Premium Essay

South Delaware Coors

In:

Submitted By jughead21805
Words 900
Pages 4
South Delaware Coors, Inc.
Overview
Larry Brownlow has an opportunity to invest in a distributorship for Coors beer in the South Delaware area. He has a $15,000 budget for research that he can purchased from a research supplier called Manson and Associates to help him make this decision. Larry also has a $500,000 trust fund coming available to him soon and the option to borrow $400,000 from family members and an additional $400,000 line of credit with the bank.
Recommendation
We have concluded that it is feasible for Larry to pursue the investment of a Coors distributorship. The information we recommend purchasing are: studies A, B, C, E, F and I. good choicesThe cost of these studies totals $6,749.50, which would save $8,250.50 to use toward the initial investment. With fixed costs and the estimated amount Larry had figured for the initial investment, he would need $1,050,000. After Larry’s $500,000 of trust fund money and the additional money saved from the research budget, he would still need to borrow $541,748,50 to acquire the distributorship. We recommend that he borrow the $400,000 he has been offer from family first and the remaining $141,749.50 from the bank to avoid a larger interest payment or fees he may incur with a larger loan from the bank. He would also still have a $258,250 line of credit with the bank available if he needed it in the future.
Rationale
1. When analyzing Table A it is clear that the consumption in gallons of beer per capita is much higher in Delaware than the average for the United States as a whole. Based on this information and the percentage of the population in the two Southern Delaware counties who are over the age of 21 being a considerable amount we can tell that there will be a demand for the Coors product in those locations. You really don’t want to base decisions on “we can tell.” Base your recommendations on

Similar Documents

Premium Essay

South Delaware Coors

...Cultural and social values Coors is very famous to the public with a good brand name. The consumption of beer products in Delaware counties is very important for decision making 3. Political and legal issues Coor’s corporate management was seen some customer to hold antiunion beliefs, and some other consumers perceived the brewery the brewery to be somewhat insensitive to minority issues 4. opportunities and threats in the environment The success of this business would depend highly on the two wholesalers in Delaware.   Using aluminum can recycling equipment, Coors can attract customers who concern about protecting environment. B. Industry 1. Industry Coors brewery is the fourth-largest seller of beer in the country.   They focus on the quality of their product, carrying about environment and giving people something to believe on 2.   The Major competitors Competitors of Coors include existing beer and alcohol manufacturers in the country as well as foreign countries. There are a great number of substitute products available in the market.   These include other beer products as well as wine, hard liquor, wine coolers, and other carbonated/malt alcohol products. It maybe has a new competitors coming into the industry but Coors has an exclusive formulation C. Organization 1. Objectives and constraints Larry’s main objective is to open up the beer distribution market in the South Delaware area, and area that has been...

Words: 506 - Pages: 3

Premium Essay

South Delaware Coors

...Economics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 6 The Risk and Term Structure of Interest Rates 6.1 Risk Structure of Interest Rates 1) The risk structure of interest rates is A) the structure of how interest rates move over time. B) the relationship among interest rates of different bonds with the same maturity. C) the relationship among the term to maturity of different bonds. D) the relationship among interest rates on bonds with different maturities. Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 2) The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is A) interest rate risk. B) inflation risk. C) moral hazard. D) default risk. Answer: D Ques Status: Previous Edition 3) Bonds with no default risk are called A) flower bonds. B) no-risk bonds. C) default-free bonds. D) zero-risk bonds. Answer: C Ques Status: Previous Edition 4) Which of the following bonds are considered to be default-risk free? A) Municipal bonds B) Investment-grade bonds C) U.S. Treasury bonds D) Junk bonds Answer: C Ques Status: Previous Edition AACSB: Analytic skills 5) U.S. government bonds have no default risk because A) they are backed by the full faith and credit of the federal government. B) the federal government can increase taxes to pay its obligations. C) they are backed with gold reserves. D) they can be exchanged for silver...

