I used a different approach here, I calculated TAM of the Town for books and ice cream, and then say that 1% of that TAM is our business. Further one with higher profits is to go for, I got ice cream in that sense.
Thank you for the case, it's just a litle bit confusing. Because: 1) competition was ignored (it was mentioned in the framework and then completely forgotten) 2) assumptions were taken even without asking if there is any actual data regarding number of customers, real seasonality, etc. 3) 300K investment is taken for granted but it might be different for an ice-cream shop and for a bookshop, it's just amount of money that Michelle currently has.
Competition could have been considered in the non financial aspect as this could lead to stress in a sense of impact on estimated gross profit impact or foot traffic etc., Also could have been included in Risks during Recommendation as well. However, the case was analyzed very well considering the qualitative non- financial aspect. Definitely got to learn a lot. Regarding 300k, we could just mention an assumption this investment covers entire cost for both prospects. About assumptions for yearly gross profit, even I would prefer to ask if there is factual data, If not only then assume. However, did learn to handle in case there is factual no data.
This was a great case study, both participants did extremely well. Ashwin has done a wonderful job which will help many people looking to open small businesses to use his analysis and make a meaningful choice on competing business ideas. It will also help any consultant in clarifying key areas to concentrate on. Thanks so much.
Does he mean gross profit? I thought margin was generally expressed in % terms.
I used a different approach here, I calculated TAM of the Town for books and ice cream, and then say that 1% of that TAM is our business.
Further one with higher profits is to go for, I got ice cream in that sense.
Thank you for the case, it's just a litle bit confusing.
Because:
1) competition was ignored (it was mentioned in the framework and then completely forgotten)
2) assumptions were taken even without asking if there is any actual data regarding number of customers, real seasonality, etc.
3) 300K investment is taken for granted but it might be different for an ice-cream shop and for a bookshop, it's just amount of money that Michelle currently has.
Competition could have been considered in the non financial aspect as this could lead to stress in a sense of impact on estimated gross profit impact or foot traffic etc., Also could have been included in Risks during Recommendation as well. However, the case was analyzed very well considering the qualitative non- financial aspect. Definitely got to learn a lot. Regarding 300k, we could just mention an assumption this investment covers entire cost for both prospects.
About assumptions for yearly gross profit, even I would prefer to ask if there is factual data, If not only then assume. However, did learn to handle in case there is factual no data.
This was a great case study, both participants did extremely well. Ashwin has done a wonderful job which will help many people looking to open small businesses to use his analysis and make a meaningful choice on competing business ideas. It will also help any consultant in clarifying key areas to concentrate on. Thanks so much.
Running a high-street bookshop with one person is pretty ambitious. I would definitely assume 2 for the bookshop and 3 for the Ice cream shop
Excellent case study and the interviewee is fantastic. So structured and clear in their approach.
I did not get how he got73k as 0.25 of 365k
Exellent, thank you