...50% ownership) Considering their commitment to producing fresh and consistent homemade food, loyal staff base and a strong sense of community, to ensure its continued growth and presence Which option(s) should they pursue to address the problem(s) you’ve identified? Please be sure your recommendation(s) explicitly address the problem(s) you’ve identified and are based on your strategic analyses of the situation. How should Doug and Lori go about implementing the recommended strategy(s)? Discuss how the plan you’ve suggested is specific, measurable, actionable, realistic, and timely. Lori and Doug opened Beanz, a cafe in downtown Charlottetown that focused on offering homemade food and coffee beverages, in 1996. During the next 16 years, they saw 11 coffee shops open in the area, as well as many restaurants close, or change ownership. One of these, was Starbucks. Although they didn't see a change in sales because of it, they wondered if they should consider Starbucks a competitor. Areas of opportunity for Beanz include communicating the business's value propositions (health conscious, high quality, homemade) through marketing efforts, creatively utilizing the cafe space, and expanding the catering side of the business. One threat for Beanz is that one of their biggest customer bases, the DVA, who employ 700 next door, face a large risk of significant job loss. This could, in turn, decrease Beanz' sales. A weakness of...
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...Mystic Monk Coffee Case. 1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? Father Daniel Mary established the future direction for Carmelite Monks. He determined clear sense of the future, directions and inspiration for the goal setting. The biggest vision of Father Daniel Mary included expanding the monastery by acquiring the Irma Lake ranch for its current listed price of $8.9 million. This would enable to build a retreat center, a Gothic church, a convert for Carmelite nuns, hermitage and transform the small brotherhood of 13 monks to 30. Father Daniel Mary believed that Mystic Monk Coffee could fund the purchase of the new land. The vision of the Mystic Monk Coffee was to make the vision a reality, by “turning the coffee into the land”. The mission of the Carmelite Monks of Wyoming was to be able to earn money to buy the Irma Lake ranch and to expand from 13 monks to 30, gothic church, retreat canter and convent. 2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? Production of Mystic Monk coffee didn’t generate the kind of cash flows to pay for the Irma Lake ranch. Father Daniel Mary has set definite objectives and performance targets for achieving his vision. Objective 1: Increase the production of coffee. Coffee sales were...
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...1. INTRODUCTION OF STARBUCKS COFFEE The company, Starbucks Coffee was initially incorporated in the year 1971 by 3 entrepreneurs in Seattle where the business of the company is mainly selling whole bean coffee. Throughout the years of 1990s, Starbucks Coffee under the leadership of Howard Schultz, the company had expanded and growth rapidly with several efforts done. Starbucks coffee started its global expansion from year 1996 opening its first store outside of North America in Japan. Opening globally made Starbucks Coffee Company to record total net revenues of USD 9.8 billion for its business sales and operation. One of the Starbucks Coffee Company globally expansion market is Malaysia Food and Beverages Industry. Starbucks Coffee Company expanded to Malaysia in year 1998. The mode of entry of Starbucks Coffee Company to Malaysia expanding and operating its business through the mode of licensing. Berjaya Corporation Berhad is the company that obtained the license to operate Starbucks Coffee Company locally. Berjaya Starbucks Company Sdn. Bhd. Is formed and jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. Starbucks Coffee Malaysia opened its first store on 17th December, 1998 at KL Plaza Bintang, Kuala Lumpur. The business of Starbucks Coffee Malaysia basically are selling of espresso and coffee beverages, non-espresso and coffee beverages, coffee-related accessories and equipment, gift and merchandise, souvenirs, pastries and confessions...
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...Background of Case 1: Coffee Pot Coffee Pot is a company whose business is selling coffee drinks to consumers. Balkis, the daughter of Coffee Pot late president, takes over his job as the new president of the company after the death of her father. The company has been making losses in recent years. Since the company cannot compete with Starbucks, based on the quick strategic analysis, the company needs to come up with new strategy to attract customers. By using her knowledge in bio-chemical engineering, she manages to come up with the new technology of coffee brewing which enables higher productivity and lower cost of production. Therefore, with lower cost assured, Balkis chooses a strategy of targeting price-sensitive drinkers to improve the company’s profitability. However, the latest quarterly financial report, still reporting loss. In addition the company is also unable to pay the monthly loan. She seeks help from her bookkeeper, auntie Sofiah who only finishes secondary school. She noticed that the quarterly report lacks detail and there is decreasing pattern of earnings from the previous reports. She decides to get help from her friend, Jannah to look into the company’s problems. Meanwhile, Johari, the manager of the Administration, Purchasing and Human Resource division manages to earn his quarterly bonus by beating the previous quarter number. He often changes the suppliers to get the lowest prices. He also managed to reduce purchasing and training costs. However...
