Lukes March 2019 Financial Statement (5 weeks)

Gross sales	$133,000
Opening inventory, at cost	$ 59,500
Closing inventory, at cost	$ 61,000
New purchases, at cost	$ 78,500
Cash Discounts	3%
General overhead	$ 11,000
Advertising	$ 9,000
Salaries	$ 20,000
Customer returns and allowances	$ 8,000
Reductions	2.5%

Carols Coffee: Profit 6% or $7,500, Operating expenses 40%

Part 1 Complete a skeletal statement for each competitor (30pts)

Lukes Diner Skeletal Statement (15 pts)

Carols Coffee Skeletal Statement (15pts)

Part 2 Conduct a brief SWOT of Lukes Diner (12 pts)

Part 3 Identify which of the 4 growth strategies would be most effective for Lukes Diner. Support this choice by referencing the SWOT. (3 pts)

Part 4 Alternatives: Generate 3 possible alternatives to implement the growth strategy for LUKES Diner. Support each alternative with sustainable competitive advantages and referring to the SWOT and selected growth strategy. (6 Pts.)

Part 5 The Retail Mix: Select the best alternative idea and generate a marketing mix to implement the growth strategy for LUKES Diner. Identify the 6 Ps in the retail mix and how they would be used to implement the plan. (12Pts.)

Part 6 Pricing a cup of coffee can be a challenge. Lukes currently serves a basic blend of coffee that costs $10/lb. The current selling price of a cup of coffee is $2.00 for a 6oz up. Each lb. of coffee produces 48 cups at this size. (5 Pts)

1. What is the cost per cup of coffee?
2. What is the Markup % for a cup of coffee?
3. Based on the markup% would you classify coffee as an elastic of inelastic good?
4. If Lukes switches to a premium coffee to remain competitive. The premium coffee costs $15/lb., and sells an 8oz coffee for $3.00 per cup.
   1. what is the cost per cup of coffee?
   2. What is the markup % for premium coffee?

Part 7 Types of Retailers Lukes has the following retailers as neighbours. What type of retailer are they? (2 pts)

1. Marshals -
2. Pennys Pretty Pens & Paper -