Cafes Monte Case Essay Example for Free

Cafes Monte Case Essay The company located in Milan, Italy. It was found by Mario Salvetti as a manufacturer and distributor of premium finest coffees. The company faces a hard decision that may affect their future. The company wants to know whether or not they should keep working in the same investing. An important meeting was there among the top management team’s members to discuss the future of the company. The company’s performance was good in 2000. Profit was shown at the financial statement. Giacomo Salvetti the CEO of the company needs to decide which to choose as the business strategy for the company: 1) Keep working in the premium coffee market. 2) Transfer to the private brands market. The current capacity of the coffee production in 2000 was 350,000 K/M , with added additional capacity of 150,000K/M. The cost of the additional units was 6 billion liras. More facts about the profitability and the liquidity were required beside the cash flow and the profit plan to quantify strategic alternatives and to help in making this decision. The idea of changing was not easy to the CEO to accept without a clear image of the financial consequences. The report was provided by the marketing manager showed that the premium market is very volatile. On the other hand, the private brands market is more stable. (Full capacity at the price of 8,800 liras). Price is lower in the private market than the premium. The volume is depending of the number of retailers. ( Every additional retailer need at least 500,000 K/Y). The report was provided by the manufacturing director showed that costs are different in each amount of the volume and quality of beans. These costs include the cost of beans, labor and fixed cost. The company is able to save 65% of selling costs, 75% of R&D costs and 50% of administrative costs, if they choose the private brands market.(Director of strategic planning). Private brands’ retailers will pay slowly- 90 days instead of 30 days. (Financial officer). I took the sales price as the current price 8,800 liras. Most of the expenses are decline compare to what they were in 2000 beside also the profit. Marketing expenses were no longer there because the marketing percentage became 0% in this volume of the private market. The reason of having this decline is the gross margin of the private market comparing to the margin of the premium market. Sales price and cost in private market are less than what they are in the premium market. Cash flows are not stable during the year. It looks vary from quarter to another. In the cash flows, the retailers will pay in 90days (3months) period of time as what it is in the private market. The cash opining was 50% in the first month and 25% in next 2 months. The other expenses were divided by the 12 months equally. Variable and selling costs are showing in page(5). I don’t recommend the full transition to private market. The profit will be lower than what it is even if it is less volatile. There is no reason for the company to lose its premium market if the profit is low, too. I would support the chance of mixing the premium and the private markets together, because of the profitability there. Cafes Monte Case. (2016, Apr 28).

Future for fisheries Essay Example | Topics and Well Written Essays - 250 words

Future for fisheries - Essay Example Fishes are one of them. According to WWF, ‘two thirds of the worlds fish stocks are either fished at their limit or over fished’ (WWF, 2002). However, there are also other reasons for the depletion of fisheries that the writer has failed to mention or elaborate upon. One of the most glaring one is the contamination of water by industrial waste. Also not much attention is being given to these fisheries and many are being depleted as a result of neglect. The depletion or alteration of fresh water is further exacerbating the problem. Despite this, the short essay was a pleasant read and opens up the reader’s mind to the importance of the course. I agree that fisheries management is a very insightful course. Fishery management is a neglected topic and making such a course allows us as consumers to understand how we are contributing to the problem. I also agree that fish data analysis and other practical applications of the course would have been quite helpful in increasing our knowledge and interest in the subject. Overall, the writer has introduced many concepts in the short essay. His positive attitude towards the course was very pleasing to

Tourism and Economy Essay Example | Topics and Well Written Essays - 1250 words

Tourism and Economy - Essay Example However, domestic travel has been on the decline not just in Australia but the same trend persists in other countries such as the UK and New Zealand. Travel agents associate the decline in domestic tourism to the growth in the low-cost carriers (LCC) and also forecast that carriers such as Tiger Airways and Air Asia X would slowly kill domestic tourism. However, this may be just one of the factors responsible for the decline in domestic tourism. In fact, the LCC may also contribute to the economy by bringing tourists from overseas, thereby increasing the inbound tourists to Australia. Despite the global economic slowdown during the year ended September 2011 domestic tourism received a boost due to the strong mining sector, recovery efforts following the east-coast floods and stronger business confidence (Domestic Tourism Snapshot, 2011). The graph below confirms that there has not been a significant fall in domestic tourism over the decade. According to this report interstate holidays and visiting friends and relatives increased during this period but the focus was on short holidays. Not a significant growth in the domestic sector has been forecast but the reasons are more economic and not connected to low cost air travel. Source: Domestic Tourism Snapshot, 2011 However, some decline in domestic tourism has taken place. The reasons for the decline in domestic tourism have been associated with several factors. Outbound visitor nights have increased while there has been a fall in domestic weekend trips. Since 2004/05 a smaller portion of household consumption is bei ng allocated for tourism activity (Tourism Research Australia, 2007). The same trend was observed about 15 years ago when outbound travel grew by 6% while domestic travel increased by only about 1 percent per year. Therefore, the current decline in domestic tourism is not a new phenomenon. The driving factor for decline in domestic tourism in UK and New Zealand has also been associated with cheaper fares on short-haul flights. In the case of New Zealand the strength of the national currency has increased competitiveness for overseas holidays. In Australia consumer behavior and the attitude towards holidays has changed. Social, cultural and technological changes have resulted in lower tolerance (Tourism Research Australia, 2007). Australians prefer to spend their time and income on what makes them feel better now instead of deferring their holiday and obtaining gratification later. Domestic tourism has long lead times and lack of tangibility which places it a disadvantage compared to overseas holidays. It is intangible because of lack of communication and proper information. People want to experience their holiday and use it to learn through interactions. Domestic tourism in Australia is unable to fulfill the demands of the consumers who seek newer pastures. This has prompted the domestic tourists towards outbound tourism. Other factors include rising incomes and access to a range of destinations (TRA, 2011). Information and communication at the domestic level is lacking and none is willing to take responsibility. The drivers of domestic tourism are income and price while the drivers of outbound tourism are airfares and air capacity (TRA, 2011). As social and cultural changes have taken place, and as the dollar has become stronger, consumers find overseas travel much cheaper. The demand for outbound tourism has further been increased as cheap airfares and holiday packages are available. However, it is not just the costs but the excitement to experience somethin g different and to engage in activities and