Caribou Coffee - Essay Example

Do you see this acquisition as a positive for Caribou Coffee?

The Acquisition of Caribou Coffee Company by Joh. Benckiser Group has a positive impact on the firm in several ways. The acquisition will issue a novel possibility for Caribou Coffee to penetrate and enter new markets. John Benckiser Group is a German Company, and the acquisition can enable Caribou Coffee to enter the German Coffee and tea market. The acquisition can save the form of both money and time spent on entering new markets. Additionally, the acquisition can enable Caribou to expand its portfolio as it can provide a wider variety of products and services that can be explored. Through amalgamation, the Caribou's portfolio can increase and obtain a more significant market share.

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Why was a marketing plan important to Caribou as they entered the market?

The marketing plan was crucial for Caribou Company as it enabled it to recognize its marketing goals and elaborated on how marketing duties will help the organization attain its broader objectives and goals. The plan described how Caribou would apply the marketing mix, i.e., promotion, product, price, and place, to meet its marketing goals within the new markets efficiently. Moreover, the market plan enabled Caribou firm to select the best entry methods to new markets such as acquisition and investments. Ultimately, the marketing plan enabled the firm to identify its financial needs for entering the novel markets. Through the plan, the company was able to get the necessary financial and insurance support while accessing new markets.

Industry leader Starbucks has decided to pursue further sales growth by distributing its branded coffee through retail stores and expanding into the Latin American market, beginning with several outlets in San Juan, Puerto Rico. Should Caribou Coffee under the new management implement a similar growth strategy? Do you think that opening a drive-through window or putting a Caribou shop inside upscale food stores and Super-Target outlets would be useful strategies for Caribou marketers to consider?

Caribou Company can consider widening its investments by exploring different opportunities such as the Germany market. Through the acquisition by a German firm, Joh. A. Benckiser Group, Caribou can utilize the chance and explore Germany markets. That will enable the company to grow its investments and generate more profits. Additionally, it will be less costly to penetrate the German market since Joh. A. Benckiser Group already operates in the country.

Caribou marketers can contemplate opening drive-through windows since they provide employee-employee connection. Vertical opening windows can issue an efficient space where the company's kitchen staff can deliver coffee and tea to be collected by servers and waiters; to run to the table and be tailored to sizes that are needed. On the other hand, in areas that have high temperatures and for grocery setup, the firm can Super-Target outlets.

What do you think are two of Caribou's internal strengths and weaknesses? Also, identify two opportunities for and two threats to the company's success. Explain your answers

One of Caribou's internal strength is the provision of food donation and volunteer hour benefits for its employees that work more than twenty hours a week. That can boost the morale of its staff and can develop a positive attitude towards work. Another internal strength of the company is its diverse operation. Despite providing tea and coffee products, the company also offers grocery and food services. One of the opportunities the firm can utilize is to expand its food offering. The second opportunity is diversifying its beverage offerings and services. The threats faced by Caribou Company include competition from rivals such as Starbucks and an expensive way of marketing its commodities and services.

What types of environmental characteristics might influence Caribou's strategic decisions during the next five years?

The dynamic nature of a business environment is one of the factors that can determine Caribou strategic decisions in the coming five years. The changes in factors such as the choice and taste of the consumers, government policies, and technology, among others, can significantly impact the company's future strategies and developments. Furthermore, competition and the possibility of entry of new firms into the market can also play a significant role in the company's strategic planning for the next five years.