Question Details

In 1970, Enid Stettner and her husband, Fred, left their corporate careers (fashion designer and film producer, respectively) in New York City, moved to the quaint, nineteenth-century farmhouse in the Hudson Valley that they had purchased a decade earlier, and started farming. Ten years later, Enid, a self-taught cook, created a business plan for an idea that she had dreamed about for many years: making and selling a line of flavored vinegars made from homegrown herbs and fruits in unusual flavors, such as opal basil, hot pepper, and blueberry. She named her company Wild Thymes and began selling the hand-bottled, gourmet products at local farmers markets and craft fairs. Using her own creativity and suggestions from customers, Enid began developing new recipes, and within a few years Wild Thymes’ reputation and notoriety had grown to the point that retailers such as Whole Foods, Crate and Barrel, Williams-Sonoma, and others contacted Enid about carrying her company’s products in their stores. Enid says that her experience as a fashion designer allowed her to create packaging that helped sell Wild Thymes’ quality products. Enid recognized that her company had the potential to grow, and she took some time off to travel with her eldest daughter, Ann, to find inspiration for new product ideas. Their time traveling together made Enid and Ann realize that they would make a great business team. Both were creative cooks, have similar business philosophies, and possess complementary business skills. Enid had experience in food production, and Ann, who had spent more than a decade as a marketing executive in television and sports in New York City, brought the sales and marketing experience that Wild Thymes needed to reach its potential. Wild Thymes truly is a family-owned business. Enid handles new product development, manufacturing, distribution, and accounting. Ann is in charge of recipe development, in-house sales, marketing, and public relations, and Fred still manages daily operations. Each member of the family management team contributes to the company based on his or her strengths; as a result, Wild Thymes has prospered. They have expanded the company’s product line to include dipping sauces, marinades, chutneys, and salad dressings. “It was like starting over [in business],” says Enid. Wild Thymes has won many culinary awards and is perfectly positioned to capitalize on several significant trends in the food industry, including a preference for all-natural, organic, and healthy products. “Our products are sold at the premier specialty and natural food stores nationwide, through our mail order catalog, and through our Web site,” says Enid. “Although we’ve grown we still make every single product on our farm.” 

1. When Wild Thymes was faced with the opportunity for growth, Enid decided to bring her daughter into the business to help her capitalize on that opportunity. What are the benefits of adding a co-owner at such a critical point in a company’s life? What are the risks of doing so? 
2. Suppose that Enid Stettner had approached you when she was starting Wild Thymes for advice on the form of ownership she should choose. What questions would you ask her? 
3. Refer to question 2. Which forms of ownership would you have recommended that Enid avoid? Which form of ownership would you have recommended that she use? Explain.         Word count : 4000 words