...Blue Mountain Coffee case In this case we use the adbudg model. The adbudg model is a sales response model which suggests the optimal level of advertising and when to advertise e.g. how to allocate the advertising budget, do we use it all in the first quarter, how much should we spend etc. In this case we will determine the optimal budget for Blue Mountain Coffee. Their current advertising budget is 8m a year. However, by using the adbudg model we will see if this is the appropriate amount to spend on a yearly basis or if there should be an increased budget. Scenario 1 The model analyses quarter by quarter. As off now the budget and expected revenue is as follows: As we can see the budget is allocated equally in each quarter, with a budget of $8m annually. With this budget Blue Mountain Coffee is expected to make $43.8m in profits. Scenario 2 When running solver to get the optimal budget we get the following: The first thing to notice is that the budget has been increased by $2m. Also, the way the budget is allocated in the four quarters has changed. In the previous budget it was allocated equally in each quarter. Now we see that in the first quarter it is higher at $2.59m then decreases to $2.39m. This makes perfectly logical sense as we would want to create a lot of noise in the beginning to increase awareness, which has been the problem for Blue Mountain Coffee. Then the rest of that year they can slowly decrease the advertising, but only by a little, as we...
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...all the factors and decision involved, we use the ADBUDG model to solve this problem with applying advertising decisions. The ADBUDG model is a sales response model which optimizes the profit from advertising based on the given advertising budget and also decides how to allocate the advertising budget and how much a company should spend on a given timeline. We will determine the optimal budget for Blue Mountain Coffee in this scenario. The given advertising budget for this company is 8m a year. By using the ADBUDG model, we can forecast the outcome and tell if the current advertising amount spend on a yearly basis is the appropriate amount or if we have to increase the advertising budget to gain a certain percentage of market share. Scenario 1 The model analyzes quarter by quarter. The figure shows all the related numbers and the expected profit when the advertising budget is allocated equally in each quarter: As we can see the advertising budget is allocated equally in each quarter, with a budget of $8m annually. With the given advertising budget, Blue Mountain Coffee is expected to make $43.8m in profits for the 3 year forecast. Scenario 2 Here is what we get in the excel spreadsheet when running the solver to get the optimal budget: After running the solver to optimize the advertising budget, the first thing to notice is that the annual advertising budget has been increased by $2m. Secondly, the way the budget is allocated into four quarters has...
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...kinds of running projects, or you still think that my country is located in Africa, it’s not very important. Coz today I will introduce my country in another way. What I want to show you all is this -- Blue Mountain Coffee! Some of you may have heard of the Jamaican Blue Mountain coffee, of course you’ve been heard about it coz it is world famous! Our coffee produced from Blue Mountain which located in the coffee belt, it has a rich volcanic soil, clean air, no pollution, climate humid, foggy and rainy throughout the year. Three taste -- sweet, sour, bitter are prefect mixed in our coffee, the taste of our coffee must make you never forget. Now, ninety percent of Jamaican Blue Mountain coffee each year are bought by the Japanese. This is because Japan has invested Jamaican coffee for a brief time. But now we want to cooperate with more countries, especially in countries such as China which has a great consumption potential in the future. Question: 1. I would like to know whether China interested in investing our Blue Mountain Coffee. 2. We can guarantee the quality of the coffee, but as the second most expensive coffee in the world, we can not guarantee a low price to you. 3. As food import and export management is very strict in China, I would like to know if you can export our coffee to China....
