Papyrus Laser (A): December 1994 Case Solution & Answer

Papyrus Laser (A): December 1994 Case Solution 

1. Evaluation of Papyrus Laser

In order to evaluate the opportunity of investment in Papyrus Laser; the evaluation is done to assess the financial condition and the decision criteria is base do investment in it. Discounted Cash flows are calculated to find the NPV. Moreover, the estimation is done for two approaches, i.e. optimistic and pessimistic, where the return on investment is calculated. The optimistic approach evaluates the increase of 2% in terminal growth and the return on investment is 103908% to Robert Keane(owner) and other investors. Other equity investors have 849% of return on investment, which is higher than the owner’s assumption. The pessimistic approach decreases the Terminal rate by 2% and the return on investment is 29600% to Robert Keane (owner) and other investors. Other equity investors are having 171% of return on investment, which is also higher than the assumption which owner has made. (See appendices). Moreover, there is a good opportunity of investing in Papyrus Laser as the forecasting seems to be quite favorable in terms of profit.

2. Business Plan

            Papyrus Laser is an entrepreneurial business  plan, where fresh MBA students intend to execute their project into businesses. The main focus is on the French market, where the entrepreneur wishes to operate. The product is a laser and inkjet for the customers, in order to provide high quality with standard price, so that everyone could easily afford it. The entrepreneur wants to initiate the business in the French market and then expand to the European market. His business plan has been assessed through the SWOT analysis, where the strengths and the weaknesses are identified:

2.1 Strengths


The main strength of Papyrus laser is mass-customization, where the customers can customize the text with their own choice, in black and white. The customization is an opportunity for any business where the requirements of the end-users are fulfilled and they prefer the product.

User-friendly computer products

The other strength that Papyrus Laser has, is that it is providing the best quality with the third-party software “flyer”, which can easily be accessed on the computer and provides an ease to the customers. The flyer is inexpensive and aids the customers in photocopies and emails.


The innovation is the prime focus of the Papyrus laser where they want to provide quality-based paper, ink-jet and graphic designs with a continuous advancement in catalogs and brochures. It can give the hype to any business by which, the customers’ satisfaction level would be high.

2.2 Weaknesses


The entrance of the new businesses is quite difficult because the market is already having high competition and the well-known brands already exist in the market. The other weakness could be building the customers’ trust with the incubated business.

Market Expansion

Market expansion is also a weakness for the new company, because German printers have a large market share and their businesses are well-known with good market positioning.  It is difficult for the Papyrus laser to expand its market in such conditions.

Dangerous for environment

Papyrus laser has a weakness of the environment because the use of printers and machines which consume high voltage, can cause global warming and are considered hazardous for the environment……………………

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