Case Study

Bicicleta Ferreira Limitada

6 pages
February 2007
Reference: IMD-3-1781

Bicicleta Ferreira, a Brazilian bicycle manufacturing company, is a family business with a relatively successful past and an uncertain future. A deal proposed by a major chain of department stores brings the family-dominated executive committee to the point of a decision regarding the future of the firm. The case requires a thorough analysis of the financial implications of the proposed deal, which must be then considered in conjunction with the strategic positioning of the company in the context of the Brazilian industry as a whole.

Learning Objective

Participants will have some hands-on practice in assessing a proposed deal from a financial and strategic standpoint. The financial information given lends itself to the calculation of a number of different measures including marginal costs, the total required investment, annual contributions, estimation of cost of capital, return on equity, breakeven analysis and financial leverage.

Financial Analysis, Investment Appraisal, Manufacturing, Working Capital
Early 2007
Published Sources
© 2007
Available Languages
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics