Green Mountain Coffee Roasters

brand/company. If they build up sales for the Keruig other rival roasters would receive a free ride from GMRC marketing investment and adopt the product and be able to gain revenue from the product. This would allow rival roasters to obtain market share of the K-Cup from GMCR. The second issue is related to both GMCR and Keruig. Capital is going to be a big component of the structure of this deal because it is a concern of GMCR and Keruig. We know that Keurig need to be able to spread out its production costs which is starting to be a burden for them. GMCR on the other hand has been expanding so capital is quickly becoming scare but they still have a pretty credit line with their bank and cash on hand. They do not want to tap into the rest of their credit line until 1998, which is when Keurig wants to launch the product. They must be able to work something out where GMRC can stay within its 4.5 million range and where Keurig can outsource it production line, which is roughly about $700,000. I think the position that both parties will allow them create a deal where they both benefit in positive ways and if the product is successful capital and other sources of funding will not…

between a calendar year and a fiscal year is that a fiscal year is determined by a company's business cycle, whereas a calendar year is January through December. Starbucks, choose a 52- week fiscal year because it enables them to provide financial reports over periods lengths. Likewise, GMCR operates on a 52 week fiscal year in order to show sales and progress over lengths of time. It is stated on their SEC file including the balance sheet that they have a 52 week week fiscal cycle and the cycle…

Control Peet’s Coffee It has been requested that we audit for Peet’s Coffee and we have accepted this audit engagement. We will outline in this document the necessary steps to plan the audit we are going to perform for Peet’s Coffee. First, we must get an understanding of the client’s business. Peet’s Coffee is a publically traded company that was founded in 1966. The first Peet’s Coffee shop was located in Berkley, California and was ran by the owner and founder, Alfred Peet. Peet’s Coffee…

Days’ sales in receivables calculated for October 2, 2011 was noted at 10.75 days. 6. Starbucks would be able to pay off any current liabilities easier than Green Mountain Coffee Roasters. Starbucks collects its average accounts receivable more frequently than Green Mountain. Starbucks will collect their average accounts receivable in fewer days. Chapter 9: Financial Statement Case 9-1 on p. 601 1. The Starbucks Corporation is using straight-line depreciation for their financial statements and…

Introduction About 83% of adults’ drink coffee in the US which averages to about 3 cups a day which is the world’s biggest consumer beverage (Republic). Coffee is becoming a trend for most households in the United States. Keurig has noticed this trend and decided to jump at the first opportunity it had to become the first-mover. Keurig has been the leader in single-brewed coffee systems for over 35 years. Keurig gave coffee lovers ability to brew a cup of coffee conveniently in their home,…

PAUL W. MARSHALL JEREMY B . D ANN Keurig Nick Lazaris waited patiently at the stoplight, knowing he had plenty of time to make the early meeting at his Wakefield, MA office. This morning, Lazaris—President and CEO of Keurig, Inc.— would bring his top management team (Exhibit 1) up to date on problems developing in the company’s relationships with two critical vendors. The problems had already caused delays in the full roll-out of Keurig’s revolutionary coffee brewing system. Whenever he…

Keurig is a coffee company. Their concept is basically instant brewing, where people can just brew a fresh cup of coffee without the whole mess in a minute or less. Keurig was a privately held business in 2002 with only $20 million dollars in revenue, until it was sold 9 years later to Green Mountain Coffee Roasters, Inc., a publicly traded company with a net revenue of $1.36 billion and market capitalization of about $9 billion. Keurig had three significant shareholders. MDT which led the…

Focus differentiation is the Keurig’s business-level strategy. Business level strategy: Mainly, who- Coffee devotees What requirements, wishes, and wants will we make happy? Quick, high superiority coffee Why do we desire to make happy them? Increase attention for single cup brewing And the how will we make happy customers’ requirements? Yes, the company’s business-level strategy been victorious because our Business level approach for Keurig engages developing and supervision advertising…

Starbucks (SBUX) first started in 1971 as a roaster and retailer of whole bean and ground coffee, tea and spices in a single store in Seattle’s Pike Place Market. Today, they have expanded to more than 23,000 retail stores in 68 countries. Starbucks is named after the First Mate in Herman Melville’s “Moby Dick.” The sea featuring a twin-tailed siren from Greek mythology also inspires the company’s logo. Their mission statement is: “to inspire and nurture the human spirit – one person, one cup…

Name Starbucks Coffee Company Industries served Restaurants (Coffeehouses) Geographic areas served Worldwide (21,366 coffeehouses in more than 63 countries) Headquarters Seattle, Washington, United States Current CEO Howard Schultz Revenue $16.44 billion (2014) 10.6% increase over $14.86 billion (2013) Profit $2.06 billion (2014) 23,396.59% increase over $8.8 million (2013) Employees 191,000 (2014) Main Competitors Caribou Coffee Company, Costa Coffee, Dunkin' Brands Group, Green Mountain…