Vanderbilt Financial Services: Assessing Future Opportunities
(7 pages of text)
The owner and sole shareholder of a Vanderbilt Financial Services brokerage in London, Ontario, must decide on the best course of action to grow his business. In 2018, the owner was concerned that he had not accomplished as much as he could with his current business strategy. He was a financial adviser specializing in life insurance and mutual fund products, and he was looking to find new ways to grow. The owner had come up with two options to help achieve growth within his brokerage: enter the real estate market by building business office space to use and to rent to prospective tenants, or build a larger team of life insurance and mutual fund representatives to help manage his growing client base.
This case is best suited for an introductory managerial accounting or finance course at the undergraduate level. Students will need to have an understanding of basic business analytical tools and the ability to apply the appropriate tools for analyzing the case. The case can also be used as a testing vehicle. Full analysis of the case will give students the opportunity to do the following:
- Complete an external (industry, competitive, consumer) analysis.
- Complete an internal (corporate capabilities, statement of cash flows, ratio) analysis.
- Qualitatively assess the real estate opportunity.
- Qualitatively assess the opportunity for the owner to expand his team of representatives.
- Complete a differential analysis for the real estate and team-expansion opportunities.Make a decision, as the owner, on the best course of action to grow the business.
- Project a statement of earnings for 2018 and 2019.
- Create an action plan and a contingency plan.
Finance and Insurance
Canada, Small, 2017
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