Yalla Momos: Expansion Dilemmas of a Small Business
(5 pages of text)
In 2015, the owner and the founder of a restaurant business in Dubai was concerned about the company's future expansion and growth. Although it was doing well in terms of profitability, a financial forecast was required for the following year, particularly in light of tough competition in the restaurant business in Dubai.
The case can be used in an introductory management accounting course at the undergraduate, graduate, or postgraduate levels. It presents students with the opportunity to
- understand the dynamics of the food industry in Dubai;
- understand the relevant factors to be considered in the decision to expand;
- examine the various issues faced by a typical small restaurant, and determine how to resolve these with the help of CVP analysis;
- explore the interrelations between cost, volume, and profit by applying CVP analysis techniques and by identifying the break-even point and the margin of safety; and
- critically evaluate the impact of uncertainty on projected sales using the sensitivity model.
Accommodation & Food Services
United Arab Emirates, 2015
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download