The purpose of this case is to allow students to confront the issues related to starting a new service business, such as evaluation of the business concept, identification of different customer segments, and assessment of the comprehensive service package necessary for long-term success in a competitive service industry. Students are also asked to record projected transactions, prepare projected financial statements, and perform a break-even analysis.
It is intended for use in such courses as Starting New Ventures or Entrepreneurship, or it can be used at the start of an integrated MBA program to illustrate that a thorough case analysis typically involves dealing with multiple functional disciplines and addressing a variety of business issues.
This case represents a slight modification of "Classic Tours, Inc.: Financial Projections for Starting a Business," (UVA-C-2106), which was written for use in accounting and finance courses where greater emphasis would be placed on the financial issues associated with starting a business and somewhat less emphasis would be placed on strategic considerations.
