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Dentalcorp Case: 1. What Is Your Assessment of Dentalcorp'S Historical Development and Current Performance?

DentalCorp grew from a small family-run business into a large company serving major clients through the ingenuity of its founder Luis Chicani. While Chicani's ambitious expansion plans nearly caused the company's bankruptcy, he was able to negotiate debts and acquire capital to continue growing the business. Endeavor Brazil selected DentalCorp for its innovative model, job growth, and potential. Endeavor provided guidance, new management, and software that helped DentalCorp professionally structure and rapidly expand to 22 branches. The case argues that DentalCorp should expand to Chile given its higher GDP and acceptance of health plans, and that Chicani now has support from Endeavor to succeed in the new market.

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Mariano Belaunde
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205 views2 pages

Dentalcorp Case: 1. What Is Your Assessment of Dentalcorp'S Historical Development and Current Performance?

DentalCorp grew from a small family-run business into a large company serving major clients through the ingenuity of its founder Luis Chicani. While Chicani's ambitious expansion plans nearly caused the company's bankruptcy, he was able to negotiate debts and acquire capital to continue growing the business. Endeavor Brazil selected DentalCorp for its innovative model, job growth, and potential. Endeavor provided guidance, new management, and software that helped DentalCorp professionally structure and rapidly expand to 22 branches. The case argues that DentalCorp should expand to Chile given its higher GDP and acceptance of health plans, and that Chicani now has support from Endeavor to succeed in the new market.

Uploaded by

Mariano Belaunde
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mariano Belaunde

Fin 345
November 11, 2014

DentalCorp Case

1. What is your assessment of DentalCorp's historical development and current


performance?
I think DentalCorps development over the years was amazing, and is certainly due to the
ingenuity and perseverance of Luis Chicani. Having started as a family-ran business and mostly
a one-man show, the amount of growth achieved given the small amount of initial investment is
impressive.
His business model is quite genius, allowing him to keep both fixed and variable costs to a
minimum. He did this by relying on a mix of commission-based salespeople, having family-run
management, and having Chicani oversee almost every aspect of the company and initially
respond to every call. Slowly but steadily he was able to grow his customer base and get the
attention of larger commercial clients, like Itaipu Binacional.
Having almost gone bankrupt he decided to renegotiate debts and acquire more working capital
by selling his cars, rather than relying on loans and further worsening his financial situation.
Perhaps at first glance his expansion goals were a bit too ambitious and unsustainable given
the way he ran the company with such little help, but he managed to get through it nonetheless.
This is evident in DentalCorps current performance: His latest client is Magazine Luiza, one of
the largest retailers in Brazil. He also plans to go international, starting in Chile and expanding
around the world.

2. Only 1.6% of entrepreneurs in Endeavor's pre-screened pools became Endeavor


Entrepreneurs. Why do you think DentalCorp/Luis Chicani were selected?
There were several reasons why I think Endeavor selected DentalCorp. As they have stated,
one of the reasons was that they simply liked Chicanis personal characteristics: he was a good
listener, eager to receive advice, a terrific salesperson, and a natural in developing trustful
relationships.
In spite of DentalCorp not meeting every single characteristic they were looking for, it met their
four criteria of: wealth and job growth potential, innovative business model, strong
entrepreneurial background, and the right development phase. They also knew that if

DentalCorp hadnt grown as quickly as it might have with more help it was probably due to the
fact that local business leaders were skeptical to take risks and invest in developing businesses
given the situation in the country. They had faith in DentalCorp and believed with their advice
and backing they could take it to the next level.
3. Do you believe that Endeavor Brazil has added value to DentalCorp? Explain.
I believe Endeavor Brazil certainly added value to DentalCorp, since it gave Chicani the
guidance and support it needed to change the company from a one-man show to a more
structured company, thus allowing it to grow. They introduced an advisory board and hired new
and more qualified individuals to take care of management and executive positions, which had
been previously filled by Chicanis family.
They also implemented software to improve interconnectivity amongst the company and its
clients, and it even received an ISO 9001 certification. All these changes lead to a quick
company growth and the opening of 22 branches, so it is quite clear that Endeavors
intervention lead to nothing but positive results for DentalCorp.
4. Do you believe that DentalCorp should expand to Chile? Explain.
I absolutely believe expansion into Chile will be extremely beneficial for DentalCorp. Chiles per
capita GDP was almost 40% higher than Brazils (during the time this was written), and Chileans
had a high acceptance of health-care plans and copays, all which are positive aspects for
DentalCorp. In addition, Chicani has a strong support team for this project, thanks to Endeavor
providing Harvard and MIT students to help in this venture.
If Chicani was able to take DentalCorp and succeed in a country with much tougher parameters
than the ones they are facing in Chile, I can foresee nothing but a great opportunity and positive
results from them expanding into this territory.

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