Planning for Capital Investments Royal Apparels Case Study – Management Assignment Help

Assignment Task

Group Assignment – Planning for Capital Investments
Assignment Requirement
Assume yourself in the given scenario a business deciding on a specific project. You are required to answer the given requirements after carefully reading the scenario in the form of an extensive report (make assumptions where necessary). The content of the report should be organized as follows:
• Cover Page
• Table of Contents
• Executive Summary
1. Introduction
2. Requirement A
3. Requirement B
4. Requirement C
5. Requirement D
6. Requirement E

ROYAL APPARELS CASE

Daniel was recently recruited as the Financial Manager of Royal Apparels. He previously served as a junior financial executive in a similar company for the past 4 years, where he primarily focused on more operational, financial matters. Therefore, he has had no experience dealing with significant financial matters and doesn’t want to make any mistakes. Therefore, Daniel requires a detailed report from you, a talented group of MBA students, before finalizing any significant decisions. Royal Apparels is a major retail company which sells its ‘own brand’ products. It was established in 2003 and has found quick success in the Canadian apparel market. However, the company is now contemplating whether to capture a rapidly expanding overseas market by opening new retail outlets. Past experience from entering other overseas markets has shown that several factors would decide the brand’s acceptance. The potential of the market for the future can be indicated in sales for the first five years. How the brand would be accepted will likely determine year 1 sales. A cost of $500,000 was incurred to employ a consultancy firm with experience in the overseas market, to provide detailed information on the market, and to estimate the likelihood of brand acceptance. The consultancy firm estimated that there is a high chance that the brand will be well received, and sales in year 1 will be $125,000,000. Sales are then expected to increase by $50,000,000 annually.