Case study Using concepts, techniques, and tools acquired from chapters 2, 5, 6, and 7 of the course textbook, analyze the mini case Cinderella seeks shoes for her feet applying the case method studied in class: issue definition, available alternatives, selected alternative, action plan, etc. (no more than 3 double-spaced pages).

Cinderella seeks shoes for her feet

Cinderella is a small, Casablanca-based company specialized in the manufacture of high-end womens shoes. It employs about 80 people, most of whom are relatives of the owner-manager. In 2004, the companys sales rose to 10 million euros, an increase of 20% compared to the previous year. This was entirely attributable to sales on the French market through an importing agent established in Paris, who the owner-manager, Ali Hassani, had met during a French trade mission to Casablanca in 1999. Cinderellas accounting system, while compliant with the law, is a very basic one and does not permit the calculation of production costs. For this reason, export prices are set based on the prices of French competitors that the agent communicates to the company. In July 2004, during an unplanned trip to Geneva to visit his hospitalized father-in-law, Hassani was greatly surprised to see his companys shoes on display in a fancy boutique on Chantepoulet Boulevard under the agents brand. The retail prices of the shoes were about five times higher than those the agent claimed to use on the market. A quick chat with the boutiques manager made it clear to Hassani that a huge potential exists for Cinderellas products in Switzerland, let alone on the huge European market. On the way back to his hotel, Hassani began to think about entering the market on his own. Can you offer him any advice?