Betting exchanges provide an electronic platform that allows ordinary consumers to not only back teams to win, but also to lay odds for other punters to back. This business model allows punters to cut out the middle-man of the bookmaker, and leads to a much more efficient 2-sided market. Betfair.com's domination of the betting exchange has threatened to undermine the core of the traditional bookmakers' business model. The case examines two aspects of the industry: 1. What specific choices did Betfair make to become the dominant betting exchange, winning the competitive battle over Flutter.com? 2. At what stages do Betfair.com's business model and those of the bookmakers interact? Will Betfair.com naturally come to dominate the industry, and if so how should the bookmakers react?
The A case describes the start of a new business, Telezoo, and the challenges facing a start-up as it attempts to develop a unique place for itself in the marketplace.
Fairmont Limited is a company involved in real estate development in western Canada. Fairmont (B) deals with complex stock transactions and follows the Fairmont (A) case 9A84K022.
Crossroads Tavern is a short two part exercise on break-even analysis. In the first part, the owner and manager are attempting to assess the level of sales (measured in units and dollars) required for the firm to: (a) achieve a profit of zero; (b) achieve a target profit of $30,000; and (c) achieve a net cash flow of zero. In the second part, the manager is evaluating the idea of expanding the hours of operation, and is attempting to determine the sales volume necessary to make such an expansion feasible.
Disc Importers is a classical record importer and wholesaler which has just completed its first year of operations. The controller has asked other executives for assistance in choosing an inventory valuation method. The choices revolve around the four standard inventory valuation options (LIFO/FIFO/average cost/specific identification), and the uses which the executives wish to make of the financial statement information. As well, the controller wants to evaluate the impact of the lower-of-cost-or-market rule on ending inventory evaluation. There has been substantial increases in the unit cost of discs throughout the year, and hence the inventory valuation method chosen will impact the financial statements.
This note discusses cost behaviour, break-even analysis contribution and projected income statements. In addition to the theoretical framework, two examples are presented and analyzed.
This note discusses cost behaviour, break-even analysis contribution and projected income statements. In addition to the theoretical framework, two examples are presented and analyzed.