Homework answers / question archive / H3SD COORS CASE Please provide commentary for this response below Hello everyone, I recommended that Mr

H3SD COORS CASE Please provide commentary for this response below Hello everyone, I recommended that Mr

Accounting

Share With

H3SD COORS CASE Please provide commentary for this response below Hello everyone, I recommended that Mr. Browlow invests in the South Deleware Coors distributorship due to the sufficient sales potential in relation to the required initial investment and the consumer behavior related to Coors products. In evaluating the investment costs and available resources by Mr. Brownlow, it was concluded that he has substantial resources to invest. However, Mr. Brownlow did underestimate the initial investment required for success. I suggested he increase his estimate by approximately 26% to account for the 11.1 and 14.8% excluded in Table F. I estimated it'd take approximately 224,806 - 441,860 gallons (optimistic to pessimistic) to break even, which equates to roughly 3.3 - 6.5% market share. With the estimated market share being 8.9% in 2001, this seems feasible with a significant enough margin of error to give confidence in pursuing the distribution opportunity. It is crucial to consider the market growth and the consumer/retailer acceptance of the product as additional decision factors supporting the distribution. The reviews show a high acceptance rate, and the market is continuing to grow with individuals over 21. Because of the feasibility of exceeding the required break-even in sales, the market's acceptance and growth, and the high probability of profitability, I suggested that Mr. Brownlow consider investing in the South Delaware Coors distributorship.