case study Dave-Anne Stores, business and finance homework help
Question description
OUTLINE
FOR A CASE ANALYSIS
For this project there is a Business
case example that needs to be read and analyzed. The outline for the case
analysis is printed towards the bottom of the short story. Ones done
reading the short story please answers the questions in the Outline for a Case
Analysis. Make sure to put just the headliners for each of the questions 1-7.
This must be in APA format and be 3 ½ pages long. Please let me know if this
project will work for you.
Dave-Anne Stores
Dave-Anne Stores Ltd. (DAS) is a business owned by a husband
and wife team and they now operate two retail shops selling a wide range of
groceries and associated goods to the local community. The business was started
a few years ago with one shop. The couple used the proceeds of a family
inheritance and their own savings to purchase a lease on a suitable vacant shop
and to refit the premises. DAS is a success, although it is a low-margin
operation and requires long hours of work. A second shop located in another
part of the same town was added two years after start-up using the same funding
method to acquire the lease. Both shops now generate revenue of about $100,000
each a year. Each shop had a surplus over all costs of about $10,000 in the
last year after the directors had drawn a salary and these funds are currently
being retained in the firm. The business hopes to add further units in future
years. Apart from the directors, all the staff are part time. Over 90% of sales
receipts are in the form of cash or debit card transactions over the counter
(the directors do allow a couple of firms close to the shops to have a monthly
account for purchases settled by invoice and internet banking soon after the
end of each month). DAS is part of a wholesale buying chain that will supply
all deliveries during a month on account. The invoice needs to be paid within
the first five days of the next calendar month. However DAS collects revenue on
a daily basis to meet this bill (as well as a regular VAT bill). As a result, beyond
deposit and current accounts, the only external finance products used by DAS
are leasing facilities for the small van acquired to move stock between the two
premises and for certain items of equipment in the shops (the tills and display
freezers). The use of leasing made sense as profits are modest, regular
payments also matched income streams and in both cases the goods came with a
maintenance contract from the supplier. Discussion DAS is very typical of many
smaller retail firms. The core initial funding came from a family inheritance
not debt and the two directors wanted to set up a business that in effect also
provides them with a job. The use of a wholesale buying arrangement has
effectively provided a solution to any cash-flow management needs of the
business, especially as they are mainly paid in cash. DAS is a regular user of
the local high street bank as it needs to pay in cash on a daily basis but they
have no current debt or any immediate plans to start borrowing. Some of the key
shop equipment is leased with a maintenance agreement. Although DAS does not
have any immediate plans to expand further, this remains the medium-term aim. A
consideration could be the method of funding any further expansion. On the two
previous occasions, DAS have used a family inheritance to pay the premium of a
new shop lease plus fitting out costs. The property is then rented on a monthly
basis. This way the premises could be occupied with minimal capital outlay.
However, for a third property they would probably have another option as well.
DAS now has a track record is setting up and running profitable retail stores.
This will be recognised by a bank if they sought a commercial mortgage to
purchase the freehold on a third outlet. The monthly accounting surplus from
the initial two outlets held in the accounts would fund a deposit and pay for
legal costs, while future revenue surplus would cover mortgage payments
(indeed, this may not be needed as DAS would not need to pay rent on the new
property anyway). Regardless of the method used to fund the acquisition of a
new outlet, most of DASs other finance arrangements will easily extend to a
third site, notably the wholesaling account and equipment leasing. It would
appear that the main issue about expansion may not be one of raising the
finance. Rather, a new outlet would have other implications for DAS. At
present, each partner can look after one outlet providing oversight and
control. A new outlet would require them to appoint a manager for one of the
units as well (they have no suitable extended family members to ask to fill
this role).
OUTLINE FOR A CASE ANALYSIS
1) EXAMINE AND DESCRIBE THE
BUSINESS ENVIRONMENT
a) Describe the nature of the
organization under consideration and its competitors.
b) Provide general information
about the market and customer base.
c) Indicate any significant
changes in the business environment or any new endeavors upon which the
business is embarking.
2) DESCRIBE THE STRUCTURE AND
SIZE OF THE BUSINESS
a) Analyze its management
structure, employee base, and financial history.
b) Describe annual revenues and
profit.
c) Provide figures on
employment. Include details about private ownership, public ownership, and
investment holdings.
d) Provide a brief
overview of the business’s leaders and command chain
3) IDENTIFY THE KEY ISSUE OR
PROBLEM IN THE CASE STUDY
a) In all likelihood, there
will be several different factors at play.
b) Decide which is the main
concern of the case study by examining what most of the data talks about, the
main problems facing the business,
c) Examples might include
expansion into a new market, response to a competitor’s marketing campaign, or
a changing customer base
4) DESCRIBE HOW THE BUSINESS
RESPONDS TO THESE ISSUES OR PROBLEMS
a) Draw on the information you
gathered and trace a chronological progression of steps taken (or not taken).
b) Cite data included in the
case study, such as increased marketing spending, purchasing of new property,
changed revenue streams, etc
5) IDENTIFY THE SUCCESSFUL
ASPECTS OF THIS RESPONSE AS WELL AS ITS FAILURES
a) Indicate whether or not each
aspect of the response met its goal and whether the response overall was
well-crafted.
b) Use numerical benchmarks,
like
i) a
desired customer share
ii) show
whether goals were met
iii)
analyze broader issues
iv)
employee management policies
v)
talk about the response as a whole
6) POINT TO SUCCESSES,
FAILURES, UNFORESEEN RESULTS, AND INADEQUATE MEASURES
a) Suggest alternative or
improved measures that could have been taken by the business
b) Using specific
examples and back up your suggestions with data and calculations
7) WHAT WOULD YOU DO?
a) Describe what changes you
would make in the business to arrive at the measures you proposed
b) Include:
c) changes to
organization
d) strategy
e) management.
