Review Investment Proposals
Ms. Matthews, Investment manager, wants to assess two investment
proposals that the ACH investment team is considering.
Ms. Matthews is considering partnering with a frozen yogurt company to introduce more frozen treats on its menus, similar to what the Canadian company Second Cup did with its partnership with Pinkberry. Stores would have to be remodeled to accommodate the extra space required to hold the yogurt bins, and there would be more capital expenditures required for additional refrigeration equipment. The frozen yogurt company, which has many low-fat options, has exploded in popularity over the last year, with lineups that span for blocks for its few locations and several millions of engaged follows on social media. The frozen yogurt company is backed by several private equity investors and has significant amounts of cash to invest in the partnership.
The second investment proposal would be to purchase a coffee roasting plant in Puerto Rico. ACH has been considering vertical integration in order to get more control over its costs, and to lessen its exposure to Asian suppliers under the current trade environment. Puerto Rican coffee beans are becoming more and more associated with premium products due to their exotic taste. Tropical storms have been wreaking havoc in the territory, causing some businesses to sell at attractive prices in order to rapidly exit the industry.
Ms. Matthews wants help to assess how these two proposals align with the strategy and mission statement of ACH, using SWOT analysis, ultimately, to make a recommendation whether to accept none, one, or both of the proposals.
mission statement of ACH is as follows:
Our mission is to be American families' favorite affordable coffee provider, providing high quality services for our guests and communities through cutting-edge innovation and partnerships."
what should Ms. Mathews do in order to take right decision. One should consider making a SWOT analysis.