Iskall Arno Inc. Harvard Case Solution & Analysis

Iskall Arno Inc. Case Study Solution

  1. Expand market eastward & southward
Expand market eastwardExpand market southward
Cash flows$37.50$32.50
Risk adjusted NPV11.078.43
IRR21.4%18.8%
Factual projectNoNo
Core competencyYesYes
Internal potentialYesYes
Project riskMediumMedium
Incremental riskMediumLow

Both of the projects had been quantified, it is to notify that the eastward expansion had the potential to bring desirable profits to company than southward, eastward expansion project encompassed medium level of project & incremental risk, also sales were the core competency which couldn’t be avoided.

 

  1. New product line and new advertising campaign
New product lineNew advertising campaign
Cash flows28.504.00
Risk adjusted NPV7.880.58
IRR20.5%16.2%
Factual projectNoYes
Core competencyYesYes
Internal potentialYesYes
Project riskMediumMedium
Incremental riskNoNo

 

Evidently, the new advertising campaign and new product line were quantified, and the cash flows for the advertising campaign were relatively more than new product line with the medium project risk.

  1. Theme park
Theme park
Cash flows$134
Risk adjusted NPV0.58
IRR28.7%
Factual projectYes
Core competencyYes
Internal potentialYes
Project riskHigh
Incremental riskHigh

 

However, the cash flows were positive but the risk associated with the project were high considering number of reasons. It was a core competency of company to add value to the company by orienting their strategies.

Recommendation

After taking into account the necessary fundamental associated with each project, it could be recommended that the company should’ve expanded market eastward it would’ve gained maximum profit returns as the positive or higher NPV ensuring the feasibility of project in long run. Additionally, the risk related to the project were medium making it most viable amongst all proposed projects. The analysis of each projects in respect to the company competency in key project activity, associated level of risk and internal potential, this recommendation could be provided in order to avoid any inevitable situation and to maximize the profit return and market share through business expansion within limited budget..........

 

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Other Similar Case Solutions like

Iskall Arno Inc.

Share This