Prepare a business case and financial plan for your selected organization.- Company selected must be an existing organization with publicly available information, ( I suggest picking an organization...

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Prepare a business case and financial plan for your selected organization.- Company selected must be an existing organization with publicly available information, ( I suggest picking an organization from the Fortune 500 ( Target may not be used) . Read through the assignment requirements, explore, and select an organization that will be suitable.






There are TWO deliverables for this assignment - a Word document and an Excel spreadsheet.






World Count - Paragraphs are 175-250 words. Focus on meaningful analysis.






Describe the existing business, including the type of business, industry dynamics, competitive rivalry, ( one to two paragraphs)






Create the business case.



  • EXPLAIN. PROPOSE why funding is needed for the company. For example: expanding existing operations into a new global market, development of a new product, etc. ( one paragraph)

  • Determine the potential sources of funding for the project - discuss three types of funding . Consider self-funding, borrowing, equity, venture capital, etc. ( three paragraphs - one paragraph per funding type, be specific, have specific, realistic, justified, supported analysis) . Also Include in each paragraph:

  • Evaluate the requirements of each of the three funding sources you identified.

  • Analyze the associated risks of each of the three funding sources.

  • Estimate the cost of capital for of the three funding sources under review.. Research current estimated APRs for each of the three sources of funding. Create a table to display this information. ONE TABLE WITHIN THE WORD DOCUMENT

  • Select your chosen funding source and justify your decision as why the funding source is the best fit for your project and organization. Have at least three reasons Justifying selection. ( one to two paragraphs)

  • Analytical Summary - three paragraphs. Create a summary to highlight key points of benefit and concern of the project and the data in your profit and loss statement. You are making a final case ( financial, strategic, vision, etc) for proceeding with the project, benefit to the overall organization, potential risks, and how the project advances the existing strategic vision of the organization.






Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections. Estimate direct costs, including capital, marketing, labor, and supply costs.


















Cite references to support your assignment.



Format your citations according to APA guidelines.



Submityour assignment.Two deliverables - One Word document with your analysis and one Excel document with your 3 year profit and loss statement.





Answered 2 days AfterApr 02, 2021

Answer To: Prepare a business case and financial plan for your selected organization.- Company selected must be...

Tanmoy answered on Apr 04 2021
152 Votes
Starbucks - Tea Business in India
Starbucks
Starbucks is a coffee house situated in American and is situated multinational. It was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker in the year 1971 in Seattle, Washington DC. Starbucks brought the second waves of coffee culture throughout America. Presently it is located in more than 70 countries and operates in more than 30000 locations
. Starbucks serves hot and cold coffee with various flavours along with chips and crackers as well as fruit juices, pastries and snacks.
Market Analysis
Starbucks will try to focus on their business in India and for this reason we will try to analyse the coffee market of India. Starbucks have atleast 185 coffee shops throughout India. In India currently Starbucks works in joint venture with Tata Group. The revenue of Starbucks as on FY 2019 was $447 crores with sales $541 crores. Starbucks outlets are located mostly in the metropolitan cities in India (Sagar Malviya - ET, 2020).
In India the retail coffee chains is huge and have already generated $940 million as on 2021. Also, the demand for coffee is highest in Southern India followed by north and west India. The demand for coffee in east India is very low. But, the coffee market in India is expected to grow annually by 7.18% (Statista, 2021).
Business Plan
In this discussion we will try to focus on Starbucks’s new business plan of opening tea shops in India. In India tea is preferred more than coffee. It has long been a part of Indian culture. It’s around 54% to 46% ratio of tea to coffee consumed in India. Although 25% of the young population in India prefers coffee but tea is consumed by all age groups (Bhawna Singh, 2019). The new business will focus on making masala tea whose demand is growing in India. This tea is also known as “Masala Chai”. Masala tea is made from various herbs and spices along with flavours of ginger, cardamom and lemongrass mostly common in the Indian street sides (Walk through India, 2020). This business plan is a strategy to increase the sales of Starbucks tea and various other food items in their outlets.
Tea market in India
In India as on FY 2020 almost 1.10 million tons of tea was consumed. It is forecasted to grow further by CAGR of 4.2% by FY 2025. India is also the second largest manufacturer of tea after China. Almost 80% of the total output is consumed domestically in India. The demographic of tea consumption in India is 80% of urban household compared to 75% of rural households prefer consuming tea (EMR, 2020). As per the reports from Statista almost 65.8% of Indians drinks tea everyday and for each cup of coffee the Indians drinks approximately 30 cups of tea (Televisory, 2019). Hence, it is very essential for Starbucks to tap the ever growing tea market in India.

Starbucks tea menu in India
In India Starbucks will try to focus on making Masala Tea along with other types of tea like Kashmiri tea, Butter tea, Herbal tea, iced tea, lemongrass tea, Irani tea and Tandoori tea. The price for each cup of tea will be $1 and will be targeted towards the middle and upper middle class tea lovers in India. The tea will be served within the existing Starbucks outlets in India. To promote the special tea items it will be Starbucks website, social media and newspapers used to advertise the Masala tea in India. Also, the healthy benefits of consuming this tea will also be highlighted on the website. Finally, the reason for consuming tea from Starbucks rather than from the roadside “chaiwalla” or teamaker will be also illustrated.
Potential sources of funding
Most of Starbucks funding in India is from the 50:50 joint venture with Tata Group. Apart from that its funding is from long term debt. It also gets funding from equity but presently in FY 2020 due to company’s total liabilities higher than the total assets the equity is appearing negative. So the three sources of funding in Starbucks are Joint...
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