Café Xaragua, The Calgary Opportunity Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Café Xaragua, The Calgary Opportunity Case Solution

PEST Analysis

Political

1: Government Strength

Powerful political formation and organization support the growth and development of Cafe Xaragua Calgary chances in Canada.
Government solidity also allows businesses such as Cafe Xaragua Calgary’s chances to increase their business geographical and overseas as well.
Beneficial tax strategy permits businesses like Cafe Xaragua Calgary to grow and expand their business easily.
It is important for government and policy making organization to detect competition in the business.
Companies like Cafe Xaragua Calgary can take advantage of trade chances and trade accordance created.

Economic

Inflation rate

A low inflation percentage is needed in the economy of companies like Cafe Xaragua Calgary's chances to-succeed.
A low inflation percentage will help the business earn profits and become more structure-din increasing consumer willingness, as well as consumer paying outflow.
This business credit will be used for growth and expansion purposes
Business credit will also help in progress and establishment if the business foundation is at a high level.

Social

Anincreased amount of young people will give extra benefits to the company as it will allow the company a larger customer network.
Furthermore the young employees will once again benefit Cafe Xaragua Calgary with talented and educated staff, and therefore increasing the base of its business.

Technology

Canada has powerful technological
There is a high level of research on technological growth and development
Better technological base also helps to charm FDI, leading to regular advancement.

Solutions

1. They should continue their business in Calgary Farmer’s Market option, which means continuing to sell coffee products using an online platform and as well as they should also open the physical store as well.
2. To create further opportunities; Café Xaragua may open its own store in the Calgary area, through which they would reach more customers, increasing the café’s product’s awareness and increasing its profitability, as with an extensive awareness more people would be willing to buy the café’s products.

As the Calgary Farmer Farmer’s Market is full of growth opportunities, as in 2007, a North American Farm Marketing Association team released that Calgary farmers’ market is the efficiently-arranged farmers’ market on the continent. The market also received bestglory in 2005 Growing Alberta Leadership Gala, winning the Economic Development Award; and, named Calgary Farmers ’Market four “Best Farmers ’Market” many years.

Café Xaragua Balanced Scorecard

Financial Analysis

Café Xaragua is expected to generate $ 678040 sales in 2013 In addition, the cafe is also expected to sell 50% online for $ 300,000, resulting in a total sale of $ 678040 in 2013 Second, the variable cost due to the addition of kiosks is predicted at $76,466.00. The cost of goods associated with the online channel represents 20% of sales in 2012, which was added to the additional variable cost of stocks, resulting in the total COGS of $212,074 in 2013.

The cost of renting the 2012 revenue statement was added to the $6,080 rental cost of this stock, which has resulted in a total rental cost of $61,065. Marketing and wage costs account for 8.4% and 12.5% of sales in 2012, which has resulted in the sales and salary costs of $25,000 and $84,755in 2013.Machine and maintenance costs are calculated by multiplying last year's percentage which is 3% with more online sales, which are also added to the various cost of the key, which is estimated at $ 11,400 in total. Internet and telephone costs for 2012 are added to the same cost of internet and phone, reaching $ 4560 in 2013. In addition, the decline in the value of new furniture and appliances and trucks is calculated on the basis of a straightforward 10 and 7-year plan. The depreciation was included in last year's depreciation expenditure, which totaled $27,686 in 2013. Tax costs are calculated at an average of 30%.

The annual balance is also determined by the end of 2013.Fees, establishments and prepaid payments are calculated as a percentage of 2013’s sales, but the amount is added into the online sales value of $ 300,000, as all sales will be received by the company in cash, and there wouldn’t be any account available. Café Xaragua’s current assets have increased from $ 29,146 to $398,811.

In addition, non-current assets are calculated by subtracting the inventory value of past assets and subtracting their depreciation costs, as well as the inclusion of the purchase of toss and trucks and their depreciation. Non-current assets of the company are valued at 106562 in 2013. Debts include accounts payable (representing 1.66% of the annual sales revenue) and tax deductions deducted from the income statement.

The company's total assets (liabilities and equity) have increased from $ 136,979 in 2012 to $ 505,372 in 2013.................................

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Café Xaragua, The Calgary Opportunity Harvard Case Solution & Analysis