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...1971 and is now one of the fastest developing coffee retailers in the world. The company now has over 8,000 company operated stores and 7,803 licensed stores in 49 countries. Starbucks has been in a steady state of development since CEO Howard Shultz in a franchise with a group of investors in 1987. Starbucks is the largest coffee bar chain in the U.S. In actual fact, they are the largest in the world, with some 2,600 stores globally. These stores all have like products that are similar in appearance. Starbucks seeks to provide the same experience to coffee drinkers in Seattle, New York, London, Kuwait City, and Taipei. Starbucks also offers services to companies to supply coffee and related items to their employees, owns a supermarket channel run by Kraft Foods, and sells its coffee and other items directly to customers through catalogs and its website. Ahead of these items, the company has an agreement with Pepsi-Cola to develop and produce bottled coffee drinks like the "Frappuccino" drinks and an agreement with Dreyer's Grand Ice Cream to produce different flavors of ice cream. Moreover, the company provides coffee service to customers like airlines and hotels. To put all this in perspective, in fiscal year 2009, Company operated retail stores accounted for about 84% of revenues. Starbucks catches the attention of near-cult followers, serving 25 million drinks a week at over 8,000 locations worldwide. The Seattle-based coffee empire was among the top 10 on Fortune’s most...
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...Thesis statement The coffee industry has been thriving over the years up to 1985, but due to decline in sales completion and supply being greater than demand the industries’ survival and growth has dwindled. Rationale This question was chosen by the researcher to examine the factors that encouraged the development and existence of the coffee industry. This research will help others fix the problem and provide jobs for unemployed people, bring more money for the government to fund programs such as P.A.T.H which helps children in schools as well as for the government to buy more medical necessities. Introduction Coffee was introduced to Jamaica by Sir Nicholas Lawes governor of Jamaica at that time, he brought the plant from Haiti in 1728. It was first planted in the parish of St. Andrew on the Blue Mountains. The Coffee Industry became successful because of the natural attributes of the country such as the cool climate which was suitable for the growth of coffee. The relief of the land such as the rugged mountains and the rich soil. The marketing overseas also proved valuable as it provided foreign exchange. The industry also provided employment for competent and incompetent workers. As a result of its growth farmers saw it fit to invest in the cultivation of coffee in various parts of Jamaica. It became more dominant in 1838 after slavery was fully abolished and seen as a good investment by others than peasant farmers. The coffee industry is important to the economy...
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...paper sack. Next, we all took a turn and pulled one out of the sack the trip ideas that were pulled trip to the Wallowa Mountains, trip to the Oregon coast, and then Yakima, Wa was pulled from the bag. Once I saw what my mum and my son pulled, my paper got tossed over my shoulder. The challenge now were to pick from the two options trip to the Wallowa Mountains or the trip to the Oregon coast. We ponder on what the Oregon coast and the Wallowa Mountains offered in actives, accommodations, and weather in late March. We were down to trip to the Wallowa Mountains and the Oregon coast. As we looked at these two, we noticed these were just a few of the more common spring break trips. These two place Oregon coast and the Wallowa Mountains are still far from being a like each other. Then my family was curious about other things such as accommodations and the weather in late March. The weather in Oregon can be unpredictable in late March at the Oregon coast also at the Wallowa Mountains. The weather can be sunny one moment to down pour rain. The Oregon coast often in late March can be foggy and stormy with high winds. Then the Wallowa Mountains in late March can be very cold to a sunny warm day, even at times get traces of snow. During some storms on the Oregon coast hotels may lose power. Although losing power would not matter camping. When the Wallowa Mountains have high wind you have to...
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...Question: Company Luau Kona and Blue Jamaican a. Using a plant-wide rate based on machine hours to assign manufacturing overhead cost to products In this approach the manufacturing overhead is based on machine hours. The manufacturing overhead application rate has been has been provided as $54.00 per machine hour. The following table list on the first row the number of machine hours required for each coffee type. The second row show the manufacture overhead for one kilo of coffee, based on the machine hours for one kilo of each coffee and the rate for machine hour | Luau Kona | Blue Jamaican | Machine hours required for the manufacture of one kilo of coffee. | 0.04 | 0.02 | Manufacturing overhead application rate for one kilo of coffee | 0.04 x $54.00 = $2.16 | 0.02 x $54.00= $1.08 | Requirement: Determine the total unit product cost of one kilogram of the Luau Kona coffee and one kilogram of the Blue Jamaican coffee. In order to calculate the total unit product cost of one kilogram of coffee, we need to add: - Direct material cost - Direct labour cost - Manufacturing overhead application rate | Luau Kona | Blue Jamaican | Direct material cost | $5.20 | $3.10 | Direct labour cost | $0.20 | $0.37 | Manufacturing overhead application rate | $2.16 | $1.08 | Total unit product cost of one kilogram | $7.56 | $4.55 | b. Using multiple predetermined overhead rates based on the departmental rates In this approach the manufacturing overhead is calculated by adding different...
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...will thrive in the market because the last time we attempted to launch a product like this if failed miserably. Also, we still need to figure out a way to make our product have instant chill. Our Customers will not buy if the don’t have cold Coke. On the other hand, we have some large opportunities to excel our company as a whole. The first decision is if we partner with Green mountain coffee roasters Inc.; they can really improved our chances of being successful because they put their Keurig coffee maker in 10% of us homes. People will pay for convenience and easy to use machine. The next decision is if we decided to produce this product it would lower many transportation and extra product costs with bottling. The last decision we would have to make is if we should use co2 canisters. This was tried before and customers thought it was inconvenient. In the rest of the memo, I will show how this company can be even more successful but also more efficient by making decisions. Full Analysis Sense we tried to make this home soda maker before, I believe that we should partner with Green mountain coffee roasters Inc. because they are in 10% of us homes already and they have a trusted brand name. The stakeholders might have a different idea about partnering because it’s going to come with a price tag. We just have to educate them in the sense of how much more profit we could make from using more resources. Moving on to the second decision, if we commit to product this product we...
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...Green Mountain Coffee “Brewing a Better Day” Milestone One Kim Hureau Southern New Hampshire University Green Mountain Coffee “Brewing a Better Day” The purpose of this paper is to provide a comprehensive analysis on Green Mountain Coffee. This analysis will cover an overall market, cost and production and supply and demand analysis for Green Mountain Coffee, including Keurig. Green Mountain Coffee provides single serve brewed coffees in a variety of flavors and brewing styles to both the at home as well as corporate consumers. Green Mountain has an extreme focus on sustainability and green business practices and was the first company in the coffee industry to support the United Nation’s Global Reporting Initiative (GRI) mission to develop globally accepted sustainability reporting guidelines (Sustainability, n.d.). History of the Company Purchased by Robert Stiller in 1981 while vacationing in Waitsfield, Vt., Robert thoroughly enjoyed the coffee he bought when he stopped in at the small specialty coffee shop so much that he bought the store. In 1989, Green Mountain Coffee formed an environmental committee to address conservation concerns Robert Stiller had, this conservation program has remained a consistent social program through the many changes at Green Mountain. The Company changed their name to Green Mountain Roasters in 1993 and became a publically traded in company in September of that same year. In the late 1990’s, Green...
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...User Manual Critique Week 4 Assignment Gregorio Cisneros ENG/221 07/17/2014 Joseph Aguirre The following review and critique will be on the Keurig, Inc., Keurig® K-Cup™ K70/K75 Platinum Brewer Owner’s Manual. The document is available online via the following website link: http://www.keurig.com/~/media/Files/Keurig Brewer Manuals/2013 Use and Care Guides/Platinum Use Care Guide.ashx This review will cover the purpose and function of the manual, format and design, manual usability, the uses of written communication and appropriate usage of visual and technical elements. This critique will demonstrate how this manual is both concise and effective manual. Purpose and Function The purpose of the manual is clear to the reader as to help product owners know how to setup the unit, use the device correctly. The manual also informs readers of the device controls and features, how to clean and maintain the device, knowledge of troubleshooting topics and solutions, and informing the end user of warranty specifications. The fundamental function is to educate the consumer how the Keurig product works and provide additional available support content pertaining to the device. Format and Design The manual format is both pre-printed physical copy or available online for viewing and downloading. The document dimensions are smaller than 8.5 in. x 11 in. letter size. The manuals custom size of 8.5 in. x 5.5 in. size makes it compact and economical. The cover is a 4-color process scheme...
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...Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters (GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of development...
