Memphis Minnie - Systematizing Creative Genius
Multiple Choice Questions
Question 11: What was the initial private equity firm’s main objection to acquiring Memphis’s agency? A. The agency’s revenue was too low B. They couldn’t systematize intuition and creative genius C. Memphis didn’t have enough employees D. The marketing industry was too competitive
Question 12: What crisis forced Memphis to realize her business model was unsustainable? A. A major competitor entered her market B. She lost her largest client to a competitor C. Her father’s stroke required her to go offline for three weeks D. The economy entered a recession affecting marketing budgets
Question 13: How many steps did Memphis document in her consumer psychology framework? A. 8 steps B. 12 steps C. 23 steps D. 47 steps
Question 14: What was the decisive validation moment that proved Memphis’s transformation was successful? A. Revenue doubled in 18 months B. Her team won an industry award without her direct involvement C. She hired a new creative director D. Private equity firms started calling her
Question 15: What was Memphis’s final valuation multiple after the transformation? A. 6.5x B. 7.2x C. 8.2x D. 10.5x
Explanation Questions
Question 16: Memphis claimed her creative process was based on “intuition” and “pattern recognition.” Explain how she systematized these seemingly intangible skills. Provide at least three specific examples from the case study of how she converted intuitive knowledge into teachable methodology.
Question 17: The case study states that Memphis “didn’t lose her genius by systematizing it. She multiplied it by making it transferable.” Analyze this statement by explaining: (a) what Memphis feared she would lose, (b) what she actually gained, and (c) why transferability is more valuable than personal expertise in business valuation.
Question 18: Calculate Memphis’s ROI from the transformation and compare it to PrecisionFast’s ROI. Use specific numbers: Memphis invested $160,000 and created $10.36 million in value; PrecisionFast invested $180,000 and created $7.2 million. What does this comparison reveal about the relationship between systematization investment and value creation?
Question 19: Two major clients (representing 45% of revenue) threatened to leave when Memphis went offline. Explain why this incident revealed multiple risk factors beyond just owner dependency. Identify at least three distinct risk factors present in Memphis’s business model before the transformation.
Question 20: The PE firm’s initial assessment was “We’re not buying Memphis’s creativity.” Their final assessment was “We’re acquiring a proven methodology for generating creative success at scale.” Explain what changed between these two assessments. What specific evidence demonstrated that creativity had become scalable?
