Homestead Technologies: A Start-up Built to Last
Justin Kitch, CEO and co-founder of Homestead Technologies, an Internet communications company that offered a comprehensive resource for building Web sites to individuals and businesses, wondered, in the midst of the dotcom boom in 2000, just how tight the connection was between building a company with a strong culture and high performance. Homestead Technologies’ history, business model, competitive environment, culture, information sharing procedures and human resources management are described in the case. Kitch asks if companies built with a short-term mentality could create lasting value for customers, employees, and shareholders and wonders if companies and their employees owe something to their surrounding communities. Although personally committed to building an enduring organization that contributed to its employees as well as shareholders, Kitch asks if this approach offered any long-term advantages over entrepreneurs who simply wanted to flip their company.