Be Our Guest
Be Our Guest, Inc. Case Analysis
Page 1
INDEX
1. Key success factors & company performance…………………………………………………..3 2. Bank perspective regarding the performance…………………………………………………..7 3. Bank financing perspective at the end of 1998……………………………………………….10 4. Management perspective regarding the bank financing………………………………….13 5. Exhibit 1 – Annual Income Statements (1994-1997)………………………………………17 6. Exhibit 2 – Annual Balance Sheets (1994-1997)……………………………………………..18 7. Exhibit 3 – Quarterly Income Statements 1997……………………………………………….19 8. Exhibit 4 – Quarterly Balance Sheets 1997………………………………………………………20 9. Exhibit 5 – Forecasting………………………………………………………………………………………21 10. Exhibit 6 – Annual Ratios………………………………………………………………………………….22 11. Exhibit 7 – Quarterly Ratios……………………………………………………………………………..23
Tudor Team Five
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1. What are the key success factors in this equipment rental business? How has the company performed the past few years?
Key Success Factors Five of the key success factors are as follows:
First, the location of the business is ideal for handling several projects at once. This is due to their central Boston location. The ability to handle
several projects at once gives the company a competitive edge and allows them to attain a performance as close to the full potential of the company as possible.
Second, the company’s leaders have been successful in networking to primary and secondary clients. This has aided in growing a business that is
based on a foundation of good company/client relationships. These strong relationships have led to significant repeat customers as a strong basis of the company’s revenue. Fostering these relationships throughout the years of the company’s existence has also led to sustained revenue growth year after year. This revenue growth is shown in the financials and, using the
Compound Annual Growth Rate, it can be seen that this growth in revenue has been 14.26% from 1994 to 1997.
Third, the executive
Page 1
INDEX
1. Key success factors & company performance…………………………………………………..3 2. Bank perspective regarding the performance…………………………………………………..7 3. Bank financing perspective at the end of 1998……………………………………………….10 4. Management perspective regarding the bank financing………………………………….13 5. Exhibit 1 – Annual Income Statements (1994-1997)………………………………………17 6. Exhibit 2 – Annual Balance Sheets (1994-1997)……………………………………………..18 7. Exhibit 3 – Quarterly Income Statements 1997……………………………………………….19 8. Exhibit 4 – Quarterly Balance Sheets 1997………………………………………………………20 9. Exhibit 5 – Forecasting………………………………………………………………………………………21 10. Exhibit 6 – Annual Ratios………………………………………………………………………………….22 11. Exhibit 7 – Quarterly Ratios……………………………………………………………………………..23
Tudor Team Five
Page 2
1. What are the key success factors in this equipment rental business? How has the company performed the past few years?
Key Success Factors Five of the key success factors are as follows:
First, the location of the business is ideal for handling several projects at once. This is due to their central Boston location. The ability to handle
several projects at once gives the company a competitive edge and allows them to attain a performance as close to the full potential of the company as possible.
Second, the company’s leaders have been successful in networking to primary and secondary clients. This has aided in growing a business that is
based on a foundation of good company/client relationships. These strong relationships have led to significant repeat customers as a strong basis of the company’s revenue. Fostering these relationships throughout the years of the company’s existence has also led to sustained revenue growth year after year. This revenue growth is shown in the financials and, using the
Compound Annual Growth Rate, it can be seen that this growth in revenue has been 14.26% from 1994 to 1997.
Third, the executive