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Buckstar Case Study

Good Essays
Throughout the past five years, BuckStar has accumulated excess capital and now needs to put it to good use. There are two plans that can accomplish this: adding products to the menu, expanding store hours and renovating the current stores or a one-year expansion process of 1,500 stores into Canada. Our main goals of these plans are to increase profit and maintain a workable supply chain. The plan that is most beneficial to our company is plan one, as it will be advantageous to begin selling donuts in our stores and to expand our hours. This plan is a much safer choice, as we will not be expanding into a new foreign country.
Our first goal that we need to satisfy is profit increase. The one new addition that plan two brings is the expansion into Canada, which will cost upwards of $140,000,000. If we expand into Canada, we have no certainty that we will succeed in a new country, as there is already coffee competition that Canadians like more. In addition, by expanding into Canada, it would take at least a year for us to generate enough publicity and presence to gain a major profit. However, if we do successfully expand and the citizens react similarly to the way they did in the U.S., we should be able to develop a
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This plan would be the ideal choice as we would be able to receive additional revenue due to the three new additions to our restaurants. Research has proven that customers who drink coffee prefer to have donuts with it above any other food. In addition, the most popular time to drink coffee is from 6:00 to 9:00 AM and from 11:00 PM to 1:00 AM. Plan one provides the opportunity for customers to have both of these necessities. Despite having to renovate all of their stores, which could decrease profit at times, plan one will still increase profit in the long