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...Case Study #2 Tom’s Coffee Cup Tom had always wanted to start his own business. He was talented in many areas and had great people skills. Tom has a BA in business and an MBA as well. He was having a hard time conforming to some of the norms in corporate America as he was an independent thinker. He made a good salary but worked long hours during the week and on weekends. He was married with two small children and a pet. He needed to support his family as his wife had decided to stay at home with the children. Tom searched around for business opportunities and franchises. He was not afraid to make the jump into being his own boss as he had confidence. Tom’s organization was offering buy-outs so he decided to take one at the age of 40 and use the money to begin a business. Tom was given a severance package of $50,000 to leave the organization. It did not take much time for Tom to find what he thought would be a great place to start a coffee house. Tom’s Coffee Cup was opened just down the street from the Ravens and Orioles stadiums in Baltimore, Maryland. Tom had a vision of offering a place for customers to come, relax and to make their daily routine more pleasant. Tom even posted his mission statement of “an atmosphere of quality for the quality people we serve.” Tom was running on adrenalin doing local interviews and promoting his business. He spent most of the money he had from a home equity line of credit and from the severance payout on renovations and purchasing...
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...mentioned with their case study in operations management. In spite of the fact that McDonalds provides a bank of successful studies in business, there exist several deficiencies in this giant fast-food company’s operations management strategy. This paper will discuss some deficiencies in the decisions of operations management i.e. product design and managing quality as detailed in McDonalds’ Hot Coffee Case. Products design: Among thousands of competitors on the increasingly saturate fast-food market, it is product strategy that mainly contributes to the competitive ability of a company like McDonalds. The core of product strategy is product development system. Therefore, it is reasonable to say: “The product development system may well determine not only product success but also the firm’s failure” (Heizer and Render, 2011, p.190). Going through product development stages figured as follows will help evaluate product options of McDonalds in developing the hot coffee product. Figure 1: Product development stages According to Figure 1 (adapted from Heizer and Render, 2011, Figure 5.3), initially ideas from many sources had been gathered and the ability of the company to carry out the ideas had been considered. The specific idea in McDonalds’ project was serving coffee at drive-thru windows. Then, the product development team started their work with identifying customer requirements i.e. quickly being served with no need to park the car, coffee with delicious taste...
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...Analysis of Mystic Monk Coffee 1. Executive Summary As the Prior of the Carmelite Order of monks in Clark, Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming. He has a clear vision that he wants to expand the monastery by buying a 500-acre ranch, which can enable to build a Gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, and a hermitage including 30 monks. Father Daniel Mary cannot make the vision come true unless he can collect enough money to pay for the $8.9 million listing price of that ranch. In this circumstance, the vision for Mystic Monk Coffee (MMC) is to sell more coffee to fund the Carmelite Monks of Wyoming. Therefore, the mission of the Carmelite Monks of Wyoming is to develop an action plan that would enable MMC to minimize the effect of its cloistered monastic constraints, maximize the potential of monastic opportunities, and realize Father Daniel Mary’s vision of buying that ranch. In order to obtain more market share and increase the profit of MMC, Father Daniel Mary should cooperate with local groceries and other Carmelite churches to distribute its coffee packages offline and use social media to enhance its brand awareness. 2. Problem Statement Even though the Carmelites has received a $250,000 donation and the monastery has earned nearly $75,000 during the first year of coffee roasting operation, the fund of fully buying that ranch is far more way from the listing price. As...
