Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How China Became Capitalist

Authors: Ronald Coase, Ning Wang

1st Edition

1137351438, 9781137351432

More Books

Students also viewed these Economics questions