Ivey Case Study #: $9$B$15$N$006$

Case study can be purchased using the link above from Ivey Publishing.

Lay out the strategic opportunities for Loblaw in acquiring Shoppers. As part of the analysis, identify and attempt to quantify the possible synergies that may be attained.

How much should Loblaw offer for Shoppers? As part of your analysis, place a value on Shoppers utilizing both DCF and comparable methods, as well as using precedent transactions.

What form should the offer take, and how should the offer be financed? Support your recommendations on qualitative analysis $($a forecast of financial information and ratios is not expected$).$

Instructions

Step $1.$ Define the problem $(15\%)$

Be sure to identify the problem and not the symptom of a problem. For example, a decline in sales is a symptom of a problem; you must identify the actual cause of the decline in sales.

Step $2.$ Formulate alternative solutions and evaluate each alternative $(30\%)$

It may be helpful to brainstorm as many solutions as you can and then narrow your list down to three or four solutions you feel are the strongest.

To evaluate alternative solutions, you should consider their strengths $($e$.$g$.$ increased productivity$)$ and their weaknesses $($e$.$g$.$ increased cost$).$

Step $3.$ Recommend and justify an effective solution $(35\%)$

Be sure to record the reasons why the chosen solution is most effective. In your Case Analysis you must provide a recommendation that is supported by your analysis.

Note: Your analysis may require that you identify more than one problem and develop a set of recommendation