Hair Impact Company Business Merge with Spa Healthy Living Case Study

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Business Finance

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Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper Midterm paper

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Running head: MID-TERM CASE STUDY ANALYSIS

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MID-TERM CASE STUDY ANALYSIS

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The case study to be relied upon in conducting this analysis relates to Hair Impact provided in
the Acadia Institute of Case Studies. Hair impact is one firm that is involved in the manufacturing
and marketing of hair accessories within the scope of Mount Pearl and St. John's which is owned
by Samantha Wakeham. The problem in this case study is based on the dilemma of determining
the extent of business expansion and a merger with a Spa Healthy Living business owned by Jamie
who is a partner in the same line of business. Mr. Jamie Campbell offered a business proposition
to Samantha whereby he will be marketing the products on a monthly. However, her problem was
the possibility of supplying the products with a margin. In this case, Jamie offered Samantha some
three choices whereby she was to choose a more profitable one ("Hair Impact", 2020). The three
choices included;
1. Jamie would charge Samantha $120.00 as a fixed service fee monthly for selling 50 clips
together with 50 scrunches in his spa.
2. Jamie would charge her a fixed 25% of the total revenue realized in the sale of 50 clips, 50
scrunches, and 50 headbands in the spa.
3. Jamie would charge Samantha either of the service fees in option 1 or option 2 but
Samantha was to choose the number of products to be sold. The first option of products
was to sell 70 clips, 25 scrunches, and 55 headbands, or only 150 clips with no scrunches
or headbands.
Looking at the options provided, some crucial information ought to be put into consideration
since they are choices that would greatly impact on either business (Ontorael, Suhadak & Mawardi,
2017). The major internal consideration for making the most viable decision was profitability on
Samantha’s business having supplied the hair products to Jamie spar and Healthy Living. The main
concern of Samantha in the business was vested in making maximum profitability from the venture

MID-TERM CASE STUDY ANALYSIS

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and thus, determining the most appropriate option was the ideal course. Finance availability was
the other issue that was faced by Samantha which ha...


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