South Delaware Coors

1. Problems and Opportunities

Larry Brownlow has a business opportunity and decision to make regarding whether or not the business is a feasible option. This business opportunity is perfect for Larry because he will have access to most of the start-up costs and Coors, Inc. is expanding into his territory. Another opportunity was the ability to be successful in business in Delaware with Coors.

The problem is deciding which aspects of research will give him the most applicable information toward his feasibility study. The other problem is timing--he has little time and therefore, must be strategic about how this time between now and the deadline to apply for distributorship is used or spent. Ultimately, the problem is deciding if Coors is good business opportunity for Larry Brownlow.

2. Situation Analysis

a. Environmental Variables

i. The environment for Coors in Delaware was it an untouched state for brewery and the success of Coors in Delaware would largely depend upon the two wholesalers Coors was looking to bring into the organization.

ii. The technology used brew Coors is closely monitored and the recycling of the can (the exclusive form of packaging) was mandatory. While this protects the integrity of the product, it makes for additional expenses.

iii. Another element to consider is the perception amongst consumers that Coors is anti-union which can often be synonymous with anti-American.

b. Strategic Marketing Issues

i. The product is an older product and may be seen as uncool and less attractive--this too could affect sales.

ii. The price may affected by the strict and extensive brewing and packaging process--cans only and a special refrigeration process.

iii. The advertising or promotional slant of the product may be successful as Coors was the first amongst all breweries to implement a mandatory recycling program.

iv. Identifying the target markets could be easy as the product is established and popular in adjacent states.

v. Some strategic marketing issues are ranking in sales compared to other brands--Coors ranks fourth which is an indication that the beer may be in maturity stage from a product life cycle perspective. This would mean success could be short lived if decline is sooner than later.

c. Finance Issues

i. $500,000 trust left to Larry (Larry's money) would be used to finance the business deal.

ii. $400,000 line of credit would be extended to Larry for business from bank.

iii. $400,000 from family members for business.

iv. $1.3 million total is accessible for financing business

v. Over $1 million would be needed to start the business in its first year.

d. Management and Policy issues

i. Union negotiations and legal implications in working with unions and communities.

e. Accounting Issues

i. Low financial estimates such as salary estimates.

3. SWOT Analysis

a. Strengths- It is a strength to the product, company and distributor that they're penetrating a new market in Delaware. Another strength is that there will only be two distributors in the state--more market share, less to split.

b. Weaknesses- Coors ranks fourth and may be in maturity on the way to decline stage in product life cycle. Consumer perception