Integrative Case Study Part 1 21st January 2014
BBUS502
Semester 2, 2013/14
Integrative Case Study: Part 1
In your groups you should try working through this case study to help develop your abilities to apply some of the decision approaches and techniques covered in the first five weeks of the module. The case study should be treated as a formative exercise; the topics covered will be assessed as part of the in-class multiple choice test that will be held in Week 12, details of which are available elsewhere on Blackboard. You will each be permitted to bring a copy of the two parts of the case study (including any annotations or notes you have made) with you to the in-class test, but nothing else.
This first task of the case study looks at a couple of useful decision-making techniques, issues related to the estimation of economic costs, and possible conflicts between decision makers (Weeks 1 & 2). The second task of the case study looks at how to identify and allocate the costs for effective decision-making. It also focuses on the use of cost-volume-profit (CVP) analysis as a management tool for decision making (Weeks 3, 4 & 5).
Task (1) (covering Weeks 1& 2)
Should Green’s join the expansion game?
Green’s is an independently-owned supermarket, with a turnover of about £10 million per year and a staff of 100. It is located in Bosney, a small town of 25,000 inhabitants on the south coast of England, with a surrounding rural catchment area of about a seven mile radius with a similar-sized population. None of the ‘big supermarket players’ (Tesco, Asda, Sainsburys) have been allowed to set up in Bosney or surrounding area (because the local council is trying to maintain the character of the town), but outside of this Green’s comes in to strong competition with the major chains. By careful buying, Green’s can compete with the majors in terms of food product range and prices, but sadly not in terms of profits per square foot.
Green’s has been under family ownership and control since it was started forty
Semester 2, 2013/14
Integrative Case Study: Part 1
In your groups you should try working through this case study to help develop your abilities to apply some of the decision approaches and techniques covered in the first five weeks of the module. The case study should be treated as a formative exercise; the topics covered will be assessed as part of the in-class multiple choice test that will be held in Week 12, details of which are available elsewhere on Blackboard. You will each be permitted to bring a copy of the two parts of the case study (including any annotations or notes you have made) with you to the in-class test, but nothing else.
This first task of the case study looks at a couple of useful decision-making techniques, issues related to the estimation of economic costs, and possible conflicts between decision makers (Weeks 1 & 2). The second task of the case study looks at how to identify and allocate the costs for effective decision-making. It also focuses on the use of cost-volume-profit (CVP) analysis as a management tool for decision making (Weeks 3, 4 & 5).
Task (1) (covering Weeks 1& 2)
Should Green’s join the expansion game?
Green’s is an independently-owned supermarket, with a turnover of about £10 million per year and a staff of 100. It is located in Bosney, a small town of 25,000 inhabitants on the south coast of England, with a surrounding rural catchment area of about a seven mile radius with a similar-sized population. None of the ‘big supermarket players’ (Tesco, Asda, Sainsburys) have been allowed to set up in Bosney or surrounding area (because the local council is trying to maintain the character of the town), but outside of this Green’s comes in to strong competition with the major chains. By careful buying, Green’s can compete with the majors in terms of food product range and prices, but sadly not in terms of profits per square foot.
Green’s has been under family ownership and control since it was started forty