Question

Analyze an investment opportunity for a coffee shop and answere the following questions:

A) What key non-price variables could be expected to affect production costs for a coffee shop? How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve organizational costs?

B) What constraints could affect future production and costs for a coffee shop? How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve organizational costs?

C) What are the effects of potential technology changes on production, costs, or competition for a coffee shop? How can these aspects be leveraged to effect efficient methods of production and acquisition of resources to improve organizational costs?

Answer 1

A) Costs involved

Non-price variables

Efficiency, productivity, storage supplies, accessories, professional fees, utilities, licenses, equipment, and, advertising

Efficient production, and, acquisition

• Higher sale of higher margin products, promote other products that do not have high variable costs
• Efficient production - Working on the supply chain; Transporation, and, disruptions

B) Constraints: future production, and, costs; Efficiency

• Disruptions in procurement; Demand planning not working
• Budget
• Labour, capital, technology: Services, infrastructure, efficiency

C) Improvement through technology, and, efficiency

• Sustainable coffee economy: Growing, harvesting, hulling, drying, packing, bulking, blending, roasting
• Identification, and, dissemination of processing systems
• Highly effective promotion activities in the market
• Greater product segmentation