1. Magical Mirrors (MM) Analysis: - Definitions: Economies of scale and buffer inventory. - Liquidity: Calculation of MM’s acid test ratio and strategies for improving liquidity. - Business Structure: Analysis of the advantages and disadvantages for Ben and Mary of changing MM from a partnership to a private limited company. - Human Resource Management: Discussion on how MM can address its human resource challenges, including high labor turnover and low motivation.
2. Security Alarms (SA) Analysis: - Definitions: Revenue and consumer markets. - Financial Metrics: Calculation of the forecast margin of safety for the new service and the limitations of using break-even analysis. - Objectives and Strategy: Analysis of why SA's objectives may have changed over time. - Market Research: Discussion on suitable market research methods that SA could use before launching its new service.