The Roasted Company - Case Study

1438 words - 6 pages

Companys Overview
The Roasted Company began as a small regional roaster and seller of coffee in the town of London, Ontario. It was sourcing the green coffee beans from more than 20 different countries, and it was managing its process of roasting the beans in a house. Its coffee was served at its coffee shops. However, some interesting wholesale cafes and interested parties were also served by the coffee from the Fire Roasted Company. Its systems were updated in 2017 after its founder and the president discovered a new set of prices for different coffee beverages on the company's menu. These beverages which were recognized by the president include; latte, macchiato, mocha, Americano, cappuccino and drip coffee. The president preferred different methods of finding the costs of the items and using those costs to make pricing decisions of the different types of beverages.

SWOT Analysis
SWOT analysis is a management accounting management tool that is used both external and internal factors affect the operations of the business. There are mainly four significant components in the SWOT analysis which include; Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal elements, and therefore any company has some control on most of the strengths and weaknesses. A company should use its strengths to obtain more market share and thus boost its revenues. It should strive to limit its weaknesses to the extent of not being identified by its competitors.
On the other hand, opportunities and threats are external factors, and thus in most cases, the management of the firm has little or no control at all. A company should advantage of the opportunities in the market so that it can gain more market share thus boosting its sales. Threats negatively affect the existence of the firm, and therefore, management should deal with the threats that may face the company to avoid some negative impacts which may lead the firm to lose a market share to its competitors. In this section of the paper, I will do a SWOT analysis of Roasted Coffee Company using the four components.

Strengths
These are the companys capabilities and resources that it uses in designing, developing and sustaining its competitive advantage in the market place. From the case study, there are several strengths which have made Roasted Coffee company maintain its competitive advantage in the coffee market despite stiff competition.

Wide geographic presence
The company has extensive associate and dealer networks which help the company not only in delivering its services efficiently but also helping the company to manage contentious issues in the management accounting industry.

Market leadership position
Roasted Coffee Company has a strong market leadership position in the management accounting industry which has assisted it to increase the success of its new products rapidly.

First mover advantage
The market for coffee has increasingly been crowded. Howev...

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