Lunafranc Café and Bentley’s Board Room: A Duo of Connected Mini Cases

Authors

  • David S. Harrington University of South Carolina Aiken

Keywords:

financial advice, accurate operating profits, growing small business, Case Study, outside financial advice, compensation incentives

Abstract

Bentley Boddington, CEO and founder of Lunafranc Ltd., has grown his business from a single location hands-on operation, in which he basically did everything, to the current large scale retail business with almost 150 sites throughout Europe. With this growth has come the usual associated problems, most of which Bentley has handled proficiently, growing his skills as the business demanded. His weakness has always been on the financial side. As the operating decisions became more complex, his frustrations grew. Two immediate problems recently surfaced requiring outside financial advice, one concerning the advisability of adding new product lines, and the other in the area of performance compensation for top management. Bentley needs to know the feasibility of several new product lines under consideration, and also how to structure compensation incentives that reflect accurate operating profits among his business sectors.

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Published

2012-09-01

Issue

Vol. 9 No. 1 (2012)

Section

Cases

License

Copyright (c) 2012 Author Retains Copyright

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