ServiceForce: Scaling up Financing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The creator of ServiceForce, a firm that supplies repair and maintenance for motorized two-wheel vehicles in India, has a dilemma about whether he should sell the rights of his franchisee business, join hands using a venture capitalist, borrow funds for competence building or find the business grow through franchising. The start-up was commenced with his own money and the family investments. Only 18 months has shown great accomplishments with a mobile workshop to service industrial and rural clients, two service stations along with a system of card packages that enabled customers to pre pay for a range of services. The workers are overjoyed, as well as the organization is a recognized brand for quality workmanship and customer satisfaction and add to the business well being by participating in customer promotion schemes.

However, rivalry from mutual vehicle manufacturers' service stations and unorganized garages is growing in tandem together with the skyrocketing sales of two wheel vehicles, notably to the younger demographic. To be able to cultivate, the organization is at a junction: should it make use of cash to ramp up the development of the business through capability building that is new or invest in more franchises? Should the holder accept the offer from a venture capitalist, which will lead to losing some management or the offer to buy the franchise rights from him outright? Ashutosh Dash is affiliated with Management Development Institute.

ServiceForce Scaling up Financing case study solution

PUBLICATION DATE: October 03, 2013 PRODUCT #: W13418-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING