Write a memo about the expansion opportunity for which you will request funding. This paper should be a simple, narrative description.
See Example Below:
SUBJECT: Funding Request for Italian Market Expansion
Giant Coffee Company has proven itself to be a successful player in the coffee industry within the United States. It is due to this success that the proposition of expansion comes into play. The European coffee market is huge and a key player in that market is Italy; the focus of this market expansion. The average coffee bar in Italy sells around 230 cups of coffee a day (for comparison reasons, the average Starbucks location in the US sells around 190 a day) (Silverman, 2015). The Italian market would be a huge opportunity for Giant Coffee to expand, and doing it now, with the US’s current obsession with coffee, makes even more sense. Italy has been known for their delicious twists on coffee drinks, and if Giant Coffee can tap into that market, not only would US sales increase, but perhaps Italian influence would make way into our economy as well.
Key Information Sources
- Bloomberg – This website provides up-to-date financial data on companies in the stock market. Authors of these reports provide analysis, financial data (historic and current), and allow for projections to be made.
- CIA World Factbook – To understand the country in which to expand to, I will review the CIA World Factbook. This site provides information on geography, societal economics, country economy, and government types and policies. When entering into a new market, all of these factors must be considered so that businesses can flourish cohesively amongst different regulations.
- CoffeeResearch – This funded organization is dedicated to the statistics of everything coffee. Tracking trends as well as country-specifics, this tool will be utilized extensively to predict success along Italy’s current coffee market.
- Giant Coffee Website – This website provides critical information regarding the Company’s corporate missions and values, it is important to keep these in mind when expanding into other markets due to differences in culture and in socio-economic concerns.
- Giant Coffee Investor Information – The financial statements and balance sheets used to provide future projections as well as background knowledge to make informed business decisions
By expanding into a country where the coffee consumption is relatively high, the potential for success is very favorable, although a slow initial penetration may be observed. The knowledge that Giant Coffee would obtain from doing business in Italy would strengthen the US sector of the company and may also provide a stepping-stone to advance into other countries throughout the European region as well.
Silverman, M. (2015). Number of Starbucks Stores Worldwide from 2003-2015. Statista. Retrieved from:http://www.statista.com/statistics/266465/number-of-starbucks-stores-worldwide/