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...90 miles south of Cuba. Jamaica is the third largest Caribbean Island measuring 146 miles at its widest point. The population is approximately 2.8 million. More than half of Jamaica is mountains above 1000 feet high. The highest point in Jamaica is the renowned Blue Mountain Peak, which rises up to 7,402 feet. The mountains are mostly on the interior of the island, the coastlines are flat beaches that stretch for as long as the eye can see. Another interesting fact is that they drive on the opposite side of the road than we do. People just drive crazy down there, not obeying any speed limits or rules. There a lot of deadly accidents. I would not want to drive there at all. I chose Jamaica for my speech because my husband and I have been there twice. The first time we went was right after 9/11. We stayed at Sandals Resort in Montego Bay. It was right near the Sangster International Airport. I remember flying into Jamaica for the first time and it was the most beautiful thing I had ever seen. The Airport sets right next to the Caribbean Sea. The plane flew through a mountain pass on the island before landing. We were below the mountain tops passing through small clouds. Then coming out of the mountain above the Caribbean Sea into the airport, seeing the white sandy beaches, turquoise waters blue skies and palm trees. It was very scenic, just beautiful! We found out the first time we were there that Montego Bay is not a very safe place to be if you left your Resort area. You could...
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...The sun inched through the green and ivory curtains and unmasked the layers of dust that floated around the room. It seemed like so many years ago. It was sometime in the summer between the hot months of June and July; the last day of a weeks vacation. I sit, peeling an orange with a knife, so as not to break my just painted red-satin nails, feet propped up on the table, un-shoed and sock-less. I notice the lime-green smoothie mixer that came complimentary with the hotel room. I guess that it had to be from Target and remember that I need to buy a new razor and shampoo and conditioner before we leave. Oh and soap. Definitely need more soap. I didn’t even want to think about soap right now. I want to go now but know that I really shouldn’t leave Katelyn alone despite everything. She is sleeping, I like to remember her that way that morning, sleeping like that. I try never to forget her curls and her eyelashes as I watch her sleeping on the bed; her round Jackie Kennedy sunglasses and my Audrey Hepburn heels that were thrown off the bed from the night before. I want to remember her this way. Before she goes back to her life. Her life without me. Her married life. Her life that began again last night. I try to remember her this way. The moon had deepened the curtains a olive purple as the street lamps lit the way home for the late night drunks. “I knew you wouldn’t stay Katelyn…” I told her, my tears mixed with my black...
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...Green Mountain Coffee Roasters, Inc. (GMCR) Prepared For Gary L. Payne, MBA Sam Houston State University Prepared By Eric Robinson Fall Semester 2013 Part I History The coffee and tea manufacturing industry has become a $70 billion annual global sales commodity (First Research, Industry Overview). Business continues to boom and coffee manufacturers are able to broaden their revenues by reaching new segments and geographic areas through creative marketing initiatives. According to First Research (8/12/2013), the US US coffee and tea manufacturing industry includes about 300 companies with an annual combined revenue of almost $12 billion. That equates to less than one third of the global annual sales. With Starbucks corralling the majority of the upscale retail coffee consumers; Dunkin’ Donuts, the blue-collar, no-frills brand coffee drinker; Green Mountain Coffee Roasters (GMCR) went looking for a way to capture the self-serve specialty coffee consumer in North America and Canada. This customer tends to be a gourmet beverage drinker who doesn’t compromise on taste but likes quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate...
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...Planning Executive Plan Blue Mountain Resto Bites is a locally owned fast food chain. Through our creative approach to the company's image and detail presentation. Blue Mountain Resto Bites will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Blue Mountain Resto Bites is the answer to an increasing demand for snack-type fast food, to be consumed while window shopping and walking around inside a shopping mall. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent shopping malls in Singapore. Later, our effort will be a further development of more retail outlets in the surrounding area. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in month 13 and early in year three. The financing, in addition to the capital contributions from shareholders, will allow Blue Mountain Resto Bites to successfully open and expand through year two. The initial capital investment will allow Blue Mountain Resto Bites to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Blue Mountain Resto bites will entice youngsters to bring their friends and family with our innovative environment. 1.1 Objectives ...
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