From: Sajal Nazir, Consultant
Re: Tata Steel Zoological Park Problem Statement: This report will assist Bipul Chakraborty, the new Director of the Tata Steel Zoological Park, in determining how the triple bottom-line framework can be incorporated into the business model; where the zoo can become a profitable and self-sufficient business venture, while also meeting its conservational, environmental and social objectives. Key Issues: The zoo is facing a profitability concern where the revenue generated by visitors is only able to cover around 60 percent of overall expenses. Furthermore, when inflation is added to this important challenge, it subsequently leads to Chakraborty’s inability to invest in long-term conservational goals, INR 56.5 million worth of renovations required by CZA’s new rules and regulations, and the zoo’s “most valuable resource” – its employees. Other key issues to consider would be the opportunity cost of the land, possible over-exploitation of the zoo’s resources, and protests by social/political activists regarding commercial activities. Recommendations: The following recommendations offer implementable solutions to the key issues raised previously: 1) Extend hours to operation …show more content…
There are limited promotion opportunities, but if the zoo was to perform well in regards to the triple bottom-line and grow in size and scope, there will be more upper-level job opportunities available in the future. Lastly, when all these recommendations are implemented and a 15-year forecasted P&L statement is generated (exhibit 4), the zoo will be able to generate an average profit margin of 38.89% per year. And accordingly, as exhibit 5 reports, Chakraborty will be able to break-even on the required investment in 9 years-time. a Please refer to exhibit 4 for a financial forecast