2. 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$
OBJECTIVE :
Work only for 10hours a
week per partner & encash
profit $6000 for 10 months
operations
Key issues :
1.Whether they should start the business or
not
2. Would 25000$ 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
TARGET GROUP
Working parents &
Health conscious families –
with children in schools
Total Market :
154 elementary schools
Average no. of students -
400
Total no. of students-
61600
3. BREAK EVEN ANALYSIS:
Fixed cost : 87500$
Variable cost : 2.9 $
Selling price /unit : 5.00$
Expenditure Cost ($)
Salary 36,000
Rent 18,000
Marketing 3,500
Operating 30,000
BREAKEVEN POINT (UNITS):
87500
(5.00-2.9)
= 41666(APPROX)
RECOMMENDATION:
Hiring an
administrative assistant
would help them to
encourage the venture .
Pricing the product
b/w 3$- 3.2$ for large
volume sales.
Taking loan for better
investment .
Target Councils for
parents & local
parenting magazines
for advertising.