Managing for Portfolio Growth

Question: Discuss about the Managing for Portfolio Growth. Answer: Introduction This case study is taken from Harvard Business Review titled as An Angel Investor with an Agenda (Herzlinger, Muoz-Seca, 2011). This cases study shows the dilemmas faced by leaders in case of real companies as well as offer solutions from experts. In this case, name of the Investor is Victor Serna and Boss named as Gloria Londono. Organization used for the case study is day care center that launches treatment programs especially for disabled seniors as well as patients. Critical analysis on the case study Entire case study revolves around finding the solution whether health care entrepreneur accepts 3 Million Euros from someone for taking all strategic decisions on timely manner (Van Osnabrugge Robinson, 2012). From participants perspectives, there are two participants named as Daniel Hernandez who is the Chief Financial Officer and other is Diana Correa who is Deputy Director. From the perspective of Daniel Hernandez (CFO), he was of the opinion in accepting the investment in an unstable economical context. He pointed out the cash flow problems as well as over expenditure issues present in the business organization (Chemmanur Fulghieri, 2014). From the perspective of Diana Correa (Deputy Director), there are 6 promising candidates and 35 information requests. All understands regarding the demographics aspects with an estimated 9 million people in and over 65 know it in Spain by the year 2020 (Van Osnabrugge, 2013). Market potential is higher and has its own center as well as operation used for negotiation activities. From Expert point of view, T. Forcht Dagi sides with Daniel Hernandez. Main argument pointed out by the expert was a heaven sent opportunity at a recessionary period. It was argued that Gloria is inexperienced in taking decisions (Herzlinger, Muoz-Seca, 2011). On the contrary, Merle D. Griff sides with Diana Correa. Main argument considers other potential investor in an ideal situation. It is believed Victoria has an aggressive personality and conducts comprehensive discussion. While discussing the Individual Reflection, it has been viewed that Merle D Griff and Diana Correa has confidence as well as humanized center after adhering the ideal and original principles for bright prospects. Gloria has growing profitable business as well as growing market that has the potential to improve in the near future. She is in a higher position so even if Victor shows unwillingness for negotiating, the she should refuse the offer (Herzlinger, Muoz-Seca, 2011). Gloria business model aims at helping ordinary people especially in case of Senior citizens. Committees cannot govern her company for accepting short-term investors like Senor Serna. Conclusion At the end of the case study, it is concluded that Gloria should accept angel investment, as it will help in retaining the majority ownership as well as owned locations. In other words, accepting the investment will help solidifying consistency policies. She needs to retain her present position and decide whether organization is privately sold or in case taken under public. Gloria need to evaluate the objectives of her whether it matches with Victor or not. Therefore, Franchisees mainly help in maintaining standards by using incentive structure or penalties in that case. Reference List Chemmanur, T. J., Fulghieri, P. (2014). Entrepreneurial finance and innovation: An introduction and agenda for future research. Review of Financial Studies, 27(1), 1-19. Herzlinger, R. E., Muoz-Seca, B. (2011). An Angel Investor with An Agenda. HARVARD BUSINESS REVIEW, 89(3), 121-125. Van Osnabrugge, M. (2013). A comparison of business angel and venture capitalist investment procedures: an agency theory-based analysis. Venture Capital: An international journal of entrepreneurial finance, 2(2), 91-109. Van Osnabrugge, M., Robinson, R. J. (2012). Angel Investing: Matching Startup Funds with Startup Companies--The Guide for Entrepreneurs and Individual Investors. John Wiley Sons.