Entrepreneurship, Analysis of business problems.
Masters in business administration, Entrepreneurship management.
The CEO of Afrotouch Brands, Mr Emeka Emmanuel, must decide what level of investment his company would need to implement to increase its market share and revenue, thus ensuring adequate business competitiveness. Afrotouch Brands was among the leading names in gift items and indoor furniture in Nigeria. Despite the business main outlet in Victoria Island, the highbrow commercial centre in the city of Lagos, it has other high-profile outlets in Port-Harcourt and Abuja. From the very beginning, Afrotouch Brands attracted a lot of well discerning individuals who patronized the business based on the quality, the wide variety, the uniqueness and the lovely ambience of the showroom. The case describes the various investment alternatives needed for business expansion and discusses the probabilities of possible outcomes. Afrotouch Brands could maintain the medium scale indoor furniture they are currently doing, embark on a large aggressive investment to expand the indoor medium scale furniture to a large scale, maintain their business strategy in gift items and accessories or invest in outdoor furniture manufacturing. The challenge is to decide which of these alternative investment strategies the company should undertake in view of the associated levels of risk and uncertainty inherent in their implementation.
Expected learning outcomes
This case study teaches students the following: fundamentals of decision trees construction; calculating and understanding expected monetary values; assessing probabilities; determination of risk profiles for each decision alternative; display of risk profiles graphically; and identification of business alternatives.
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CSS 3: Entrepreneurship.
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