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Josie's Flowers

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Issue

Josie Bailer must decide whether to open a small flower shop in a new plaza opening near her existing retail box plant lot in a year’s time. She has done some research into the revenue and cost sides of flower shops.

Teaching Objectives

This case introduces students to the areas of analysis relevant to general management, including business objectives, an external analysis (opportunities and threats), and an internal analysis (corporate capabilities). Students are expected to produce rough financial projections and a qualitative analysis as reasonable bases for a business decision.

Analysis Required

Competitive analysis, consumer analysis, identification of start-up costs vs. annual recurring costs, breakeven calculations (using contribution margins).

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Tags: Entrepreneurship