Background Steve Davidson canoed recreationally for more than 20 years and had done woodworking for more than 15 years. For the last 3 years, Davidson had been building canoes for himself, using them, and then selling them for marginal profits once he was finished with them. When he decided he was going to purchase a canoe, he was shocked by the expensive prices for poor quality boats. Davidson saw an opportunity to build handcrafted cedar canoes, which he would sell for a premium. When Davidson decided he was going to pursue this business, he enrolled in a 12-week business program at the Entrepreneurial Manufacturing Generator (EMG) in St. Thomas Ontario. In August 1998, Davidson was opening up the Catfish Creek Canoe Company (CCC). He was going to specialize in manufacturing and selling 16-foot Peterborough canoes.

Problem Statement: Market the Peterborough canoe in a proper location with an appropriate selling price.

Symptoms Steve Davidson is going to experience many different situations while starting up Catfish Creek Canoe Company. He is planning to produce 30 canoes in the first year and average one canoe every ten days which would leave a 65 day buffer period; although, it will take him almost 12 days to produce his first canoes. An experienced craftsman can only make 25 to 30 canoes per year, so if requests increase, Davidson will have to hire more employees to insist him with the demand.
The canoe industry is also seasonable; people will not be shopping for canoes in the middle of winter, especially in his target market area of Ontario, Canada. During the cold seasons, Davidson should be trying to produce as many canoes as possible so his inventory levels are ready for the warm seasons.
By advertising on the internet, CCC has access to thousands of prospective clients at virtually no cost. Although, there is one problem with the