MA022: Managerial Accounting Fall 2013

Foxy Originals Expansion into the US Market Case Instructions

Assignment:
This case is to be completed in groups of 4 students. Purchase and read the Richard Ivey School
of Business Case: Foxy Originals Expansion into the U.S. Market available through Harvard
Business Publishing using the following link: https://cb.hbsp.harvard.edu/cbmp/access/22598959
After reading the case, perform the following analysis:
1. Analyze the pros and cons to launching the Foxy brand in the United States.
2. Assess each of the distribution strategies from a qualitative point of view.
3. Identify all costs, other than variable costs; for the trade show distribution strategy (provide
these costs per trade show and for fiscal 2005).
4. Identify all costs, other than variable costs, for the sales representatives distribution strategy
(provide these costs per sales representative and for fiscal 2005).
5. Calculate the variable costs per order received at a trade show and the variable costs per
order received through a sales representative.
6. For each distribution strategy, calculate the unit contribution and contribution margin ratio
for each of the two product lines (necklaces and pairs of earrings). Calculate the weighted
average contribution margin for an order at a trade show and an order with a sales
representative.
7. Calculate Foxys breakeven point for each distribution strategy.
8. Determine which distribution channel will be more profitable for Foxy in 2005.
9. Consider whether the U.S. expansion fits into the partners expertise and if any other
expansion opportunities exist for Foxy.

Deliverable: Hard copies are due in class on Thursday December 5, 2013. I reserve the right
to request electronic submissions. Deliver a report, in which you provide all the analysis
performed for this case as instructed above, and make a recommendation as to which distribution
strategy (trade shows, sales representatives, or both) Foxy Original should pursue. Base your
recommendation on both the quantitative AND the qualitative assessments you perform. Your
report should ideally be 6 to 8 pages but in no cases should it exceed 10 pages including exhibits
(but excluding Title Page, Table of Contents and Bibliography). Your report should be properly
formatted and maintain strong business writing skills: conciseness; clarity; critical thinking;
readability; proper use of grammar, punctuation and spelling. The report should be prepared in
Microsoft Word (or comparable word processing application) using 1 inch margins and Times
New Roman 12 point font. Your report must include the following:
Title Page
Table of Contents
Executive Summary (not to exceed one page)
Introduction
Body of Report (including all analysis indicated)
Conclusion
Exhibits (Data analysis should be provided as an Exhibit and referred to in the Body of
Report, do not include data analysis (tables, graphs, etc.) in the body of your report.
Bibliography (you must properly site your sources)
I highly recommend you visit the Foxy website at www.foxyoriginals.com. In addition, MI NT
J ULEP located at 1302 Beacon Street Brookline, MA carries Foxy products. I have contacted
the store and they are happy to have you come in and view Foxys products and ask questions if
you so desire.

Please note: It is a violation of the academic code of ethics to refer to case notes or solutions
obtained through the internet or from people who previously performed the work or studied the
case materials. Use of any of these resources will be considered plagiarism. It is the
responsibility of every student to report anyone who violates this principle. I reserve the right to
request submission in electronic format and have access to plagiarism detection software.
You are free to discuss this case with other students; however your group must produce your
own set of work to be turned in as your deliverable. Use of someone elses work in any form
will be considered plagiarism and dealt with accordingly. I am available as a resource but I
should be viewed as a last resort. You must work with your group members collaboratively
and as such, I will only discuss the case with your entire group, I will not answer individual
student questions. I will answer specific questions but I will not frame the deliverable or pre-
screen your work prior to submission of your final deliverable. There is no right answer to this
case; your report, however, should support your findings and be logical, well documented and
clearly communicated. While this report is prepared as a group, the final report should fit
together seamlessly. Good luck and have fun with the case!