Evaluating Sugar Bowl's Business Model: A Comprehensive MBA Case

This MBA case study provides a detailed quantitative analysis of Sugar Bowl's business viability, utilizing financial statements from Exhibit 1-3. It examines the forces impacting the business, including strengths like strong management and a niche market, and weaknesses such as limited operating hours and catering service issues. The analysis includes calculations of EPS and breakeven points, highlighting the need for improved customer satisfaction and revenue generation strategies. The case also explores potential options for enhancing profitability, such as focusing on bar management and evaluating different league opportunities like the Singles league versus the Zulu League, ultimately recommending strategies to increase revenue and overall business performance. This solution is available for students on Desklib.

Running head: MBA case 0
MBA CASE

MBA 1
Contents
1. Using a detailed quantitative analysis of EXHIBIT 1-3, show if Sugar Bowl is a viable business..........3
2. Which forces have the most positive or negative impact on its viability?................................................4
3 Shelby has a number of options around how to make sugar bowl more profitable. How should she
evaluate these options?................................................................................................................................5
References...................................................................................................................................................6

MBA 2
1. Using a detailed quantitative analysis of EXHIBIT 1-3, show if Sugar Bowl
is a viable business.
Quantitative analysis is a technique which is used to understand the behavior of the business with
the assistance of the statistical modeling, measurement and technique. With the help of the
quantitative analysis it becomes easy for the analysts to project the analysts into the numerical
figures.
The level of the progress and the non-progress can be determined by analyzing certain
documents which can be the balance sheet of the company, income statement and the marketing
campaigns and advertisements. These statements indicate the viability, productivity and the
profitability of the business (McDonald and Wilson, 2016). The quantitative analysis can be
categorized in terms of the financial key ratios when determining the financial position of the
business. The ratios that contribute to the quantitative analysis can be done on the basis of the
EPS, Price earnings ratio which influences the decision power of the business. From the Exhibit
1 it can be observed that except the year 2010 there are no financial obligations in the further
years. Furthermore, the EPS and the Price earnings ratio have been shown below for the period
of last two years.
Particulars 2010 2011
Net Income 67585 63793
Weighted Average Outstanding Shares 130000 130000
EPS 0.52 0.49

MBA 3
While analyzing the income statement of the business indicates the positive aspect of the
business. Income statement of the 2011 in the quarterly form indicates that the business of the
Given’s is not turning towards the positive hold. Earlier the company did not spend much on the
expenses of the marketing and thereafter there was a consistent spending of $15000 per year. The
overall revenues keep on fluctuating from the year 2006 (McDonald and Wilson, 2016).
Furthermore while studying the number of the customers, many of them are not satisfied and
most of the times it becomes the root cause of the unpredictability of the business.
No of customers needed per day Q1 2012 Q3 2011
Average $ per person 40.00 52.00
Expenses
658720.0
0
888084.0
0
Total Daily Breakeven 196.0476 203.3159
The breakeven of the customers increased from 196 to 203 customers per day. Sugar bowl needs
to take customers into consideration and introduce new policy or the strategies which can assist
and increment the revenue and customer satisfaction at the same time.
2. Which forces have the most positive or negative impact on its viability?
There is a room for the improvement for making the business more viable and profitable. The
forces that have the positive impact on the viability of the business are as follows. Sugar Bowl is

MBA 4
a kind of the business that has found niche for itself in the area of Raleigh. For analysing it the
technique of the SWOT Analysis has been taken into the fact.
Strength
 Strong business Management
 Size of the business
 Unique Product
 Niche Market
Weakness
 Cost in Catering Services
 Operating costs
 High losses
Opportunity
 New Markets are available
 Emerging markets and customer
demand
Threat
 Mature Market
 Changes in the tastes and preferences
 Volatile revenue
The foremost strength of the business is strong management that has helped the company in
achieving the profitable situations from the losses too. The size of the business also takes
command on lowering the risk factor of the company. Also due to the increment in the size the
company is able to utilize the resources more efficiently and the effectively. Lastly, the policy of

MBA 5
keeping the distinguished products to keep an X factor from the competitors. The negative
factors on the other hand are keeping the Sugar Bowl Open for only four hours from 2pm to
6pm. Though from the Exhibit 3rd and 4th it can be observed that the number of the shows
brought more through the Thursday and Sunday but the day business can also be operated.
Moreover the next negative factor is the catering service, lack of bar management and unfulfilled
need of the customers.
3 Shelby has a number of options around how to make sugar bowl more
profitable. How should she evaluate these options?
There are several options available for the Givens to make the Sugar bowl more profitable
which are as follows. Sugar Bowl shall bet rod of the catering services from the food and the
beverage management. Furthermore more staff shall be hired in the bar management. For extra
revenue and profits the two options are the Singles league and the Zulu League which has been
analyzed through the table format (Qu, Yu, and Yu, 2017).
Particulars Singles
League
Zulu
Venue
$ $
Fixed Fee 7200 750
Weekly 57600
Free t shirt 19200
Net 38400 750
Left for breakeven 750

MBA 6
From the above table the obvious choice is the Singles league as it is more inclined towards the
generation of revenue. Hence it can be concluded from the entire analysis to follow the options
and try to generate more policies and the revenue.

MBA 7
References
McDonald, M. and Wilson, H., (2016). Marketing Plans: How to prepare them, how to profit
from them. United States: John Wiley & Sons.
Qu, M., Yu, S. and Yu, M., (2017). An improved approach to evaluate car sharing options.
Ecological indicators, 72, pp.686-702.