Academic Master

Business and Finance

BuckStar Coffee Company’s Expansion

To: Capital Improvements Committee members

From: John Doe

Date April 20th 2018

Subject: Alternative Choice

The company has amassed surplus capital in the last five years and this committee has to choose on whether the company will use the money for marketing or in expanding the company in other countries like Canada. A marketing firm called Biltz had the responsibility to evaluate these possibilities. However, we will stick to the expanding to Canada option.

BuckStar Coffee is a household name, which already has an online presence. The company has enough advertisements in the newspaper, TV stations and other forms of media. The happy hour and the provision of free coupons will be costly to the firm. The company will be retaining customers and not gain any. Advertising online and the hashtag is a brilliant idea. The Rush hour offers will make our stores full of customers.

However, expanding to Canada will increase the company sales rather than spending on the marketing of the products already known by Americans. Canadians are aware of the company and it has a good name. The company like any other business will be facing competition from Tom Hartons. Moreover, the border regulations will cost the firm dearly. Marketing is essential when it comes to any business venture in the world. The company cannot buy the first alternative option since we will major in retaining customers rather than increasing the scope of the company. BuckStar Coffee has its websites and already has an advertisement plan in place. Introducing hashtags to the consumers to share their selfies and be rewarded with free coupon is a bit generous for a business venture.

The introduction of the rush hour, free coupons to the consumers will definitely increase customer loyalty. The continuous advertisements on all forms of media, particularly on the TV will help in the creation of awareness of the company and its activities. However, the airing of these ads will be at a prime time and will cost the company $ 15000 which is expensive. Moreover going for the Canadian market is not going to be a smooth sailing. The whole project would take one year to set up all the stores in their demarcated locations. Renting and furnishing the existing building would equally be costly.83% of Canadians this positively of BuckStar Coffee compared to Munchkin Donuts’ 91%. Nonetheless, the 83% is a great figure for a new entrant in a particular. The best part is Munchkin Donuts, which widely used by the Canadians, is shutting down most of their stores. There are equally over 1500 locations that we can set up the company’s stores. Emerging the Canadian market might be costly as it is, but it the company will rip off eventually. There is evidence that Buckstar coffee products are in demand in Canada and their main competitor Munchkin Donuts is shutting down some of their stores.

In conclusion, the first alternative will increase customer loyalty as the second one will increase the number of consumers. Paying for advertisement fees will be costly for the first alternative just as setting up new stores in Canada for the second alternative. The second alternative is best for the thriving and longevity of the company. The second alternative might be more expensive than the first option, but it will map the company internationally.


John Doe



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