http://www.babson.edu/Academics/teaching-research/research-publications/chilean-

Question

http://www.babson.edu/Academics/teaching-research/research-publications/chilean-cases/Documents/cory-no-ecch.pdf

Business case questions

1. Which is the more profitable business line: Cory Austrian Pastries or Gloriet? Why
not allocate all the resources and efforts to the more profitable business?
2. Should the company close its pastry shops and focus solely on meeting the orders of
its wholesale customers through delivery of products?
3. How should the company finance new investments to leverage its growth?
4. What are the main disadvantages to growing the business via franchising?

Explanation / Answer

Based on the analysis above we conclude that the coffee shop industry is a very attractive market (high margins, growing demand) for the companies that are already established, such as Starbucks or Dunkin

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