Q1). Currently, there is an opportunity for owning a Coors Distributorship in the southern Delaware counties of Sussex and Kent. Coors is a well-known brand name nationally, and retailers in the targeted area are willing to carry the product, which is an indication of pre-existing brand awareness and demand for Coors. It was necessary to obtain a feasibility study to project a possible profit or loss and $800,000 dollars will be needed for the initial investment. We believe the following decision criteria should be embraced by Larry to make his decision.
Market Share - Since Coors will enter this market area for the first time, it is believed that market share will continue to grow as the brand becomes established over time and market share percentage should meet or surpass company market share percentage of 8.7% - 8.9% in the next three years.
Larry Brownlow -Although Larry has many alternatives, (conduct no research, continue graduate school, invest trust money, conduct own research following completion of MBA, hold off on MBA to do research presently), obtaining his degree seems to be of utmost importance, as well as achieving success, sooner rather than later, in a self-owned business.
Purchasing Research – Purchasing research may be costly, but the knowledge and insight it will provide is paramount. While Larry could surely conduct his own secondary data research for less than $15,000, a busy schedule and time constrain him. See research purchased in Q3.
SWOT Analysis - The review of internal and external information provided by a SWOT analysis would provide Larry with information needed to make his decision.
• Owner has an MBA. ...
... middle of paper ...
...market he only has to acquire a 6.31% market share to break even. We feel that making the investment is the best option for his future.
The investment is an excellent option because the probability of profit is very high. Based on our Pro-forma Income statement, profit will be substantial and will increase each year even after losing .2% of market share. Pessimistically, the market share to break even is very generous making 2.5% room for error if needed when tapping into a brand new market. The ability to make a high market share in the southern part of Delaware would be very substantial. Because it is a beer perceived to be higher class (study H) than its competitors, it will be introduced into a brand new market.
See link below for all Exhibits:
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The content of this paper will discuss the importance of market research to AAA Travel Auto Club South. While discussing the importance of market research this document will start with a definition and than evaluate if market research is used by this organization and if so what the value of using it is and the various types of marketing research AAA Travel Auto Club South uses and it’s importance to their organization. The process of market research is assembling information, analyzing its value, and interpreting market information about products or services to be presented for sale in a particular market (McDaniel & Gates, 2006).... [tags: Market Research ]
874 words (2.5 pages)
- Introduction The South Pacific Stock Exchange (hereafter SPSE) also adopted the principle-based corporate governance code in 2009 with a view to enhance investor participation and confidence in the capital market in Fiji. The SPSE listing rules Section 6.42 require all listed companies to comply with the corporate governance code as stipulated under the Reserve Bank of Fiji (hereafter RBF) corporate governance principles and reporting guidelines (SPSE, 2010). Corporate governance is the broad term that describes the process, laws, policies, customs, and institutions which provide guidance for the organizations and corporations in the way they manage, operate, and control their operations.... [tags: capital market, financial market]
619 words (1.8 pages)
- Adolph Coors is one of the most successful and long-standing brewing companies in the industry. Their ability to adapt to the changing dynamics and circumstances of their consumers has supported their achievements since their opening in 1873. Maintaining success in any industry for over a century requires constant innovation and a dedication to improvement and development. While Coors’ overall history depicts their evident care and ability to give consumers what they want, sometimes before they know they want it, there was a period in which their lag in progression could have more greatly affected their business.... [tags: Brewing, Beer, Fermentation, Brewery]
1296 words (3.7 pages)
- Securities markets in Mexico are orderly and relatively innovative; however, corporate markets lag behind those in comparator countries. The government bond market accounts for the bulk of the fixed-income segment, and is well developed and active. The creation of an international segment (Sistema Internacional de Cotizaciones- SIC) in the Mexican stock exchange (BMV) has increased trading and provided access for domestic investors to international assets. However, there are relatively few listed equities in the BMV- compared to Chile or Korea- and the number of initial public offerings (IPOs) in recent years has been quite small.... [tags: Stock exchange, Stock market, Investment]
1330 words (3.8 pages)
- A recent case decision from the Delaware Court of Chancery, Cigna Health and Life Ins. Co. v. Audax Health Solutions, Inc., called into question the use of special provisions in the letter of transmittal to bind non-signatory shareholders, and the use of a post-closing indemnification provision, contained in a merger agreement, that is not limited in duration or subject to a monetary cap. Brief Summary A Letter of Transmittal may not contain special provisions that are not in the merger agreement, unless separate consideration is provided for those provisions.... [tags: Stock market, Shareholder, Contract, Stock]
1074 words (3.1 pages)
- The word apartheid comes in two forms, one being the system of racial segregation in South Africa, and the other form is the form that only those who were affected by apartheid can relate to, the deeper, truer, more horrifying, saddening and realistic form. The apartheid era truly began when white South Africans went to the polls to vote. Although the United Party and National Party were extremely close, the National party won. Since they won, they gained more seats and slowly began to eliminate the black’s involvement with the political system.... [tags: South Africa Apartheid Essays]
1253 words (3.6 pages)
- The Coors company got started when Adolph Coors and was 15 years old when he tool a ship to New York form Germany in 1868. With his savings and with the help of a partner, he started developing a brewery. Which took place in 1882. Then he bought his partner out and Adolph Coors started running on his own. As Adolph’s progress was going, people started to fight the sins of drinking and along came prohibition. Because of prohibition Adolph turned his brewery into making porcelain and selling malted milk instead of making beer.... [tags: essays research papers]
383 words (1.1 pages)
- Adolph Coors My Personal Interest: The Rise and Fall (Literally) of Adolph Coors After already sharing my thoughts of my family, and myself, I felt as though neither of my favorite personal interests would accomplish the task at hand. It was Saturday afternoon, and I still didn’t have a good personal interest topic to write about. I started mind-mapping, writing every topic I could think of, including: The Real Civil War; Mental Instability – Possession or Illness; Finding the Perfect Home – Mortgage and All; and even The lightning Capital: Why Here.... [tags: Biography Biographies]
1146 words (3.3 pages)
- Delaware Delaware is a really cool state. I say that because there is not a whole-lot of crime there and for country folks it’s great because there is a lot of cows and pigs, but there are also a lot of cars there too. It was some rivers and creeks land definition and tons of history, but there isn’t very many people there compared to California. Delaware has gained 2 nicknames over the years, The First State and The Diamond State. It got the nickname The First State because it was the first state to ratify the constitution.... [tags: essays research papers]
657 words (1.9 pages)
- Frank Dale’s view of the Delaware River is of change and challenge. The Delaware Diary is shown through tragedy and prosperity, hope and grief, but above all it is told through the stories of those who were there. As his subtitle suggests, episodes in the life of a river, he symbolically represents the river as having a life of its own through the stories and accounts of the people who had some particular impact by the river or to the river. There are many stories to be told of the river, but here are a few significant turning points in American history in part by that river.... [tags: essays research papers]
754 words (2.2 pages)