ONE ON ONE ASSESSMENT

CASE ANALYSIS

Joyce Forbes

Joyce grew up in Dobson Coleyville. She attended Bryce Primary School from where she
passed her Common Entrance Examination to Knox College . After “A Levels” she came to
UWI Mona where she acquired her Batchelor’s degree in Management Studies. Her
Batchelors Degree programme did not include entrepreneurship. Joyce continued her post
graduate education up the master’s degree level and successfully completed the Masters
Degree in Business. She moved to live in the Liguanea area where she owned an apartment.

For ten years she worked in senior positions in a financial institution in New Kingston

Two years ago she was made redundant and received a cheque for J$ 4,500,000 which
represented redundancy, pension refund, unused vacation leave payment and other savings.
She had paid up her mortgage for the apartment and owned a three year old Honda SUV for
which she had repaid the loan.

Joyce decided that she would use her redundancy to open a boutique in one of the uptown
plazas. Space was rented in the Savanna Plaza. She travelled to Miami and stocked out the
store. Investments in stocks and furniture totaled $1,500,000. Rental for the shop was
$75,000 per month, payment to a clerk in the store $50,000 per month and utilities $10,000
per month. The total monthly was expenses was $135,000

For the first six months sales per month averaged $100,000 per month

It is now one year since operations began and Joyce is now contemplating her next move.

QUESTIONS ON THE CASE

1 WHAT DO YOU THINK ARE THE FACTORS BEHIND JOYCE’S DECISION TO GO INTO
BUSINESS?

2 GIVEN THAT HER MONTHLY SALES AVERAGED $100,000 AND HER EXPENSES AVERAGED
$135,000, WHAT IN YOUR ESTIMATION DO YOU THINK SHE COULD HAVE DONE DIFFERENTLY?

3 WHAT ADVISE WOULD YOU GIVE JOYCE AT THIS STAGE IN ORDER TO CHANGE THE LEVEL
OF SALES REVENUE AND FOR HER TO MAKE A PROFIT FROM THE BUSINESS?
4 WHAT ARE THE LESSONS YOU WOULD HAVE LEARNT FROM THIS CASE AS IT RELATES TO
STARTING A BUSINESS?

Case prepared by Dr. Horace A. Williams

Ten marks for appropriate responses to each question