Quantitative Case Analysis
Word Count: 2,647
Executive Summary
The concept of opening a retail business at Western University London campus is not a new idea to Matthew Zabloski and Richard Joffe. The idea of Dunes Inc. came to them early in the year, and for the last several months they have been putting together a business plan. Dunes will offer tanning services and a variety of healthy living products to the persons using Western University facilities. They have the competitive advantage of being within walking distance for their target market. The problem facing the two partners is whether or not this business will provide enough return to be worth the quantitative investments they would need to make.
Dunes location is a major strength. They are located at the heart of the University of Western Ontario, a convenient location for low mobility students, much of whom are included in their target market. Richard and Joffe, founders of Dunes, are full-time students at the school and cannot fully dedicate themselves to the business. This is a major weakness. Another is the 10 year lease. If the company is not successful, they are still responsible for paying the lease in full. But first they must secure the lease. Because a business of this nature has never been located at the school before, there is much scepticism amongst faculty to promote a potentially unsafe practice. This is a huge threat to the existence of Dunes. Western is one of many universities that are expanding. Each year, it brings in more students from different areas. These students are potential customers for Dunes, and represent a major opportunity for the company.
The problem is that Richard and Michael have not calculated whether the financial returns from Dunes will exceed the quantitative investments. The time they invest is a cause for questioning whether Dunes is worth it. The money they invest is a cause for questioning. Lastly, the calculated risk they are taking significantly adds to their dilemma.
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Executive Summary
The concept of opening a retail business at Western University London campus is not a new idea to Matthew Zabloski and Richard Joffe. The idea of Dunes Inc. came to them early in the year, and for the last several months they have been putting together a business plan. Dunes will offer tanning services and a variety of healthy living products to the persons using Western University facilities. They have the competitive advantage of being within walking distance for their target market. The problem facing the two partners is whether or not this business will provide enough return to be worth the quantitative investments they would need to make.
Dunes location is a major strength. They are located at the heart of the University of Western Ontario, a convenient location for low mobility students, much of whom are included in their target market. Richard and Joffe, founders of Dunes, are full-time students at the school and cannot fully dedicate themselves to the business. This is a major weakness. Another is the 10 year lease. If the company is not successful, they are still responsible for paying the lease in full. But first they must secure the lease. Because a business of this nature has never been located at the school before, there is much scepticism amongst faculty to promote a potentially unsafe practice. This is a huge threat to the existence of Dunes. Western is one of many universities that are expanding. Each year, it brings in more students from different areas. These students are potential customers for Dunes, and represent a major opportunity for the company.
The problem is that Richard and Michael have not calculated whether the financial returns from Dunes will exceed the quantitative investments. The time they invest is a cause for questioning whether Dunes is worth it. The money they invest is a cause for questioning. Lastly, the calculated risk they are taking significantly adds to their dilemma.
There are