Case
Supplementary Resources
Abstract
In August 2009, Eran Brill, director of The Phone Shop (Pty) Ltd, a consumer electronic goods retailer, was about to renegotiate the lease on his Sandton City store. This event marked three years since he had taken over the store, at a time when it was struggling to make sales and to meet its debt obligations. Since then, he had managed to put The Phone Shop onto a much sounder financial footing, and he had opened two more stores. Looking ahead, he wondered whether he could improve on what he had achieved, in the next three years, particularly now that the recession had started to take hold.
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
Resources
Exhibit 1 The Phone Shop Sandton City
Source: Provided by Eran Brill, 18 December 2009.
Exhibit 2 Advertising Boards Inside The Phone Shop
Source: Provided by Eran Brill, 18 December 2009.
Exhibit 3a The Phone Shop's Balance Sheet: 2005-2007
Balance Sheet | |||
---|---|---|---|
31 December 2007 | 31 December 2006 | 31 December 2005 | |
(R) | (R) | (R) | |
ASSETS | |||
NON-CURRENT ASSETS | |||
Shop fitting | 320 115 | 355 680 | - |
CURRENT ASSETS | |||
Inventories | 2 582 380 | 1 062 365 | 743 580 |
Bank balances | 24 460 | 16 065 | 49 320 |
2 606 840 | 1 078 430 | 792 900 | |
TOTAL ASSETS | 2 926 955 | 1 434 110 | 792 900 |
EQUITY AND LIABILITIES | |||
CAPITAL AND RESERVES | |||
Issued capital | 400 | 400 | 400 |
Accumulated profit/loss | 134 415 | −557 685 | −619 065 |
Shareholders loan | 1 050 000 | 1 050 000 | 942 680 |
1 184 815 | 492 715 | 324 015 | |
NON-CURRENT LIABILITIES | |||
Long-term liabilities | 355 680 | 355 680 | - |
CURRENT LIABILITIES | |||
Accounts payable | 1 386 460 | 585 715 | 468 885 |
TOTAL EQUITY AND LIABILITIES | 2 926 955 | 1 434 110 | 792 900 |
Source: Information provided by Eran Brill, 18 December 2009.
Exhibit 3b The Phone Shop's Income Statement: 2005-2007
Income Statement | |||
---|---|---|---|
12 months ended 31 Dec 2007 | 12 months ended 31 Dec 2006 | 12 months ended 31 Dec 2005 | |
(R) | (R) | (R) | |
Gross revenue | 8 188 680 | 3 580 525 | 3 473 495 |
Cost of sales | 5 864 250 | 1 985 445 | 2 040 050 |
Gross profit | 2 324 430 | 1 595 080 | 1 433 445 |
Operating costs | 1 632 330 | 1 533 700 | 1 516 925 |
(Loss)/profit | 692 100 | 61 380 | −83 480 |
Source: Information provided by Eran Brill, 18 December 2009.
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