Damn Heels (A)
(4 pages of text)
A young business student at a university in Ontario must decide whether to launch her entrepreneurial venture — selling women’s foldable flats — and how, in the Toronto market. Damn Heels (A) highlights the research done by the entrepreneur leading up to this decision, including the marketing (product, price, promotion, and placement) decisions she faces, consideration of the competitive retail shoe industry, and some of the first steps for a new business evaluation — unit contribution and financial profitability projections.
This case can be taught at the undergraduate level as an introductory managerial accounting or financial analysis case. The case is also suitable for an entrepreneurial or marketing course since it touches on the 4 Ps (product, price, promotion, and placement) and has the backbone for a competitive analysis (e.g. students can contrast the 4 Ps of the various competitors with those of Damn Heels). Students are expected to perform the following case analysis:
- Identify costs relevant to the decision and categorize them as fixed or variable costs.
- Calculate unit contribution and contribution margin ratios.
- Project profitability at the low, probable, and high estimates.
Canada, Small, 2009
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