Generate recommendations with regard to Dropbox’s growth strategy as of June 2010. In particular, whether or not Dropbox should enter the small and medium-sized business (SMB) market. You are making these recommendations to Drew Houston, CEO of Dropbox, and other senior executives.
In preparing your recommendation, you can analyze/discuss any parts of the case that are deemed helpful. However, your case memo must at least address the following issues:
What are the key elements of Dropbox’s current business model?
Is Dropbox profitable around mid 2010? (hint: to figure out profitability, consider revenue,
variable cost and fixed cost. Revenue comes from customers who use and pay for the premium version. Variable cost includes the storage/bandwidth cost to serve both paying and free users. Fixed cost is the salary of employees. The revenue and cost information are provided in the case, particularly on p. 5, p. 8 and p. 9. You can assume the average salary for Dropbox employees is $150K around 2010.)
What should Dropbox do in terms of growth strategy?
The memo should begin with this header:
TO: Decision maker indicated in case
FROM: Team Number and Individual Name(s)
RE: Case title and/or key issue
DATE: Date submitted
The rest of the memo must be business format. Use the following structure to organize the content of your memo:
1) Introduction A (purpose & value): Begin your memo in a way that makes its purpose and value clear to the recipient, and makes him or her want to read it. Make this short—one or two sentences should usually suffice.
2) Introduction B (preview): Next, immediately give a very short (1‐2 sentences) summary of your primary recommendation or conclusion. Your recommendation must be upfront! Your audience should know your position from the outset. It should be top of mind as they evaluate
the support you provide for it in the body of the memo. You might want to consider underlining or boldfacing your recommendation to make it stand out.
3) Analysis and Support: Now proceed to the analysis requested in the assignment. Given the identity of the individual to whom you are writing the memo, you should assume that he or she knows everything that is in the case. Do not repeat the facts from the case except as necessary to support your points. There should be a clear link between the information you include and your recommendation.
4) Exhibits: Include supporting exhibits you think the reader will find helpful in the appendix. These are not part of the one‐page memo. But remember—the memo must stand on its own! Do not rely on your exhibits to make important points, because busy executives don’t always look at them. We are much like a busy executive when we grade these assignments, and might not read exhibits if you haven’t piqued our interest for them in your memo. Still, for important calculations you MUST include exhibits so the process can be verified.
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