Read the cases for Petite Shop (A) and (B) .Answer the questions at the end of both Petite Shop (A) and (B).You should be able to answer both cases in a total of 5 pages (double space 12 font ).You must show your mathematical work to support your answers.

Case 1 Questions

1. Using the information provided, prepare an estimate of the market potential for the target market at which Alice

Wood is aiming.

2. What portion of this market potential could Alice expect for Petite Shop’s market share?

3. What non-quantitative considerations should be brought into this analysis?

Case 2 Questions

1. Using the information presented in “Petite Shop (A)” and this case, prepare an estimated income statement and

return on investment calculation for the Petite Shop’s firstyear of operation.

2. What areas has Alice overlooked in her investigation?

3. Given your analysis, what would you recommend to Alice?

 

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