Kusmi tea case Essay

I have project that the first-year revenue of $20,000 and a 15% growth rate for the next two years. The complete cost of sales is projected to average 50% of gross sales, including 40% for the purchase of equipment and 10% for the purchase of additional items. Net income is projected to reach $70,000 in four three as sales increase and operations become more

* We increased this costs as a percent of revenue 2.7% over the previous year for all forecasted periods

The Gross Margin ratio represents the percent of total sales revenue that TCI retains after incurring the direct costs associated with producing the goods and services sold by them. It helps us distinguish, as much as possible, between fixed and variable costs. With a 20%, 15%, or 10% projected increase in sales, for 1996, we calculated TCI’s GM ratio to be 41.85% , and in 1997 to be 41.84%. This means that around 42% of TCI’s sales dollar is available to pay for fixed costs, like its potential long-term debt to MidBank, and to add to profits.

As the Prior of the Carmelite Order of monks in Clark, Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming. He has a clear vision that he wants to expand the monastery by buying a 500-acre ranch, which can enable to build a Gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, and a hermitage including 30 monks. Father Daniel Mary cannot make the vision come true unless he can collect enough money to pay for the $8.9 million listing price of that ranch. In this circumstance, the vision for Mystic Monk Coffee (MMC) is to sell more coffee to fund the Carmelite Monks of Wyoming. Therefore, the mission of the Carmelite

Analysing the historical values of the operating margins from the Income Statement, we forecast values for the 2007-2009 period. The executives of BKI expect the firm to achieve operating margins at least as high as the historical ones. Thus, we took averages and slightly adjusted them toward higher values. Since the declining tendency in the last three years was cause by integration costs and inventory write-downs associated with acquisitions, which already have been completed. To the EBIT, estimated by using those margins, subtract the taxes, Capex, adjust for Depreciation, Amortization and change in Working capital. The capital expenditures were just over $10m on average per year. The company is expecting the Capex remain modest. Thus, we assumed a Capex of $10m for the next three years. We estimated Net Working Capital by using the average ratio of NWC/Net income of the last three years.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Starbucks has been very successful in Turkey despite the economic problems the company was experiencing in the U.S. during 2007-2008. The fact that Starbucks’ Turkey C.E.O. Can Ikinci is Turkish and that he had studied in the U.S. and worked in London played an important role in the company’s success in this country. Mr. Ikinci was familiar with the culture, the market environment and with the skills he acquired overseas, he was able to build a strategy based on the adaptation of the product to local consumers as it included Turkish coffee. This demonstrates how the company did their research as coffee is an important component of the Turkish culture. The marketing strategy shows that Starbucks was thinking about the local patrons and they also brought the U.S. standard products to Turkey, which are some of the growth drivers, just like Gloria Jeans did with their coffee products.

Starbucks faces competition from variety of small-scale specialty coffee chains, such as Caribou Coffee, Peet’s Coffee and Tea, Dunkin Donuts, and thousands of independent specialty coffee shops. Each of them applies different strategies to differentiate itself from Starbucks; some of them deliver highly personalized service.

At the basic level, coffee is steeped in Turkey’s culture and lifestyle as well as enjoying the drink among family and friends in an environment conducive to socializing. This is also the fundamental level of Starbucks’ business model of fine quality coffee and stores with welcoming atmospheres designed to appeal to friendly gatherings. Therefore, Tukey and Starbucks seem to be a natural fit in terms of the market. By engaging in licensing, which they had done successfully in other countries, Starbucks was even better able to tap into local knowledge and secure desirable retail locations.

Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights

According to Starbucks Newsroom, Tata Coffee Limited will supply roasted coffee to Tata Starbucks Limited to export to Starbucks Coffee Company. Second, to expand a wide range of beverages with greater used of assets and innovation. A brand new tea product named Tata Tazo is one of the example beverage had made. Third, ensure the consumers in India enjoying high-quality and premium Starbucks coffee experience. Furthermore, they also work together to develop and improve the profile of Indian-grown Arabica coffees around the

* Starbucks as part of its product line expansion acquired Tao Tea, Seattle’s Best Coffee and Ethos Water. Seattle's Best continues to operate as a separate subsidiary while Starbucks and its partners handled Tazo Tea and Ethos Water. For Tazo Tea, its line of superpremium Tazo teas were marketed and distributed by Kraft while the ready to drink beverages were managed by PepsiCo and Unilever. For Ethos Water, PepsiCo handled its products as part of its joint venture with Starbucks.

“Honest Tea seeks to provide bottled tea that tastes like tea a world of flavour freshly brewed and barely sweetened. We seek to provide better-tasting, healthier teas the way nature and their cultures of origin intended them to be. We strive for relationships with our customers, employees, suppliers and stakeholders which are as healthy and honest as the tea we brew.” (Honest Tea Mission Statement)

The “Starbucks Experience”: There is a friendly and clear connection between staffs and customers of Starbucks. This is not present in The Coffee Bean & Tea Leaf.

All the stores of The Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason