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Match My Doll Company Case Study

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1. Set forth and compare the business cases for each of the 2 projections under consideration by Emily Harris. Which do you regard as more compelling?
The two projections proposed by Emily Harris are Match My Doll Clothing Line Expansion and Design Your Own Doll line. These two projections are different which Match My Doll Clothing Line focuses on matching clothing for all seasons for tween girls and their favourite dolls. The second option included a new initiative, which let users customize a doll’s features based on the customer’s specifications through a web-based doll-design software. Due to financial constraint, New Heritage Doll Company can only implement one option at a time.
Match My Doll Clothing Line Expansion (MMDC) Initially, this line only made up of several sets of matching doll and child clothing and accessories for warm weather. After the daughters of some celebrities have been found wearing items from this …show more content…

It is a great opportunity since the current offering is so well-known. The risk profile is similar to current division business which is moderate. Medium-risk projects in the production division received a discount rate of 8.4%. The Design Your Own Doll will be delivering a one-of-a-kind doll ownership experience, and they company believes that the dolls could command a premium price. The impact of the actual experience delivered by the girl interaction with the software while designing the doll should be further assessed beside the new possibilities opened from offering a unique online customization of the dolls. It is a risky project and is evaluated at 9.0% if discount rate. With a relatively lower discount rate, the NPV for MMDC (calculation is shown in Question 2) is positive while for DYOD is negative. Thus, MMDC is better since the risk is relatively lower and has positive NPV.
Qualitative

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