For years The Glass Slipper restaurant has operated in a resort community near a
ID: 447595 • Letter: F
Question
For years The Glass Slipper restaurant has operated in a resort community near a popular ski area of New Mexico. The restaurant is busiest during the first 3 months of the year, when the ski slopes are crowded and tourists flock to the area. When James and Deena Weltee built The Glass Slipper, they had a vision of the ultimate dining experience. As the view of surrounding mountains was breathtaking, a high priority was placed on having large windows and providing a spectacular view from anywhere inside the restaurant. Special attention was also given to the lighting, colors, and overall ambiance, resulting in a truly magnificent experience for all who came to enjoy gourmet dining. Since its opening, The Glass Slipper has developed and maintained a reputation as one of the “must visit” places in that region of New Mexico. While James loves to ski and truly appreciates the mountains and all that they have to offer, he also shares Deena’s dream of retiring to a tropical paradise and enjoying a more relaxed lifestyle on the beach. After some careful analysis of their financial condition, they knew that retirement was many years away. Nevertheless, they were hatching a plan to bring them closer to their dream. They decided to sell The Glass Slipper and open a bed and breakfast on a beautiful beach in Mexico. While this would mean that work was still in their future, they could wake up in the morning to the sight of the palm trees blowing in the wind and the waves lapping at the shore. They also knew that hiring the right manager would allow James and Deena the time to begin a semi-retirement in a corner of paradise. To make this happen, James and Deena would have to sell The Glass Slipper for the right price. The price of the business would be based on the value of the property and equipment, as well as projections of future income. A forecast of sales for the next year is needed to help in the determination of the value of the restaurant. Monthly sales for each of the past 3 years are provided in the table below. Discussion Questions 1. Prepare an executive summary case and introduction of The Glass Slipper restaurant. 2. Write a conclusion with findings on data.
Explanation / Answer
Executive Summary :
Introduction : This case is all about the present condition of the restaurant.At the same time the interests on owners James and Deena Weltee to run the business. Because they are thinking to have relax life near beach where they can enjoy the retirement.
Brief Summary :
Name of the restaurant : The Glass Slipper restaurant
Location : Operated in a resort community near a popular ski area of New Mexico.
Peak period : The restaurant is busiest during the first 3 months of the year, when the ski slopes are crowded and tourists flock to the area.
Owners : James and Deena Weltee
Vision at the time of starting : Ultimate dining experience.
Strenths : View of surrounding mountains was breathtaking,
High priority was placed on having large windows and providing a spectacular view from anywhere inside the restaurant.
Special attention was also given to the lighting, colors, and overall ambiance, resulting in a truly magnificent experience for all who came to enjoy gourmet dining.
Reputation : The Glass Slipper has developed and maintained a reputation as one of the “must visit” places in that region of New Mexico.
Case Fact :
James loves to ski and truly appreciates the mountains and all that they have to offer,
But Deena’s dream of retiring to a tropical paradise and enjoying a more relaxed lifestyle on the beach.
Problem :
After some careful analysis of their financial condition, they knew that retirement was many years away.
Solution :
They are trying a some different plan .
1) They decided to sell The Glass Slipper and open a bed and breakfast on a beautiful beach in Mexico.
2) They also interested to hire one manager & take a semi retirement
For this they would like to sale this The Glass Slipper restaurant .In case we have 3 years foretasted data .From that we can make conclusion.
Conclusion :
Given Fig.
The forecasts shown for three years 2011 , 2012 . 2013 is showing continuously growth of avg of 1.03 %.This is constant from 11 to 12 as well as 12 to 13.
As it is showing growth , there are chances that James and Deena Weltee will get good amount of price for their restaurant.
But this is steady growth means the avg growth is not increasing from 1.03 & above .So in this case they will get good price but not best being stable revenue for the restaurant.
Month 2011 2012 2013 JAN 436 444 454 FEB 419 425 439 MAR 414 423 434 APR 318 331 338 MAY 306 318 331 JUN 240 245 254 JUL 240 255 264 AUG 216 223 231 SEP 202 212 220 OCT 225 233 243 NOV 270 278 289 DEC 315 322 330Related Questions
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