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Compact case
Case
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Reference no. A01-07-0004
Authors: Graeme Rankine
Published by: Thunderbird School of Global Management
Published in: 2007
Length: 4 pages
Data source: Published sources

Abstract

Aussie Pies, Inc was established in Seattle, Washington in 2005 after Anna Amphlett and Andrew Ferris discovered Aussie meat pies on a vacation to Australia. The meat pie, a hand-sized pot pie made with pastry and filled with minced (ground) beef and gravy, is consumed as a takeaway food snack in Australia. To obtain financing from Bank of America, the company''s business plan initially forecasted sales of a little over one million dollars in 2006, the first year of operations. But with an aggressive sales and marketing campaign, sales reached $6 million in 2006. Although sales greatly exceeded their expectations, Amphlett and Ferris were disappointed that net income in the first year was only $786,000 and that the company had cash on hand of just $200,000 at the end of 2006. This case enables students to prepare a statement of cash flows for Aussie Pies, and evaluate the company''s cash flow situation in its first year of operations. The case also allows students to evaluate the company''s first-year profit performance. The case is a continuation of Aussie Pies (A) and (B), but it can be used as a stand-alone case since it provides sufficient background on the company''s strategy, operations, and financial situation.
Location:
Industry:
Other setting(s):
2007

About

Abstract

Aussie Pies, Inc was established in Seattle, Washington in 2005 after Anna Amphlett and Andrew Ferris discovered Aussie meat pies on a vacation to Australia. The meat pie, a hand-sized pot pie made with pastry and filled with minced (ground) beef and gravy, is consumed as a takeaway food snack in Australia. To obtain financing from Bank of America, the company''s business plan initially forecasted sales of a little over one million dollars in 2006, the first year of operations. But with an aggressive sales and marketing campaign, sales reached $6 million in 2006. Although sales greatly exceeded their expectations, Amphlett and Ferris were disappointed that net income in the first year was only $786,000 and that the company had cash on hand of just $200,000 at the end of 2006. This case enables students to prepare a statement of cash flows for Aussie Pies, and evaluate the company''s cash flow situation in its first year of operations. The case also allows students to evaluate the company''s first-year profit performance. The case is a continuation of Aussie Pies (A) and (B), but it can be used as a stand-alone case since it provides sufficient background on the company''s strategy, operations, and financial situation.

Settings

Location:
Industry:
Other setting(s):
2007

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