An established labor cooperative and infrastructure developer of commercial and infrastructure projects- ULCCS was planning to venture into the business of pre-engineered building (PEB) using steel in place of RCC. The Chairman of ULCCS wanted to assess the feasibility of the new business and set sales and profitability goals for the new business. Participants are required to forecast demand, decide price, and calculate 5-year cumulative sales and gross contribution. The case provides data in spreadsheets to understand business forecasting methods, make the sales value and contribution calculations, and recommend a forecasting method. The case also offers the opportunity to discuss the qualitative analysis of evaluating trade-offs such as past vs. future and normative values vs. economic value involved in the role of Chairman of the 100-year-old cooperative organization.

Learning Objectives:

1. The case offers an opportunity for students to plan for a new business launch, and estimate and forecast demand, margins, fixed cost, and break-even sales volume.
2. To assess strategic business decision using economic and normative logic.