David Levin and The Capital Group

Case Study Teaching Notes
David Levin and The Capital Group
Introduction
This case study was developed for a final year entrepreneurship module developed as an option for
students pursuing hospitality, tourism and leisure management programmes who have already
studied marketing and finance as pre-requisites. Students from other disciplines in the university have
also opted to study the module and it is considered to be suitable as a versatile vehicle for illustrating
aspects of entrepreneurship for students of various backgrounds and stages of study.
As used, the case formed the basis of one two-hour seminar class almost at the end of the
entrepreneurship course. The case charts the development of an entrepreneurial business involved in
hotel and food service businesses over two generations. It is presented in five separate mini cases.
Consequently, there is also the possibility to draw upon it over a period of weeks, using one of the
stages to stimulate shorter discussion of an aspect of entrepreneurship in a more focussed way,
which is integrated into a more formal teaching session.
All information in the case has been provided directly by David and Joe Levin, via a series of
interviews. They have been particularly open about the financial performance of the Capital Group
and its current new initiatives. Students can be encouraged to supplement their case knowledge
through investigation of the Capital Group website, www.capital-london.net.
The authors also draw attention to a previous case study and video ‘They said “Don’t do it”’ that
focused on David Levin through to the time of his development of the Capital Hotel. The case and
video was prepared by Professor Alison J Morrison at the Scottish Hotel School.
alison.j.morrison@strath.ac.uk
Case overall learning outcomes
After reflecting on and discussing the case, students will:•
Consider entrepreneurial characteristics, motivations and expertise and how these affected
the ongoing development of the Capital Group.
•
Evaluate the key features of different concepts developed by the Capital Group
•
Consider how principles and practices of entrepreneurial management impact on operations
and business performance.
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Case Study Teaching Notes – David Levin and The Capital Group
Suggested use in-class
One two-hour session
For one two-hour workshop session, students can be given specific issues to address, in order to
provide a focus for discussion.
•
Evaluate David Levin’s entrepreneurial characteristics, motivations and expertise.
•
Consider Joe Levin’s personal development in preparation for his role in the Capital Group.
Are there lessons for you here?
Links to Entrepreneurship Theory
Both of the above issues can be clearly related to entrepreneurship theory relating to
the development of entrepreneurial human capital. There are numerous opportunities
for engagement with the ‘born and made’ debate and the role of general traits, as well
as relevant operational and management expertise.
Discussion can also be related to classifications of different types of entrepreneurs;
the stages of business growth, and the key entrepreneur-related factors that have
enabled the Capital Group to emerge as a high growth business.
Entrepreneurial motivation can also be considered in relation to the ongoing
development of a business that could have been sold for many millions several times
over during the past few years.
•
Consider the key elements contributing to the success of The Royal Oak, the Capital Hotel
and the Greenhouse.
•
What were the key features contributing to the success of The Peoples Palace? Should the
Capital Group bid to continue with it, given the financial results?
Links to Entrepreneurship Theory
The case provides significant scope to engage with entrepreneurship theory relating to
environment for enterprise; barriers to entry; support; risk; entrepreneurial flexibility in
relation to concept development; entrepreneurial teams; serial entrepreneurship, as well
as characteristics and qualities such as determination, perseverance, persuasiveness,
creativity, opportunity-spotting and serendipity.
Financial management issues can also be addressed. Both capital investment and
return on capital can be considered in relation to the ventures, and operational
performance can be analysed and related to the business cycle and entrepreneurial
timing.
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Case Study Teaching Notes – David Levin and The Capital Group
•
Critically evaluate Joe’s development of the Capital Group and his approach to business
development. Take a look at the Capital Group web site to inform your judgement.
www.capital-london.net
Links to Entrepreneurship Theory
This provides a link to issues relating to family businesses and succession as well as
considering strategic development in relation to the Capital Group’s particular expertise
and the approach taken.
Ideas relating to added value created through strategic alliances can be explored.
Will the Group continue to be successful following this development format?
Use over several weeks
The case unfolds in a way that is compatible with a course design that starts off with consideration of
entrepreneurs and entrepreneurship and then progresses to consideration of the business
environment, opportunity recognition and entrepreneurial business management.
Part 1 - The First Steps
Focus: entrepreneurial motivations, characteristics and expertise, entrepreneurial human capital (can
also be used in relation to part 3).
Part 2 - Moving On
Focus: entrepreneur classifications,
environment for enterprise.
serial
entrepreneurship,
opportunity-spotting,
risk
and
Part 3 - The Heir Apparent
Focus: issues relating to family businesses and the stages of business growth (can also be used
along with part 1).
Part 4 - New Challenges – The People’s Palace
Focus: concept development, operational management and financial performance.
Part 5 - What does the future hold?
Focus: strategic development, core expertise and the business environment.
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