Question
Beyond Meat Inc. is a Los Angeles-based producer of plant-based meat substitutes founded in 2009 by Ethan Brown. The company develops and manufactures a variety
Beyond Meat Inc. is a Los Angeles-based producer of plant-based meat substitutes founded in 2009 by Ethan Brown. The company develops and manufactures a variety of protein-based food products. The vegan meat substitutes are made from mixtures of pea protein isolates, rice protein, mung bean protein, canola oil, coconut oil, and other ingredients like potato starch, apple extract, sunflower lecithin, and pomegranate powder with a range of vitamins and minerals. As of 2014, the company's product offerings consisted of Beyond Chicken and Beyond Beef. The soy- free vegan burger patties branded as "The Beast" were released in February 2015. The Beast Burger contained 23 grams of protein and has micronutrients added during manufacturing. As of 2020, Beyond products are widely available in most U.S. grocery stores, and the company's web site lists availability at over 60 restaurant chains and venues such as stadiums and campus cafeterias.
The market for plant-based protein continues to grow, undeterred by the COVID-19 pandemic. The outbreak may actually be helping to drive growth, some industry experts say. As the coronavirus outbreak wears on, some see a future in which preventing illness becomes a bigger part of the health-and-wellness picture. Dennis Woodside, president of the company, highlighted the problems at slaughterhouses that have arisen during the coronavirus outbreak, including the shutdown of a Smithfield Foods pork-processing plant in South Dakota. Most infectious disease outbreaks are transmitted from animals to humans, wrote CFRA in a separate note published this month on lab- based meats. Since lab-based meat is produced in a clean and controlled environment, we think the progression of the lab-based meat industry could be accelerated as more zoonotic outbreaks occur, CFRA wrote.
Beyond Meat Inc. has entered the Chinese market through a partnership with Starbucks Corp. Starbucks is launching a plant-based menu in China that features three offerings using Beyond Meat's alternative beef: pesto pasta (69RMB), classic lasagna (69RMB) and a sour and spicy Beyond Beef wrap (59RMB) starting on 21 April, 2020. Today we mark an important milestone as Beyond Meat launches in China, advancing our goal of increasing accessibility to plant-based protein globally, said Ethan Brown, chief executive of Beyond Meat in a statement. We think China is an attractive market for alternative meats given the protein supply shortage caused by African swine fever and meat production constraints caused by chronic land and water shortages near major cities, wrote Arun Sundaram, in a note for CFRA. Starbucks has reopened more than 95% of its cafes in China after temporarily shuttering them to slow the spread of the coronavirus pandemic.
The manager of Starbucks Reserve Roastery on West Nanjing Road, Shanghai (the worlds biggest Starbucks) does not have a clue about how many dishes of Beyond Beef classic lasagna will be sold in the first six months since the launch of the dish and thinks it will be somewhere between 60,000 and 100,000. The dish sells for 69RMB and the variable cost to make the dish is 35RMB. Unsold dishes are thrown away.
Required:
1.Prepare a results matrix to show profits for different levels of demand: 60,000, 80,000, and 100,000 dishes.
demand
production.
demand
Production plan
60,000 | 80,000 | 100,000 | |
60,000 | |||
80,000 | |||
100,0000 |
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