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Yalla Momos Expansion Dilemmas Of A Small Business Case Solution

Solution Id Length Case Author Case Publisher
2112 4993 Words (17 Pages) Anupam Mehta, Vimi Jham Ivey Publishing : W17561
This solution includes: A Word File A Word File

This paper is organized into different sections. In the first section, the introduction of the case, its outline, and background of the company were discussed. Goel began Yalla Momos in 2012, and, in four years, it was taken to incredible statures. The case additionally analyses the impact of individual expenses and to apply the cost-volume-benefit (CVP) investigation model to decide if Goel should proceed with the expansion strategy or not. In the second section, we look at the issues faced by the company, analysis of the financial data, and answers to the questions asked in the case study. Four years, he began the business, Goel honestly conceded that he had not appropriately assessed its monetary execution and didn’t know where his venture lay financially. There is no appropriate monetary estimation of business. Goel hasn’t assessed his exhibition in the past in light of the fact that he was fulfilled from the great client reach and net benefit.  In the last section, we look at the key points in the case, and then recommendations are discussed at the end, followed by the references to the paper.

Following questions are answered in this case study solution

  1. Introduction

  2. Outline

  3. Background of the company

  4. Analyzing the issues facing the company    

  5. Analysis of financial data

  6. Key points

  7. Answers

  8. Recommendations

Case Analysis for Yalla Momos Expansion Dilemmas Of A Small Business Case Solution

1. Introduction

Goel began Yalla Momos in 2012 and, inside four years, had taken it to incredible statures. With all-out deals of AED504, 000 in 2015, it appeared that he was directly achieving his targets. In 2012, not many cafés in Dubai offered momos, and they were typically filled in as side dishes. Given their fame among North Indian exiles and the overall shortage of shops selling momos in Dubai, Goel chose to go into the momo business. Goel perceived this market opportunity and started Yalla Momos in the whole territory of AL (Karama). Within four years, the company had reached remarkable heights, and Goel needed to develop. Despite how the business was advancing pleasantly, Goel expected to survey his startup’s financial strength before continuing. He would require a cash related check that thought about the opposition's power and the hard to miss nature of the bistro business in Dubai. The bistro’s two uncommon selling centers were its low expenses and how momos could be consumed as a goody, at whatever point of the day. The third Yalla Momos restaurant was opened in another remain inside Big Bazaar Supermarket in Bur Dubai. This was one of the most populated areas of Dubai and a middle point for explorers visiting near to displays and various attractions. Goel took out bank advances to open the second and third branches in Dubai International city and Bur Dubai. Business Monitor International assessed that food utilization in Dubai would arrive at AED35 billion every 2016. Furthermore, the accumulated yearly development pace of per capita utilization was assessed to be 5.5 percent in 2012-18. 

Yalla Momos, which Goel had begun with his little investment funds in 2012, produced AED504,000 in absolute deals and AED156,240 in income in 2015. The expense of promoting would be AED8,000 for the three areas, and publicizing was extended to build in general sales by 10%, from AED504,000 in 2015 to AED554,400 in 2016. Goel was considering opening one more source in A1 Barsha. Goel had never occupied with forceful showcasing and was suspicious about its adequacy. Stressing over both the opposition and the expenses related to development, Goel, all things considered, chose to do as well as he possibly can. Goel was stressed over net income and felt that he could adopt a more organized strategy for development. Four years after he began the business, Goel honestly conceded that he had not appropriately assessed its monetary execution. He was content with the expansion in clients and incomes and viewed himself as wealthy, yet he didn’t know how to quantify the organization's presence or decipher its prosperity. His rivals were occupied with forceful showcasing, and Goel realized that he needed to settle on a brisk choice. The Dubai market was extending; however, the unstable idea of development and the sheer number of contenders may eat into his benefits. Given these apprehensions, he realized that his choice would have been basic to his business's achievement.

2. Outline

The restaurant Yalla Momos, started in Dubai, United Arab Emirates, by Prashant Goel in 2012, specialized in momos. Momos are a type of steamed or fried dumplings filled with meat, vegetables, and cheese. In 2012, few businesses in Dubai were offering momos, which served momos primarily as side dishes. Goel identified this market opportunity and started Yalla Momos in the strategic location of AL Karama (Karama). Within four years, the business had risen to great heights, and Goel planned to expand. Even though the company was progressing nicely, Goel needed to evaluate his organization’s financial strength before continuing. He would require a monetary figure that considered the power of the opposition and the particular idea of the café business in Dubai. The case had an inbuilt sensitivity model that allows students to understand the impact of various options on the break-even point (BEP). The case also allows students to examine the influence of individual costs on the BEP and to apply the cost-volume-profit (CVP) analysis model to determine whether or not Goel should go ahead with the expansion. 

3. Background of the company

Goel and his sibling began Yalla Momos in 2012. Yalla was an Arabic word, signifying, “let us go,” The eatery was deliberately situated in the restaurant area of AL (Karama), which was a mainstream market for Indian food. Karama was near Dubai Creek and part of the clamoring more established piece of the city. Karama was viewed as an ideal spot for shopping and eating on a careful financial plan and was home to roughly 135 eateries. Goel and his sibling realized that if their costs were correct, they would draw in clients. They gathered the menus of different cafés in the region and thought of an unpleasant gauge of what they could charge for their momos. The fundamental rendition was The café Yalla Momos, begun in Dubai, United Arab Emirates, by Prashant Goel in 2012, represents considerable authority in momos. Momos are a kind of streamed or singed dumplings loaded up with meat and add vegetables and cheddar. In 2012, hardly any organizations in Dubai were offering momos, which served momos principally as side dishes (Hamdan, 2015). Goel recognized this market opportunity and began Yalla Momos in the vital area of AL (Karama).

In four years, the business had ascended to extraordinary statures, and Goel wanted to grow. Even though the company was progressing nicely, Goel needed to evaluate his organization’s financial strength before continuing. He would require a money related gauge that considered the power of the resistance and the difficulty to miss the bistro business in Dubai. The case had an inbuilt affectability model permits understudies to comprehend the effect of different alternatives on the equal the initial investment point (BEP). The suit additionally helps understudies to analyze the impact of personal expenses on the BEP and to apply the cost-volume-benefit (CVP), investigation model, to decide if Goel should proceed with the extension estimated at AED13. At the same time, different forms cost somewhere in the range of AED12 and AED15. These costs were assessed to yield a gross profit edge of 40 to 50 percent. Goel and his sibling intentionally kept the costs low to make their momos more alluring to purchasers and, along these lines, catch the market. They didn’t attempt any significant advertising exercises, aside from posting on Facebook and other web-based media locales. Utilizing Goel’s reserve funds, they made a fundamental interest in utensils and other vital gear. They opened a little space that sat 12 clients (Dubai SME, “The state of small and medium enterprises (SMEs) in Dubai, n.d.). 

Given the extraordinary interest for momos, Goel had the option to stop his corporate marking position inside a quarter of a year of beginning the eatery. His significant other likewise joined the business, the deals of which kept on expanding. The café’s two extraordinary selling focuses were its low costs and how momos could be burned through as a tidbit, whenever of day. Goel zeroed in on giving real and scrumptious momos and guaranteeing consumer loyalty. The eatery was assigned “pocket well disposed” on the Zomato site Zomato, utilized daily by many cafes over 10,000 urban communities across 23 nations, gave Yalla Momos four stars out of five, and posted various positive surveys from clients (Zamberi Ahmad, 2014).

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