Centre for Business School of Management BUS 3001 - Strategic Management Academic Year: 2021-22 Term: Winter Case 2: 442 McAdam Type: Group case study with peer evaluation Response format: PowerPoint All responses must be supported by qualitative and quantitative data from the case study (unless the question asks otherwise). Your responses must be supported using frameworks presented in the course materials (lectures, slides, textbook, etc.). Marks will be deducted for using information not found in the case study and/or for not including relevant frameworks. Questions: In this case, imagine that you have been hired to advise Sarah Shell and her management team on how to grow the company. 1. Executive summary (pass/fail the case): Summarize the entire case in a single slide. Remember that executive summaries are not a retelling of the history of the company. Executive summaries are like a movie trailer - it informs the reader/ audience of what to expect in the presentation. Warning: if you fail to provide an adequate executive summary, you automatically fail the entire case'.! 2. Key question (5%): Based on the information provided in the case, what is the key production question Sarah Shell is trying to answer for McAdam? 3. Qualitative Analysis (15%): Using the information provided in the case, describe the benets and risks for each of manufacturing outsourcing options: local manufacturer (Toronto) or overseas manufacturer 4. Quantitative Analysis: (30%): For each manufacturing option calculate 0 Unit Contribution and Contribution Margin Rate per handbag For each sales channel (online and retail store) calculate 0 Unit contribution and Contribution Margin Rate per handbag What is the minimum amount of inventory that needs to be purchased to meet Shell's sales projections? What is the minimum amount of inventory that will need to be purchased under each manufacturing option to meet Shell's desired number of designs and colours for each style season? What will be McAdam's total contribution in scal 2016 and 2017 under each manufacturing option? How much excess inventory will exist if McAdam meets scal 2016 and 2017's projected sales? What is the approximate cost of this inventory? 5. Recommendation (40%): Based on your analysis, which option (local or outsourcing) should Sarah Shell choose and why? Your response must be supported using relevant elements from the Diamond-E Framework in addition to other frameworks covered in class (textbook, slides, lecture, etc.). 6. Case structure and professionalism (10%): Overall appearance, grammar, spelling, ow of the presentation, executive summary, and ensuring your assignment is designed for an executive audience. This case must be designed and formatted as if you were going to present the ndings to Sarah Shell and her management team