Florida Air, Inc.
1. Evaluate Florida Air’s search for capital. What, if any, key mistakes were made?
-Dan failed to fully utilize high profile networks of Scott and Henry, who were both graduates of an Ivy League School (Did Scott graduate from Ivy League School?). Also, Dan did not try to reach out to his network he established while he was buying and selling airplanes. Even if there was no one interested in their direct network, perhaps someone in their network knew someone who might be interested. Scott later contacted his 100 alumni later but rather passively; instead of calling to actively initiate a conversation, he ...view middle of the document...
They did not file any legal document when they received checks from investors.
-The team failed to fully leverage the positive media coverage they were getting; they could've used the opportunity to put an ad or some sort on the newspaper to widen their search scope for potential investors.
- They did not manage their money properly. Without a specific funding plan, they quickly burn out the money they raised even before they fulfilled the need of $1.5 million.
2. Evaluate Dan’s evolving relationships with Scott and Henry. What “principles of best practices” did he overlook?
-Dan had an excellent working relationship with Scott. Both of them believed in the future of Florida Air and worked for 10-12 hours a day
-On the other hand, Dan had a rocky relationship with Henry. Henry showed little dedication and did not contribute much. He refused to do any work himself but preferred to hire a third party to do work for him. Further, he frequently showed up to office late and missed meetings, dragging down the team's motivation
-Dan seemed to overlook team chemistry factor. Surely Henry has extensive industry expensive with equally impressive educational background (graduate of an Ivy League school). However, he did not work well with Scott or Dan. Henry's work style of delegating tasks to third party and analyzing the results did not fit with the rest of team's direction and needs.
-Dan also failed to recruit a professional with experience in the industry. While Henry did have stellar industry experience in marketing, he did not have specific experience with airline industry. The same goes for Scott, who only worked in consulting and accounting industry prior to joining Florida Air.
- Dan failed to make a clear task allocation at the earliest stage. When Dan and Scott first felt unsatisfied about Henry’s behavior, they failed to express their concerns. Instead, Dan did not express his dissatisfaction until the equity discussion. Henry did not realize that his behavior was misconducted and was unsatisfied about the allocation result. He became even more de-motivated after this discussion.
3. What alternatives do Dan and Scott have now? What should they do regarding the lost investors? Continuing the business and raising capital? Henry? Identify and assess the risks of each proposed plan of action.
-Regarding Henry, we think Dan should dismiss Henry immediately. Henry has not contributed much to date and only has been a drag in the entire development of Florida Air. Considering Henry's dissatisfaction on equity split agreement, Henry probably would not be...