Answer To: Each case analysis will be 8 pages long, double-spaced, in 12-point font. The case analysis must be...
Ayan answered on Feb 24 2023
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Contents
Understanding the case 3
Identifying the core problem in the case 4
Analyzing the issues in the context of a theoretical framework 5
Exploring alternative solutions with reference to a theoretical framework 6
Choosing the best solution 7
Making Recommendations for Action 8
Conclusion 9
Work Cited 10
Understanding the case
The case of South Delaware Coors, Inc. revolves around the question of whether or not it would be profitable for a distributor named Larry Brownlow to invest in a Coors beer franchise in southern Delaware. Brownlow is concerned about the potential for the venture to be successful and is therefore considering conducting a research study to determine if the investment would be wise. The case provides Brownlow with a range of data to analyze, including demographic and sales data from previous Coors distributors in the area. One of the key points to understand in this case is the importance of market research and data analysis in making informed business decisions. Brownlow understands the potential risks involved in investing in a Coors franchise, and as a result, wants to make a decision based on objective and empirical data. By analyzing the available data, he can make an informed decision about whether or not to invest in the franchise. Another important factor to consider in this case is the competitive landscape in southern Delaware. Brownlow will need to conduct market research to understand the competition, including other beer brands that are popular in the area. He will also need to understand the distribution channels used by his competitors and determine how he can differentiate himself from them. Overall, the case provides a useful example of how businesses can make informed decisions by conducting market research and data analysis. Brownlow's success will depend on his ability to gather and analyze relevant data, understand the competitive landscape, and make strategic decisions based on his findings.
Identifying the core problem in the case
In the South Delaware Coors case, the core problem is whether the acquisition of the Coors distributorship is financially viable for SDC. The company wants to expand its operations by acquiring the rights to distribute Coors beer in the two-county area of South Delaware, but Mark and Pete must evaluate the costs and benefits of this expansion to determine whether it will result in a positive return on investment. To understand the financial viability of the acquisition, Mark and Pete need to conduct a thorough analysis of the costs involved in acquiring the distributorship and the potential revenue that it can generate. This includes analyzing the upfront costs such as the purchase price of the distributorship, the costs associated with setting up a warehouse and distribution network, and any additional costs associated with hiring personnel, marketing, and promotion.
On the revenue side, they need to analyze the potential market demand for Coors beer in the area, the competition from other beer brands, and the pricing strategy that will be employed. They also need to evaluate the volume of sales required to generate a positive return on investment, taking into account the pricing and cost structure of the distributorship. Additionally, they need to consider the potential risks and uncertainties associated with the expansion, such as changes in the beer market, shifts in consumer preferences, and potential regulatory challenges. They also need to factor in the opportunity costs of investing in the Coors distributorship, such as foregone opportunities for investing in other areas of the business. Overall, the core problem in the case is to determine whether the benefits of acquiring the Coors distributorship outweigh the costs and risks associated with the expansion. Mark and Pete must make a careful and informed decision based on a thorough analysis of the financial viability of the acquisition.
Analyzing the issues in the context of a theoretical framework
· Bargaining power of suppliers – Suppliers in the beer industry are the breweries that produce and distribute beer. In this case, the main supplier is Coors. The bargaining power of suppliers refers to the degree to which they can influence the price and quality of the product they supply (Phadermrod et...