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Product cover image for Heartcrafted Foods: Expansion in Trinidad and Tobago

Heartcrafted Foods: Expansion in Trinidad and Tobago

Ian Dunn, Stefanie Tom

Product #:W27285
Supplier:Ivey
Discipline:General Management
Setting:Trinidad and Tobago, 2021
Details:Case (PDF) • 10 pages • 2022-05-05 (Rev: 2023-02-16)

Subjects:

Cash flowReturn on investmentCorporate financeInvestment managementManagement

Industries:

Food and beverage sector

Geography:

Central America and CaribbeanTrinidad and Tobago
Your Price:$10.54

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On August 13, 2021, Heartcrafted Foods, a catering company and cafe in the Republic of Trinidad and Tobago, was considering two main opportunities for growth. The owner and head chef had already accepted an offer to provide catering services for a local hospital that was conducting a COVID-19 mass vaccination event for the next six months. However, she had some decisions to make. Should she purchase or lease a delivery van, which would be needed to fulfill her obligations as part of the contract? Additionally, there was an opportunity to open a second cafe on the premises of the hospital. Should she consider expanding to a second cafe or focus on the reopening of the first cafe, which had been closed due to the ongoing COVID-19 pandemic?

Learning Objectives

This case is suitable for introductory courses on managerial accounting or finance at the undergraduate level. Students should have basic business decision-making experience and an understanding of the differential cash flow model, statement of cash flows, segment reporting, and ratio analysis. After working through the case and assignment questions, students will be able to
  • analyze a company’s internal capabilities, understand the context of the industry, compare it to its competitors, and evaluate its main customer groups;
  • create and analyze a statement of cash flows and a contribution analysis of different segments of a business, then select and evaluate the relevant ratios;
  • complete a qualitative analysis of future expansion opportunities;
  • create a budget for two potential opportunities;
  • complete a differential analysis (with sensitivity) and calculate the return on investment and payback;
  • justify a comprehensive and well-informed decision regarding the expansion opportunity;
  • determine if the chosen option should be funded through debt or equity; and
  • create an action plan for the proposed expansion and a contingency plan.
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Case Study: Heartcrafted Foods: Expansion in Trinidad and Tobago (English version) | Ivey Publishing