CASE ANALYSIS OF PACK-ITS

PRIYANKA BANERJEE PGDM2 1523

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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$

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

OBJECTIVE :Work only for 10hours a week

per partner & encash profit $6000 for 10 months

operations

Company Background:6 management students are fidgeting over their idea of new

venture “Pack-ITS” . Its an idea about serving healthy lunch to the elementary schools within Thames Valley District School

Board in Ontario, London .

TARGET GROUPWorking parents &Health conscious families –with children in schools

Total Market :154 elementary schools

Average no. of students -400Total no. of students- 61600

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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.

BREAK EVEN ANALYSIS:

Fixed cost : 87500$Variable cost : 2.9 $Selling price /unit :

5.00$

BREAKEVEN POINT (UNITS):87500

(5.00-2.9)= 41666(APPROX)

Expenditure

Cost ($)

Salary 36,000Rent 18,000Marketing 3,500Operating 30,000