Case # 4
South Delaware Coors, Inc.
10/28/2008
Problem Statement
Which research studies should Larry ask Mason and Associates to complete? Upon consideration of the research study results, is this new business venture a go?
Alternatives
Larry has several different options to choose from with respect to research studies that can be completed. As long as he stays at or under his $15,000 budget he can request that any combination of studies be completed by Mason and Associates. Larry was presented with 9 different research studies that may be of assistance to him in deciding whether or not this truly is a ‘golden’ opportunity.
The second part of the problem statement requires only two alternatives: To go ahead with the business, or to make a no-go decision.
Recommendation/Discussion
It is recommended that Larry choose the following studies for Mason and Associates to complete:
• Study A: National and Delaware Per Capita Beer Consumption for 1988-1992 in Gallons
• Study C: Estimates of Coors’ Market Share for 1990-1995
• Study E: Beer Taxes Paid by Delaware Wholesalers for 1988 and 1989 in the Market Area
• Study F: Financial Statement Summary of Wine, Liquor, and Beer Wholesalers for Fiscal Year 1988
• Study H: Retailer Study (if the retailers don’t stock the product, consumers will not get it!)
• Study I: Survey of Retail and Wholesale Beer Prices
The total cost of the studies completed would come to $11,249.50. Although the price of a 6 pack of Coors’ bottles can be easily looked up, if it were still 1990, a comparison of the competit ...