Case Study Analysis- Lady M by Deepak for GGU

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School

Golden Gate University *

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Course

300.C1

Subject

Business

Date

Jun 21, 2024

Type

pdf

Pages

4

Uploaded by MateProton24101

1 A case study analysis: The Valuation and Financing of Lady M Confections by Deepak Student ID: 609585 Master of Business Administration Golden Gate University, San Francisco, CA Google Drive link for Excel sheet: https://docs.google.com/spreadsheets/d/1yn5MXPm_TBz8KYkmY8d2cHU6FJlIzFmn/ed it?usp=sharing&ouid=115515844216057711288&rtpof=true&sd=true September 09, 2023
2 1. How many cakes would Lady M need to sell in a year in order to break-even? Does this number seem feasible? Answer: Lady M would need to sell 23,600 units of cake in a year in order to break-even. The total fixed expenses in the first year is $943,994 while the contribution equals to $40, making the total of cake that Lady M needs to sale in one year in order to reach break- even is 23,600 for the first year when it opens the World Trade Center location. This figure will give Lady M boutique a needed amount of 65 cakes per day to sale. It is feasible to sale 23,600 unites of cake per year. This assumption is based on the area of the World Trade Center forts customers, the surrounding businesses, and its opportunities to expand its target audience. The boutique can be a way to attract people in the professional area and upper class, which will increase the number of customers. 2. What is your recommendation? Should Romaniszyn open the new location in the World Trade Center? Answer: Based on current projections, opening a new location at the World Trade Center appears promising. However, the recommendation shouldn't solely rely on replicating the sales patterns of the Bryant Park location. Instead, it should focus on leveraging effective marketing strategies unique to the World Trade Center. While following the Bryant Park model, Lady M would need to sell 39 cakes daily to break even. Therefore, the World Trade Center location should aim to sell an additional 26 cakes daily. The prediction shouldn't hinge solely on Bryant Park's revenue, as customer preferences and promotional techniques may differ significantly. To make sales feasible, Lady M could employ various marketing strategies, such as local newspaper and magazine ads, direct mail, TV commercials, and social media promotions. Targeting nearby businesses with postcards and special reward packages could also be effective. Embracing technology, like apps, online ordering, or AI, would enhance the customer experience and boost sales. Considering these assumptions and marketing strategies, it is
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