Yalla Momos Expansion Dilemmas Assignment
Managing Financial Resources (0832428) Birmingham Business School
Coursework Assignment
Word Count: 2,000 words (including titles, references and footnotes, but excluding bibliography, calculations and cover page) Due date: 14th May 2021 at 12 noon
Submit your assignment electronically via Canvas
Required: Produce a four-parts report (part A, B, C & D) which address tasks 1 – 4. Please note that the essay marking rubric is available on Canvas.
Refer to the case study : Yalla Momos expansion dilemmas of a small business (pdf, page 1-5 only) and answer the below requirements. THE DILEMMA
PART A : CVP ANALYSIS
Goel wanted to set up one more branch, despite the fact that sales at the Bur Dubai kiosk and the Dubai
International city branch were not as strong as those at the Karama branch. Goel was worried about the
net revenue and felt that he should take a more structured approach to expansion. He was wondering if
he should concentrate on the current business or open an additional restaurant? What if things will not
turn out as he is expecting?
His competitors were engaged in aggressive marketing and Goel knew he had to make a quick decision.
The Dubai market was expanding, but the volatile nature of growth and the sheer number of competitors
might eat into his profits. With these fears in mind, he knew that the present decision was going to be
critical to the continued success of his business.
Task 1
Would expansion be beneficial to Goel? Respond to Goel’s dilemma by supporting your argument with
Cost-volume profit analysis.