Words: 34661 - Pages: 139

Premium Essay

South Delaware Coors Case

...South Delaware Coors Case South Delaware Coors Larry Brownlow was just beginning to realize the problem was more complex than hethought. The problem, of course, was giving direction to Manson and Associates regarding which research should be completed by February 20, 1989, to determine market potentialof a Coors beer distributorship for a two-county area in southern Delaware. With data fromthis research, Larry would be able to estimate the feasibility of such an operation before theMarch 5 application deadline. Larry knew his decision on whether or not to apply for thedistributorship was the most important career choice he had ever faced. LARRY BROWNLOW Larry was just completing his M.B.A. and, from his standpoint, the Coors announcementof expansion into Delaware could hardly have been better timed. He had long ago decidedthe best opportunities and rewards were in smaller, self-owned businesses and not in the jungles of corporate giants. Because of a family tragedy some three years ago, Larry foundhimself in a position to consider small business opportunities such as the Coors distributorship. Approximately $500,000 was held in trust for Larry, to be dispersed when hereached age 30. Until then, Larry and his family lived on an annual trust income of about$40,000. It was on this income that Larry decided to leave his sales engineering job andreturn to graduate school for his M.B.A. У The decision to complete a graduate program and operate his own business had beeneasy...

Words: 636 - Pages: 3

Premium Essay

South Delaware Coors Case

...Apply for the South Delaware Coors distributorship. Obtaining a distribution license for Coors beer will become profitable. The business problem facing this decision is whether or not becoming a Coors distributor is a feasible business plan. There are several aspects to a feasible business. To answer the business problem following research questions must be answered: what is our market’s demand for beer, how much revenue can we expect, what price should we charge, and what will the total costs be? The Manson and Associates studies chosen to answer the research questions and solve this business problem facing us are following: Table C – Coors market share estimates for 2000-2005, Table E – Beer taxes paid by wholesales in the market area for 1997-1998, Table F – Financial statements for 510 wholesalers of wine, liquor, and beer in fiscal year 1999, and Table I – Retail and wholesale prices for selected beers in the market area. The total cost for purchasing these four studies is $4,429.50. Applying for the South Delaware Coors distributorship will be a profitable decision. In order to determine this, the studies that are purchased will be analyzed and transformed to help answer our research questions. Table E was projected to 2000 by applying the same percent change of taxes paid between 1997 and 1998 to 1999 and 2000. Taking the total number of taxes paid by all manufacturers and dividing by Delaware’s 6% beer tax projects that 5,758,222 gallons of beer will be sold in 2000...

Words: 544 - Pages: 3

Premium Essay

South Delaware Coors Case Study

...South Delaware Coors, Inc |   |   | Case # 4 South Delaware Coors, Inc.   10/28/2008 Problem Statement Which research studies should Larry ask Mason and Associates to complete?  Upon consideration of the research study results, is this new business venture a go? Alternatives Larry has several different options to choose from with respect to research studies that can be completed.  As long as he stays at or under his $15,000 budget he can request that any combination of studies be completed by Mason and Associates.  Larry was presented with 9 different research studies that may be of assistance to him in deciding whether or not this truly is a ‘golden’ opportunity.   The second part of the problem statement requires only two alternatives: To go ahead with the business, or to make a no-go decision.   Recommendation/Discussion It is recommended that Larry choose the following studies for Mason and Associates to complete: •    Study A: National and Delaware Per Capita Beer Consumption for 1988-1992 in Gallons •    Study C: Estimates of Coors’ Market Share for 1990-1995 •    Study E: Beer Taxes Paid by Delaware Wholesalers for 1988 and 1989 in the Market Area •    Study F: Financial Statement Summary of Wine, Liquor, and Beer Wholesalers for Fiscal Year 1988 •    Study H: Retailer Study (if the retailers don’t stock the product, consumers will not get it!) •    Study I: Survey of Retail and Wholesale Beer Prices The total cost of the studies completed...

