Case ID: 0061
Solution ID: 13707
Words: 644
Price $ 75

Damned Heels (A)

Case Solution

Hailey Coleman’s business idea looks great on paper; it is a product that is needed, but not one that has been separately identified in the market. The key to success in this business is brand management. Flat ballet shoes are nothing new, but the concept of using them as a replacement of heels, after a night out, is something that will need to be properly conveyed to the target market. This raises many questions regarding the business proposal. The foremost question is the business’ financial capacity. 'Foldable flats' is a simplistic product that can be easily outsourced for manufacturing, and, therefore, requires no initial investment on fixed assets. In addition, the only fixed costs to be incurred are storage rent and website operating costs.

Excel Calculations

·         Projections

·         Consignment fees(stores)

·         Profit before tax

·         Taxes 13%

·         Net profit

·         Breakeven

·         Cost per unit

·         Profit per unit  

Questions Covered