Question
Case: Espresso Cafe In high school, Coco set up a coffee brewing service adjacent to the school canteen using beans from her mother, Diem's, home
Case:
Espresso Cafe
In high school, Coco set up a coffee brewing service adjacent to the school canteen using beans from her mother, Diem's, home collection.
After high school, Coco and her brother, Lucas, ran a similar unofficial outfit out of their university dorm rooms on-campus. There was a huge demand for their coffee and it soon became apparent that they could not meet the demand without establishing a business of some sort.
Coco and Lucas sought $30K equity investment from their mother, Diem, to start a modest first business, a coffee cafe. When forming this unincorporated, liability unlimited, proprietary partnership, Coco's friend, Hui, and Lucas' friend, Hasan, also wanted to join the partnership. Between the five of them, they opened Espresso 21 in a position in the Sydney CBD that was an intersection of students en route to all the city-based campuses. Espresso 21 has been running successfully for one year now.
21 Seeds
Espresso 21's current coffee bean supplier, Mr Bean, had on occasion been delivering poor quality coffee beans.
Coco and Hui were concerned about the implication on Espresso Cafe's guarantee and claim for the 'highest quality beans in the Sydney CBD'.
Coco and Hui have set up a second business, outside of the existing Espresso 21 partnership, a roasting company, that removes the problematic coffee bean supplier, Mr Bean, from their supply chain.
Question: How could the possibly merged Twenty One Seeds Cafe (Espresso Cafe + 21 Seeds + Seed) make a profit quickly? (vertical integration)
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