IMD-3-1781 © 2007
Hamilton, Stewart; Turpin, Dominique; Hutton, Sarah
Bicicleta Ferreira; a Brazilian bike producing business; is a household corporation with a fairly effective past and an unsure future. An offer projected by a significant chain of outlet store brings the family-dominated executive committee to the point of a choice concerning the future of the company. The case needs an extensive analysis of the monetary ramifications of the proposed offer; which need to be then thought about in combination with the tactical positioning of the business in the context of the Brazilian market as a whole.
Knowing goal: Participants will have some hands-on practice in evaluating a proposed offer from a tactical and monetary perspective. The monetary details provided provides itself to the computation of a variety of various procedures consisting of minimal expenses; the overall needed financial investment; yearly contributions; evaluation of expense of capital; return on equity; breakeven analysis and monetary take advantage of.
Subjects: Family business; Financial analysis; Investment appraisal; Strategy; Manufacturing; Working capital; Factory capacity
Settings: Brazil; Bicycle manufacturing; Wholesale and retail.; Turnover R$27.6m; Assets of R$20.6m; Early 2007
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