South Delaware Coors Inc free essay sample

Provides information relative to competition in the market area. f. Industry Composite Financial Statements for Fiscal Year 1986. i. Provide financial information on the industry being considered (i. e. turnovers, margins and returns and the like) ii. Information is from fiscal year 1986. Year in consideration is 1989. Other factors may have changed over time. g. Consumer Study i. Provides general information on consumer preferences and attitude towards the product. h. Retailer Study i. Provide information on retailers’ preferences and willingness to sell the product. i. Provides information on availability of substitute brands. i. Wholesale and Retail Beer Prices i. Provides information on prices charged by wholesalers to retailers. ii. Provides information on prices charged by retailers to end consumers. 3. Industry Attractiveness. The overall profitability of the industry. Alternative Courses of Action 1. Estimate market demand and forecast potential margin derived from the project. In this alternative, Larry will have to request John to perform studies A, B, C and I. We will write a custom essay sample on South Delaware Coors Inc or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The first three studies will help Larry estimate Coors market demand while study I will help him identify the relative wholesale price of beer in Delaware. With this information, Larry can estimate the potential margin he can derive considering the rough estimates of expenses he has identified in engaging the project. Larry however, will have to assume risks by relying on the estimates alone. Nevertheless, he can always validate the outcome of the studies by letting John deliver study G thereby allowing him to have idea on (beer) consumer preferences in Delaware.If results of study G suggests favorable attitude of consumers towards the product, Larry will be more confident to engage the project. 2. Utilize composite indexes and validate using consumer preferences in Delaware. This alternative will require studies F and G. By studying industry averages, Larry will have an overview on inventory turnovers, asset turnovers, return on equity and all other ratios relevant to identify how feasible the industry is. Of course Larry will have better appreciation if he will relate these quantitative measures with qualitative implications uch as consumer preferences. The ratios derived from industry averages will not be necessarily true especially if consumer preferences in Delaware are not favorable to Coors. 3. Analyze industry and engage if feasible. This alternative will require Larry to understand its customer, supplier, the extent of competition and other threats pertinent to the industry. To understand its customer, Larry can utilize study H. Since Larry’s business will be most likely engaged in wholesale activities, majority of his customers will be the retailers who sell the product to the end users.Larry will need to understand his customers’ preferences and attitude towards the product. Satisfying these preferences will help him play in a better position in the industry. Study H will also provide him information on the potential competition he may have to face. The information on the extent to which retailers hold on to other brands will help Larry strategize logistics/distribution especially that substitute products are readily available. Study D will also give implication on how profitable the industry is.The number and type of beer licenses operating in the market provides indication on how large competition will be if the industry/project is engaged. Study I will also be helpful for Larry to have an idea on how he will position his company when it comes to pricing. Recommendation A combination of alternatives 2 and 3 is recommended. While all alternatives consider consumer preferences and attitude towards the product, alternative 2 and 3 puts emphasis on analyzing the industry to determine if it is feasible/profitable or not.