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...Overview: The coffee industry has a lot of challenges nowadays. Such problems as oversupply and the drop of wholesale price can lead to many disputes around the world. This drop in prices is definitely having a negative impact on the supplying countries’ economies. The Fair-trade label is supposed to treat the issue of ethical standards, but customers buying coffee need to care about the fair-trade along with those who invents and promotes it. 1. Is it important for coffee marketers, such as Starbucks, Kraft, and Nestle, to create “ethical supply chains”? Why? It is important for coffee marketers to create an “ethical supply chain.” If people know that companies work in an ethical way it should attract more customers. The customers would expect that they would be treated the same fair and ethical way as suppliers of the market. It would be easier for these companies to expand globally because new countries would be more open for business relationship with ethically sensitive corporations. 2. A recent study by the U.K.’s Institute of Grocery Distribution determined that the majority of consumers do not buy fair-trade products. The report noted, “Self-interest is at the center of food choice for most consumers. Few consumers consider the impact of their purchase decisions on anyone or anything but themselves and their family.” Do you agree with this finding? I agree. People can tend to be selfish in their nature. A lot of people in the world do not have “decent” incomes...
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...Case 7 Starbucks Coffee Company: The Indian Dilemma Case Digest In 2006, the US based Starbucks Coffee Company, with over 11,000 stores in 36 countries was the No. 1 specialty coffee company in the world. Every week over 40 million customers visited Starbucks coffeehouses. After phenomenal success in the US, and revolutionizing specialty coffee culture, Starbucks undertook international expansion and popularized its specialty coffee worldwide. In the 1990s, Starbucks concentrated its expansion efforts mainly in Asia. The initial pages of the case delineate the origin and growth of Starbucks as a company and a super brand and the strategies adopted by it. In 2002, Starbucks announced that it was planning to enter India. Later it postponed its entry as it had entered China recently and was facing problems in Japan. In 2003, there was news again that Starbucks was reviving its plans to enter India. In 2004, Starbucks officials visited India but according to sources they returned unconvinced as they could not crystallize on an appropriate partner for its entry. In mid 2006, Starbucks announced that they were all set to offer the ‘Starbucks experience’ to Indians in the next 18 months. Recommendation Starbucks is initiating that whether they should enter India or not. I recommend that Starbucks should not enter India because although India has many opportunities, India is risky in terms of their people of having an increasing rate of obesity that if Starbucks sold...
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...direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? a. Father Daniel Mary has a direction in which he would like the Carmelite Monks of Wyoming to steer towards. He wants to create a new Mount Carmel in the Rocky Mountains. Father Prior wishes to increase his small brotherhood of 13 monks living in a small home used as a makeshift rectory to having 30 monks located on a 500-acre monastery. This would also accommodate a Gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, and a hermitage. His vision for the Mystic Monk Coffee is to be able to sell enough to purchase a nearby ranch that will fulfill his visions for the new Mount Carmel. The mission of the Carmelite Monks is the same as Father Priors; they would like to raise enough money to relocate to a more suitable location to carry out their life they’ve dedicated to worship. 2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? a. Father Prior has set objectives to purchase a ranch by selling more coffee. They also have plans to purchase a new roaster to be able to produce more coffee. However, they have not set any goals or made any financial objectives as to how much coffee they need to produce to obtain the money for the ranch and also make their money back on the new roaster. 3. What is...
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...Blue Mountain Coffee case In this case we use the adbudg model. The adbudg model is a sales response model which suggests the optimal level of advertising and when to advertise e.g. how to allocate the advertising budget, do we use it all in the first quarter, how much should we spend etc. In this case we will determine the optimal budget for Blue Mountain Coffee. Their current advertising budget is 8m a year. However, by using the adbudg model we will see if this is the appropriate amount to spend on a yearly basis or if there should be an increased budget. Scenario 1 The model analyses quarter by quarter. As off now the budget and expected revenue is as follows: As we can see the budget is allocated equally in each quarter, with a budget of $8m annually. With this budget Blue Mountain Coffee is expected to make $43.8m in profits. Scenario 2 When running solver to get the optimal budget we get the following: The first thing to notice is that the budget has been increased by $2m. Also, the way the budget is allocated in the four quarters has changed. In the previous budget it was allocated equally in each quarter. Now we see that in the first quarter it is higher at $2.59m then decreases to $2.39m. This makes perfectly logical sense as we would want to create a lot of noise in the beginning to increase awareness, which has been the problem for Blue Mountain Coffee. Then the rest of that year they can slowly decrease the advertising, but only by a little, as we...