Words: 3947 - Pages: 16

Premium Essay

South Deleware Coors Inc

...South Delaware Coors Inc. Case Study Analysis Executive Summary: Larry Brownlow is a full time MBA student who will be graduating soon. Larry decided to pursue his MBA because he wants to be a business owner and has a trust worth $500,000 that will soon be available to him. Larry has recently come across an opportunity to apply for a Coors beer distributorship. Before Larry applies for the distributorship he must first figure out if this is a good business decision. Due to Larry being a full time student he does not have the time to research this opportunity himself. Larry has $15,000 to use for feasibility research and has commissioned Manson and Associates to do the research. Manson and Associates is a general research supplier that has done feasibility research in the region. Manson and Associates has provided Larry with an estimate to do the requested research. The estimate for all the research Larry would like far exceeds his budget and therefore he will not be able to purchase the full research plan. Larry must decide what parts of the research plan he needs most to determine whether or not applying for the distributorship is the best business move for his future. Situation Analysis Environment Economic conditions and trends Larry only has $15,000 available for research purposes and he will $500,000 available for investment by the time it is needed for the full investment. Cultural and social values and trends Coors has a high quality product with a strong brand...

Words: 1983 - Pages: 8

Free Essay

Coors Paper

...South Delaware Coors, Inc. Overview Larry Brownlow has an opportunity to invest in a distributorship for Coors beer in the South Delaware area. He has a $15,000 budget for research that he can purchased from a research supplier called Manson and Associates to help him make this decision. Larry also has a $500,000 trust fund coming available to him soon and the option to borrow $400,000 from family members and an additional $400,000 line of credit with the bank. Recommendation We have concluded that it is feasible for Larry to pursue the investment of a Coors distributorship. The information we recommend purchasing are: studies A, B, C, E, F and I. good choicesThe cost of these studies totals $6,749.50, which would save $8,250.50 to use toward the initial investment. With fixed costs and the estimated amount Larry had figured for the initial investment, he would need $1,050,000. After Larry’s $500,000 of trust fund money and the additional money saved from the research budget, he would still need to borrow $541,748,50 to acquire the distributorship. We recommend that he borrow the $400,000 he has been offer from family first and the remaining $141,749.50 from the bank to avoid a larger interest payment or fees he may incur with a larger loan from the bank. He would also still have a $258,250 line of credit with the bank available if he needed it in the future. Rationale 1. When analyzing Table A it is clear that the consumption in gallons of beer per capita is much...

Words: 360 - Pages: 2

Premium Essay

Coors

...Elliott Nelson South Delaware Coors Distributor * Strategic problem * Larry wants to buy a wholesale distributor of Coors * Has gone to Manson and Associates to conduct research on the plan to decide how to proceed * Given 9 different research opportunites to gain insight on the feasibility of the project * Limited funds can’t perform all studies, pick which ones are the best * Yes or no to opening plant * Cost * Issues * Cost * Which research will be most valuable * Whether the investment is worth it Back round * Larry Brownlow * MBA student, entrepreneur, looking to invest in a smaller self owned business * Trust fund of 500,000 * Research amount available 15,000 * Decide on whether to invest in the Coors distributorship limited time * Coors * Unwilling to compromise on quality * Open 1873 golden Colorado * Operating philosophy “had work, saving money, devotion to the quality of the product, caring about the environment, and giving people something to believe in.” * Requires constant refrigeration * Considered a high quality, standard beer, light and zesty taste, similar to standard beers from Miller and Budweiser. * Management seen by some to be antiunion beliefs, insensitive to minority issues, primarily unemployment and distribution * Sales depend on the efforts of two wholesalers planned for the...

