Ice Delights Case Essay

4529 Words Feb 23rd, 2011 19 Pages
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 …show more content…
Attractiveness of the project was seen in:

1. Possibility of making almost 10 million in 10 years time with how they perceived low risk and high return opportunity.
2. Relatively little amount of capital required for a bigger return, including the ability of having no liabilities after 4 years.
3. Major plus was seen in acquiring rights to entire state of Florida, which they thought had a lot of potential for gelati/café concept presently and in the future. Florida market with warm climate, relatively wealthy population and friendly lifestyle showed the potential for the business growth and profitability.
4. As they noted it was a perfect time and age to take a risk, as opposed to waiting for the graduation, when they might not have the same opportunity.
5. Additionally, market did not seem oversupplied so coffee, ice cream and pastries could have a demand among broad groups of customers.

All of the pros given above lead the three to go ahead and make a deal with Icedelights parent company which turned out to be restrictive and dangerous for the franchisees. According to the deal, the owners (Mark, Paul and Eric) will not have a control over the real estate and the product, so it would not be truly their own business. Though the parent company seemed

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