Café Xaraygua Case Study Analysis
Introduction:
The case is about Lehnert and his two friends who wants to invest in the Café business at Calgary, Alberta. Having several visits at Haiti and a lot of research about the area they have planned to open a Café at Calgary and introduce their own coffee brand from Haiti Due to lack of capital they need to take loan to start their business. In order to do so they want to make a proper business plan and analysis and present it to the potential investors to obtain required capital. (Lehnert, 2012)
Situational Analysis
Answer no 1
Answer no 2
Answer no 3
From the Breakeven analysis it could be seen that the actual sales are more than the breakeven sales identified for the company which is a good sign of profits for the café in the year 2.
Answer no 4
The café estimated revenues for year 2 is $ 1,008,312.5 which is lower than the target sales revenue of $1,029,072.3. In the year 2 the Café is not able to achieve its target but with consistent growth it is not impossible.
Answer no 5
Lehnert’s sales estimations are reasonable because the coffee market has a great potential in the region and the Café has therefore the ability to generate such revenues.
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