Chapter 6, Problem 18CR

Summary Introduction

Case Summary:

Sara Blakely, the youngest billionaire entrepreneur to have created her own success story. Despite having failed to get into the school for law, twice it was her determination and inspiration that made her go on to start her business even though her first business didn’t last long. The founder of Spanx, learned business techniques and went on to make a big company. Luck was in her side when Oprah Winfrey agreed to endorse her products. There is no stopping Blakely who feels that for every risk that one takes, one gets rewarded.

Characters in the case:

Sara Blakely, an entrepreneur is cited here.

Wayne Dyer self-help guru, Neiman Marcus, Oprah Winfrey are also referred to in this passage.

Adequate Information:

She used to lure her friends in doing work for her. She was an incessant listener of Wayne Dyer’s recordings and advised her friends her learning. She started a kids club business that lasted only for some time. She learned how to start a business while working in sales. She researched a lot and wrote her patent application. Word of mouth publicity was what she relied on initially. According to her when one takes risks, one will be rewarded for it.

To Determine:

If the factors that attribute to the success of Blakely are affected by the hindsight bias.

Given:

Blakely’s success story like others is also a mix of determination, inspiration and circumstance. She failed to get admitted into law school, twice. After several rejections, she was able to find someone to finance her. She got her website only after Oprah Winfrey decided to announce Blakely’s product as her favorite. Blakely wishes to double her sales internationally.