Zubino Case
Executive Summary
We are the consultants that focus on decision making for proposed acquisition, sharpen the company competitive edge and facilitate company’s growth in the long run.
First Issue: Proposed Sales for Zubinos
Zubinos have to make a decision on sell off the shares to Whistle Coffee Bar (WCB) and consider the fairness of the price offered.
Major shareholder: Mr Luis Zubinos is planning to sell off his entire family stake to WCB and consider the fairness of the price.
Minor shareholder: Two options provided to the minor shareholders for decision making on their shares.
Option 1: Sell off the shares
The shareholders whose are risk adverse and look for short term investment should sell off the shares to generate the profit on investment.
Option 2: Hold the shares for future growth
The shareholders whose are risk taker and look for higher profit on investment can hold their shares for future growth.
Recommendation
Mr Luis is advised to sell his entire shares since the share price offered is higher than market value. The minor shareholders are advised to make decision on their risk appetite for the sale. This is important because Zubinos is a high risk company and there is only one offer for the sale of shares currently.
Second Issue: Appropriate Overseas Expansion Strategy Going Forward
Zubinos is having a £1 million business loss because 30 loss making coffee shops in the expansion plan on Europe. The current expansion strategy is being considered and a new strategy is needed to be implementing for the expansion on future. Two options are develop based on different point on view from business management theory.
Option 1: Franchising
Zubinos can expand through franchise because they can obtain the assistance from WCB. They can ask for the expertise to design and provide professional advice for the expansion plan. Through franchise, Zubinos can save cost and earn from the franchise right fees.
Option 2: Open for new outlets
Zubinos expand
We are the consultants that focus on decision making for proposed acquisition, sharpen the company competitive edge and facilitate company’s growth in the long run.
First Issue: Proposed Sales for Zubinos
Zubinos have to make a decision on sell off the shares to Whistle Coffee Bar (WCB) and consider the fairness of the price offered.
Major shareholder: Mr Luis Zubinos is planning to sell off his entire family stake to WCB and consider the fairness of the price.
Minor shareholder: Two options provided to the minor shareholders for decision making on their shares.
Option 1: Sell off the shares
The shareholders whose are risk adverse and look for short term investment should sell off the shares to generate the profit on investment.
Option 2: Hold the shares for future growth
The shareholders whose are risk taker and look for higher profit on investment can hold their shares for future growth.
Recommendation
Mr Luis is advised to sell his entire shares since the share price offered is higher than market value. The minor shareholders are advised to make decision on their risk appetite for the sale. This is important because Zubinos is a high risk company and there is only one offer for the sale of shares currently.
Second Issue: Appropriate Overseas Expansion Strategy Going Forward
Zubinos is having a £1 million business loss because 30 loss making coffee shops in the expansion plan on Europe. The current expansion strategy is being considered and a new strategy is needed to be implementing for the expansion on future. Two options are develop based on different point on view from business management theory.
Option 1: Franchising
Zubinos can expand through franchise because they can obtain the assistance from WCB. They can ask for the expertise to design and provide professional advice for the expansion plan. Through franchise, Zubinos can save cost and earn from the franchise right fees.
Option 2: Open for new outlets
Zubinos expand
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