Kapoor Coffee Case
Bisha Rumich
Questions #1 and #2
An analysis of the current situation of the business using the available information
According to the information provided the current culture of tea drinking is changing due to the introduction of the coffee culture in India. A London based International Coffee Association study shows coffee consumption is growing at double-digit rate per annum, compared to a slight two percent above the global average. A look at Kapoor Coffee shop shows a shift in revenue where in 2008 the total revenue was $ 915,000 and in 2009 was $ 930, 000. However, looking at the net profit the year 2008 had a greater yield with $ 32,300 and in 2009 a deficit of $13,710 despite having a greater revenue thus a red flag in the operation and profitability of the Coffee shop. The coffee shop is experiencing a decline in sales growth, which is lower than expected and also compared to the local industry. Sales increased by 1.64% which is very low as the growth consumption of coffee has doubled. The table below gives an analysis of the current financial situation of Kapoor Coffee. …show more content…
In addition, the shop has a high inventory, which suggests that the company is having problem turning over the inventory through sales, which could be influenced by factors such as poor customer service as a result of unskilled workers or failure to attract new customers. There are various situations that could be causing the decrease in the profitability and performance of Kapoor Coffee shop thus the need of a SWOT analysis. A SWOT analysis will help determine the current situation of Kapoor Coffee by depicting the company’s internal strengths and weaknesses and external opportunities and threats so as to formulate strategic ideas needed to improve the
Bisha Rumich
Questions #1 and #2
An analysis of the current situation of the business using the available information
According to the information provided the current culture of tea drinking is changing due to the introduction of the coffee culture in India. A London based International Coffee Association study shows coffee consumption is growing at double-digit rate per annum, compared to a slight two percent above the global average. A look at Kapoor Coffee shop shows a shift in revenue where in 2008 the total revenue was $ 915,000 and in 2009 was $ 930, 000. However, looking at the net profit the year 2008 had a greater yield with $ 32,300 and in 2009 a deficit of $13,710 despite having a greater revenue thus a red flag in the operation and profitability of the Coffee shop. The coffee shop is experiencing a decline in sales growth, which is lower than expected and also compared to the local industry. Sales increased by 1.64% which is very low as the growth consumption of coffee has doubled. The table below gives an analysis of the current financial situation of Kapoor Coffee. …show more content…
In addition, the shop has a high inventory, which suggests that the company is having problem turning over the inventory through sales, which could be influenced by factors such as poor customer service as a result of unskilled workers or failure to attract new customers. There are various situations that could be causing the decrease in the profitability and performance of Kapoor Coffee shop thus the need of a SWOT analysis. A SWOT analysis will help determine the current situation of Kapoor Coffee by depicting the company’s internal strengths and weaknesses and external opportunities and threats so as to formulate strategic ideas needed to improve the