Hawaii Coffee Company Essay

I. Trading PositionThe accompany is considerably known for providing customers with quality chat uped umber in retail grocery format. Customers of the company be stores and chocolate shops. The company should maintain this position because it is the around economic for the company. However, there atomic number 18 also risks in the format. Selling in astronomic packages will generate sales discount that will reduce collective profit.II. stigma DecisionsI believe that the company should maintain the presence of the g onlyant Kona brand because it means less pressure for the Lion Coffee brand. In some new-made(prenominal) words, the two brands can help each former(a) (financially or strategically) from time to time.III. Discount SellingI do not moot it is possible to reduce the amount of discount selling for Lions Coffee Brand because the company sells in retail format where consumers will most in all probability want to get discounts from large amount of purchase. Howev er, if conditions generate the necessity for much(prenominal) reduction, the price of umber bean should be enhanced to c all over the discounts inclined to circumscribed customers. This can be performed by using the numbers from previous period. Thus, the increment in price can be matched to the amount of discount given in the last period. There are also variations in the fashion we eliminate the looses from discount selling. For instance, the price increase could be based on average discount given in the last three years, etc.IV. Expanding to the MainlandExpansion to the mainland could generate enhanced market place share if performed diligently. On the former(a)wise hand, the wrong entry method could generate losses due to sick calculated investments. First, manager of the expansion project must receive complete(a) watching on the coffee market in the mainland. A cave in of this is elaborated in the case study. The market is somewhat divers(prenominal) with the ho w-do-you-doan market because in the mainland, spate 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 difference of the coffee market in Hawaii and in the mainland is the nature of the argument. 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 wider variation compare to the Hawaiian market.One of the upsides of such an expansion is the contemporaries of additional markets that will relief the pressure from existing markets. Furthermore, the establishment of a presence in the mainland will generate knowledge sharing betwixt 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 co nsiderably different telephone circuit environment. The company might have to face considerable challenges from competitors and the progressively demanding customers in the mainland.V. StarbucksStarbucks as the trendsetter in the coffee intentness still have considerable square off for the company. In a sense, all products produced within the industry will be compared to Starbucks coffee. In the light of this condition, it is quite unwise to postulate directly with the company. However, recent articles regarding the retail coffee market indicated that there are still plenty of rooms for evolution. Furthermore, analysts also stated that the retail coffee market has quite a unique appeal for investors. Despite the set up 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 please visitors (Duffy, 2007). VI. Opportunities and ThreatsOpportunities for the Hawaii Coffee Company are generated mainly from the nature of the industry which is perpetually on the look for new tastes and new coffee experience. Threats on the other hand, come from the inadequacy of knowledge on how to manage the retail coffee business. Some of the principal(prenominal) points that deserve attention in order to void threats and generate opportunities include Designing the business planOne of the most frequent mistakes in managing the retail coffee business that could lead to failure is the escape of flexibility regarding corporate business plan. In a sense, managers should befool that they could never be done with the business plan. There are eternally little details that require attention and business change. Inability 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 insufficient financing. Therefore, the lack of a sufficient funding is categorized as a considerable threat for the coffee business. Choosing the sideMost business understands that location is a crucial aspect of business endeavor. However, managers in the coffee business should understand that location is a exact determinant for business success or failure. The lack of ability in choosing the right location for business is a notable threat. Understanding the ProductsCustomers in the present day are much more critical than those of the hoar days. Tastes, cleanliness, quality of services are all under critical bill of visitors. Therefore, present day managers of coffee retailers must understand various 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 impo rtant for business survival. The lack of comprehension toward the products and services offered and their implication to customers is a threat for the retail coffee business (Coffee Industry Goes Green, 2007). Knowing CustomersA bang-up product for a single segment could be horrible for other segments. Companies should never generalized their product and hope for a piece 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 branch 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, then he/she should realize the importance of investing into baristas and waiters. Training, bonuses and other types of compensation are important for the bu siness. Ignoring Baristas is a significant threat for success in the retail coffee business.