Subject category:
Finance, Accounting and Control
Published by:
NACRA - North American Case Research Association
Length: 9 pages
Share a link:
https://casecent.re/p/197021
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Abstract
In May 2021 Ranjit Dodiya, owner of Dodiya Farms in Gujarat India, realizes crop farming brings many risks. Much of the 2018 harvest was ruined due to heavy rain, the 2019 harvest was hurt by a drought, and a 2020a locust attack caused further losses. Seeking a reliable second income stream, he considers whether to launch an egg-laying business. Is this a good idea? How much time will it take to recoup his initial investment? What if sales are not as high as he hopes? What if chicken feed or other operating costs are higher than planned? If he takes out loans, will the business be sufficiently profitable to service them? How likely is it that he will be able to set aside some profits from this business to insure against future floods, droughts, and other crop calamities? The case gives students an opportunity to analyze a current agribusiness operation and a proposed new operation (a Go/No-Go decision). Based on financial and operational analysis, including consideration of foreseeable adverse events that threaten crops and other foreseeable adverse events that threaten egg-laying, how attractive is this proposition? The case gives students an opportunity to analyze the case through both quantitative and qualitative technique, debate the business implications of their analyses, and offer recommendations.
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Abstract
In May 2021 Ranjit Dodiya, owner of Dodiya Farms in Gujarat India, realizes crop farming brings many risks. Much of the 2018 harvest was ruined due to heavy rain, the 2019 harvest was hurt by a drought, and a 2020a locust attack caused further losses. Seeking a reliable second income stream, he considers whether to launch an egg-laying business. Is this a good idea? How much time will it take to recoup his initial investment? What if sales are not as high as he hopes? What if chicken feed or other operating costs are higher than planned? If he takes out loans, will the business be sufficiently profitable to service them? How likely is it that he will be able to set aside some profits from this business to insure against future floods, droughts, and other crop calamities? The case gives students an opportunity to analyze a current agribusiness operation and a proposed new operation (a Go/No-Go decision). Based on financial and operational analysis, including consideration of foreseeable adverse events that threaten crops and other foreseeable adverse events that threaten egg-laying, how attractive is this proposition? The case gives students an opportunity to analyze the case through both quantitative and qualitative technique, debate the business implications of their analyses, and offer recommendations.