Case study one and two Term Paper Example | Topics and Well Written Essays - 500 words

Case study one and two - Term Paper Example The partner would have to buy in to acquire equity in the company. A good way to determine the valuation of Mystic Monk Coffee is to hire a consultant to determine the value of the firm. The new partner will provide the firm with cash that can be used to expand the business. The partner will also bring human capital into the organization. A second constraint the company faces is limited workforce capacity. The firm only has three employees. Once the new partner comes on board the company can solve the problem by hiring three additional employees. The new employees can help the company in its expansion plan. A growth plan of adding another store managed by the new partner can give the firm added exposure and it can double the revenues. The beer industry is the United States generates $100 billion in revenues annually. Beer is the most consumed alcoholic beverage worldwide. As a drinkable beverage beer has lots of substitutes. Beer can be substituted by water, sodas, tea, juice, and hot beverages including coffee and chocolate. If we narrow the product category, beer is an alcoholic beverage. Wines, rum, vodka, and other hard liquors are substitutes to beers. The bargaining power of the buyers in the beer industry is affected by various factors. The list below illustrates three of those factors and its relative power: There are several critical success factors in the beer industry. One important factor for success in the beer industry is advertising. Beer companies spend billions of dollars each year on advertising using multiple media channels including television, radio, billboards, and the internet. The target market that is aggressively targeted in advertising by beer companies is people between the ages of 18-35 years of age. A second critical success factor is customer loyalty. Beer companies depend on the repeated business of its customers to generate revenues on a