Abstract
This case study is about the financial analysis of a company named Ravens Suns. The sole proprietor of this company is Mike, which is also doing job and holds a family that needs his attention and a quality time. However, the business also requires the time and attention to be stable and to achieve higher growth. The financial analysis that requires breakeven analysis to know how much the company is earning after covering up its fixed and variable expenses has been done. Moreover, the alternatives that is required by Mike to rearrange his business and manage his time to be available for the family has also been written. Inaddition, the recommendation for best alternative along with its advantages is also there. Finally, the disadvantages of applying an inappropriate strategy to the business have been discussed.
Keywords: time, business, analysis
Case synopsis
Raven’s Sun was founded in May 2014. It is a transport operator company that serves in unconventional Oil and Gas industry. The company has started to operate in non-residential industrial areas as the previous sector was highly competitive. This company is owned by a sole proprietor named Mike LaPlante.
The value proposition of business has determined that the time to deliveries and services adds value to the business. The necessary reputation that is needed for the success of businesses the reliability and availability. However, Mike also do the job at Calgary Fire Department and run this as the side business. Moreover, he is also blessed with a wife and the two children, and the third one is about to born.
Mark has recently invested in the business by purchasing new equipment that are necessary to expand his business. The company serves inside and outside the city. However, due to the constraints of time and availability, the single owner is operating business on his days off and weekends.
Raven’s Sun Enterprise Ltd. Harvard Case Solution & Analysis
However, the economic recession has slow down the business and a tough competition has been started. Moreover, the ending months has also been slowed due to holidays. As a result, the projections of Mike have been considered irrelevant and inappropriate. A new and fresh financial analysis had been required for projecting next 6 months to gain the business again. The deliveries and business revenues had been divided into two main categories. That is in-city deliveries and Long haul deliveries. In-city deliveries are when the distance is less than 50 kilometers and long haul deliveries are considered when the distance is greater than 50 kilometers. The costs and revenue projections have been calculated. The costs that have been implemented to provide operating transport services includes fuels, vehicle maintenance, truck tires, trailer tires, fuels additives and food. Moreover, the revenue of two fields have also been identified. Therevenues are projected at $70 per hour for minimum two hours and $80 for off-loading and on-loading for in-city distributions. On the other side, the charge for Long hauls has been projected for $1.3 per kilometer and $80 for off-loading and on-loading.
Moreover, theestimated demand deliveries that are projected according to the next 6 monthsare also been provided for both in-city and long haul deliveries........
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