Finance problem

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VOSIndicatorTemplate.xlsx

VOS TEMPLATE

VOS Indicator Template
POTENTIAL ATTRACTIVENESS
FACTOR CATEGORIES HIGH AVERAGE LOW
Industry/Market
Market Size potential
Venture Growth Rate
Market Share (year 3)
Entry barriers
Pricing/Profitability
Gross Margins
After-tax margins
Asset intensity
Return on Assets
Financial/Harvest
Cash flow Breakeven
Rate of Return
IPO potential
Founder's control
Management team
Experience/expertise
Functional areas
Flexibility/adaptability
Entreprenuerial focus

WEBVAN VOS

VOS Indicator for Webvan
POTENTIAL ATTRACTIVENESS
FACTOR CATEGORIES VOS Score HIGH AVERAGE LOW COMMENTS
Industry/Market
Market Size potential 3 X Retail Grocery market roughly $450 B in 1999
Venture Growth Rate ??
Market Share (year 3) ??
Entry barriers 2 X Easy for local food retailers to enter.
Pricing/Profitability
Gross Margins 1 X 20% to 28%
After-tax margins 1 X 1% to 2%
Asset intensity 1 X 1/($1B/$395,000) = 0.003
Return on Assets 1 X 2% to 8%
Financial/Harvest
Cash flow Breakeven 1 X
Rate of Return 1 X
IPO potential 3 X Easy to do during the dotcom bubble.
Founder's control ?
Management team
Experience/expertise 1 X Louis Borders was a successful entreprenuer in retail books, but had no experience in food retailing. Didn't understand the economics of the industry.
Functional areas 1 X
Flexibility/adaptability 1 X
Entreprenuerial focus 2 X
AVERAGE SCORE 1.46
1.46

SWOT Template

SWOT ANALYSIS TEMPLATE
Strengths Weaknesses
INTERNAL
Opportunities Threats
EXTERNAL

WEBVAN SWOT

SWOT ANALYSIS TEMPLATE
WebVan
Strengths Weaknesses
Founder is experienced entrepreneur No experience in food retailing
INTERNAL Access to capital High fixed cost business plan
Opportunities Threats
Huge potential market ($450B) Low margin business
EXTERNAL Highly competitive
Competitor response