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...Q1 After reading this case and emphasizing all the factors and decision involved, we use the ADBUDG model to solve this problem with applying advertising decisions. The ADBUDG model is a sales response model which optimizes the profit from advertising based on the given advertising budget and also decides how to allocate the advertising budget and how much a company should spend on a given timeline. We will determine the optimal budget for Blue Mountain Coffee in this scenario. The given advertising budget for this company is 8m a year. By using the ADBUDG model, we can forecast the outcome and tell if the current advertising amount spend on a yearly basis is the appropriate amount or if we have to increase the advertising budget to gain a certain percentage of market share. Scenario 1 The model analyzes quarter by quarter. The figure shows all the related numbers and the expected profit when the advertising budget is allocated equally in each quarter: As we can see the advertising budget is allocated equally in each quarter, with a budget of $8m annually. With the given advertising budget, Blue Mountain Coffee is expected to make $43.8m in profits for the 3 year forecast. Scenario 2 Here is what we get in the excel spreadsheet when running the solver to get the optimal budget: After running the solver to optimize the advertising budget, the first thing to notice is that the annual advertising budget has been increased by $2m. Secondly, the way...
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...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...Business Case Christof Feichtinger Cafe de Guatemala Hedging Price Fluctuations of the Coffee Markets with the Help of Future Contracts Table of Contents 1. The Business Case - A Short Overview 1 2. About futures markets 1 2.1. Price risk 2 2.2. Volatility 2 2.3. Leverage 2 3. Organization of futures market 2 4. The New York Arabica Contract 2 4.1. Trading Hours, Quotations, Price Fluctuation Limits 2 4.2. Deliveries, Tenderable Growths and Differentials 2 4.3. Integrating Futures and Cash Markets: The eCops System 2 5. The Mechanics of Trading in Futures 2 6. Hedging against rising coffee prices 2 6.1. A Hedging Example 2 6.2. Suggestions for the Company 2 1. The Business Case - A Short Overview The company "Cafe de Guatemala" has so far concentrated on selling biological fair-trade coffee, which was bought from cooperations of little farmers in Guatemala. The pricing strategy is to pay an amount adequate for the underlying quality of coffee, which is commonly about three times higher than minimum fair-trade prices on the market. A new business field, which involves the buying of larger amounts of green coffee for roasters in Germany and Austria, requires a new pricing approach. A different strategy is necessary because these new customers do not always demand the high quality which was so far used for the own branded coffee of "Cafe de Guatemala". The payment will be oriented on "other milds"-index for Arabica coffees. This approach brings...
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...litigation. In an adversarial court system, the stronger the defense (lawyers) is, the stronger the case. One extreme case in the American court system that deflects corporate giants’ upper hand in the United States’ adversarial system, is a 1994 “frivolous lawsuit,” Liebeck v. McDonald’s Restaurant. McDonald’s is known for its fast-food and joy that it brings to children with its Happy Meals. However, in the Liebeck v. McDonald’s Restaurant case, McDonald’s was known as an inconsiderate corporate giant whose nonchalance cost McDonald’s nearly $3 million. Liebeck v. McDonald’s Restaurant is a case that was a media train in the 1990s and misconceptions about the case filled the airways. Case Overview Why should your favorite quick service restaurant be responsible for serving your favorite breakfast beverage, coffee, just how you like it? Liebeck v. McDonald’s Restaurant involved a then 79 year-old, Stella Liebeck, who purchased a cup of coffee from a McDonald’s located in Albuquerque, New Mexico, in 1992 (“McDonald’s,” 2002). “Liebeck tried to hold the cup of coffee between her knees while removing the lid; however, the cup tipped over and the hot coffee burned her.” While there has been speculation that Mrs. Liebeck was driving the car at the time the coffee spilled on her; however, that was not true at all (“Actual Facts,” 1995 - 2013). These reports were used to dramatize the case and deem it as a frivolous lawsuit. Mrs. Liebeck’s grandson was the driver on the day of this incident...
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