Case Study on RELE-Rouen: Language Immersion in Normandy Executive Summary Maxime is the co-founder of RELE-Rouen, a franchise language school under RELE at Rouen, France. The business took a downturn during the economic crisis from 2009 to 2011 and it has been losing money for three consecutive years. The franchise contract with RELE is due for renewal in two month. At this time, Maxime is presented with three options: 1. Renew franchise contract with RELE 2. Switch to OILT programs 3. Sell the building to EFEL This report first explored the constrains that Maxime faces in this decision making process. And then the three options are analyzed and compared in details by using a set of criteria, including financial return, franchise …show more content…
One of the possible reasons can be that RELE wanted to avoid new investment in selling to a new segment during crisis while their main focus was to maintain profitability of their own center. It is reasonable to assume that Maxime and Beatrice have a stronger bargaining power now given the fact that they have been approached by OILT and the economy will recover more in 2012. It is estimated that RELE-Rouen will take a profit of close to €91,000. From the calculation, it is clear to see that the profitability of RELE-Rouen is directly affected by the types of programs they can offer. If RELE put a stop to their weekend program, they will have another year of loss. Option 2 – Switch to OILT programs It is assumed that they will be offering both French and English classes during weekday and weekend with OILT. But without a clear understanding of the new targeted market, it is difficult to estimate a sales number. In this calculation, instead of looking at the profit based on an assumed number of sales, the profitability of the OILT programs is evaluated using the same level of sales as proposed in Scenario 3 with RELE. The comparison of the profitability can reveal the different franchise fee structure and its impact on profitability. It is also expected that certain amount of initial investments is required when switching to OILT. But at this stage, there is not sufficient information yet. The calculation simply assumed a similar cost structure as RELE, and did
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
Marcel is not making his marginal costs/ His saving are depleting. The restaurant is faced the prospect of closing.
This case analysis summarizes the outcomes of the performance, problems, possible solutions and recommendations for Spring Princess based on the results in the Qutopian Market days on the 28th September and 12th October, 2013. Spring Princess made a profit of Q$3,370 by selling out 68 units in total with 1 stock on hand. Spring Princess was the niche player the two competitors which are Thrifty Threads and To Dye For by having a %30.92 of market share.
Read Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61 and post a draft case study to the discussion board. Identify the Facts, Issue, Holding, Reasoning and Disposition. Case study #1 will be due week 3. This exercise will help you work through the reading a case prior to receiving a grade. Use the LEXIS NEXIS database through the Webster library to access the case.
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
As Motorking Corporation considers introducing its now “gas extender” product into the market, the management must consider various factors to determine if this is a good financial move. The production manager needs to determine if the product will generate a profit for the corporation, how much product is expected to sell to determine how much to produce and how much to outsource.
22. Which empire destroys the Jerusalem temple in 587/586 BCE and exiles the society’s elite?
When reviewing the market research provided by the tourist bureau we can capture the market a little better to determine which company to choose. By utilizing this information, we can conduct that he needs to choose a franchise that will meet the needs of the younger generation and within a target salary. While there are some larger hotel chains in the area determining whether a holiday in or a days inn is in his best interest. Choosing a franchise agreement is a decision that will offer the owner the benefits and brand strength necessary to survive the trending market. ("Franchise Agreements vs. Management Agreements: Which One Do I Choose?, by Nelson Migdal," 2014).
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
Question #1: How would Sheryl Sandberg’s leadership style be described based on the four behavioral leadership styles?
In business there are no guarantees for success. Skills, knowledge, great motivation and honest evaluation of ability to carry out and then manage the operations are just some of the requirements that determine the probability of the successful project. Success is never automatic and does not rely on luck. There are no ways to foresee or eliminate all of the risks that might affect successful operation of a new business. However detailed planning, thorough analysis and well-carried out organization create good potential for a new business. In the provided case study, we will assess the probability of success for Icedelights franchise in Florida. Analysis will be done through evaluation of each step in the decision making process, close
As we can see from the figures and the information given in the present case, the company is very profitable due to the ambition and well management done by its owner Mr. Jones. In this regard, we can see in “Table 2 in the spreadsheet”, that the company is taking advantage of the 2% discount offered by suppliers saving around $75,000.00 per year.
As mentioned in the introduction of the mini case, Hobby Horse Company, Inc. (HH) experienced a tough year in 2011. HH opened up a number of new stores but experienced a poor Christmas season. Christmas season is the biggest sale period for retail stores. As a result, bad Christmas sales performance played a big part of HH’s loss for year 2011. As we computed the financial ratios for HH, we can see the effects from new stores openings and poor sales performance.