MAPLE TREE ACCESSORY SHOP Harvard Case Solution & Analysis



The current situation of his business indicates a significant loss for the future, if he continues with the existing strategies.  To decide the most appropriate alternative, he can utilize the primary concepts of microeconomics, such as, elasticity and cost analysis. The author, Yuran Zeng, has the association with Guandong University of Foreign Studies.

Problem statement

This case involves elements of economics, marketing, strategic management and entrepreneurship. The problem statement of the case is to provide training in elasticity and cost analysis. Price elasticity of demand is hard to understand, although students sometimes have difficulty measuring it when given particular goods from the real world of business, where information is neither complete nor conceptualized.  The case analysis requires HO to engage with the fixed and variable cost concepts, which can be used to illustrate breaker analysis. In this situation, HO has many another issue like before starting the business he doesn't have a designer to design his shop, and he also don't have enough time, and he also want to reduce his cost. Moreover,before starting his business, he also analyzed that in future there are some chances that he will bear loss.

 Should Ho have accepted his friend’s free design offer?

Design offer

The initial step was to discover a shop-fitting architect. The place had to be transformed from a restaurant to an accessory shop. However,before starting a shop he needs a designer to design a shop one day when he was attempting to search for a design company on the Internet, his PDA range. It was his friend Bin calling. He asks him do you have time to go mountain biking this weekend? But he replies that he doesn't have a chance to go because I'm planning to open a shop. There is a lot of work to do. I'm afraid I cannot make it this weekend, and I'm looking for a designer for shop fitting. Then Bin replied that he would do it for him and that his designs would be free. A gift to your new shop. Ho knew that it could cost him RMB4,000 if he hired out the work. So it is the great opportunity for HO, but June to October was a high season for interior decoration, which made Bin extremely occupied. Ten days passed and Ho was all the while expecting the plan. Additional 10 days went and there was not one part of an outline coming in. As the administration was for nothing, Ho viewed it as improper to push Bin. At the point when 15th July came, Bin sent a duplicate of an attracting to Ho. Finally, the development started, which went on for a month and cost RMB25, 000. So that is not a good opportunity for HO because if it could cost him RMB4, 000 if he hired out the work....................

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