2nd year Management Date 8.01.
2021
CASE STUDY
1. Situation
You work for a company which is developing an exciting and revolutionary new
product. Unfortunately, you have spent a fortune on the development costs of the
project. Because of this, the company is on the verge of going bankrupt. You need a
lot more money to finance the final stage of the project, and to ensure that the launch
of the product will be successful. In desperation you approach a number of banks but
they are not willing to lend you the money you need. Finally, you contact a small but
well-known bank which sometimes provides development capital for small firms like
yours. The bank receives many requests for financial assistance. If they like what they
hear, they will make a loan to a firm or invest money in it in return for a shareholding.
Instructions
Your job is to make a convincing presentation of your product to the bank. Your
presentation should take the following form:
a) Introduce yourself and the members of your (management) team (say who you
work for, what your position is in the organization and how long you have worked
for it)
b) Give a brief presentation of the company (kind of business organization, location,
company mission, business strategy, product range, markets, turnover, pre-tax
profits, size of work-force, etc.)
c) Give details about the new product you are developing (general description,
technical specifications, revolutionary features, target consumer, price, marketing
plans, production targets, etc.)
d) Explain to the bank how you see your company developing in the future.
e) Tell the bank how much money you need and on what terms.