the initial scenario was specifically written so as not to be sufficient enough to generate a problem. In other words, the user (or the trainee)had to ask the software questions that would be responded with additional facts about the situation. Andy argued that problem solvers don't get all the facts handed to them at the very beginning and that they had to "tease" more out of the situation to identify the problem.
Andy's idea was to develop a prototype of the software with a small number of generic scenarios. He then hoped to meet with training managers of different companies and "sell" them the idea of using "Nested Learning" as a better training tool. Once a client agreed to use it, Andy would then work with the client to develop client-specific scenarios.
-How important is a prototype for Andy Sycamore to succeed with his "Nested Learning?"

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Definitions:

Buying and Selling Merchandise

The process of purchasing goods to resell at a higher price, typically found in retail or wholesale businesses.

Revenue Recognition Rules

guidelines that determine when and how revenue is recognized and recorded in the financial statements.

Sales Discounts

Reductions in the amount owed by a customer, usually offered as an incentive for early payment.

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting total expenses from total revenues with a single calculation.