Coffee Shop Essay

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1.0 Term of reference This report has been prepared for the Board of Zubinos to prioritize and discuss the issues faced by Zubinos and make appropriate recommendations. This report has been prepared solely for the use by the Board of Directors of Zubinos based on information provided. 2.0 Introduction and key issues Zubinos is a branded coffee shop operating around UK. Zubinos was incorporated in March 2001 by Luis Zubino. Its turnover exceeded £897,000 during year 2005. Zubinos adopted differentiation strategy and distinguished themselves by selling a range of freshly made sandwiches with high quality fillings and other food items. Besides, they also sold a specialized brand of ice-cream imported from Italy. Zubinos is a private entity which 60% shares are owned by directors of Zubinos including Luis Zubino and meanwhile, the balance of 40% shares is owned by Kite Private Equity (KPE). Appendix 1 shows the SWOT analysis which analyse the inherent strengths and weaknesses of Zubinos and the opportunities and threats currently faced. Appendix 5 shows the organizational structure for Zubinos. 3.0 Proposed Sale of Zubinos 3.1 Prioritisation A bid from Whistle Coffee Bar (WCB) is the most important issue to Zubinos which this offer a chance for KPE to exit Zubinos at £ 14.00 per shares and affect the future of Zubinos strategic decision. Luis Zubino is adamant that he doesn’t wish to sell his shares to WCB and wants to convince other Zubinos shareholders by preparing a sound case to KPE instead. 3.2 Discussion 3.2.1 Financial aspect The success expansion of Zubinos had ignited WCB interest. Initially, WCB had offered a bid to acquire Zubinos for a cash prize of £ 15.00 per Zubinos share and willing to offer senior management positions in WCB for many of the Zubinos management team. However, due to the adverse publicity happened on Zubinos, WCB has

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