Words: 1303 - Pages: 6

Premium Essay

Zoecon

...SOUTH DELAWARE COORS, INC. INSTRUCTOR’S GUIDE TO YOUR CASE ANALYSIS1 Background South Delaware Coors, Inc. represents an interesting marketing situation for three reasons: the issue in the case is clear-cut while data needed to solve the issue requires conceptualization and insight; the case contains elements common to most feasibility decisions (estimates of industry demand, market share, investments, costs, and resulting performance are required); and the case requires students to develop actionable decisions based on the research information. Two problems are present in the case. The first is a decision on what research should be conducted by Manson and Associates to allow Larry Brownlow to estimate the feasibility of a Coors distributorship for a two-count area in Delaware. The second problem is a decision on whether or not the distributorship is feasible or, in other words, a go/no-go decision by Brownlow regarding his application. This problem is largely implicit in the case, but it is the problem you are to address in your analysis. In fact, you should employ the following problem statement in your case report: “Does the South Delaware Coors distributorship offer sufficient investment potential given Mr. Brownlow’s current business and personal situation?” Attached you will find the results of all studies mentioned in the case. You may employ any or all of these to make your recommendation. Do not worry about exceeding Mr. Brownlow’s research budget. We will assume...

Words: 2561 - Pages: 11

Premium Essay

Lancer

...South Delaware Coors, Inc Brains On Tap Todd Whitaker, Debbi Danner-Rios, Aleisha Humphrey, Scott Roberts, Eric Puckett 1. What consumer behavior can Larry expect if he introduces Coors to South Delaware? Short-term behavior? Long-term behavior? 2. Who are Coors’s competitors? How does Coors differentiate itself from its competition? Heineken and Anheuser Bush are the main competitors. They differentiate themselves with their brand image. Brand image includes several different areas such as Refrigerated shipping, non-pasteurization, recycling their cans. They are a family owned company who is committed to quality beer. 3. What are the pros and cons of each marketing research report? Manson & Associates will bring an objective third party view to the research, but they won't know the ins and outs of the business like an internal employee might. Manson & Associates have up-to-date knowledge of research and analysis tools, but they can't always communicate or predict the value or outcomes as well as an internal employee might. Manson & Associates can be a costly expense, ($18,549.50) but decreased client headcount and other various efficiencies, that they can take advantage of can effectively minimize costs while maximizing value. Manson & Associates have the ability to contact a high volume of customers, but they don't always represent the client's company as well as the company itself would. Manson & Associates have the ability...

Words: 342 - Pages: 2

Premium Essay

Gateway Case Study

...Gateway Inc. Theory in Practice Eduardo Ordóñez Professor Meilich BUS 444 May 7, 2004 Ticker: GTW Stock Exchange: NYSE Website: www.gateway.com Company Description Gateway Inc. was first incorporated in Iowa in 1986, with the name of Gateway 2000, Inc. It was then reincorporated in South Dakota in December of 1989 and later in Delaware in January of 1991. In 1993, the company went public, trading on the NASDAQ before transferring its stock to the New York Stock Exchange in 1997. Today, the company’s corporate headquarters are located in California in the city of Poway. As a major supplier of personal computers and related products and services, Gateway Inc. is a firm currently competing in the computer manufacturing industry along with Dell, Hewlett-Packard, IBM, Toshiba, Apple, and others. It does not only manufacture PCs and laptops, the company also offers servers, workstations, an assortment of computer accessories (monitors, printers, software, memory, etc.), and a line of digital electronics. Gateway Inc. has a broad target market. It consists of small to large business, government and educational institutions, and home and home office. It sells its products nationally through a number distribution channels, including its Website, telephone call centers, and retail stores. The company’s mission is “to be the leading integrator of personalized technology solutions,” by “improving the quality of life through technology,” via “leadership...

