This book chapter describes the situation of an actual small software development company, whose 1999 revenues were $600,000. It is a typical business school case study, prepared as an entry in the eighth annual Kogod School of Business Case Competition at American University. As such, it does not come to a conclusion about the appropriate strategy for dealing with the software company’s problems. That, presumably, would be the task of the students to whom this case might be presented. Rather, this paper was intended to be judged on the basis of how well the facts of the case are presented, and on its merits as a teaching tool.

The authors have adopted a highly narrative approach that, it seems to me, will present the student with the problem of constructing a logical business situation model out of a rather diffuse set of facts. Is this is the best pedagogical approach? Unfortunately, we do not have the judges’ evaluations. However, there is a good presentation of the company’s business situation, including financial statements. The alternative proposals the company must choose between are well summarized.