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Coffee Limited is a catering private equity company that owns a chain of cafeterias in Cyprus. The company started experiencing a decline in its sales

Coffee Limited is a catering private equity company that owns a chain of cafeterias in Cyprus. The company started experiencing a decline in its sales due to the current downturn of the economy. As a result its board of directors is examining the possibility of a strategic move into a new business concept in an attempt to diversify into a quick revenue type of business to recover the sales volume decline of the company. The new concept involves the creation of a new chain of small quick take-away shops. This involves the creation of small take-away outlets selling coffee, drinks and snacks. The new shops will be based on the concept of selling all drinks for 1.00 and all snacks for 0.50. Snacks such as cheese pies, sausage pies, olive pies etc will be of a smaller size than those currently offered in the market. This will address two main market segments: Those who because of the economic downturn wish to spend less on buying a mid-morning or an afternoon snack and those who wish to buy something light either for health or diet reasons. The board of directors of Coffee Limited had met to discuss the opportunity to

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