Case 1 paper Essay Example | Topics and Well Written Essays - 2000 words - 1

Case 1 paper - Essay Example From the data in Tables A, B, C, E, F, and I, sufficient information was obtained to forecast revenue and cost for the business and for the Coors wholesale business being contemplated. Analysis of the initial customer, the industry demand, projections in market share, investments and costs, including a break-even analysis were conducted. The study concludes that Larry should take the opportunity to apply for the contract, and should not spend more than about $6,800 in availing of information from Manson. The principal problem which this analysis addresses is whether or not Larry Brownlow should apply for the Coors wholesale distributorship for a two-county area in Southern Delaware. The determining criteria for this is will be the fixed and variable cost study and the break-even analysis at the end of discussion, but also considered are the targeted customers, industry demand, market share, investments, and costs incurred. The secondary problem is to determine which research would be source from Manson and Associates to support a decision for the market potential of a Coors beer wholesale distributorship, but at the same time minimize the cost of acquiring this information. The industry demand is arrived at through the per capita approach and the taxes paid approach. The per capita approach involves the calculation of overall consumption in the industry, based on the historical data on the consumption per person and the growth of the target segment of the population that consumes the product. In Table 1 below are shown the US and Delaware per capita (i.e. per head or per person) consumption, while Table 2 shows the growth of the population in the two counties which comprise the market area. By multiplying the rate of consumption per person in Table 1 with the corresponding number of persons estimated in Table 2, then the result (in Table 3) is the estimated total consumption in units. This describes the total industry demand for the