Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages To Order 5-10 Pages Description/Paper Instructions
Marques Gourmet Coffee
Jose Ricardo Marques from San Pedro, Brazil is a fourth generation coffee plantation grower. Jose’s great grandfather, Manual, started with 1,000 acres of coffee bean trees in the fertile valley of Brazil in the early 1900s. Through careful harvesting and production processes, Manual was able to develop a high quality premium coffee bean, which is used in the finest quality coffee blends. The family now owns close to 50,000 acres of coffee trees and is a major supplier to national companies specializing in gourmet coffee brands.
As Marques Coffee Beans has moved through the generations, family members have assumed various roles in the company operations. Jose, who grew up with the business, went to the Unites States for his college undergraduate degree and stayed on to earn an MBA degree with an emphasis in entrepreneurial studies. His goal has always been to start his own coffee company in the United States.
Once Jose finished his college training and earned his masters degree, the family gave him $1,000,000 to establish his business. Jose decided to locate in New Orleans, which was reasonably close to his supply link of coffee beans with direct air connections to his family farms in San Pedro. Jose also thought the New Orleans area, with its reputation for quality foods, would be an excellent local market to introduce his new gourmet coffee.
Jose was considering three different approaches to get his coffee brand produced and marketed in the New Orleans area. In the first option, he wanted to tie into the current cultural music fad and identify his coffee brand with the local music artists that were popular at the time. Jose felt that he could get immediate success with large levels of sales in the first two years, but as the fad dies off, his coffee sales would also decline. By the end of five years, he may have to develop a new brand or at least change the name of the current brand. This option has some risks as Jose would have to invest a lot of resources and time immediately to get acceptance of his coffee. He would have to quickly develop an efficient production system, which would also provide a high quality product desired by a wide diversity of users.
A second option Jose was considering was a go-slow approach and develop a coffee brand which would tie in with the scheduled Pan American games in four years. Brand sales would peak in the fourth and fifth years and possibly decline after the games are over. This option also had some risks. While it was not as critical to get the
production operations quickly up and running and capturing a market, there was still a considerable cost in initial product development and a commitment to high quality. There was also some risk that the coffee brand would not gain the large market needed for overall success.
The third option was to just produce a gourmet coffee brand without any connection to a cultural fad or event. Sales would be aimed at a smaller segment of a target market with the idea of building up a gradual loyal following. This option probably has the least amount of risk if a general level of acceptance could be obtained. Changes could be made throughout the time period to refine the production process and product quality. There would not be the need for as large an expenditure of resources either at the start of the five-year cycle or at the end of the time period.
Jose wanted to consider the potential returns for each of these three options over a five-year time period. In using a more conservative approach, he wants to assume that the entire $1,000,000 of up front money would be required at the start of the operation. $800,000 would be used for equipment purchases, which would be subject to depreciation at $100,000 per year. The other $200,000 would be for working capital requirements. Jose is fully anticipating that the business will be successful and he will be continuing the operation for many years to come. However, for purposes of this analysis he decided to assume that at the end of 5 years he would terminate the coffee production operations and sell all the equipment for 10% of its original value.
Jose developed the following tables for projected revenues and operating costs for each of the next five years for each of the three options he was considering.
Projected Revenues
Years 1 – 5
Dollars in 1,000s
Year Option 1 Option 2 Option 3 1 $800 $200 $600 2 $1,300 $400 $700 3 $800 $800 $800 4 $500 $1,500 $900 5 $300 $1,800 $1,000
Projected Operating Costs
Years 1 – 5
Dollars in 1,000s
Year Option 1 Option 2 Option 3 1 $450 $150 $270 2 $650 $200 $300 3 $300 $350 $350 4 $150 $650 $400 5 $100 $750 $450
The projected tax rate for the company is 22%. Jose believes that any of these coffee brand strategies should bring an 12% return on investment.
Dialog:
Jose Marques has hired you as his Investment Banker. In your first dialog post, write Jose a 400-500 word recommendation that addresses two issues. First, Jose has asked, before evaluating the capital budgeting metrics, that you eliminate one of the choices based solely on your experience. What choice do you eliminate and what is the single main reason? Second, calculate the NPV, IRR and Payback for the remaining two choices. State which project to choose based on
- the capital budgeting numbers, b) one additional financial reason for the choice you prefer, and c) one key reason that argues against the choice you don’t like.
In your second post, reply to a teammate that chose a different investment option for Jose. In 150-250 words, with supporting numbers, indicate why you arrive at a different view.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. The can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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