You're having lunch with a friend, Kyle, that is seeking some business advice. Kyle is thinking...

 

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You're having lunch with a friend, Kyle, that is seeking some business advice. Kyle is thinking of opening a coffee shop in Philadelphia (population of 1.5 million), and would appreciate your perspective on whether or not it is a good idea. In addition to your general thoughts, there are some specific questions to answer, and you should feel free to ask for any clarification or guidance on assumptions that you will need. You'll have 15 minutes to ask questions and formulate your responses prior to a 15 minute discussion. Note that this is meant to be an open-ended and unstructured exercise with no right answer. Questions: 1. What is the market opportunity (in terms of dollars) for the proposed coffee shop? 2. How much would it cost to operate a coffee shop per year? 3. How many cups of coffee would Kyle need to sell to break even in the first year? a. Be sure to note the startup costs that will be incurred in year one 4. How many cups of coffee would Kyle need to sell to take out $100,000 in profits after the first year? 5. What do you foresee as the major risks to this business endeavor? You're having lunch with a friend, Kyle, that is seeking some business advice. Kyle is thinking of opening a coffee shop in Philadelphia (population of 1.5 million), and would appreciate your perspective on whether or not it is a good idea. In addition to your general thoughts, there are some specific questions to answer, and you should feel free to ask for any clarification or guidance on assumptions that you will need. You'll have 15 minutes to ask questions and formulate your responses prior to a 15 minute discussion. Note that this is meant to be an open-ended and unstructured exercise with no right answer. Questions: 1. What is the market opportunity (in terms of dollars) for the proposed coffee shop? 2. How much would it cost to operate a coffee shop per year? 3. How many cups of coffee would Kyle need to sell to break even in the first year? a. Be sure to note the startup costs that will be incurred in year one 4. How many cups of coffee would Kyle need to sell to take out $100,000 in profits after the first year? 5. What do you foresee as the major risks to this business endeavor?

Answer rating: 100% (QA)

1 To determine the market opportunity for the proposed coffee shop we need to gather information about the coffee industry in Philadelphia Some questi... View the full answer