Case
SAPPHIRE DAIRIES (PVT) LTD (A) WHERE DID THE BUSINESS PLAN GO WRONG?
INDUSTRY :-
AREA :MANAGEMENT INFORMATION SYSTEMS
ORGANIZATION :-
LENGTH :8
LUMS No :18-441-2014-1
PUBLICATION YEAR : 2014
DESCRIPTION
ABSTRACT:
The Sapphire Group entered the nascent commercial dairy sector in 2007. A critical driver in this decision was the financial attractiveness of the business plan presented to them in an electronic spread sheet form by one of the largest milk processing companies in Pakistan. The case presents the situation in 2010 when Sapphire Dairies is incurring substantial and unexpected losses 2 years into the operations. The outlook seems bleak if operations continue without change. The CEO needs to evaluate what went wrong with the plan and whether they can turn the project around.