How many times have you ever said to a new or old acquaintance do you want to grab a cup of coffee? Coffee is a drink where we can get to know someone better or just sip while catching up. The latest Hoover’s (2015) market research Keurig Green Mountain is the third largest manufacturer and distributor of coffee and coffee-related products behind both Starbucks and Nestle. Single-cup coffee is experiencing growth, and Keurig Green Mountain built their business on the single-cup concept. The increase in demand for the near future makes now the perfect time to expand. To capture greater market share and to rebound from a disappointing 2015, Keurig Green Mountain is considering increasing their operations into Ethiopia. This paper examines the monetary impact of Keurig Green Mountain expanding in Ethiopia, the possible methods of financial options in the capital markets or through a business combination, and demonstrates their fiscal performance to justify a loan. Keurig Green Mountain is the market leader in single-cup coffee, but face the challenge of rebounding from a challenging year. Their financial strength and market position along with the goals of reducing costs and increasing sales make now an ideal time to grow.
Keurig Green Mountain has justification to expand their operations into Ethiopia because of a variety of factors. The United States Department of Agriculture (2015) reports seventy-five percent of exported coffee comes from either Brazil, Vietnam, or Indonesia. Brazil and Costa Rica are reducing their harvests of Arabica beans that go into the Keurig Green Mountain pods. The past decade in Ethiopia doubled their coffee production and experienced nine years of encouraging a...
... middle of paper ...
..., unique market niche, and knowledge provide Keurig Green Mountain with the ability to successfully expand their operations.
While coffee production in the largest producing countries is faltering, this reduction positions Keurig Green Mountain to consider expanding their footprint in Ethiopia. There are many variables, but projections confirm coffee consumption is on the rise. The potential growth, reduction in costs, and the small investment in expanding indicate they could more than recoup their investment. Keurig Green Mountain needs to consider whether either an internal or external investment is the prudent choice. They should explore the possibility and feasibility of buying a competitor in contrast to building a new facility. Regardless of their decision, Keurig Green Mountain can grow and need to determine the best route to profitability.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- ... furthermore, trees are very good features to block thermal solar radiation by creating a shaded area on walls. Consequently, reduce the need to artificial cooling system in summer and heating system in winter. (Gabriel Pérez 2011) Another research study in Hong Kong showed a daily reduction in temperature fluctuation up to 50%, and a protection from intense solar radiation between 40% and 80%, depends on the amount and type of plants. And a study on shadings effects reveals that green system reduce the energy used for cooling about 23%, and reduce energy used for fans about 20%.... [tags: green walls, green façade]
1837 words (5.2 pages)
- Case Study of the Green Mountain Resort Introduction In this week’s assignment we will discuss the images of managing change and how they relate to the case study of the Green Mountain Resort. First I will identify the change images held by key players in the case study. Then we will look at how the assumed change images influenced dealing with the issues in the case study. Then we will apply an additional change image to the case study and discuss the possible outcome. Then finally I will discuss thoughts on the statement from the text “if we only draw upon one particular frame, then this will take us away from the thinking about what is going on from an alternative perspective” (Palmer,... [tags: managing change, hospitality, images]
902 words (2.6 pages)
- Green Mountain Resort Case Study Background Green Mountain Resort used to be a small resort in the Appalachians. It offered minimum facilities which included skiing, golf and tennis. It was far from major population centers, and the main reason for its erection was to entice buyers from its environs. Many, if not all, property owners got membership to the resort and they were happy about it. However, as soon as the real estate sold out, Green Mountain needed to operate as a normal resort this time, without the easier access to the property buyers.... [tags: land, turnover problem, facilities]
1089 words (3.1 pages)
- Introduction We’ll talk about the change image of the Green Mountain Resort management dis-solving employee turnover. A strong realization from the point of view of the resorts top management, and how perception made a difference within the problem. As management looked at a series of possible reasons why their employees sought out better jobs, and ultimately became high producing workers at competing resorts. The Dissolution of Turnover As the management team of the Green Mountain Resort realized they had a problem of employee turnover as the sales of the resort properties were depleted.... [tags: Hospitality industry, Hotel, Resort, Ski resort]
956 words (2.7 pages)
- Case 2: Keurig Green Mountain Strengths: Market Growth: Coffee consumer numbers are rising worldwide. According to The Business Insider coffee falls second after crude oil and has a worth of approximately $100 billion. Keurig Green Mountain has a large market to target. The coffee industry is not only growing but coffee consumers are willing to pay the price for their daily caffeine boost. The growth in this industry is definitely a strength for Keurig Green Mountain and also an opportunity that should not be wasted.... [tags: Coffee, Drink, Carbonation, Environmentalism]
1610 words (4.6 pages)
- Keurig Green Mountain in many ways has delivered on all of key goals and priorities. Green Mountain Coffee (GMC) has welcomed a significant number of new brands into the Keurig® family; launched the Keurig® 2.0 system and accelerated new product innovation; implemented continuous productivity and efficiency enhancements throughout the company’s operations; and began the process of globalizing the Company with the launch in the U.K. At the same time, we generated significant value for shareholders by investing behind organic growth and returning nearly $1.2 billion to shareholders via dividends and share repurchases.... [tags: Financial statements, Balance sheet]
1419 words (4.1 pages)
- I. Problems A. Decreasing Sales Over the past several years, Green Mountain's sales growth has decreased. In 1998, net revenues totaled at 55.8 million dollars. There was an increase in sales over the following years. In 2002, revenue increased by a mere 4.6%.There are several flaws and problems in the company that may decrease revenue sales. B. Competition There are six major competitors: Gevalia, Illy Café, Millstone, Peet's Coffee and Tea, Seattle's Best and Starbucks. Starbucks seems to have a strong share in the available market.... [tags: Business Case Studies]
599 words (1.7 pages)
- The major plot outline in both the short story and the movie The central drama and point of conflict in any love story is the obstacle between the lovers. In the best known tragic love story in Western history, Romeo and Juliet, the obstacle is their feuding families; in the classic film Casablanca it's virtue and in Brief Encounter, it's the marriage of one of the lovers. This is a story of unfulfilled love in Wyoming. Ennis and Jack, a ranch hand and an aspiring rodeo rider, work together as sheep herders in the summer of 1963 on Brokeback Mountain in Wyoming.... [tags: Brokeback Mountain Essays]
1242 words (3.5 pages)
- Introduction Green building has come forth over the past decade as a positive movement to produce high-performance, energy-efficient structures that improve comfort and health for resident, meanwhile, minimizing environmental impacts. Nevertheless, a common sense that green features is expensive and not suitable for affordable housing. Recent studies are showed that green buildings have a modest initial cost premium, but the long-term benefits far exceed the additional capital costs. For this report, I will introduce a financial analysis -Net Present Value (NPV), and discuss the impacts of NPV analysis for green affordable housing.... [tags: enviromental impact, economic tools]
1511 words (4.3 pages)
- Green Mountain National Forest The Green Mountain National Forest, established in 1932, is Vermont’s only National Forest. It is managed in the spirit of multiple uses, including recreational activities, logging and watershed protection and management. An ecosystems management approach has recently been adopted by the U.S. Forest Service in maintaining the forest. In 1964 the Congress of the United States passed the Wilderness Act in an attempt to set aside, in the words of the act, "an area where earth and its community of life are untrammeled by man"; the lands designated as wilderness areas were to be "affected primarily by nature." Six areas, totaling 59,598 acres of the Green Mountain... [tags: Essays Papers]
379 words (1.1 pages)