Ivey Publishing
The Academy: Evaluating Growth Alternatives
Product Number:
9B19B016
Publication Date:
12/20/2019
Revised Date:
12/20/2019
Length:
11 pages (7 pages of text)
Product Type:
Case (Field)
Source:
Ivey
The Academy, a local CrossFit gym in Kitchener, Ontario, was determining how best to expand its business in order to continue its growth trajectory in a highly competitive industry. The gym’s co-owner and head coach needed to decide whether to invest in upgrading The Academy’s existing facility or open a second location. He wanted to complete a qualitative industry size-up, competitive analysis, consumer analysis, and corporate capabilities size-up, in addition to a quantitative size-up, including statement of cash flows and ratios analyses. He required the chosen growth strategy to meet a hurdle rate of 20 per cent.
Learning Objective:
This case is best suited for a managerial accounting or strategy course at the undergraduate level. Students should have a good understanding of and ability to use fundamental business analysis tools before working on this case. The case could also be used as a testing vehicle. After working through the case and assignment questions, students will be able to
  • make a growth strategy decision including a potential business expansion;
  • consider various methods of managerial accounting analysis in order to produce the information necessary to make an informed decision;
  • incorporate qualitative analysis (i.e., industry, competitive, consumer, and corporate capabilities) with quantitative analysis (i.e., statement of cash flows, ratio analysis, differential analysis, and projected statements); and
  • consider the risks and potential mitigations associated with pursuing a particular decision.
    Issues:
    Disciplines:
    Accounting
    Industries:
    Arts, Entertainment, Sports and Recreation
    Setting:
    Canada, Small, 2017
    Intended Audience:
    Undergraduate
    Price:
    $5.30 CAD / $5.00 USD Printed Copy
    $4.50 CAD / $4.25 USD Permissions
    $4.50 CAD / $4.25 USD Digital Download
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