Goats: The Green Alternative (A)

Case Solution

David Currie, Kyle S. Meyer
Ivey Publishing ()

The owner of a herd of goats in Tennessee must decide whether to rent his herd for a cleanup project at a nearby resort. Goats are better at cleaning the land than man or machine, but the owner has never hired his goats for this purpose. The owner must determine the costs associated with the project and then establish a price for the service. Since the owner is inexperienced in renting livestock, he must estimate the additional costs associated with renting and preparing a quote without knowing the prices of competitors for renting goats. This case provides a realistic example of the thought processes that entrepreneurs go through when considering expanding into complementary businesses, as well as the deliberations of entrepreneurs considering starting a new business. See also goats: the green alternative (B) and goats: the green alternative (C).

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