CASE ANALYSIS PACK-ITS
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Transcript of CASE ANALYSIS PACK-ITS
CASE ANALYSIS OF PACK-ITS
PRIYANKA BANERJEE PGDM2 1523
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Case synopsis:6 students are fidgeting over their idea of new venture “Pack-ITS” . Its an idea about serving healthy lunch to the elementary
schools in Ontario, London . They can only invest 10 hours a week each partner with
the Investment of 25,000$
Key issues : 1.Whether they should start the business or not 2. Would 25000$ would be enough to venture it ,
with a loss. Minimum administration required is 80 hours where
they can only spend 60 hours a week. Lack of experience
OBJECTIVE :Work only for 10hours a week
per partner & encash profit $6000 for 10 months
operations
Company Background:6 management students are fidgeting over their idea of new
venture “Pack-ITS” . Its an idea about serving healthy lunch to the elementary schools within Thames Valley District School
Board in Ontario, London .
TARGET GROUPWorking parents &Health conscious families –with children in schools
Total Market :154 elementary schools
Average no. of students -400Total no. of students- 61600
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RECOMMENDATION: Hiring an administrative assistant would
help them to encourage the
venture . Pricing the product
b/w 3$- 3.2$ for large volume sales. Taking loan for better investment .
Target Councils for parents & local
parenting magazines for advertising.
BREAK EVEN ANALYSIS:
Fixed cost : 87500$Variable cost : 2.9 $Selling price /unit :
5.00$
BREAKEVEN POINT (UNITS):87500
(5.00-2.9)= 41666(APPROX)
Expenditure
Cost ($)
Salary 36,000Rent 18,000Marketing 3,500Operating 30,000