Ivey Publishing
Domus Developments: To Build or Not to Build?
Product Number:
9B15B006
Publication Date:
05/27/2015
Revised Date:
12/14/2016
Length:
11 pages (6 pages of text)
Product Type:
Case (Field)
Source:
Ivey
The project manager at a development company is contemplating the future of the firm’s next innovative development project, which had originally been conceptualized in 2008, but for various reasons, had not yet come to fruition. The project manager wants to evaluate the venture from a financial viewpoint, including the company's ongoing cash position should the company go ahead with the building process; he also wants to assess other relevant qualitative considerations. Alternatively, the company could sell the land, which has appreciated considerably in value. All decisions would take into account the company’s goals and reputation in the industry.
Learning Objective:
Students are introduced to future-oriented decision-making and cash budgeting as a quantitative analysis tool. Students must weigh the implications from both their qualitative analysis and quantitative analysis in their decision. The case can also be used to introduce students to spreadsheet software and its uses as a business tool for decision-making. Students are asked to perform the following tasks:
  • Identify corporate strengths and weaknesses.
  • Analyze the company’s potential customers and the demand for North Point’s offering within the current market.
  • Assess the pros and cons of developing versus selling the land, and suggest implications that can be drawn from this analysis.
  • Prepare a 24-month cash budget for the development.
  • Make a decision and defend it.
    Issues:
    Disciplines:
    Accounting,  Entrepreneurship
    Industries:
    Construction
    Setting:
    Canada, Small, 2013
    Intended Audience:
    Introductory
    Price:
    $4.25 CAD / $4.25 USD Printed Copy
    $3.75 CAD / $3.75 USD Permissions
    $3.75 CAD / $3.75 USD Digital Download
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