Cavendish Cove Cottages Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sherry Noonan, a senior business student, is contemplating buying Cavendish Cove Cottages, a complex of 19 cottage rental units advertised to visitors. Sherry must assess this opportunity as a going concern. This case presents a unique scenario: the opportunity to implement business valuation theories in a business environment that is small, and from the view of a school-age entrepreneur. This case provides the opportunity to use the preparation, analytic, and decision making techniques of a future entrepreneur who is considering acquiring an existing business. This is complicated by the fact that the business is seasonal and only open a portion of the year. Also influencing the analysis is the deteriorating economic environment that existed at the period of the case (early 2009), leading to the likelihood of declining tourist numbers and spending on PEI. While her family may supply some of the financing to get the company, the job of raising the additional resources needed could prove challenging given the credit markets that are quite tight and Sherry's young age.

A comprehensive investigation of the financial situation of the business must be finished, strengths and weaknesses uncovered, and places for development discussed. Expenses annual revenues, and cash operating earnings must then be predicted, as well as the value of the business estimated. A recommendation, predicated on the many tools used to examine the case information, must then be made. The Instructor's Manual suggests the types of classes the case is suited for, offers a range of discussion inquiries and teaching formats, and provides a comprehensive financial investigation of the business opportunity.

PUBLICATION DATE: January 01, 2014 PRODUCT #: NA0274-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE