Analyze an investment opportun

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

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

B) What constraints could affect future production and costs fora coffee shop? How can these aspects be leveraged to effectefficient methods of production and acquisition of resources toimprove organizational costs?

C) What are the effects of potential technology changes onproduction, costs, or competition for a coffee shop? How can theseaspects be leveraged to effect efficient methods of production andacquisition of resources to improve organizational costs?


A) Costsinvolved

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 productsthat 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

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