Words: 7327 - Pages: 30

Free Essay

Mktg Syllabus

...Marketing  Management   MKTG  5150,  007,  077,  080,  086   Fall  2013  8W     Instructor:       Kenneth  N.  Thompson,  Ph.D.    Professor  of  Marketing  &  Logistics     Office  Hours:  1:30  –  3:30  TTh  and  by  appointment     E-­‐mail:  kenneth.thompson@unt.edu.  Only  use  this  e-­‐mail  address  if  you  cannot  reach  me   via  the  Blackboard  Learn  e-­‐mail  facility.    Use  the  ‘e-­‐mail’  selection  on  the  Learn  menu  bar   (left  side  of  the  Learn  window).  E-­‐mail  traffic  initiated  via  Blackboard  Learn  is  specifically   flagged  to  get  my  attention.      By  the  way,  do  not  expect  me  to  respond  to  e-­‐mail  on   weekends  or  after  5:00  p.m.  on  weeknights.    I  am  often  online  during  these  times,  but  there   are  no  guarantees  with  my  extensive  travel  schedule  this  Summer.       Roger  Kerin  and  Robert  Peterson  (2010),  Strategic  Marketing  Problems:  Cases  and   Comments,  12th  Ed.  (Upper  Saddle  River,  NJ:    Pearson  Prentice  Hall)  ISBN-­‐13:  978-­‐0-­‐13-­‐...

Words: 6865 - Pages: 28

Free Essay

Hotel Report

...September 18, 2012 Mr. Patrick Heck Deputy Chief Financial Officer Denver International Airport 201 West Colfax Avenue Denver, Colorado 80202 Re: The Westin Denver International Airport – Denver, Colorado Dear Mr. Heck: Pursuant to your request, we have conducted a study of the potential market demand and developed a statement of the estimated annual operating results for a proposed 519-room Westin hotel (the “Subject”) to be located at the south terminal of the Denver International Airport (“DIA”) in Denver, Colorado. Throughout this analysis, we formally refer to the Subject as The Westin Denver International Airport. The development of the Subject hotel is expected to be financed through the issuance of tax-exempt bonds coupled with some form of public subsidies/guarantees/loans. This report has been prepared for use by the Denver International Airport and its financial advisors in determining the estimated annual operating results of the proposed Subject. The conclusions set forth in this report are based on an analysis for supply and demand for the transient lodging market in the Denver-Aurora market area as of August 8, 2012, the completion date of our fieldwork and primary market research. As in all studies of this type, the estimated results assume competent and efficient marketing and operational management, and presume no significant change in the status of the competitive lodging industry from that as set forth in this report. The terms of this engagement are...

Words: 40945 - Pages: 164

Free Essay

Insights Into the Food, Beverage,

...to member companies and represent the food industry on scientific and public policy issues involving food safety, food security, nutrition, consumer affairs, and international trade. For more information, visit FPA’s website at www.fpa-food.org The member firms of the PricewaterhouseCoopers network (www.pwc.com) provide industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries across our network work collaboratively using connected thinking to develop fresh perspectives and practical advice. © 2006 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and...

Words: 24438 - Pages: 98

Free Essay

Child Labour

...10000 quiz questions and answers www.cartiaz.ro 10000 general knowledge questions and answers 10000 general knowledge questions and answers www.cartiaz.ro No Questions Quiz 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Carl and the Passions changed band name to what How many rings on the Olympic flag What colour is vermilion a shade of King Zog ruled which country What colour is Spock's blood Where in your body is your patella Where can you find London bridge today What spirit is mixed with ginger beer in a Moscow mule Who was the first man in space What would you do with a Yashmak Who betrayed Jesus to the Romans Which animal lays eggs On television what was Flipper Who's band was The Quarrymen Which was the most successful Grand National horse Who starred as the Six Million Dollar Man In the song Waltzing Matilda - What is a Jumbuck Who was Dan Dare's greatest enemy in the Eagle What is Dick Grayson better known as What was given on the fourth day of Christmas What was Skippy ( on TV ) What does a funambulist do What is the name of Dennis the Menace's dog What are bactrians and dromedaries Who played The Fugitive Who was the King of Swing Who was the first man to fly across the channel Who starred as Rocky Balboa In which war was the charge of the Light Brigade Who invented the television Who would use a mashie niblick In the song who killed Cock Robin What do deciduous...

Words: 123102 - Pages: 493