KPG Grocers: Capital Budgeting Information Elicitation Case

Abstract

The KPG Grocers case study requires students to analyze a complex capital budgeting problem. The case describes a grocery store investigating if they should open a new distribution center close to their Midwestern stores. The impetus for the move is to improve the company’s sustainability efforts, but freshness and service are also improved. Students are required to use capital budgeting to analyze the four alternatives. It’s appropriate for cost or managerial accounting classes at the undergraduate or graduate level. The case is enriched through the information elicitation process. The information elicitation methodology requires students to interview the vice president of distribution for the company to obtain the relevant facts then correspond via e-mail to gather additional information as required. The final deliverable is a presentation of the analysis and a recommendation to the vice president. This process requires students to develop core competencies often used in the workplace but seldom addressed in the classroom.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles