Cafe Monte Bianco

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Engels; Short report Cafe Monte Bianco
Be2D27/10/12
There must be some serious decisions to have a successful company. Cafe Monte Bianco is searching for success and that is why they need to have a change in their company. They need to make a decision about if they will go for premium or private. There are two different choices. The premium is more luxurious and it also has a better quality. The private is the standard beans they sell in the market. The question is; will they choose for private or premium. My opinion about this is that private will be more successful than the premium. Under near I will explain thy private has more advantages. If they will go further with the luxurious version the fixed cost will be higher and unfortunately the output will depend on the production. Also the premium brand cannot be holded on stock. That is because the coffee beans will lose their freshness and quality. In exhibit 2 we could see that the premium brand is too much various in the market. This means there is no guarantee for production. On the other hand the private brand will have lower fixed costs. This would be a price of 781 million liras. Also the market is more stable. Unfortunately the prices of private are much lower than the premium but the output would depend on how many retailers they decide to serve. This means; more retailers, more money. Retailers pay much more slowly and this could be a problem but if they have enough clients it won't be a problem. Private has also more guarantees for maximum sales.

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