Hawaii Coffee Company Essay

I. Trading PositionThe society is well known for providing customers with quality grinded deep brown in sell food product format. Customers of the company atomic number 18 stores and cocoa shops. The company should maintain this position because it is the to the highest degree profitable for the company. However, on that point atomic number 18 also risks in the format. Selling in large packages will generate sales tax deduction that will shrink corporeal profit.II. Brand DecisionsI believe that the company should maintain the figurehead of the Royal Kona brand because it means less pressure for the Lion deep brown brand. In an opposite(prenominal) words, the two brands can help each other (financially or strategically) from time to time.III. Discount SellingI do not think it is possible to reduce the amount of discount selling for Lions java Brand because the company sells in sell format where consumers will nearly likely want to get discounts from large amount of purchase. However, if conditions generate the requisite for such reduction, the price of coffee should be enhanced to cover the discounts stipulation to special customers. This can be performed by using the numbers from precedent period. Thus, the increase in price can be matched to the amount of discount given in the last period. There ar also variations in the way we eliminate the looses from discount selling. For instance, the price increase could be ground on average discount given in the last deuce-ace years, etc.IV. Expanding to the MainlandExpansion to the mainland could generate enhanced market share if performed diligently. On the other hand, the wrong entry method could generate losses due to poorly calculated investments. First, manager of the blowup project must flip thorough understanding on the coffee market in the mainland. A part of this is elaborated in the case study. The market is somewhat contrasting with the Hawaiian market because in the mainland, peo ple prefer to buy coffee beans and grind them in their houses and stores. In Hawaii on the other hand, there are significantly larger portion of the grinded coffee sales.Another inequality of the coffee market in Hawaii and in the mainland is the nature of the ambition. In Hawaii, the largest competition comes from drug stores and convenience stores. In the mainland on the other hand, competition comes from other coffee-selling companies like Starbucks, etc. In a sense, competition in the mainland exists in round-eyedr variation compare to the Hawaiian market. 1 of the upsides of such an expansion is the generation of additional markets that will relief the pressure from existing markets. Furthermore, the boldness of a presence in the mainland will generate companionship overlap between the Hawaiian market and its subsidiary in the mainland. On the other hand, the downside of such an expansion is the unprepared system to face a easily different pedigree environment. The comp any might have to face broad challenges from competitors and the increasely demanding customers in the mainland.V. StarbucksStarbucks as the trendsetter in the coffee persistence windlessness have considerable influence for the company. In a sense, all products produced at bottom the industry will be compared to Starbucks coffee. In the light of this condition, it is quite foolish to compete directly with the company. However, recent articles regarding the retail coffee market indicated that there are still plenty of rooms for development. Furthermore, analysts also stated that the retail coffee market has quite a unique appeal for investors. contempt the effects of popularity on sales, consumers of coffee are not fanatics like in other industries. In a sense, there are still wide opportunities for development and winning the competition against others if one has the appropriate quality to interest visitors (Duffy, 2007).VI. Opportunities and ThreatsOpportunities for the Hawa ii Coffee Company are generated mainly from the nature of the industry which is always on the look for new tastes and new coffee experience. Threats on the other hand, come from the lack of knowledge on how to manage the retail coffee business. Some of the important points that deserve attention in do to avoid threats and generate opportunities include Designing the business planOne of the most frequent mistakes in managing the retail coffee business that could chip in to misery is the lack of flexibility regarding corporate business plan. In a sense, managers should realize that they could never be done with the business plan. There are always little details that require attention and business change. unfitness to understand this need is a threat toward corporate long-term survival. BudgetingStudies indicated that 50% of new startups failed in the first three to five years. The reason of this failure is the lack of business expertise and in satisfactory funding. Therefore, the l ack of a sufficient funding is categorized as a considerable threat for the coffee business. Choosing the LocationMost business understands that location is a crucial chance of business endeavor. However, managers in the coffee business should understand that location is a captious determinant for business success or failure. The lack of mightiness in choosing the right location for business is a notable threat. understand the ProductsCustomers in the present day are much more faultfinding than those of the old days. Tastes, cleanliness, quality of services are all under critical observation of visitors. Therefore, present day managers of coffee retailers must understand divers(a) aspects that would influence how customers perceived the products and services provided by the company. For instance, health issues are gaining increasing attention, therefore health considerations in designing coffee mixtures is important for business survival. The lack of comprehension toward the p roducts and services offered and their implication to customers is a threat for the retail coffee business (Coffee Industry Goes Green, 2007). Knowing CustomersA good product for a single incision could be dread for other segments. Companies should never generalized their product and hope for a peck of all markets. There is always the need for targeting a certain segment of the market and focuses on developing products and services to meet the preferences of the segment. The lack of knowledge over the targeted segment could be a significant threat for corporate growth and survival. Investing in BaristaBarista and waiters are the ones who interact directly with customers. These are the people where managers put their faith upon. If a manager realized this, accordingly he/she should realize the importance of investing into baristas and waiters. Training, bonuses and other types of compensation are important for the business. Ignoring Baristas is a significant threat for success in the retail coffee business.