Growing Pains at Commonwealth Dairy

Growing Pains at Commonwealth Dairy

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Publication Date:
August 01, 2016

Industry:
Financial Services

Source:
Babson College

The Growing Pains at Commonwealth Dairy case provides an interesting situation to explore the challenges faced by a fast-growth company and the potential ways to address these challenges. Specifically, Commonwealth Dairy (CD) faces challenges that may be categorized along the following dimensions: a) continue the rapid pace of growth, b) manage the administrative challenges which the two founding managers faced, brought on by growth and the establishment of a second location of operations, c) how to manage the changing roles of the co-founders and the increasing need for more formal management systems and processes, and d) how to manage the changing nature of the co-founders’ relationship with their primary investor from Germany. The co-founders face some key decisions regarding the future of CD in terms of its growth trajectory, the CD organization’s ability to sustain its entrepreneurial and values in light of explosive growth, the relationship between CD and their primary investor Ehrmann, and finally, the co-founders’ personal aspirations and roles.

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Growing Pains at Commonwealth Dairy

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