Risk and Ice Cream

Topics: Risk, Costs, Marketing Pages: 4 (1034 words) Published: April 6, 2011
November 22, 2010
There is good opportunity for ICEDELIGHTS and the franchisees who want to take on the venture. The first opportunity is the fact that all the franchisees are at an optimal time in their lives to start a new venture. They are in grad school, all have investment experience, and are not currently committed to jobs or spouses. This is the perfect time for them to get involved in a business. Technology also makes the opportunity positive. The fact that the ICEDELIGHTS business perfected a way to freeze homemade ice cream, and there is no need to make the gelati on the premises gives this business a competitive advantage from the start. This will cut costs of having gelati makers and whatever machinery comes with that. Another form of competitive advantage is the cost and quality of the product. ICEDELIGHTS found a way to make the highest quality gelati, for the lowest possible cost.

Another positive about the company is the marketing opportunities. ICEDELIGHTS is able to market itself as a café. They would derive sales throughout the day from coffee, pastries, and light snacks and then also use ice cream sales in the afternoon and evening hours. The continued topic of opportunities also includes that completing this venture will give the franchisees the rights to the entire state of Florida. The risk may be there, but having the rights to the whole state posses an excellent profit potential. Another opportunity for ICEDELIGHTS is the reaction from investors. Especially excited were the contacts that Mr. Rogers had. Not all investors were in stone, but the enthusiasm shown by many posses a great opportunity for the three men to succeed.

There were many critical risk factors faced by both the three men and the business as a whole. Starting with Paul, Mark, and Eric, they obviously have a financial risk. They are planning on investing their own money into a business where they have very little experience and little...
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