Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional steres, Your executive

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional steres, Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening addaional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficithcies as more stores are opened in each city. As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the compsny and crunching accarate numbers with nothing more than an Excel spreadsheet. You have been tasked with calculating the two best markets for opening an additional store. You have already calcutated two things that aliow you to estimate the net additional revenue in each market after adding a second store: 1. Revenue for a second store in each market 2. The revenue lost from estimsted cannibalization at the first store. Important note: Due to the high inwestments aiready made in existing stores, management has specified that any market where cannibalization is 25 W or more should be eliminated from consideration. Questions 1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store? San Diego and Chicago Boston and Houston Orlando and Sian Diego Boston and Chicago Houston and San Diego 2. What two markets should be chosen for a second store based on management's criteria that the cannbalization rate for the existing stert shecid be less than 25% ? Note: Cannibalization rates and net revenue incredse ameunts need to be considered when making this determination. Beston and Houston Boston and Chicago Atianta and Chicago Boston and Portland Atlanta and Portiand Scenario You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build nwo additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in eristing markets. While As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunatehy rou are an expert at From inside and outside the company and crunching accurate numbers with nothing more than an Excel soreadrecet. You have been tasked with calculating the two best markets for opening an additional store. You have already calculated fwo things that alfow you fo estimate the net additional revenue in each market after adding a second store: 1. Arvenue for a second store in each market 2. The revenue lost from estimated cannibsligation at the first store. Important note: Due to the high investments already made in existing stores, management has specined that any market where cannibanization is 25% ar more should be eliminated from consideration. Questions 1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increates whent adding a socond atere? 5an Diego and Chicago Boaton and Houston Crisndo and 5 an Diego Boston and Chicago Heuston and San Biego 2. What two markets should be chosen for a second store based on manmpemeed's criteria that the casniboligation rate for the aniseing itione shouid ae less than 2594 ? Note: Connibalusation rates and net revence intresse amounts need to be considerad when making this determination. Boston and Hcuston Boston and chicapo deiarest and Chicege Woston and Portiend Aliante aris fortiend You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional steres, Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening addaional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficithcies as more stores are opened in each city. As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the compsny and crunching accarate numbers with nothing more than an Excel spreadsheet. You have been tasked with calculating the two best markets for opening an additional store. You have already calcutated two things that aliow you to estimate the net additional revenue in each market after adding a second store: 1. Revenue for a second store in each market 2. The revenue lost from estimsted cannibalization at the first store. Important note: Due to the high inwestments aiready made in existing stores, management has specified that any market where cannibalization is 25 W or more should be eliminated from consideration. Questions 1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store? San Diego and Chicago Boston and Houston Orlando and Sian Diego Boston and Chicago Houston and San Diego 2. What two markets should be chosen for a second store based on management's criteria that the cannbalization rate for the existing stert shecid be less than 25% ? Note: Cannibalization rates and net revenue incredse ameunts need to be considered when making this determination. Beston and Houston Boston and Chicago Atianta and Chicago Boston and Portland Atlanta and Portiand Scenario You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build nwo additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in eristing markets. While As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunatehy rou are an expert at From inside and outside the company and crunching accurate numbers with nothing more than an Excel soreadrecet. You have been tasked with calculating the two best markets for opening an additional store. You have already calculated fwo things that alfow you fo estimate the net additional revenue in each market after adding a second store: 1. Arvenue for a second store in each market 2. The revenue lost from estimated cannibsligation at the first store. Important note: Due to the high investments already made in existing stores, management has specined that any market where cannibanization is 25% ar more should be eliminated from consideration. Questions 1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increates whent adding a socond atere? 5an Diego and Chicago Boaton and Houston Crisndo and 5 an Diego Boston and Chicago Heuston and San Biego 2. What two markets should be chosen for a second store based on manmpemeed's criteria that the casniboligation rate for the aniseing itione shouid ae less than 2594 ? Note: Connibalusation rates and net revence intresse amounts need to be considerad when making this determination. Boston and Hcuston Boston and chicapo deiarest and Chicege Woston and Portiend Aliante aris fortiend

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

Strategic Management Theory And Cases An Integrated Approach

Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones

13th Edition

0357033841, 978-0357033845

More Books

Students also viewed these Accounting questions

Question

Give some examples of how employers use inherent controls.

Answered: 1 week ago