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Write a 3-page business case analysis of Target. Pls flow instruction and rubrics for writing case. use Case to create a minimum 25 slide PPT. Sample of quality and expectation of Powerpoint is attached. this due Tueday night April 4. Pls ensure calculations are correct and clearly explained/

Instructions for how to write a business case
Your case writing should be your original work, if you need to reference any data from outside resources and

you have to do list as references.

Internet search for case solutions will not be allowed. Each case has its own individual aspect and it is unique. Any

plagiarism will lead to fail of the course.

What is a ‘business case’?

A business case is a scenario that gives you the opportunity to identify business issues, apply theory, analyze
problems and recommend course of future action. Business case is based on real life but maybe fictional for some


What is your role as an analyst?

In analyzing a case your role is to

• identify the problem(s) in the situation presented in the scenario
• analyze the key issues within the context of theory presented in your case
• develop and compare alternative solutions to the problems with qualitative and quantitative factors
• analyze the advantages and disadvantages of various possible solutions
• select the best solution and make recommendations for future action
• write up your case analysis in appropriate case analysis report format.

Why are you asked to write case analyses?
You are asked to write case analyses to enable you to demonstrate that you can apply conceptual frameworks from
your course to real situations and integrate topics in your analysis.

Case analysis also enables you to improve your critical thinking and analytical abilities, your ability to evaluate sources of
information and your written communication skills.

Case analyses can also be used in employment interviews to assess:

• how you think
• how you structure problems
• your ability to analyze, solve and recommend decisions

What are the stages in preparing a case analysis?
There are a number of stages in preparing a case analysis. These are:

• understanding the case
• identifying the core problem in the case
• analyzing the issues in the context of a theoretical framework
• exploring alternative solutions
• analyze with qualitative and quantitative skills
• choosing the best solution with best reasoning
• making recommendations for action.

What do you need to do to understand the situation?
You first need to identify factors of the case,the following questions can guide you in doing this.

• What is the mission of the company/organization?
• Who are the “stakeholders” within the organization?
• Who are the “stakeholders” or target groups outside the organization?
• What is the formal decision making process in the organization?
• What are the informal decision making processes in the org


Case-Study Grading Rubric
Evaluation Dimensions Performance Rating Score
Competent Accomplished
1 2 3 4 5 6
Case-Study Component Areas – Grading Criteria
Identification of Issues Does not recognize the problems or issues of the case, or identifies problems and issues that are not based on facts of the case; displays little understanding of the issues, key problems, and the company’s present situation and strategic challenges; executive summary does not present a clear overview of the case issues; main points are not outlined, or cannot be understood With a few exceptions, identifies and outlines the principal problems and issues in the case; demonstrates an acceptable understanding of the company’s issues, current situation, and strategic challenges; executive summary provides an adequate overview of the case issues and problems; summary is missing a few minor points, but meets expectations Presents accurate and detailed descriptions of the problems and issues central to the case; provides a well-focused diagnosis of strategic issues and key problems that demonstrates an excellent grasp of the company’s present situation and strategic challenges; descriptions are compelling and insightful; provides a thorough and effective executive summary
Connections to Theoretical and Empirical Research Makes little or no connection between the issues and problems in the case and relevant theoretical and empirical research, or the connections identified are weak or inaccurate in many respects Identifies and outlines connections between some of the issues and problems in the case and relevant theoretical and empirical research; the connections identified are adequately elucidated Makes appropriate, insightful, and powerful connections between the issues and problems in the case and relevant theory and empirical data; effectively integrates multiple sources of knowledge with case information
Quantative and qualitative Analysis and Evaluation Simply repeats facts identified in the case and does not discuss the relevance of these facts; fails to draw conclusions, or conclusions are not justified or supported; does not present relevant research or data; shows no critical examination of case issues Provides an acceptable analysis of most of the issues and problems in the case; in most instances, ana

Choice of Capital Structure

California Pizza Kitchen


Porter’s Five Force Analysis

Problem Identification

Choice of Capital Structure Theory

Capital Structure Calculation & Analysis



CPK Background



Company Background
• Company profile
• Revenue resources and marketing expenses
• Challenges and longer term outlook

CPK Background

l California Pizza Kitchen – Casual dining restaurant chain that specializes in California-
style pizza

l Started in 1985 by defense attorneys Larry Flax and Rick Rosenfield ↘

Company Profile

l By 2007: 213 locations in 28 states and 15 international
franchises in 6 foreign countries ( while sti l l California-centric,
41% of the US stores in California)

l In July 2007, CPK got
–Profit over $ 6 million
–Revenue growth with comparable restaurant sales up > 5%
— Conservative finance policy of avoiding debt financing

l Core customers: average household income of > $75,000


CPK Background

CPK derived its revenue from 3 resources

• Sales at company owned restaurant (500 units, main revenue resource)

• Royalties form franchised restaurant (Init ial payment of $50,000-$65,000 for each location
opened and 5% gross sales)

• Royalties from a partnership with Kraft Foods(sell CPK-branded pizza in grocery stores)

Revenue Resources and Marketing Expenses

Marketing expenses

• 50% spent on menu-development costs

• 50% consumed by typical marketing strategies such as PR,
direct mail, outdoor media.

• 1% of sales on advertising , far less than 3%-4% industry
average, value word-of-mouth marketing


CPK Background

Some chal lenges restaurant industry face:

Increasing commodity prices
(high gas prices)

Higher labor costs(minimum
wage rate increased to $7.25
per hour from $5.15)

Deteriorating housing wealth

Intense interest in the industry
by activist shareholders

CPK royalt ies increased 37% and 21% in Kraft
partnership and franchises respectively, food,
beverage costs remained constant at roughly 24.5%.

Labor costs of CPK declined from 36.6% to 36.3% of
total revenues

CPK’s cl ientele average income is higher than other
competitors, so less affected by decreasing housing

One force to push CPK to adjust i ts capital structure.

Challenges and Longer Term Outlook

Longer term outlook for overall restaurant demand – stronger 💪💪💪
A study by NRA projected customers would increase the percentage of food
dollars spent on dining out from 45% to 53% by 201

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