There must be some serious decisions to have a successful company. Cafe Monte Bianco is searching for success and that is why they need to have a change in their company. They need to make a decision about if they will go for premium or private. There are two different choices. The premium is more luxurious and it also has a better quality. The private is the standard beans they sell in the market. The question is; will they choose for private or premium. My opinion about this is that private will be more successful than the premium. Under near I will explain thy private has more advantages. If they will go further with the luxurious version the fixed cost will be higher and unfortunately the output will depend on the production. Also the premium brand cannot be holded on stock.
That is because the coffee beans will lose their freshness and quality. In exhibit 2 we could see that the premium brand is too much various in the market. This means there is no guarantee for production. On the other hand the private brand will have lower fixed costs. This would be a price of 781 million liras. Also the market is more stable. Unfortunately the prices of private are much lower than the premium but the output would depend on how many retailers they decide to serve. This means; more retailers, more money. Retailers pay much more slowly and this could be a problem but if they have enough clients it won’t be a problem. Private has also more guarantees for maximum sales.
The big question for interstate is; which country should be the best choose for Interstate? Interstate is a company in New York City that is specialized in international insurance for small corporations. Interstate is searching for the best options what is possible for them. They would like to expand the company by creating a new call centre in another country or state. They are hoping to reduce operating costs. There are four countries that are selected as the most potential hosts. Those are; China, India, Philippines and Canada. Every country has got advantages and of course disadvantages. Now i will explain why i think that Canada is the best option for Interstate. The most attractive side of China, India and Philippines is that the operating costs are much lower. When we compare it with Canada we could see a difference of 5 xs. Also the employee costs and living costs are much lower.
The advantages of those countries do not give Interstate the guarantee of innovation. Maybe the cost of employees are cheaper but could a person in India or China, with no education, work in a call centre? So my opinion about the advantages of those countries is positive, but it does not make any sense to me. Canada is maybe expensive and the hope for reducing costs is very low, but the business side of this country is very high. The most important point is that the competitiveness is very low. If this was high, Interstate should have problems by entering this market. Also a percentage of 58% give the guarantee for good working employees. In the business market it is important to have educated people in your company. Especially, for a call centre are educated employees required.