Vrio Analysis of Bel Brand The Laughing Cow Challenge Case Analysis

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Vrio Analysis of Bel Brand The Laughing Cow Challenge Case Solution

Vrio AnalysisVrio Analysis of Bel Brand The Laughing Cow Challenge Case Study Solution is a distinguished name of a Whisky company, located at Vancouver Island, Canada. Not most likely to the other Whisky Company, Bel Brand The Laughing Cow Challenge decided to offer Whisky in barrels rather of bottles, in order to differentiate its Whisky form its rivals. Bel Brand The Laughing Cow Challenge has concentrate on an organisation design with a low capacity production, the special quality of whisky targeted at a specific niche clients and offered in barrels.

Problem Statement

Elsa Bel Brand The Laughing Cow Challenge is fretted about the rising quantity of overhead costs, which can not be decreased if the worth and quality of the product is sustained. She has different queries related to the profitability of her service model, and about the improvement of its operations of the business.

Income Statement

Critical Analysis of Bel Brand The Laughing Cow Challenge

To assess the financial position of the company, the business is required to prepare the monetary statements including; income declaration, balance sheet and cash flow statement. From the monetary statements given up Exhibition 1, 2, and 3. It might be seen that business design of the business is fairly profitable even after high overhead costs. The business has an earnings in its first year of operations and a bottom line in year. The primary reason for the net loss is the decrease in the amount of barrels sold to general clients from 150 barrels to 100 barrels. On the other hand, the general business model is profitable.

From the above analysis of financial statement, we have the list below recommendations;

• To establish the operations of business of Vrio Analysis of Bel Brand The Laughing Cow Challenge Case Study Solutions, Bel Brand The Laughing Cow Challengeshould switch the second hand equipment with a brand-new one using its money capital or by external financing because, the production devices used is outdated and does not offer the optimal output, thus, Bel Brand The Laughing Cow Challenge must switch this equipment with a brand-new one using its cash resources or by funding through external sources.
• Bel Brand The Laughing Cow Challenge ought to also focus on introducing brand-new flavors of bourbon by designating a share of its resources on Research study and Development.
• The company must expand its production capacity in order to reduce the likelihood of the decrease in production levels due to increase in the sherry rates during the period of sales growth.
• As defined in the previous analysis, the bottom line in the year is due to the reduction in unit sales, hence, Bel Brand The Laughing Cow Challenge needs to show certain sales development methods for instance, increasing advertising and marketing activities, expanding towards new markets, etc., in order to increasethe net earnings.

Cash Flow Statement




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