Virginia Craftsmen, Inc.

Abstract

This case is intended to help students understand the complexities in selling or attempting to turn around an unprofitable business. The case discusses the following issues: (1) valuing a private company that has lost money for several years and has few tangible assets, (2) controlling costs and developing pricing strategies, and (3) key factors necessary to turn around a cash-poor private company.

Keywords: cost control, pricing, small business, strategy formulation, valuation