Finance problem
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 | |||